Chile–Peru relations and Angamos (Oct. 8, 1879) enabled Chile to control the sea approaches to Peru. A Chilean army then invaded Peru. An attempt at mediation by the United States failed in October 1880, and Chilean forces occupied the Peruvian capital of Lima the following January. Chile was also to occupy the provinces of Tacna and Arica for 10 years, after which a plebiscite was to be held to determine their nationality. But the two countries failed for decades to agree on what terms the plebiscite was to be conducted. This diplomatic dispute over Tacna and Arica was known as the Question
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