Difference between revisions of "Bolivia"

Landlocked Bolivia is equal in size to California and Texas combined. Brazil forms its eastern border; its other neighbors are Peru and Chile on the west and Argentina and Paraguay on the south. The western part, enclosed by two chains of the Andes, is a great plateau—the Altiplano, with an average altitude of 12,000 ft (3,658 m). Almost half the population lives on the plateau, which contains Oruro, Potosí, and La Paz. At an altitude of 11,910 ft (3,630 m), La Paz is the highest administrative capital city in the world. The Oriente, a lowland region ranging from rain forests to grasslands, comprises the northern and eastern two-thirds of the country. Lake Titicaca, at an altitude of 12,507 ft (3,812 m), is the highest commercially navigable body of water in the world.

Landlocked Bolivia is equal in size to California and Texas combined. Brazil forms its eastern border; its other neighbors are Peru and Chile on the west and Argentina and Paraguay on the south. The western part, enclosed by two chains of the Andes, is a great plateau—the Altiplano, with an average altitude of 12,000 ft (3,658 m). Almost half the population lives on the plateau, which contains Oruro, Potosí, and La Paz. At an altitude of 11,910 ft (3,630 m), La Paz is the highest administrative capital city in the world. The Oriente, a lowland region ranging from rain forests to grasslands, comprises the northern and eastern two-thirds of the country. Lake Titicaca, at an altitude of 12,507 ft (3,812 m), is the highest commercially navigable body of water in the world.

The population of Bolivia consists of three groups—Indians, mestizos (of mixed Indian and European descent), and people of European (mainly Spanish) descent. After centuries of intermixing, it is difficult to determine the proportion of each, but it is estimated that Indians form about three-fifths of the total, mestizos make up nearly one-third, and people of European ancestry account for about one-tenth of the population.

The population of Bolivia consists of three groups—Indians, mestizos (of mixed Indian and European descent), and people of European (mainly Spanish) descent. After centuries of intermixing, it is difficult to determine the proportion of each, but it is estimated that Indians form about three-fifths of the total, mestizos make up nearly one-third, and people of European ancestry account for about one-tenth of the population.

In addition to immigrants from Germany, the Balkan region, Japan, and England, the country has received Mennonites from Mexico and Paraguay. Many foreigners who worked in the highland mining centres of Potosí and Oruro eventually settled in Bolivia and have played an important role in the country’s political, economic, and social life. Small numbers of Germans arrived in the late 19th and early 20th centuries and established themselves, with notable success, as business agents and entrepreneurs, shopkeepers, and accountants. Japanese and Okinawan farmers, who first arrived in 1899 and were followed by many thousands in the late 1950s and the ’60s, have made major contributions to the economy of Santa Cruz.

In addition to immigrants from Germany, the Balkan region, Japan, and England, the country has received Mennonites from Mexico and Paraguay. Many foreigners who worked in the highland mining centres of Potosí and Oruro eventually settled in Bolivia and have played an important role in the country’s political, economic, and social life. Small numbers of Germans arrived in the late 19th and early 20th centuries and established themselves, with notable success, as business agents and entrepreneurs, shopkeepers, and accountants. Japanese and Okinawan farmers, who first arrived in 1899 and were followed by many thousands in the late 1950s and the ’60s, have made major contributions to the economy of Santa Cruz.

Spanish and 36 indigenous languages are official in Bolivia per the 2009 constitution. Previously only Spanish, Aymara, and Quechua were official languages of the country. Many Indians, particularly in the cities, market towns, and new colonies, speak or understand Spanish.

Spanish and 36 indigenous languages are official in Bolivia per the 2009 constitution. Previously only Spanish, Aymara, and Quechua were official languages of the country. Many Indians, particularly in the cities, market towns, and new colonies, speak or understand Spanish.

Some characteristics of pantheistic pre-Columbian religion have survived in the Indian communities of the Altiplano, especially the worship of Pachamama, the goddess of the Earth. Also worshiped is the sun god, legendary creator of the first Inca emperor Manco Capac and his sister-wife Mama Ocllo on the Island of the Sun in Lake Titicaca. Through the centuries, the Roman Catholic Church has accepted some indigenous rituals and customs by assimilation, mainly through combined Catholic and traditional celebrations that continue to be an important part of life in rural and urban settings. For example, in the mining cities of Potosí and Oruro, tens of thousands of Bolivians and foreign tourists celebrate Carnival by paying homage to the Virgin of the Mines and to Pachamama. During the festival, dancers wear elaborate masks and outfits that depict devils, their blue-eyed mistresses, Inca rulers, and African slave drivers. In the mines, llamas are sacrificed as part of the worship of Pachamama and of Tío, the protector of the mines.

Some characteristics of pantheistic pre-Columbian religion have survived in the Indian communities of the Altiplano, especially the worship of Pachamama, the goddess of the Earth. Also worshiped is the sun god, legendary creator of the first Inca emperor Manco Capac and his sister-wife Mama Ocllo on the Island of the Sun in Lake Titicaca. Through the centuries, the Roman Catholic Church has accepted some indigenous rituals and customs by assimilation, mainly through combined Catholic and traditional celebrations that continue to be an important part of life in rural and urban settings. For example, in the mining cities of Potosí and Oruro, tens of thousands of Bolivians and foreign tourists celebrate Carnival by paying homage to the Virgin of the Mines and to Pachamama. During the festival, dancers wear elaborate masks and outfits that depict devils, their blue-eyed mistresses, Inca rulers, and African slave drivers. In the mines, llamas are sacrificed as part of the worship of Pachamama and of Tío, the protector of the mines.

At the beginning of the 20th century the population of Bolivia was estimated at 1,800,000. After 25 years of slow growth thereafter it had increased to about 2,300,000. Between 1925 and 1950 the population grew at a slightly accelerated rate (despite the losses of the Chaco War), increasing by about 750,000. The population increased dramatically by at least 2,250,000 (to some 5,300,000) during the next 25 years as the death rate fell and the birth rate remained consistently high. During the last quarter of the 20th century the rate of population growth slowed somewhat but was still among the higher rates in Latin America.

