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Bolivia

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The Republic of Bolivia is a landlocked country in central South America. It is bordered by Brazil on the north and east, Paraguay and Argentina on the south, and Chile and Peru on the west.

República de Bolivia
Flag of Bolivia Coat of Arms of Bolivia
(Flag) (Coat of Arms)
Motto: Morir antes que esclavos vivir
(English: "To die instead as slaves to live")
Anthem: Bolivianos, el hado propicio
Missing image
LocationBolivia.png
Location of Bolivia

Capital La Paz, Sucre1
Template:Coor dm
Largest city La Paz
Official languages Spanish, Quechua, Aymara
Government republic
[[Eduardo Rodr�ez]] (interim)
Independence
 • Date
From Spain
August 6, 1825
Area
 • Total
 • Water (%)
 
[[1 E12 m�|1,098,580 km²]] (27th)
1.29%
Population
 • July 2005 est.
 • 2001 census
 • Density
 
8,857,870 (86th)
8.274.325
8/km² (179th)
GDP (PPP)
 • Total
 • Per capita
2005 estimate
$25,892 million (103rd)
$3,049 (126th)
Currency Boliviano (BO)
Time zone
 • Summer (DST)
— (UTC-4)
— (UTC?)
Internet TLD .bo
Calling code +591
1 La Paz is the seat of government; Sucre, the legal capital
Contents

History

Main article: History of Bolivia

Precolonial period

The Andean region probably has been inhabited for some 20,000 years. Beginning about the 2nd century B.C., the Tiwanaku culture developed at the southern end of Lake Titicaca. This culture, centered around and named for the great city of Tiwanaku, developed advanced architectural and agricultural techniques before it disappeared around 1200 A.D., probably because of extended drought. Roughly contemporaneous with the Tiwanakan culture, the Moxos in the eastern lowlands and the Mollos north of present-day La Paz also developed advanced agricultural societies that had dissipated by the 13th century A.D. In about 1450, the Quechua-speaking Incas entered the area of modern highland Bolivia and added it to their empire. They controlled the area until the Spanish conquest in 1525.

Colonial period

During most of the Spanish colonial period, this territory was called "Upper Peru" or "Charcas" and was under the authority of the Viceroy of Lima. Local government came from the Audiencia de Charcas located in Chuquisaca (La Plata — modern Sucre). Bolivian silver mines produced much of the Spanish empire's wealth, and Potos�site of the famed Cerro Rico — "Rich Mountain" — was, for many years, the largest city in the Western Hemisphere. A steady stream of enslaved Indians served as labor force. As Spanish royal authority weakened during the Napoleonic wars, sentiment against colonial rule grew.

The Republic and economic instability (1809)

Independence was proclaimed in 1809, but 16 years of struggle followed before the establishment of the republic, named for [[Sim󮠂ol�r]], on August 6, 1825 (see Bolivian War of Independence).

Independence did not bring stability. For nearly 60 years, coups and short-lived constitutions dominated Bolivian politics. Bolivia's weakness was demonstrated during the War of the Pacific (187983), when it lost its seacoast, and the adjoining rich nitrate fields, together with the port of Antofagasta, to Chile.

An increase in the world price of silver brought Bolivia a measure of relative prosperity and political stability in the late 1800s. During the early part of the 20th century, tin replaced silver as the country's most important source of wealth. A succession of governments controlled by the economic and social elites followed laissez-faire capitalist policies through the first third of the century.

Living conditions of the indigenous peoples, who constituted most of the population, remained deplorable. Forced to work under primitive conditions in the mines and in nearly feudal status on large estates, they were denied access to education, economic opportunity, or political participation. Bolivia's defeat by Paraguay in the Chaco War (193235) marked a turning point. Great loss of life and territory discredited the traditional ruling classes, while service in the army produced stirrings of political awareness among the indigenous people. From the end of the Chaco War until the 1952 revolution, the emergence of contending ideologies and the demands of new groups convulsed Bolivian politics.

