Figure 1.--Here women and children in the Arequipa market are skirting wool. Skirting is the process of removing 'junk' wool, stains, second cuts and vegetable matter from the wool fleece before processing it. This is magic latern slide taken around the turn-of-the 20th century. The Inca produced marvelous textiles from alcalpas and other cameloids. The Spanish introuced various strains of sheep. Production was almost entriely for the domestic market. Most of this wool would be sold to local people weaving woolen goods on home hand looms creating garments like ponchos.

The Royalist forces were finally defeated at Ayachucho on the eastern slope of the Andes (1824). Independence did not significantly transform Peruvian society and the Spanish colonial economy. Political turmoil adversely affected the econony. There was also a devestating series of wars, all of which Peru lost. The wars induded: Colombia (1828-29), Chile (1836-39) and War of the Pacific (1879-84). The War of the Pacific was particularly devestating. After the War, the government initiated economic reforms of varying value. A major impedimant to ecomomic develoment was the barrier to trabsport imposed by the towering Andes. The development of railroads was thus important. American railroad builder, Henry Meiggs, built two standard gauge lines. One from the southern port of Mollendofrom up into the Andes (Arequipa and Cuzco). He had trouble recruiting Peruvian workers and imported Chinese to build his railoads (1868-77) Another from the port of Callao near Lima into the Andes (Huancayo). He and political turmoil managed to bankrup the Peruvian Government. The railroads were vital for the mining industry. Much of the agrcultural land, mostly in the sierra, however, remained in the hands of hacendados with large estates. Much of the large indigenous population lived on these estates and were largely outside the monied economy. This was the result of the colonial Encomienda system. What Peru did not attempt was a real capitalist economic system including free trade and social reforms to fully utilize its human talent. The colonial economy was dominated by silver mining with the mines mostly located in what is now Bolivia. The major change was the develoment of mineral resources with export markets. The mining industry was expaned in the 19th century. Mining activity included gold, silver, lead, zinc, bismuth, but primarily copoper. The country limped into the 20th century with a backward agricultural economy. Incredibly, agriculural production in many areas was more productive suring during the Inca era than at the turn-of-the century. The agricultural economyprimarily was limited to the domestic market. This was supported by cotton and mining (mostly copper and guano) exports. The Peuvian economy at the turn-of-the 20th century was little changed from the colonial and 19th century independence era.

Created: 8:45 AM 8/13/2019
Last updated: 8:45 AM 8/13/2019