At the beginning of the 20th century the population of Bolivia was estimated at 1,800,000. After 25 years of slow growth thereafter it had increased to about 2,300,000. Between 1925 and 1950 the population grew at a slightly accelerated rate (despite the losses of the Chaco War), increasing by about 750,000. The population increased dramatically by at least 2,250,000 (to some 5,300,000) during the next 25 years as the death rate fell and the birth rate remained consistently high. During the last quarter of the 20th century the rate of population growth slowed somewhat but was still among the higher rates in Latin America.

The rate of urbanization has paralleled that of population growth. At the beginning of the 20th century fewer than one-tenth of Bolivians lived in urban areas, but by 1950 the urban population had more than doubled. At the beginning of the 21st century nearly two-thirds of Bolivians were urban.

The rate of urbanization has paralleled that of population growth. At the beginning of the 20th century fewer than one-tenth of Bolivians lived in urban areas, but by 1950 the urban population had more than doubled. At the beginning of the 21st century nearly two-thirds of Bolivians were urban.

Bolivia is well endowed with natural resources. Among the country’s most valuable assets are its mineral deposits, hydrocarbons (petroleum and natural gas), and its renewable natural resources, such as agricultural and forest products, especially soybeans and Brazil nuts. Its economic development has been limited, however, by high production costs and lack of investment; persisting obstacles include an inadequate transportation infrastructure and the country’s landlocked location. Average per capita income is low, and Bolivia remains one of the poorest countries in South America.

Bolivia is well endowed with natural resources. Among the country’s most valuable assets are its mineral deposits, hydrocarbons (petroleum and natural gas), and its renewable natural resources, such as agricultural and forest products, especially soybeans and Brazil nuts. Its economic development has been limited, however, by high production costs and lack of investment; persisting obstacles include an inadequate transportation infrastructure and the country’s landlocked location. Average per capita income is low, and Bolivia remains one of the poorest countries in South America.

Nevertheless, Bolivia continues to receive considerable foreign technical assistance and long-term loans from international organizations, including the World Bank and the Inter-American Development Bank, as well as from numerous creditor nations. However, its governments have been able to shift their priorities from administering deficit-run—and often corrupt—state-owned companies to improving the country’s dire health and educational services and transportation infrastructure. Important boosts to the economy also accompanied the rapid development of agriculture and extraction industries in the Santa Cruz region, the growth of natural gas and oil exploration in the surrounding areas of Tarija, Chuquisaca, Santa Cruz, and Cochabamba, the modernization of the telecommunications industry, and new investments in electric power generation and water services.

Nevertheless, Bolivia continues to receive considerable foreign technical assistance and long-term loans from international organizations, including the World Bank and the Inter-American Development Bank, as well as from numerous creditor nations. However, its governments have been able to shift their priorities from administering deficit-run—and often corrupt—state-owned companies to improving the country’s dire health and educational services and transportation infrastructure. Important boosts to the economy also accompanied the rapid development of agriculture and extraction industries in the Santa Cruz region, the growth of natural gas and oil exploration in the surrounding areas of Tarija, Chuquisaca, Santa Cruz, and Cochabamba, the modernization of the telecommunications industry, and new investments in electric power generation and water services.

The country is a major producer of tin and gold, and, although its exports of zinc and silver are small parts of the world market, they account for a significant portion of export earnings. Bolivia also has reserves of antimony, tungsten (wolfram), lead, copper, and lithium. Tin long dominated metal production, but by the late 20th century both foreign and domestic companies were investing more heavily in gold and silver extraction. The country continues, however, to be exceptionally vulnerable to changes in world tin demand. In the 1980s, for example, a glut in the world market forced the formerly state-owned mining corporation, Corporación Minera de Bolivia (COMIBOL), to cut its production drastically and lay off more than two-thirds of its workforce.

The country is a major producer of tin and gold, and, although its exports of zinc and silver are small parts of the world market, they account for a significant portion of export earnings. Bolivia also has reserves of antimony, tungsten (wolfram), lead, copper, and lithium. Tin long dominated metal production, but by the late 20th century both foreign and domestic companies were investing more heavily in gold and silver extraction. The country continues, however, to be exceptionally vulnerable to changes in world tin demand. In the 1980s, for example, a glut in the world market forced the formerly state-owned mining corporation, Corporación Minera de Bolivia (COMIBOL), to cut its production drastically and lay off more than two-thirds of its workforce.

Development of Bolivia’s petroleum resources dates from 1920, when the Standard Oil Company of the United States acquired a concession to explore and exploit the Andean foothill zone in southeastern Bolivia. A series of small oil fields were discovered there, but Standard Oil’s operation was expropriated in 1937 to form the nationalized Yacimientos Petrolíferos Fiscales Bolivianos (YPFB). In the mid-1950s North American companies were again encouraged to resume operations, and in 1956 the Bolivian Gulf Oil Company (a branch of Gulf Oil Corporation) began a decade of successful oil and natural gas strikes in the Santa Cruz region. In 1966 Gulf began exporting oil to southern California via the YPFB pipeline to the Pacific port of Arica, Chile, and it also boosted the YPFB’s sales to the domestic market and to Argentina. Political uncertainties disrupted the industry, however, and in 1969 Bolivia nationalized the Gulf Oil operation. The government again promoted foreign oil investment in 1972, but production continued to fall during subsequent decades because of a lack of capital and the failure to replace depleted wells. In addition, some oil had to be imported to meet soaring domestic consumption. The YPFB was partly privatized in the 1990s.

