1. Peru
The Great Depression

2. Government Peru had a constitutional republic
A constitutional republic limits the governments power over citizens – those part of the government (i.e- President) must govern according to existing constitutional law

3. Diversified Economy
Peru’s economy was not hit as hard during the depression because of its diversified range of exports
Cotton and industrial metals were its leading exports
Peru had a rapid recovery as early as 1932

4. Industries during the Great Depression
Exports
kept a mainly open economy, didnt put up tariffs on imports. 
agricultural : cotton, sugar, wool and petroleum 
mining: silver gold, guano, lead, copper
Fishing industry 
textiles 
Imports:
capital goods and manufacture 

5. Main Trading Partners
US 
Brazil
Bolivia 
Argentina
Chile
Canada 

6. Social Class Structure
-organized into 3 class structures
-Upper class (minority): approx only 3%
-Middle class: workers that depend on salary and job(60% of pop.)
-Lower class: workers and rural people (farmers)
-class structure consists with a majority of middle class people.

7. How hard was Peru hit by the depression?
Demands for goods decreased so, less production of capital.
Result: internal deflation , fall in value of Latin American Currencies , rise in unemployment
Year after WallStreet Crash: government intervened to change economic policies to address crisis.

8. Government Action Internal deflation>unemployment
Set prices and established max. level of production.
Result: help economy gain strength
Huge range of exports (cotton and new metals…) country began to recover export earning early as 1933.
Export sector dominated by foreign companies, so losses during the depression, did not have direct effect on Peru
Import Substitution Industrialization: encourage homegrown industries to replace Latin American dependence on foreign manufactured goods.
-did not use this policy
-instead foccussed on export growth.
Trade
Engage in bilateral trade agreements with industrialized countries.
- There was a change in exports: shifted from cotton, copper and silver to oil during the 20s.
Financial Reforms in the 20s
Result: creation of central banks and regulatory institutions with clear rules
Result: made govn. Intervention in this sector easier than other countries

9. Peru and the Depression
During this time Peru was under the control of President Leguia.
However, overthrown and the 1930s were rocked by civil wars for the next 3 years
The policies that were developed during the depression as well as Peru’s export sector being dominated by foreign companies did not allow the Depression to affect them as much.
Mining and Agriculture sectors, which made up a huge portion of Peru’s economy, were not hit as badly.
Result: used to bring around recovery.
Relying on more than one industry helped them. Reason: it did not rely only one industry, so if that one industry crashed the country would not be affected because it could rely on other exports. This is why used to bring around recovery. Wide range of trading partners to continue trade, not just one main trading partner. Therefore, not greatly affected.