09 October 2015

Friday Flag - Second Peru-Bolivian Confederation

After years of civil war and then a war with the United States the nation of Chile was in a weakened state. On 3 June 1884 Peru and Bolivia both declared war on Chile to reclaim lost territory. Despite Chile's weakness Peru and Bolivia were only in slightly better shape, having not fully recovered from the War of the Pacific. It took nearly two years for territories lost in the War of the Pacific to be recovered.

When the so-called Second War of the Pacific ended in 1886 Peru and Bolivia moved to enhance their security and further cooperation by forming the Second Peru-Bolivan Confederation. Andrés Avelino Cáceres became the first president of this new state thanks to his victories as General of Peru's armies during the Second War of the Pacific. He had to deal with the huge debts created by the two wars and integrating increasingly disruptive rebel groups into the new nation.

An agreement was made to eliminate the debt by giving control of its railroads and other concessions. It was a very unpopular move, but the nitrate deposits in the recently recovered territories would help the economy once they were running at full capacity again by 1888.

Peru-Bolivia would continue to suffer insurgencies, rebellions, and a shaky economy for years to come. The future threat of a revitalized Chile one day invading was another threat.

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