Development of Bolivia’s petroleum resources dates from 1920, when the Standard Oil Company of the United States acquired a concession to explore and exploit the Andean foothill zone in southeastern Bolivia. A series of small oil fields were discovered there, but Standard Oil’s operation was expropriated in 1937 to form the nationalized Yacimientos Petrolíferos Fiscales Bolivianos (YPFB). In the mid-1950s North American companies were again encouraged to resume operations, and in 1956 the Bolivian Gulf Oil Company (a branch of Gulf Oil Corporation) began a decade of successful oil and natural gas strikes in the Santa Cruz region. In 1966 Gulf began exporting oil to southern California via the YPFB pipeline to the Pacific port of Arica, Chile, and it also boosted the YPFB’s sales to the domestic market and to Argentina. Political uncertainties disrupted the industry, however, and in 1969 Bolivia nationalized the Gulf Oil operation. The government again promoted foreign oil investment in 1972, but production continued to fall during subsequent decades because of a lack of capital and the failure to replace depleted wells. In addition, some oil had to be imported to meet soaring domestic consumption. The YPFB was partly privatized in the 1990s.

Natural gas production has been more successful. As world markets for tin diminished, natural gas became Bolivia’s most valuable legal export by the mid-1980s, accounting for more than half of official total earnings. Argentina was the principal destination of natural gas exports until 1998, when the Bolivia-Brazil natural gas pipeline was opened. In 2006, President Morales nationalized both the country’s natural gas reserves and its oil industry, ordering the military to occupy the fields and giving the state control of energy production. Foreign companies were to hand over majority control to the YPFB.

Natural gas production has been more successful. As world markets for tin diminished, natural gas became Bolivia’s most valuable legal export by the mid-1980s, accounting for more than half of official total earnings. Argentina was the principal destination of natural gas exports until 1998, when the Bolivia-Brazil natural gas pipeline was opened. In 2006, President Morales nationalized both the country’s natural gas reserves and its oil industry, ordering the military to occupy the fields and giving the state control of energy production. Foreign companies were to hand over majority control to the YPFB.

Bolivia’s rivers have considerable, largely untapped hydroelectric potential, and per capita electric consumption remains low. Partly in an effort to improve services, a controlling interest in the National Electric Company was sold in the 1990s to energy companies in the United States and Spain, and the remaining shares were turned over to a national pension system. Hydroelectric stations generate power in the regions of La Paz and Cochabamba, and thermoelectric plants fueled by natural gas generate power in Santa Cruz and Cochabamba for the integrated national distribution system. Foreign companies have also invested in separate electric systems in Tarija and Trinidad, and the Bolivian government has encouraged plans for the exporting of electricity to Brazil.

Bolivia’s rivers have considerable, largely untapped hydroelectric potential, and per capita electric consumption remains low. Partly in an effort to improve services, a controlling interest in the National Electric Company was sold in the 1990s to energy companies in the United States and Spain, and the remaining shares were turned over to a national pension system. Hydroelectric stations generate power in the regions of La Paz and Cochabamba, and thermoelectric plants fueled by natural gas generate power in Santa Cruz and Cochabamba for the integrated national distribution system. Foreign companies have also invested in separate electric systems in Tarija and Trinidad, and the Bolivian government has encouraged plans for the exporting of electricity to Brazil.

About two-fifths of the working population is engaged in agriculture (including small numbers in hunting, forestry, and fishing), but farming accounts for only about one-seventh of the gross domestic product (GDP). Although peasant markets have grown in the northern cities, in roadside towns on the Altiplano, and around Cochabamba, subsistence farming remains widespread in the Andes.

About two-fifths of the working population is engaged in agriculture (including small numbers in hunting, forestry, and fishing), but farming accounts for only about one-seventh of the gross domestic product (GDP). Although peasant markets have grown in the northern cities, in roadside towns on the Altiplano, and around Cochabamba, subsistence farming remains widespread in the Andes.

In the Oriente around Santa Cruz, soybeans are the main crop, and sugarcane, rice (dry and paddy), and cotton are also significant, as is the raising of beef cattle. Soybean production grew dramatically from about 80,000 tons in the mid-1980s to more than one million tons in the early 21st century. Soybeans are one of the most important sources of export earnings. Farther north, the Beni region is notable for its large cattle ranches. Tropical hardwoods are exploited in the forests of northern La Paz, Pando, Beni, and Santa Cruz areas, although the logging of rainforests has become a matter of environmental concern.

In the Oriente around Santa Cruz, soybeans are the main crop, and sugarcane, rice (dry and paddy), and cotton are also significant, as is the raising of beef cattle. Soybean production grew dramatically from about 80,000 tons in the mid-1980s to more than one million tons in the early 21st century. Soybeans are one of the most important sources of export earnings. Farther north, the Beni region is notable for its large cattle ranches. Tropical hardwoods are exploited in the forests of northern La Paz, Pando, Beni, and Santa Cruz areas, although the logging of rainforests has become a matter of environmental concern.

The manufacturing sector has grown since the 1950s but remains small, despite some stimulus from Bolivia’s membership in the Andean Community and Mercosur, two regional trade organizations. Historically, mineral processing (including oil refining) and the preparation of agricultural products have dominated Bolivian industry. In the early 21st century there were major investments in the processing of soybeans and the manufacture of textiles, wood products, and soft drinks. Textiles using alpaca, cotton, or synthetics are produced in modern factories in La Paz and exported to the United States and Europe. The manufacture of gold jewelry has also become an important industry in La Paz and El Alto.

The manufacturing sector has grown since the 1950s but remains small, despite some stimulus from Bolivia’s membership in the Andean Community and Mercosur, two regional trade organizations. Historically, mineral processing (including oil refining) and the preparation of agricultural products have dominated Bolivian industry. In the early 21st century there were major investments in the processing of soybeans and the manufacture of textiles, wood products, and soft drinks. Textiles using alpaca, cotton, or synthetics are produced in modern factories in La Paz and exported to the United States and Europe. The manufacture of gold jewelry has also become an important industry in La Paz and El Alto.

