Why did Lima become the political and economic center of Spanish South America?

Lima was established by Francisco Pizarro on January 18, 1535, and was strategically chosen as the capital of the Viceroyalty of Peru over the traditional Inca capital of Cuzco.

The primary reason for this selection was Lima's coastal location, which significantly facilitated communication and trade with Spain. This maritime accessibility was further bolstered by the proximity of Callao, which served as the principal commercial seaport and the leading shipping point for the vast wealth of gold and silver extracted from the region.12

As the administrative and economic hub, Lima consolidated its power by serving as the seat of the audiencia (high court), which administered royal justice, and as the headquarters for the Inquisition, which governed religious and moral affairs. Additionally, the city became the intellectual and cultural center of the viceroyalty, hosting prestigious institutions such as the University of San Marcos, which solidified its status as the preeminent center of Spanish colonial authority in South America.1