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BoliviaUpdated: |
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PRESIDENT: Evo Morales (Jan. 2006 - 2010)
POPULATION: 8.8 million
KEY EXPORTS: Natural gas, coca, silver, and tin
DISTINCTIVE FEATURES: Indian ethnicity, mountainous, landlocked, unstable
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Bolivia is mostly mountainous, but there is a substantial flat upland area known as the Altiplano. In the middle of this region is Lake Titicaca, the highest navigable lake in the world. It divides Bolivia from Peru. In the Yungas region northeast of La Paz and the Chapare region north of Cochabamba, coca is widely cultivated, and most of the crop is processed into a paste that is refined into cocaine. The north and northeast of Bolivia are part of the Amazon rain forest. The territory along the coast to the southwest used to belong to Bolivia until it was defeated by Chile in the War of the Pacific (1879-1883). Bolivia has been landlocked ever since, a major impediment to its national development. Eastern Bolivia consists of mixed farmland and woodland that turns into desert scrubland the farther southeast you go. That is the harsh region where petroleum and natural gas are found and where the Chaco War was fought with Paraguay in the 1930s.
One of the last former colonies of Spain to be liberated in South America, Bolivia took its name from Simon Bolivar, "the Liberator." It had been a part of the Viceroyalty of Lima and was originally known as "Upper Peru." During the colonial era, Potosi was one of the biggest and wealthiest cities in the entire world, but the silver ores gradually became depleted and the region stagnated. For several years in the 1830s Bolivia and Peru became politically united, but military defeat by Chile forced the two countries to split up again. Another war with Chile in 1879 resulted in the loss of Bolivia's sea coast, and it has been landlocked ever since. Bolivia benefited from growing tin exports in the early 20th century, but the depression of the 1930s left it in a desperate situation. In 1932 the military ruler sought to rally popular support by launching a war against its neighbor to the southeast, Paraguay. The "Chaco War" backfired terribly as the highland Indians in Bolivia's army were ill-suited to the hot, dry climate of the Chaco Desert, and Bolivia actually lost land. This ignominious defeat set the stage for growing social ferment, culminating in the Revolution of 1952, led by Victor Paz Estenssoro and his National Revolutionary Movement (MNR). Paz Estenssoro was overthrown in 1962 and Bolivia was ruled by a succession of military dictators of various ideological stripes for the next twenty years. Gen. Hugo Banzer held power longer than any other, from 1971 until 1978. His downfall unleashed a period of political chaos which resulted in the collapse of government authority in the early 1980s as the generals finally gave up and let the civilians run things. Unchecked spending and foreign borrowing resulted in hyperinflation, and prices rose over 10,000% in 1985! It was at that point that Paz Estenssoro was elected president again, but to the surprise of many he pushed strict monetary austerity and free-market reforms that undid much of the "reforms" his MNR had enacted back in the 1950s! It saved the country from economic ruin, though at a high human price: many thousands of workers lost their jobs and many families went hungry. Even the left-leaning government that won power in 1989 recognized the success, refraining from any major relapse into economic folly.
For most of the 1990s Bolivia made steady progress on the economic front, but the high national debt burden has yet to be lifted and it still causes human suffering. The country survived the economic turbulence that swept the continent in 1998, but there have been sporadic outbreaks of violent protests. Former dictator Hugo Banzer won the 1998 elections but respected democratic norms and earned a measure of respect from his former enemies. His major initiative was to increase cooperation with U.S. anti-drug policies.
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Bolivia is an extreme example of the social stratification that exists to varying degrees in much of Latin America. It has a small European-descended elite, a smaller middle class, and a poor majority of mostly indigenous ancestry. The country's culture is heavily influenced by the Indian heritage. The language of the Tiahuanaco civilization, Aymara, is widely spoken in the countryside; a smaller number of people speak Quechua, the language of the Inca empire. As in Peru, Indians in Bolivia still use coca for ceremonial and medicinal purposes, just as in ancient times.
CLOCKWISE FROM TOP LEFT:
Congress and Presidential palace, Plaza de Portillo, in La Paz.
Mountain road in the Yungas, north of La Paz.
The modern skyline of La Paz.
Mount Illimani, overlooking La Paz at dusk.
Church bell tower in Sucre.
Indian folk musicians.
Supreme Court building in Sucre.
