Over the last 15 years there have been dramatic shifts in the consensus over how best to cope with natural hazards in economically developing regions such as South America. One very positive outcome of the United Nations sponsored International Decade for Natural Disaster Reduction (IDNDR 1990–2000) has been that there is now greater interchange between the work of earth scientists examining the processes and mechanics of hazard occurrence and impact, and social scientists exploring the causes of human vulnerability to hazard – and thereby disaster. This paper traces the development of this new understanding with reference to earthquakes and volcanic eruptions in Peru, one of the most hazardous countries in South America. Particular focus is placed on the excellent progress currently being made by scientists in better understanding the physical dimensions of natural hazard exposure, and the ground‐breaking work by social scientists in promoting new approaches to understanding and mitigating human vulnerability to disaster. The paper concludes by emphasizing the need to build on this research to produce more inclusive, incultured and unified strategies of disaster mitigation at the local, national and international levels.