Food industries include flour milling, dairying, sugar refining, brewing, and alcohol distilling. Other manufactures consist of machinery, shoes, furniture, glass, bricks, cement, paper, and a wide range of small goods designed to meet the needs of a limited domestic market. Although two-thirds of Bolivia’s manufacturing industry was located in or near La Paz at the end of the 20th century, important new investments have been made in Cochabamba and Santa Cruz. Many Bolivian companies, however, have found it difficult to compete with imported Brazilian, Argentine, Chilean, Peruvian, and Asian manufactures that are often smuggled into the country.

Food industries include flour milling, dairying, sugar refining, brewing, and alcohol distilling. Other manufactures consist of machinery, shoes, furniture, glass, bricks, cement, paper, and a wide range of small goods designed to meet the needs of a limited domestic market. Although two-thirds of Bolivia’s manufacturing industry was located in or near La Paz at the end of the 20th century, important new investments have been made in Cochabamba and Santa Cruz. Many Bolivian companies, however, have found it difficult to compete with imported Brazilian, Argentine, Chilean, Peruvian, and Asian manufactures that are often smuggled into the country.

The Bolivian banking system is overseen by the government’s Superintendency of Banks and Financial Institutions, founded in 1928. Chief among the five state banks and numerous commercial banks is the Central Bank of Bolivia, which was founded in 1911 as the Bank of the Bolivian Nation; it took its present name in 1928. The Central Bank issues the national currency, the boliviano, and also operates as a commercial bank. The Central Bank is administratively linked to the State Bank (1970); the three other state banks are the Agricultural Bank (1942), the Mining Bank (1936), and the Housing Bank (1964). The country’s privately held commercial banks were deregulated in the mid-1980s following three decades of close government control. In the early 21st century, the Central Bank lost much of its autonomy under the government of Morales.

The Bolivian banking system is overseen by the government’s Superintendency of Banks and Financial Institutions, founded in 1928. Chief among the five state banks and numerous commercial banks is the Central Bank of Bolivia, which was founded in 1911 as the Bank of the Bolivian Nation; it took its present name in 1928. The Central Bank issues the national currency, the boliviano, and also operates as a commercial bank. The Central Bank is administratively linked to the State Bank (1970); the three other state banks are the Agricultural Bank (1942), the Mining Bank (1936), and the Housing Bank (1964). The country’s privately held commercial banks were deregulated in the mid-1980s following three decades of close government control. In the early 21st century, the Central Bank lost much of its autonomy under the government of Morales.

The Bolivian Stock Exchange (1989) is the main stock exchange, and the government’s Superintendency of Insurance and Reinsurance (1975) oversees several national companies.

The Bolivian Stock Exchange (1989) is the main stock exchange, and the government’s Superintendency of Insurance and Reinsurance (1975) oversees several national companies.

Tourism is playing an increasingly important role in the economy as Bolivia attracts larger numbers of foreign tourists. New or refurbished hotels opened in the cities of La Paz, Cochabamba, Santa Cruz, and Sucre, as well as in several sites around Lake Titicaca. Because of the country’s vast variety of natural and cultural resources, as well as its improved economic and political stability, Bolivia has been added to an increasingly popular grand tour of South America—a package tour of continental highlights that attracts visitors from the United States, Europe, Japan, and other countries. Major Bolivian tourist sites are Lake Titicaca and its surroundings, including Inca ruins on the Island of the Sun and pre-Inca ruins at Tiwanaku; the latter were designated a UNESCO World Heritage site in 2000. Other tourist attractions include fishermen in totora-reed balsas (rafts), Indian villages on the Altiplano, and the city of La Paz itself.

Tourism is playing an increasingly important role in the economy as Bolivia attracts larger numbers of foreign tourists. New or refurbished hotels opened in the cities of La Paz, Cochabamba, Santa Cruz, and Sucre, as well as in several sites around Lake Titicaca. Because of the country’s vast variety of natural and cultural resources, as well as its improved economic and political stability, Bolivia has been added to an increasingly popular grand tour of South America—a package tour of continental highlights that attracts visitors from the United States, Europe, Japan, and other countries. Major Bolivian tourist sites are Lake Titicaca and its surroundings, including Inca ruins on the Island of the Sun and pre-Inca ruins at Tiwanaku; the latter were designated a UNESCO World Heritage site in 2000. Other tourist attractions include fishermen in totora-reed balsas (rafts), Indian villages on the Altiplano, and the city of La Paz itself.

A thrilling and popular side trip is taken by road over the Cordillera Real and down into the Yungas jungles closest to La Paz, providing within a few hours some of the most dramatic contrasts in scenery and climate in the Andean region. Other important destinations include the Uyuni Salt Flat, which can be reached via train from Oruro; the Jesuit Missions of the Chiquitos in Santa Cruz, which were designated a UNESCO World Heritage site in 1990; and the renowned Baroque architecture of Sucre and Potosí, the historic centres of which were added to the UNESCO World Heritage list in 1991 and 1987, respectively. Increasingly, tourists are also visiting the tropical towns of Rurrenabaque and Riberalta, the Chaparé River (a tributary to the Mamoré), national parks in the Oriente, and the pre-Columbian ruins at Samaipata (a UNESCO World Heritage site since 1998) southwest of Santa Cruz.

A thrilling and popular side trip is taken by road over the Cordillera Real and down into the Yungas jungles closest to La Paz, providing within a few hours some of the most dramatic contrasts in scenery and climate in the Andean region. Other important destinations include the Uyuni Salt Flat, which can be reached via train from Oruro; the Jesuit Missions of the Chiquitos in Santa Cruz, which were designated a UNESCO World Heritage site in 1990; and the renowned Baroque architecture of Sucre and Potosí, the historic centres of which were added to the UNESCO World Heritage list in 1991 and 1987, respectively. Increasingly, tourists are also visiting the tropical towns of Rurrenabaque and Riberalta, the Chaparé River (a tributary to the Mamoré), national parks in the Oriente, and the pre-Columbian ruins at Samaipata (a UNESCO World Heritage site since 1998) southwest of Santa Cruz.

