Air Wars between Ecuador and Peru Volume 3

The Series of sharp clashes between Ecuador and Peru of 1981 left the dispute between the two countries unresolved as there was still no definitive delimitation of the border. During the following years, both parties had to deal with a Series of internal and external issues and, ultimately, these affected the planning and operational capabilities of their respective armed forces. While Peru underwent a severe economic crisis including hyperinflation caused by poor management of its economy, and a leftist insurgency, Ecuador underwent a transition from a centrally-controlled economy to a free market: in turn, it was one of countries in Latin America least affected by the precipitous fall in regional economic indices of the 1990s.