Juan Velasco Alvarado lowest amount of arable land per capita in South America, according to scholar Jay Cristobal. Less than 2% of the Peruvian territory is arable land, with 98% of the territory composed of arid desert with little rain, harsh mountains with very steep terrain, or wild Amazon forest. The deposed Belaúnde administration had attempted to implement a milder agrarian reform program, but it was defeated in Congress by the APRA-UNO coalition with support of the major landowners. Within this framework, the Velasco administration engaged in an aggressive program of import substitution industrialization, imposing tight foreign exchange and trade controls. The success
Juan Bautista Alvarado Frémont arrived in Monterey at the beginning of 1846. Afraid of foreign aggression, Castro assembled his militia, with Alvarado second in command, but Frémont went north to Oregon instead. An unstable political situation in Mexico strained relations among the Californios and it seemed that civil war would break out between north and south. On July 7, Commodore John D. Sloat occupied Monterey, declaring to the citizenry that the Mexican–American War had begun. Pico, Castro, and Alvarado set aside their differences to focus on the American threat, but by the end of August, Pico and Castro fled to Mexico, and Alvarado