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Peru is one of the poorest countries in South America. The country's natural resources include crude oil, copper, silver, gold, fish, timber, iron ore, coal, phosphate, and potash. Although the economy is primarily agricultural, the mining and fishing industries have become increasingly important. Peru relies heavily on exporting raw materials, especially minerals, farm products, and fish meal, to earn foreign exchange to import manufactured goods. After a dozen years of military rule, Peru returned to democracy in 1980. In recent years, bold reforms and progress in curtailing guerrilla activity and drug trafficking have resulted in solid economic growth. Despite this economic progress, Peru faces many troubling social and economic challenges, with the most serious being high unemployment, high inflation, and a soaring national debt. These conditions lead to poverty for many Peruvians, and make it difficult for the country to provide its citizens with basic social services such as health care, education, and safe sanitation. The increase in social turmoil, a shortage of arable land, a growing population, and limited supplies of clean water make matters worse. Peru faces many serious environmental challenges, such as air and water pollution, deforestation, and overgrazing of the plains and highlands, which causes soil erosion. Tensions have mounted with increased drug trafficking and terrorism
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Copyright(c) 2004 Peru Children's Trust. All rights reserved. |
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