Chile–Peru relations Peru had a secret defensive alliance with Bolivia, Peru did not declare war on Chile even after Chile invaded the Bolivian port of Antofagasta. War was not declared formally until Chile declared war on both Peru and Bolivia in 1879. Peru declared war on Chile the following day. The war resulted in a Chilean invasion of Peru and the destruction of various Peruvian buildings, cities, a major raid and a two-year occupation of the capital of Peru, Lima. The ultimate result of the war left a deep scar on the three societies involved, and the relations between Peru and Chile
Economy of Peru and political stability, but it slowed again after the government delayed privatizations and as political uncertainty increased in 2000. President Alejandro Toledo has made investment promotion a priority of his government. While Peru was previously marked by terrorism, hyperinflation, and government intervention in the economy, the Government of Peru under former President Alberto Fujimori took the steps necessary to bring those problems under control. Democratic institutions, however, and especially the judiciary, remain weak. The Government of Peru's economic stabilization and liberalization program lowered trade barriers, eliminated restrictions on capital flows, and opened the economy to foreign investment, with the result