Until the late 20th century the export of metals dominated Bolivia’s trade, but, with the collapse of the world market in tin in the 1980s, natural gas became a leading export; together, metals, petroleum, and natural gas account for most of Bolivia’s legitimate export trade. Soybeans are the principal agricultural export. Manufactured products constitute the largest segment of total imports; machinery and equipment for industry and transport are among the main items. Raw materials, consumer goods, and food products are other major import categories. Bolivia’s primary trading partners include the United States, Argentina, Peru, Brazil, Chile, Japan, and China.

Until the late 20th century the export of metals dominated Bolivia’s trade, but, with the collapse of the world market in tin in the 1980s, natural gas became a leading export; together, metals, petroleum, and natural gas account for most of Bolivia’s legitimate export trade. Soybeans are the principal agricultural export. Manufactured products constitute the largest segment of total imports; machinery and equipment for industry and transport are among the main items. Raw materials, consumer goods, and food products are other major import categories. Bolivia’s primary trading partners include the United States, Argentina, Peru, Brazil, Chile, Japan, and China.

Illegal trade in cocaine continues to have a significant but decreasing impact on the Bolivian economy. The leaves of the indigenous coca (Quechua: kúka) shrub have been chewed by Quechua, Aymara, and Guaraní farmers and miners for centuries as a relief against cold and fatigue, and small quantities of coca have long been legally exported for medicinal purposes; people throughout Peru and Bolivia commonly drink coca-leaf tea and do not consider it harmful. The unprecedented expansion of coca cultivation in the Yungas and, especially, in the Chaparé region northeast of Cochabamba began in the 1960s with the sudden growth in the illegal international market for cocaine. As demand soared in North America and Europe in the 1970s and ’80s, Bolivian peasant farmers found that no other crop could compete with coca for profitability. It became the ideal cash crop—easy to grow, valuable, nonperishable, and easy to transport, whether in dried leaf form or as processed cocaine. In the 1980s it was estimated that one-third of the world’s coca was grown in Bolivia. Attempts by the government to introduce crop substitution or to induce peasants to voluntarily reduce their coca acreage initially met with little success. Instead, the area devoted to coca cultivation continued to increase, and greater quantities were exported annually from centres around Cochabamba, Santa Cruz, and remote parts of the Oriente. In the 1990s, however, the importance of the Bolivian cocaine trade was undercut by voluntary and forceful eradication programs sponsored by both the United States and Bolivia, as well as by the profitable development of agriculture and other industries in the departments of Cochabamba and Santa Cruz. By the end of the decade, it was estimated that national production had decreased to less than one-fourth of the world total. Drug trafficking has provided a significant addition to the country’s gross national product—although this contribution is not officially tabulated as part of the country’s economy—and it has contributed to corruption among law enforcement and other government officials. Although Bolivian and U.S. drug enforcement agencies have made inroads against cocaine trafficking activities, the demand for cocaine in foreign countries has continued to feed the drug trade in Bolivia.

Illegal trade in cocaine continues to have a significant but decreasing impact on the Bolivian economy. The leaves of the indigenous coca (Quechua: kúka) shrub have been chewed by Quechua, Aymara, and Guaraní farmers and miners for centuries as a relief against cold and fatigue, and small quantities of coca have long been legally exported for medicinal purposes; people throughout Peru and Bolivia commonly drink coca-leaf tea and do not consider it harmful. The unprecedented expansion of coca cultivation in the Yungas and, especially, in the Chaparé region northeast of Cochabamba began in the 1960s with the sudden growth in the illegal international market for cocaine. As demand soared in North America and Europe in the 1970s and ’80s, Bolivian peasant farmers found that no other crop could compete with coca for profitability. It became the ideal cash crop—easy to grow, valuable, nonperishable, and easy to transport, whether in dried leaf form or as processed cocaine. In the 1980s it was estimated that one-third of the world’s coca was grown in Bolivia. Attempts by the government to introduce crop substitution or to induce peasants to voluntarily reduce their coca acreage initially met with little success. Instead, the area devoted to coca cultivation continued to increase, and greater quantities were exported annually from centres around Cochabamba, Santa Cruz, and remote parts of the Oriente. In the 1990s, however, the importance of the Bolivian cocaine trade was undercut by voluntary and forceful eradication programs sponsored by both the United States and Bolivia, as well as by the profitable development of agriculture and other industries in the departments of Cochabamba and Santa Cruz. By the end of the decade, it was estimated that national production had decreased to less than one-fourth of the world total. Drug trafficking has provided a significant addition to the country’s gross national product—although this contribution is not officially tabulated as part of the country’s economy—and it has contributed to corruption among law enforcement and other government officials. Although Bolivian and U.S. drug enforcement agencies have made inroads against cocaine trafficking activities, the demand for cocaine in foreign countries has continued to feed the drug trade in Bolivia.

Bolivia’s economic growth has been hindered both by the landlocked location of the country and by a difficult internal geography of steep mountains and seasonally flooded plains. The situation is ameliorated by agreements with Brazil, Argentina, and Paraguay that cover railway connections and duty-free shipping from eastern river ports via the Hidrovía (Paraguay-Paraná Waterway), giving Bolivia access to Atlantic Ocean ports; another treaty, made with Peru in 1993, grants Bolivia overland access to the Pacific Ocean. Following a defense accord signed between Bolivia and Chile in 2008, the port of Iquique in Chile began to transport Bolivian goods freely for the first time since 1904, when a treaty cut off Bolivia’s Pacific outlet. Barges carry soybeans and other crops from Puerto Aguirre (Puerto Quijarro) in eastern Bolivia to Atlantic ports; the ships return with food products, diesel fuel, and industrial goods. The immense river system provides an important means of domestic transportation throughout the tropical lowlands.

