Andean Group - December 2012 (ISSN 1741-4466)

Relations between Peru and its richer southern neighbour Chile have been testy ever since the two tangled in the 1879-1884 War of the Pacific, in which Peru lost a part of its territory to Chile. More latterly, the two have worked hard to improve their political and economic ties. Given Chile’s more marked economic success however, Peru still has something of a chip on its shoulder and Peruvian politicians typically resort to attacks on Chile in politically difficult times, providing a useful distraction from domestic problems. The government led by President Ollanta Humala, which has inherited a maritime border dispute taken by Peru to the International Court of Justice (ICJ), may stand to gain domestic popularity from the imminent ICJ ruling on the dispute; yet it has no real interest in upsetting the bilateral relationship at this particular juncture.

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