Peru-Bolivian Confederation, with de Santa Cruz as the Supreme Protector. Following tension between the Confederation and Chile, Chile declared war on 28 December 1836. Argentina, Chile's ally, declared war on the Confederation on 9 May 1837. The Peruvian-Bolivian forces achieved several major victories during the War of the Confederation: the defeat of the Argentine expedition and the defeat of the first Chilean expedition on the fields of Paucarpata near the city of Arequipa.
On the same field, the Chilean and Peruvian rebel army surrendered unconditionally and signed the Paucarpata Treaty. The treaty stipulated that Chile would withdraw from Peru-Bolivia, Chile would return captured Confederate ships, economic relations would be normalized, and the Confederation would pay Peruvian debt to Chile. In Chile, public outrage over the treaty forced the government to reject it. Chile organized a second attack on the Confederation and defeated it in the Battle of Yungay. After this defeat, Santa Cruz resigned and went to exile in Ecuador and then Paris, and the Peruvian-Bolivian Confederation was dissolved.
Following the independence of Peru, Peruvian president General Agustín Gamarra invaded Bolivia. The Peruvian army was decisively defeated at the Battle of Ingavi on 20 November 1841 where Gamarra was killed. The Bolivian army under General José Ballivián then mounted a counter-offensive, capturing the Peruvian port of Arica. Later, both sides signed a peace treaty in 1842, putting a final end to the war.
Economic instability and continued wars
A period of political and economic instability in the early-to-mid-19th century weakened Bolivia. Then in the War of the Pacific (1879–83) against Chile, it lost its access to the sea and the adjoining rich salitre (saltpeter) fields, together with the port of Antofagasta.
Since independence, Bolivia has lost over half of its territory to neighboring countries in wars and as a