Rise of the Nationalist Revolutionary Movement (1951)

The Nationalist Revolutionary Movement (MNR) emerged as a broadly based party. Denied its victory in the 1951 presidential elections, the MNR led the successful 1952 revolution. Under President [[V�or Paz Estenssoro]], the MNR introduced universal adult suffrage, carried out a sweeping land reform, promoted rural education, and nationalized the country's largest tin mines.

Twelve years of tumultuous rule left the MNR divided. In 1964, a military junta overthrew President Paz Estenssoro at the outset of his third term. The 1969 death of President [[Ren頂arrientos Ortu񯝝, a former member of the junta elected President in 1966, led to a succession of weak governments. Alarmed by public disorder, the military, the MNR, and others installed Col. (later General) Hugo Banzer SuᲥz as President in 1971. Banzer ruled with MNR support from 1971 to 1974. Then, impatient with schisms in the coalition, he replaced civilians with members of the armed forces and suspended political activities. The economy grew impressively during most of Banzer's presidency, but human rights violations and eventual fiscal crises undercut his support. He was forced to call elections in 1978, and Bolivia again entered a period of political turmoil.

Military governments: Garc�Meza and Siles Zuazo (1978)

Elections in 1978, 1979, and 1980 were inconclusive and marked by fraud. There were coups, counter-coups, and caretaker governments. In 1980, Gen. [[Luis Garc�Meza Tejada]] carried out a ruthless and violent coup. His government was notorious for human rights abuses, narcotics trafficking, and economic mismanagement. Later convicted in absentia for crimes, including murder, Garc�Meza was extradited from Brazil and began serving a 30-year sentence in 1995.

After a military rebellion forced out Garc�Meza in 1981, three other military governments in 14 months struggled with Bolivia's growing problems. Unrest forced the military to convoke the Congress elected in 1980 and allow it to choose a new chief executive. In October 1982, twenty-two years after the end of his first term of office (1956-60), HernᮠSiles Zuazo again became President. Severe social tension, exacerbated by economic mismanagement and weak leadership, forced him to call early elections and relinquish power a year before the end of his constitutional term.

Sᮣhez de Lozada and Banzer: Neoliberalizing the economy (1993)

Sᮣhez de Lozada pursued an aggressive economic and social reform agenda. He relied heavily on successful entrepreneurs-turned-politicians like himself and on fellow veterans of the Paz Estenssoro administration (during which Sᮣhez de Lozada was Minister for Planning). The most dramatic change undertaken by the Sᮣhez de Lozada government was the "capitalization" program, under which investors, typically foreign, acquired 50% ownership and management control of public enterprises, such as the state oil corporation, telecommunications system, airlines, railroads, and electric utilities in return for agreed upon capital investments. The reforms and economic restructuring were strongly opposed by certain segments of society, which instigated frequent and sometimes violent protests, particularly in La Paz and the Chapare coca-growing region, from 1994 through 1996. The Sᮣhez de Lozada government pursued a policy of offering monetary compensation for voluntary eradication of illegal coca by its growers in the Chapare region. The policy produced little net reduction in coca, and in the mid-1990s Bolivia accounted for about one-third of the world's coca going into cocaine.

In the 1997 elections, Gen. Hugo Banzer, leader of the ADN, won 22% of the vote, while the MNR candidate won 18%. Gen. Banzer formed a coalition of the ADN, MIR, UCS, and CONDEPA parties which held a majority of seats in the Bolivian Congress. The Congress elected him as president and he was inaugurated on August 6, 1997.

The Banzer government basically continued the free market and privatization policies of its predecessor, and the relatively robust economic growth of the mid-1990s continued until about the third year of its term in office. After that, regional, global and domestic factors contributed to a decline in economic growth. Job creation remained limited throughout this period and the public perceived a significant amount of public-sector corruption. Both factors contributed to increasing social protests during the second half of Banzer's term.

