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 Economy of Peru Peru is classified as "upper middle income" by the World Bank and is the 39th largest in the world by total GDP. Peru is one of the world's fastest-growing economies, with a 2012 GDP growth rate of 6.3%. It currently has a high human development index of 0.741 and per capita GDP above $12,000 by PPP. Neo-classical economists would interpret Peru's sound economic performance as a combination of: However, Post-Keynesian economists would argue that what neo-classical economics considers to be "prudent" fiscal spending is nothing more than a means to restrict government spending in order to make