Peru was heavily indebted, and political in-fighting was again on the rise. Peru embarked on a railroad-building program that helped 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 concluded that war was inevitable. Chile declared war on 5 April 1879. Almost five years of war ended with the loss of the department of Tarapacá and the provinces of Tacna and Arica,
Peru and the World Bank Peru and the World Bank The World Bank lists Peru as an ‘upper middle income’ country. The Peruvian government has been keen to follow the World Bank's policies for growth. As of September 2018 Peru has $485.44 million in outstanding loans with a mix of 19 different institutions and sectors.The policy reform undertaken by the Peruvian government with the assistance of the World Bank, has stimulated one of the fastest growing economies in Latin America. Peru averaged a growth rate of 6.1% from 2002 – 2013. In 2018, the Work Bank estimated that the Peruvian economy would have one of