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Because of the sharp social divide between rich and poor, which is accentuated by the ethnic component, politics in Bolivia tends to be unstable, and democracy is not firmly established. During the 1990s there was a broad consensus that the severe economic austerity measures introduced by President Paz Estenssoro were necessary, and that Bolivia had to maintain a good reputation with international creditors. Since the rise of indigenous movements in the 1990s under coca-growing advocate Evo Morales, however, this consensus has collapsed. The stunning electoral victory of Morales in December 2005 raises big questions about whether he is a dedicated radical leftist like Venezuela's Hugo Chavez, or is more of a pragmatist like Brazil's Lula da Silva. So far, the former prospect seems more likely. Bolivia is now reverting to old fashioned statist populism, putting its credit standing at high risk. Under the government of Morales, Bolivia has emphatically rejected the free trade alternative, and is pursuing regional integration with Venezuela, turning its back on other Andean Group members. For the immediate future, the proposed natural gas pipeline (either through Peru or Chile) will not be built.
| Movement Toward Socialism | National Unity (??) |
National Revolutionary Movement | Poder Democratico Nacional (ex-National Democratic Action?) |
| President Evo Morales | Samuel Jorge Doria | Gonzalo Sanchez de Lozada | Jorge Quiroga |
| S: 12 / CD: 73 | S: 1 / CD: 8 | S: 1 / CD: 6 | S: 13 / CD: 43 |
NOTE: Width of each column shows each party's approximate strength. Colors and positions (left to right) represent ideological leanings, which are often vague. Numbers show how many seats each party has in the Senate and the Chamber of Deputies. Minor parties are not shown.
SOURCES: CIA World Factbook, U.S. State Dept.
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| Apr. 2000 | Several people were killed as protests against declaration of econ. emergency became violent. |
| Aug. 2001 | Pres. Hugo Banzer, dying of cancer, resigns, handing over sash to V.P. Jorge Quiroga. |
| Dec. 2001 | Pres. Jorge Quiroga urges free trade as the solution to Bolivia's poverty. |
| May 2002 | Former President (and dicator) Hugo Banzer died of cancer. Enron Corp. obtained a U.S. Overseas Private Investment Corporation (OPIC) guarantee for a natural gas pipeline project in an ecologically sensitive area of eastern Bolivia. |
| July 2002 | The National Revolutionary Movement (MNR) won a plurality of votes in national elections. To the surprise of many, Evo Morales of the "Movement Toward Socialism" (MAS), a coca-growers lobby, came in second. |
| Aug. 2002 | The right-wing MNR and left-wing MIR parties formed an alliance, enabling MNR leader (and ex-president) Gonzalo Sanchez de Lozada to become president. Congress passed constitutional reforms aimed at making the political system more open. |
| Oct. 2002. | Pres. Sanchez de Lozada pressured Central Bank chief Juan Morales Antonio into rescinding a decision that would have made purchasing U.S. dollars much more costly. This threatens to undermine the Central Bank's autonomy. |
| Jan. 2003 | Transport workers called a 24-hour strike, protesting a hike in premiums for liability insurance. It virtually paralyzed major cities. The government compromised with coca growers, who had set up roadblocks to protest coca eradication campaign. Army returns to barracks. |
| Feb. 2003 | At least 27 people died as La Paz after police mutinied in a protest against a tax increase. Pres. Sanchez de Lozada is trying to balance the budget in order to qualify for renewed international credit. The government accuses Evo Morales of plotting a coup d'etat. |
| Mar. 2003 | Landslide buried the remote town of Chima, about 120 miles north of La Paz. The disaster was blamed on improperly dug "wildcat" gold mine tunnels. At least 24 people died, and 150 or more may be missing. |
| June 2003 | Twenty five legislators of the Movement Toward Socialism (coca-growers), and the Pachakuti Indigenous Moviement (MIP) staged a hunger strike, and striking miners put up road blocks, to demand big changes in economic policies during the special session of Congress. |
| Oct. 2003 | After protests (mostly by Indians) against natural gas exports become violent, Pres. Sanchez de Lozada resigns, replaced by V.P. Carlos Mesa, who promises an early election. |
| July 2004 | Referendum on natural gas exports. A strike shut down all the airports for one day. |
| Mar. 2005 | More tumult in the streets. Interim Pres. Carlos Mesa offers to resign, saying he cannot govern while besieged by blockades. The offer was not accepted by Congress. |
| Apr. 2005 | Indian activists becoming experts on use of roadblocks for political action. |
| June 2005 | Interim Pres. Carlos Mesa resigns under pressure from a wave of protests demanding energy nationalization and street blockades. Former Supreme Court chief Eduardo Rodriguez takes over as president. |
| Oct. 2005 | Constitutional dispute over allocating seats in Congress delays elections scheduled for Dec. 4. Morales campaigns on the issue of exploitation. |
| Dec. 2005 | Evo Morales is elected president, winning 55%, obviating the need for a second round. He pledges to end cooperation with U.S. in fighting drugs. |
| Jan. 2006 | Prior to inauguration, Morales travels to Cuba, Venezuela, Europe, etc. Indian people rejoice at historic ceremonies. |
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In Spanish -- www.Bolivia.com