At the outset of his government, President Banzer launched a policy of using special police units to physically eradicate the illegal coca of the Chapare region. The policy produced a sudden and dramatic 4-year decline in Bolivia's illegal coca crop, to the point that Bolivia became a relatively small supplier of coca for cocaine. The MIR of Jaime Paz Zamora remained a coalition partner throughout the Banzer government, supporting this policy (called the Dignity Plan).

On August 6, 2001, Banzer resigned from office after being diagnosed with cancer. He died less than a year later. Banzer's U.S.-educated Vice President, Jorge Fernando Quiroga Ram�z, completed the final year of the term. Quiroga was constitutionally prohibited from running for national office in 2002 but could do so in 2007.

In the June 2002 national elections, former President Gonzalo Sᮣhez de Lozada (MNR) placed first with 22.5% of the vote, followed by illegal-coca advocate and indigenous campesino leader Evo Morales (Movement Toward Socialism, MAS) with 20.9%. Morales edged out populist candidate Manfred Reyes Villa of the New Republican Force (NFR) by just 700 votes nationwide, earning a spot in the congressional run-off against Sᮣhez de Lozada on August 4, 2002.

A July agreement between the MNR and the fourth-place MIR, which had again been led in the election by former president Paz Zamora, virtually ensured the election of Sᮣhez de Lozada in the congressional run-off, and on August 6 he was sworn in for the second time. The MNR platform featured three overarching objectives: economic reactivation (and job creation), anti-corruption, and social inclusion.

Social Crisis and the nationalization of hydrocarbon resources (2001-2005)

In September 2001, following the advice of the World Bank, the Bolivian government declared that all water was to become corporate property, so that even drawing water from community wells or gathering rainwater on their own properties, peasants and urban dwellers had to first purchase and obtain permits from International Water Limited (a multinational largely owned by the Bechtel Corporation). The government, however, retracted and abolished the new water privatization rules following wide-scales uprisings and riots in protest of the legislation. 1-2

During, February 2003, four-year economic recession, tight fiscal situation, and longstanding ethnic tensions mounted again in a police revolt that nearly toppled the government of President Sᮣhez de Lozada; several days of unrest left more than 30 persons dead. The government stayed in power but remained unpopular. Widespread protests broke out in October and revealed deep dissatisfaction with the government. Approximately 80 persons died during the demonstrations which led President Sᮣhez de Lozada to resign from office on October 17. In a constitutional transfer of power, Vice President Carlos Mesa assumed the Presidency and promised to hold a binding referendum on the export of Bolivian natural gas. The referendum took place on July 18, and Bolivians voted overwhelmingly in favor of development of the nation's hydrocarbon resources. Mesa will detail the government's development plans in legislation to be introduced to Congress. Mesa enjoys popularity with the Bolivian public, but he faces the same difficulties — social divisions, a radical opposition committed to extra-parliamentary action, and an ongoing fiscal deficit — as the previous administration.

On June 6, 2005, President Carlos Mesa was forced to enter his resignation as over 80,000 protestors surrounded the presidential palace and congress demanding nationalization of the gas industry. The indigenous protestors argued that indigenous communities, two thirds of Bolivia's population, were not adequately represented in government. Consequently, the campesinos and indigenous population, angered by the inequitable dividends paid by the multinational petroleum companies, set up roadblocks throughout the country and placed all the major cities under siege. With Carlos Mesa stranded in the Palace of Plaza Murillo, the congress and senate closed, hoodlums roamed and pillaged the streets of La Paz threatening to drive the ?corbateros? (those clothed in suits and ties) from the country.

A civil war was averted when, on June 9th, 157 members of the congress and senate converged on the Casa de La Libertad in Sucre, Bolivia and nominated Eduardo Rodriguez, the current President of the Supreme Court, to the Presidency at the eleventh hour. President Rodriguez, to avert a civil war, has promised to hold new national elections on November of 2005; nevertheless civil unrest continues.