Bolivia’s economic growth has been hindered both by the landlocked location of the country and by a difficult internal geography of steep mountains and seasonally flooded plains. The situation is ameliorated by agreements with Brazil, Argentina, and Paraguay that cover railway connections and duty-free shipping from eastern river ports via the Hidrovía (Paraguay-Paraná Waterway), giving Bolivia access to Atlantic Ocean ports; another treaty, made with Peru in 1993, grants Bolivia overland access to the Pacific Ocean. Following a defense accord signed between Bolivia and Chile in 2008, the port of Iquique in Chile began to transport Bolivian goods freely for the first time since 1904, when a treaty cut off Bolivia’s Pacific outlet. Barges carry soybeans and other crops from Puerto Aguirre (Puerto Quijarro) in eastern Bolivia to Atlantic ports; the ships return with food products, diesel fuel, and industrial goods. The immense river system provides an important means of domestic transportation throughout the tropical lowlands.

Air transport is the only fast link between Bolivia’s major cities and is the primary means by which the isolated settlements in the Oriente are connected to the rest of the country, especially in the rainy season, when roads are often destroyed by heavy rains and landslides. The airline Lloyd Aéreo Boliviano (LAB) was founded by a small group of German businessmen in 1925, and in the second half of the 20th century it played an indispensable political role in helping Bolivia maintain control over the plains and the eastern border regions. LAB flies international routes to South American capitals, as well as to other cities such as São Paulo, Rio de Janeiro, and Manaus (all in Brazil), Panama City (Panama), and Miami (Florida, U.S.). A newer airline, AeroSur, also provides air passenger service to most Bolivian cities, some tropical towns, and Buenos Aires. The Bolivian Air Force company (Transportes Aéreos Militares; TAM) carries passengers to small towns in the tropical Bolivian lowlands, and numerous foreign-owned airlines also serve the country. In the mid-1990s Santa Cruz opened a new airport, which was considered to be one of the more modern on the continent and quickly became Bolivia’s main air hub.

Air transport is the only fast link between Bolivia’s major cities and is the primary means by which the isolated settlements in the Oriente are connected to the rest of the country, especially in the rainy season, when roads are often destroyed by heavy rains and landslides. The airline Lloyd Aéreo Boliviano (LAB) was founded by a small group of German businessmen in 1925, and in the second half of the 20th century it played an indispensable political role in helping Bolivia maintain control over the plains and the eastern border regions. LAB flies international routes to South American capitals, as well as to other cities such as São Paulo, Rio de Janeiro, and Manaus (all in Brazil), Panama City (Panama), and Miami (Florida, U.S.). A newer airline, AeroSur, also provides air passenger service to most Bolivian cities, some tropical towns, and Buenos Aires. The Bolivian Air Force company (Transportes Aéreos Militares; TAM) carries passengers to small towns in the tropical Bolivian lowlands, and numerous foreign-owned airlines also serve the country. In the mid-1990s Santa Cruz opened a new airport, which was considered to be one of the more modern on the continent and quickly became Bolivia’s main air hub.

Bolivia was declared independent in 1825 and adopted its first constitution in 1826. Despite revisions and numerous military coups, the state has retained a unitary system of government, whether elected or under military dictatorship, the latter having held sway for much of Bolivia’s history. A heavily revised version of the 1967 constitution was promulgated in 1994. According to that document, executive power is vested in a president who is directly elected by popular vote for a five-year term. If no candidate receives an absolute majority of votes, the National Congress must select the president from among the two leading contenders. In January 2009 a new constitution was approved that allowed the president to serve another consecutive five-year term. The bicameral legislature consists of a 36-member Chamber of Senators and a 130-member Chamber of Deputies; members of the legislature are directly elected for five-year terms. The judicial system is headed by a 12-member Supreme Court and a 5-member Constitutional Tribunal, which decides the constitutionality of laws and resolves conflicts between the branches and levels of government. The new constitution required that judges be elected; since 1967 members of both judicial bodies had been appointed by Congress to 10-year terms.

Bolivia was declared independent in 1825 and adopted its first constitution in 1826. Despite revisions and numerous military coups, the state has retained a unitary system of government, whether elected or under military dictatorship, the latter having held sway for much of Bolivia’s history. A heavily revised version of the 1967 constitution was promulgated in 1994. According to that document, executive power is vested in a president who is directly elected by popular vote for a five-year term. If no candidate receives an absolute majority of votes, the National Congress must select the president from among the two leading contenders. In January 2009 a new constitution was approved that allowed the president to serve another consecutive five-year term. The bicameral legislature consists of a 36-member Chamber of Senators and a 130-member Chamber of Deputies; members of the legislature are directly elected for five-year terms. The judicial system is headed by a 12-member Supreme Court and a 5-member Constitutional Tribunal, which decides the constitutionality of laws and resolves conflicts between the branches and levels of government. The new constitution required that judges be elected; since 1967 members of both judicial bodies had been appointed by Congress to 10-year terms.

Women have voted in Bolivian elections since 1938, but literacy and property requirements nevertheless restricted electoral participation to a tiny proportion of the population until the National Revolution of 1952, when universal suffrage was introduced. The nation’s political system is largely controlled by three political parties; numerous smaller parties ranging in outlook from conservative to left-wing also play a role in the country’s political life. Interparty alliances have often been formed to permit national and municipal governments to function.

Women have voted in Bolivian elections since 1938, but literacy and property requirements nevertheless restricted electoral participation to a tiny proportion of the population until the National Revolution of 1952, when universal suffrage was introduced. The nation’s political system is largely controlled by three political parties; numerous smaller parties ranging in outlook from conservative to left-wing also play a role in the country’s political life. Interparty alliances have often been formed to permit national and municipal governments to function.

