Peru–Bolivian Confederation three states: "North Peru", "South Peru" and "Bolivia", and its capital was the city of Tacna, in southern Peru. The creation of this new nation was very well received in the south of Peru, since this area was able to benefit fully from the lifting of the previous commercial restrictions, but was bitterly resented by the elite of Lima and the north of Peru, which had traditionally benefited from a close commercial relationship with Venezuela. In each of the Confederation’s states, there was, from 1837 until the dissolution, a “provisional president” under Marshal Andrés de Santa Cruz, who was styled
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