See also: Bolivian Gas War

Politics

Main article: Politics of Bolivia

Missing image
Central_La_Paz_Bolivia.jpg
La Paz is the political and economic capital of Bolivia.

The 1967 constitution, revised in 1994, provides for balanced executive, legislative, and judicial powers. The traditionally strong executive, however, tends to overshadow the Congress, whose role is generally limited to debating and approving legislation initiated by the executive. The judiciary, consisting of the Supreme Court and departmental and lower courts, has long been riddled with corruption and inefficiency. Through revisions to the constitution in 1994, and subsequent laws, the government has initiated potentially far-reaching reforms in the judicial system and processes.

Bolivia's nine departments received greater autonomy under the Administrative Decentralization law of 1995, although principal departmental officials are still appointed by the central government. Bolivian cities and towns are governed by directly elected mayors and councils. Municipal elections were held on 5 December 2004, with councils elected to five-year terms. The Popular Participation Law of April 1994, which distributes a significant portion of national revenues to municipalities for discretionary use, has enabled previously neglected communities to make striking improvements in their facilities and services.

Departments

Main article: Departments of Bolivia

Bolivia is divided into nine departments, or departamentos:

Additionally, each department is further divided into provinces, or provincias, which handle some local affairs.

Geography

Map of Bolivia
Map of Bolivia

Main article: Geography of Bolivia

Bolivia is a landlocked nation. The west of Bolivia is situated in the Andes mountain range, with the highest peak, Nevado del Sajama at 6,542 m. The center of the country is formed by a highland plateau, the Altiplano, where most Bolivians live. The east of the country is lowland, and covered by the Amazonian rainforests. Lake Titicaca is located on the border between Bolivia and Peru. In the west, in the department of Potos�lies the Salar de Uyuni, the world's largest salt flats.

Major cities are La Paz, Sucre, Santa Cruz de la Sierra and Cochabamba.

Economy

Main article: Economy of Bolivia

Bolivia's 2002 gross domestic product (GDP) totaled USD $7.9 billion. Economic growth is about 2.5% a year and inflation is expected to be between 3% and 4% in 2002 (it was under 1% in 2001).

Since 1985, the Government of Bolivia has implemented a far-reaching program of macroeconomic stabilization and structural reform aimed at maintaining price stability, creating conditions for sustained growth, and alleviating poverty. A major reform of the customs service in recent years has significantly improved transparency in this area. The most important structural changes in the Bolivian economy have involved the capitalization of numerous public-sector enterprises. (Capitalization in the Bolivian context is a form of privatization where investors acquire a 50% share and management control of public enterprises by agreeing to invest directly into the enterprise over several years rather than paying cash to the government).

Parallel legislative reforms have locked into place market-oriented policies, especially in the hydrocarbon and telecommunication sectors, that have encouraged private investment. Foreign investors are accorded national treatment, and foreign ownership of companies enjoys virtually no restrictions in Bolivia. While the capitalization program was successful in vastly boosting foreign direct investment (FDI) in Bolivia ($1.7 billion in stock during 1996-2002), FDI flows have subsided in recent years as investors complete their capitalization contract obligations.

In 1996, three units of the Bolivian state oil corporation (YPFB) involved in hydrocarbon exploration, production, and transportation were capitalized, facilitating the construction of a gas pipeline to Brazil. The government has a long-term sales agreement to sell natural gas to Brazil through 2019. The Brazil pipeline carried about 12 million m³ per day in 2002. Bolivia has the second-largest natural gas reserves in South America, and its current domestic use and exports to Brazil account for just a small portion of its potential production. The government expects to hold a binding referendum in 2004 on plans to export natural gas. Widespread opposition to exporting gas through Chile touched off protests that led to the resignation of President Sᮣhez de Lozada in October 2003.