Primary education for children 6 to 13 years of age is free and officially compulsory, although school attendance is difficult to enforce in some areas. Secondary education, lasting up to 4 years, is not compulsory. At the end of the 20th century about four-fifths of the primary-age children were attending school, but the attendance rate among secondary-age children was much lower, only about one-fourth. Most education is state-supported, but private institutions are permitted. Roman Catholic, Protestant, and Jewish organizations also maintain schools. Adult literacy rates have climbed dramatically since the 1950s, when most Bolivian Indians were illiterate, to about four-fifths of the adult population by the end of the century. The nation’s eight state universities are located in each of the departmental capitals except Cobija (capital of Pando department), and there are numerous private schools, including a Roman Catholic university. The largest institutions of higher learning are the University of San Andrés (founded 1930) in La Paz and Major University of San Simón (1832) in Cochabamba.

Primary education for children 6 to 13 years of age is free and officially compulsory, although school attendance is difficult to enforce in some areas. Secondary education, lasting up to 4 years, is not compulsory. At the end of the 20th century about four-fifths of the primary-age children were attending school, but the attendance rate among secondary-age children was much lower, only about one-fourth. Most education is state-supported, but private institutions are permitted. Roman Catholic, Protestant, and Jewish organizations also maintain schools. Adult literacy rates have climbed dramatically since the 1950s, when most Bolivian Indians were illiterate, to about four-fifths of the adult population by the end of the century. The nation’s eight state universities are located in each of the departmental capitals except Cobija (capital of Pando department), and there are numerous private schools, including a Roman Catholic university. The largest institutions of higher learning are the University of San Andrés (founded 1930) in La Paz and Major University of San Simón (1832) in Cochabamba.

There are three levels of health services: those supported by the state through the Ministry of Public Health and Social Security, those provided by the social security system for its affiliates, and private clinics. In general, medical services and hospitals are adequate in the cities but not in rural areas, where doctors and nurses are scarce but respiratory diseases and malnutrition are common. Traveling health workers provide care in colonization zones (the Valles and Oriente), where diseases such as malaria and the deadly Chagas disease (which is carried by the vinchuca bug) are major problems. Several foreign aid organizations have helped institute programs to reduce the infant mortality rate, which is still among the highest on the continent, and provide basic care to rural and poor communities. Folk medicine thrives in some rural areas, such as the Kallawaya Indian communities of the Apolobamba range.

There are three levels of health services: those supported by the state through the Ministry of Public Health and Social Security, those provided by the social security system for its affiliates, and private clinics. In general, medical services and hospitals are adequate in the cities but not in rural areas, where doctors and nurses are scarce but respiratory diseases and malnutrition are common. Traveling health workers provide care in colonization zones (the Valles and Oriente), where diseases such as malaria and the deadly Chagas disease (which is carried by the vinchuca bug) are major problems. Several foreign aid organizations have helped institute programs to reduce the infant mortality rate, which is still among the highest on the continent, and provide basic care to rural and poor communities. Folk medicine thrives in some rural areas, such as the Kallawaya Indian communities of the Apolobamba range.

Bolivian society embraces a mixture of diverse and extraordinarily rich native Indian cultures as well as the Iberian culture brought by the Spaniards. On religious feast days, for example, pre-Columbian rites are practiced in conjunction with Roman Catholic celebrations, and Aymara, Quechua, and other ethnic groups express themselves through dances and songs that blend indigenous and European influences. During such festivities, symbolic dress shows the Indian interpretation of European attitudes: the dance of the palla-palla caricatures the 16th-century Spanish invaders, the dance of the waka-tokoris satirizes bullfights, and the morenada mocks white men, who are depicted leading imported African slaves. Some highly embroidered and colourful costumes imitate pre-Columbian dress. Many costumes are accompanied by elaborate masks made of plaster, cloth, or tin cans and topped by feather headdresses. The mixture of cultures is also revealed in the music and in the charango, a hybrid instrument that is similar in shape to a guitar, although much smaller; its five double strings resonate on a sound box made from an armadillo shell or a gourd. Other common instruments are the zampoña (panpipes), quena (kena; a notched vertical flute), and percussion instruments of various sizes, including skin drums, bronze gongs, and copper bells. In the lowlands of Santa Cruz and Beni departments, music composed in the 18th century—during the heyday of the Jesuit missions in Latin America—is performed by Guaraní Indians of the Guarayo, Chiquitano, and Mojeno communities.

Bolivian society embraces a mixture of diverse and extraordinarily rich native Indian cultures as well as the Iberian culture brought by the Spaniards. On religious feast days, for example, pre-Columbian rites are practiced in conjunction with Roman Catholic celebrations, and Aymara, Quechua, and other ethnic groups express themselves through dances and songs that blend indigenous and European influences. During such festivities, symbolic dress shows the Indian interpretation of European attitudes: the dance of the palla-palla caricatures the 16th-century Spanish invaders, the dance of the waka-tokoris satirizes bullfights, and the morenada mocks white men, who are depicted leading imported African slaves. Some highly embroidered and colourful costumes imitate pre-Columbian dress. Many costumes are accompanied by elaborate masks made of plaster, cloth, or tin cans and topped by feather headdresses. The mixture of cultures is also revealed in the music and in the charango, a hybrid instrument that is similar in shape to a guitar, although much smaller; its five double strings resonate on a sound box made from an armadillo shell or a gourd. Other common instruments are the zampoña (panpipes), quena (kena; a notched vertical flute), and percussion instruments of various sizes, including skin drums, bronze gongs, and copper bells. In the lowlands of Santa Cruz and Beni departments, music composed in the 18th century—during the heyday of the Jesuit missions in Latin America—is performed by Guaraní Indians of the Guarayo, Chiquitano, and Mojeno communities.

Indians long attempted to imitate Europeans, in custom as well as in dress. However, beginning in the 1940s and especially since the early ’70s, Indian culture and values have been reestablished: traditional music has risen to a higher standard, painters have abandoned the imitation of European fashions, and some of the characteristics of Indian culture have reemerged in the general lifestyle.

