How did the Bourbon reforms reduce the territory controlled by the Viceroyalty of Peru?

The Bourbon reforms significantly reduced the territory controlled by the Viceroyalty of Peru through the creation of new administrative units intended to improve governance, defense, and revenue collection.12

The reduction occurred in two primary stages:

• Viceroyalty of New Granada: Established in 1717 and permanently reestablished in 1739, this new viceroyalty assumed control over northern territories that were previously under Peruvian jurisdiction. This resulted in Peru losing authority over areas that now constitute Colombia, Ecuador, Panama, and Venezuela, as well as the important port of Guayaquil.312
• Viceroyalty of the Río de la Plata: Established in 1776, this viceroyalty further diminished Peru’s reach by taking jurisdiction over regions that now comprise Argentina, Uruguay, Paraguay, and Bolivia. Additionally, Chile was reconstituted as a virtually autonomous captaincy general, further stripping the Peruvian viceroy of his former authority.32

These territorial losses, combined with reforms in the trade system that ended the monopoly of Lima’s merchants, significantly weakened the economic and political standing of the Viceroyalty of Peru by the late 18th century.2