Economic history of Peru market. By the mid-19th century, the reversal of the socioeconomic hierarchy was complete; Peru would not recover its Viceroyalty-era supremacy (Mahoney, 86). Peru embarked on a railroad building program. Henry Meiggs built a standard gauge line from Callao across the Andes to the Interior, Huancayo; striking for Cuzco he built the line but also bankrupted the country. In 1879, Peru entered the War of the Pacific which lasted until 1884. Bolivia invoked its alliance with Peru against Chile. The Peruvian Government tried to mediate the dispute by sending a diplomatic team to negotiate with the Chilean government, but the committee
Protectorate of Peru independence of Peru by José de San Martín on July 28, 1821. During the Peninsular War (1807–1814) central authority in the Spanish Empire was lost and many regions established autonomous juntas. The viceroy of Peru, José Fernando de Abascal y Sousa was instrumental in organizing armies to suppress uprisings in Upper Peru and defending the region from armies sent by the juntas of the Río de la Plata. After success of the royalist armies, Abascal annexed Upper Peru to the viceroyalty, which benefited the Lima merchants as trade from the silver-rich region was now directed to the Pacific. Because of