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Peru was once part of the great Incan empire and later the major vice-royalty of Spanish South America. It was conquered in 1531 by Francisco Pizarro. On July 28, 1821, Peru proclaimed its independence, but the Spanish were not finally defeated until 1824. For a hundred years thereafter, revolutions were frequent; a new war was fought with Spain in 1864–1866, and The War of the Pacific was fought with Chile from 1879 to 1883, which was unsuccessful as well.

In the last century, Peru was affected by both World War 1 and World War 2 but their economy was actually one of the least affected by the Great Depression. The Allies Victory in World War 2 was beneficial to Peru because it released them from 20 years of dictatorship and reinforced the relative democratic tendency in Peru.