During precolonial are, when Incas Empire rule Peru’s territory, the economy was based on agriculture, some animal farming and mining development. This economy was based on exchange of products based on reciprocity.
During colony times, their economy was based on mineral wealth, and labor through enslavement of indigenous. Textiles, minerals and sugars were exported back to Europe. After the war of succession of 1700, Spain began to lose its monopoly over colonial trade. In the eighteen century, liberal factions began to appear within the colonial elite; these questioned the legitimacy of the crown’s rule in the Americas. These “Creole patriots”, which had originally been marginalized to the periphery of the empire (Venezuela, Argentina, etc.), provided the necessary condition of a successful economy development during the late colonial period.
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Despite this overall growth of the colonies, the trend observed in Peru over the course of the century and a half following the war of secession was one of stagnation. The regional socioeconomic hierarchy inverted itself, as core territories where liberals were absent experienced much lower levels of economic development. Their marginalization actually allowed them to benefit from expanded trade opportunities. Attempting to protect its colonial possessions and reverse its faltering role in colonial trade, the crown implemented liberalizing reforms, hastening the removal of trade restrictions and weakening colonial monopolies. This continued the decay of the core regions, leaving them more exposed to the uncertainties of the free market. By the mid-19th century, the reversal of the socioeconomic hierarchy was complete; Peru would not recover its Viceroyalty-era