Recent years saw an increase in reports on Sendero Luminoso activities, now tied to drug trafficking. Last year was quite violent, especially with the military operations in the Valle de los Ríos Apurímac y Ene (VRAE). (See here some glamorizing of the Operaciones VRAE).

The situation may well deteriorate, but apart from mentions of incidents in the news, there is not a lot of coverage.
This piece criticizes the strategy chosen in the VRAE, as opposed to Alto Huallaga (i.e. military operations instead of police work).

I'm curious about people's thoughts on the issue, especially:
1. How big is the risk of this becoming a larger conflict?
2. ... and related: could/would this hurt Peru's economy, break the growth trend?
3. Why isn't there more attention to this in the international press?