Puno

Puno sits at the ecological and economic edge of Peru—Lake Titicaca's 3,812-meter elevation makes it the world's highest navigable lake, and the region hosts 87% of the world's alpaca population. Of Peru's 4 million alpacas, nearly 1.8 million graze Puno's altiplano grasslands. This concentration creates both opportunity and vulnerability: alpaca wool exports support rural livelihoods, but droughts and poor water management periodically devastate herds. In June 2024, regional production included 0.6 thousand tons of alpaca meat (up 1.3% year-over-year) alongside quinoa harvests adapted to harsh highland conditions.

The region's role as a Special Economic Zone for trade with Bolivia reflects geographic advantage crystallized into policy—Puno functions as Peru's gateway to Bolivian markets, with lower taxes incentivizing cross-border commerce. In Q1 2024, regional exports surged 247% year-over-year, driven by gold from highland mines, tin concentrates, and quinoa. Tourism contributes substantially: 1.4 million national arrivals in 2024 (up 32.5% from 2023) come for the Uros floating islands, Taquile textile traditions, and the pre-Inca Sillustani necropolis. The Virgen de la Candelaria festival, a UNESCO-recognized event each February, draws 20,000 dancers blending Catholic and Andean traditions.

Yet Puno's peripherality cuts both ways. During 2023 political unrest, road blockades pushed poverty to 80% as mining and tourism income collapsed. Lake Titicaca saw no visitors for months. The historical pattern echoes: the 1657 Laykakota silver discovery drew 10,000 people, then faded. Puno's economy remains hostage to its extreme elevation and distance from Lima—spectacular assets generating periodic booms punctuated by isolation-driven crashes.