In April 2000, Bechtel signed a contract with Hugo Banzer, the former president of Bolivia, to privatize the water supply in Bolivia's 3rd-largest city, Cochabamba. The contract was officially awarded to a Bechtel subsidiary named Aguas del Tunari, which had been formed specifically for that purpose. Shortly thereafter, the company tripled the water rates in that city, an action which resulted in protests and rioting among those who could no longer afford clean water. Martial law was declared, and Bolivian police killed at least 6 people and injured over 170 protesters. Amidst Bolivia's nationwide economic collapse and growing national unrest over the state of the economy, the Bolivian government was forced to withdraw the water contract. In 2001, Bechtel filed suit the Bolivian government for $25 million in lost profits. The continuing legal battle has attracted attention from anti-globalization and anti-capitalist groups.

Bolivian exports were $1.3 billion in 2002, from a low of $652 million in 1991. Imports were $1.7 billion in 2002. Bolivian tariffs are a uniformly low 10%, with capital equipment charged only 5%. Bolivia's trade deficit was $460 million in 2002.

Bolivia's trade with neighboring countries is growing, in part because of several regional preferential trade agreements it has negotiated. Bolivia is a member of the Andean Community and enjoys nominally free trade with other member countries (Peru, Ecuador, Colombia, and Venezuela.) Bolivia began to implement an association agreement with Mercosur (Southern Cone Common Market) in March 1997. The agreement provides for the gradual creation of a free trade area covering at least 80% of the trade between the parties over a 10-year period, though economic crises in the region have derailed progress at integration. The U.S. Andean Trade Preference and Drug Enforcement Act (ATPDEA) allows numerous Bolivian products to enter the United States free of duty on a unilateral basis, including alpaca and llama products and, subject to a quota, cotton textiles.

The United States remains Bolivia's largest trading partner. In 2002, the United States exported $283 million of merchandise to Bolivia and imported $162 million. Bolivia's major exports to the United States are tin, gold, jewellery, and wood products. Its major imports from the United States are computers, vehicles, wheat, and machinery. A Bilateral Investment Treaty between the United States and Bolivia came into effect in 2001. Agriculture accounts for roughly 15% of Bolivia's GDP. The amount of land cultivated by modern farming techniques is increasing rapidly in the Santa Cruz area, where weather allows for two crops a year. Soybeans are the major cash crop, sold into the Andean Community market. The extraction of minerals and hydrocarbons accounts for another 10% of GDP and manufacturing less than 17%.

The Government of Bolivia remains heavily dependent on foreign assistance to finance development projects. At the end of 2002, the government owed $4.5 billion to its foreign creditors, with $1.6 billion of this amount owed to other governments and most of the balance owed to multilateral development banks. Most payments to other governments have been rescheduled on several occasions since 1987 through the Paris Club mechanism. External creditors have been willing to do this because the Bolivian Government has generally achieved the monetary and fiscal targets set by IMF programs since 1987, though economic crises in recent years have undercut Bolivia's normally good record. Rescheduling agreements granted by the Paris Club has allowed the individual creditor countries to apply very soft terms to the rescheduled debt. As a result, some countries have forgiven substantial amounts of Bolivia's bilateral debt. The U.S. Government reached an agreement at the Paris Club meeting in December 1995 that reduced by 67% Bolivia's existing debt stock. The Bolivian Government continues to pay its debts to the multilateral development banks on time. Bolivia is a beneficiary of the Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC debt relief programs, which by agreement restricts Bolivia's access to new soft loans. Bolivia was one of three countries in the Western Hemisphere selected for eligibility for the Millennium Challenge Account and is participating as an observer in FTA negotiations.

Demographics

Main article: Demographics of Bolivia

Bolivia is one of three countries in Latin America where over half of the population is of Amerindian ancestry. The other two being Guatemala, and Peru. Bolivia's ethnic distribution is estimated to be 33% Quechua, 30% Aymara, 25% Mestizo (mixed indian and European) and 12% pure European. The largest of the approximately three-dozen indigenous groups are the Quechua (2.5 million), Aymara (2 million), Chiquitano (180,000), and Guarani (125,000). There are small German, Italian, American, Basque, former Yugoslav, Asian, Middle Eastern, and other minorities, many of whose members descend from families that have lived in Bolivia for several generations. Also notable is the afro-bolivian community that numbers roughly >1% of the population. This community is descended of african slaves that were brought to work in the altiplano and the mines of potosi. They are mostly concentrated in the yungas region.

