Abstract

A watershed in Peru's development, and perhaps its most traumatic experience as an independent republic, was its humiliating defeat at the hands of Chile during the War of the Pacific (1879-1883). The impact of the war was profound. Virtually every aspect of Peruvian political, economic, and social life was affected. The army was defeated, the country invaded, and Lima occupied. By the peace treaty, Peru's nitrate-bearing southern provinces were handed over to Chile, depriving it of its most important source of income. The economy of the country was further undermined by the war-time destruction of many coastal sugar and cotton plantations. Economic collapse was accompanied by political chaos. Fighting continued after the end of the war as forces loyal to General Andrés A. Cáceres, who had carried out an effective guerrilla campaign against the Chileans in the sierra, now aimed their guns at the Chilean-imposed government of General Miguel Iglesias. In December 1885 they captured Lima, paving the way for Cáceres' election as president.

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