Bolivia is one of the least developed countries in South America. Almost two-thirds of its people, many of whom are subsistence farmers, live in poverty. Population density ranges from less than one person per square kilometer in the southeastern plains to about 10 per square kilometer. (25 per sq. mi.) in the central highlands. The annual population growth rate is about 2.74% (2002).

La Paz is the world's highest capital city at 3,600 meters (11,800 ft.) above sea level. The adjacent city of El Alto, at 4,200 meters above sea level, is one of the fastest growing in the hemisphere. Santa Cruz, the commercial and industrial hub of the eastern lowlands, also is experiencing rapid population and economic growth.

The great majority of Bolivians are Roman Catholic (the official religion), although Protestant denominations are expanding strongly. Islam is practiced by the descendants of middle-easterners. There is also a small yet influential Jewish community that is almost all Ashkenazi in origin.It is also notable that Bolivia is the nation with the largest percentage of people that practice the Baha'i faith. Due to extensive Mormon missionary efforts there is substantial Mormon demographic, there is even a temple in Cochabamba. Many indigenous communities interweave pre-Columbian and Christian symbols in their worship. About half of the people speak Spanish as their first language. Approximately 90% of the children attend primary school but often for a year or less. The literacy rate is low in many rural areas. The cultural development of what is present-day Bolivia is divided into three distinct periods: pre-Columbian, colonial, and republican. Important archaeological ruins, gold and silver ornaments, stone monuments, ceramics, and weavings remain from several important pre-Columbian cultures. Major ruins include Tiwanaku, Samaipata, Incallajta, and Iskanwaya. The country abounds in other sites that are difficult to reach and have seen little archaeological exploration.

The Spanish brought their own tradition of religious art which, in the hands of local indigenous and mestizo builders and artisans, developed into a rich and distinctive style of architecture, painting, and sculpture known as "Mestizo Baroque". The colonial period produced not only the paintings of P鲥z de Holgu� Flores, Bitti, and others but also the works of skilled but unknown stonecutters, woodcarvers, goldsmiths, and silversmiths. An important body of native baroque religious music of the colonial period was recovered in recent years and has been performed internationally to wide acclaim since 1994.

Bolivian artists of stature in the 20th century include, among others, Guzmᮠde Rojas, Arturo Borda, Mar�Luisa Pacheco, and Marina N?del Prado. Bolivia has rich folklore. Its regional folk music is distinctive and varied. The "devil dances" at the annual carnival of Oruro are one of the great folkloric events of South America, as is the lesser known carnival at Tarabuco.

Culture

Main article: Culture of Bolivia

Bolivian culture has many Inca and other Indian influences in religion, music and clothing, such as the well known bowler hats. The best known fiesta is the UNESCO heritage "El carnaval de Oruro". Entertainment includes football, which is the national sport, played on almost every street corner. Also, zoos are a popular attraction with a diverse population of interesting creatures.

See Music of Bolivia

Literature

  • Herbert S. Klein, "A Concise History of Bolivia", Cambridge 2003

Footnotes

1 Jennifer Hattam, "Who Owns Water (http://www.sierraclub.org/sierra/200109/lol1.asp)?" Sierra, Sept 2001, v.86, iss.5, p.16.
2 PBS Frontline/World "Leasing the Rain (http://www.pbs.org/frontlineworld/stories/bolivia/)" Video, June 2002

External links



Countries in South America
Argentina | Bolivia | Brazil | Chile | Colombia | Ecuador | Guyana | Panama | Paraguay | Peru | Suriname | Trinidad and Tobago | Uruguay | Venezuela
Dependencies: Falkland Islands | French Guiana
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