Indians long attempted to imitate Europeans, in custom as well as in dress. However, beginning in the 1940s and especially since the early ’70s, Indian culture and values have been reestablished: traditional music has risen to a higher standard, painters have abandoned the imitation of European fashions, and some of the characteristics of Indian culture have reemerged in the general lifestyle.

Bolivian daily life is largely dependent on social class, economic status, and place of residence. Whereas Indian traditions persist throughout the nation, they are more strongly pronounced in rural and working-class areas. Most members of the middle and upper classes, however, tend to aspire toward “modern” or Western cultural ideals in their choices of music, clothing, daily entertainment, reading material, and visual arts, in spite of the increasing amount of respect and interest garnered by indigenous art forms.

Bolivian daily life is largely dependent on social class, economic status, and place of residence. Whereas Indian traditions persist throughout the nation, they are more strongly pronounced in rural and working-class areas. Most members of the middle and upper classes, however, tend to aspire toward “modern” or Western cultural ideals in their choices of music, clothing, daily entertainment, reading material, and visual arts, in spite of the increasing amount of respect and interest garnered by indigenous art forms.

People in the tropical lowlands generally attend more social gatherings and stay out later than residents of the highlands, where restaurants and clubs tend to close earlier because of the chilly evening temperatures. Shopping is largely defined by social standing: the middle and upper classes shop in malls and supermarkets in wealthier neighbourhoods, whereas lower-income residents save money by visiting open markets. However, members of all social classes visit black market areas, which are found in most Bolivian cities; there they can purchase everything from music recordings to computers and cellular phones.

People in the tropical lowlands generally attend more social gatherings and stay out later than residents of the highlands, where restaurants and clubs tend to close earlier because of the chilly evening temperatures. Shopping is largely defined by social standing: the middle and upper classes shop in malls and supermarkets in wealthier neighbourhoods, whereas lower-income residents save money by visiting open markets. However, members of all social classes visit black market areas, which are found in most Bolivian cities; there they can purchase everything from music recordings to computers and cellular phones.

The combination of Indian and European cultural influences in Bolivia has produced a thriving artistic community, and Bolivians have gained prominence in painting, sculpture, classical and traditional music, and folk dancing. Numerous theatres and art galleries in the major cities provide examples of traditional Bolivian music and art. The most prominent museums are the National Museum of Art (1964) and the National Museum of Archaeology (1846), both in La Paz, and the Casa de Moneda National Museum (1938) in Potosí. On La Paz’s Calle Jaen are the Casa de Murillo ethnographic museum (1950) and other small museums exhibiting traditional gold, silver, and textile art. Jewelry in silver and gold, with pre-Columbian decorations and styles, has been made in Bolivia for centuries, and the local markets offer a profusion of colourful handicrafts and fine wood carvings.

The combination of Indian and European cultural influences in Bolivia has produced a thriving artistic community, and Bolivians have gained prominence in painting, sculpture, classical and traditional music, and folk dancing. Numerous theatres and art galleries in the major cities provide examples of traditional Bolivian music and art. The most prominent museums are the National Museum of Art (1964) and the National Museum of Archaeology (1846), both in La Paz, and the Casa de Moneda National Museum (1938) in Potosí. On La Paz’s Calle Jaen are the Casa de Murillo ethnographic museum (1950) and other small museums exhibiting traditional gold, silver, and textile art. Jewelry in silver and gold, with pre-Columbian decorations and styles, has been made in Bolivia for centuries, and the local markets offer a profusion of colourful handicrafts and fine wood carvings.

The dozens of Roman Catholic churches and cathedrals, mostly dating from colonial times, constitute a national architectural treasure. They are generally ornamented in an extravagant Baroque style, although some are in Renaissance (e.g., the Cathedral of La Paz) or later styles. The church has supported the restoration and revival of several Jesuit mission churches in the lowlands of the Oriente. In the city of Potosí stands the impressive Casa de Moneda (Treasury House, or Royal Mint), which produced coins for Spain’s American colonies. Under Spanish direction the city’s inhabitants built numerous churches that were decorated with exquisite gold-leaf altars, paintings, and frescoes. Potosí, which is one of the few cities in Bolivia to retain its colonial architectural character, was designated a UNESCO World Heritage site in 1987.

The dozens of Roman Catholic churches and cathedrals, mostly dating from colonial times, constitute a national architectural treasure. They are generally ornamented in an extravagant Baroque style, although some are in Renaissance (e.g., the Cathedral of La Paz) or later styles. The church has supported the restoration and revival of several Jesuit mission churches in the lowlands of the Oriente. In the city of Potosí stands the impressive Casa de Moneda (Treasury House, or Royal Mint), which produced coins for Spain’s American colonies. Under Spanish direction the city’s inhabitants built numerous churches that were decorated with exquisite gold-leaf altars, paintings, and frescoes. Potosí, which is one of the few cities in Bolivia to retain its colonial architectural character, was designated a UNESCO World Heritage site in 1987.

No other sport in Bolivia approaches the popularity of soccer (association football), and the nation has occasionally gained international recognition for soccer, particularly after their national team placed second at the 1997 South American Championship (Copa America). For decades, separate women’s and men’s games have been played in communities throughout the country, and each city has soccer clubs with devoted fans. Clubs for horseback riding, golf, and tennis offer a variety of activities to the country’s growing middle and upper classes. The cities of La Paz, Cochabamba, and Santa Cruz have professional-quality golf courses, including one on the outskirts of La Paz at an elevation of 11,000 feet (3,350 metres). Bicycle and automobile racing are also popular, as are volleyball and basketball; bullfighting has a small following. Bolivian boxers have won Latin American championships, but there are few other indoor sports in the nation, because of a lack of facilities.

No other sport in Bolivia approaches the popularity of soccer (association football), and the nation has occasionally gained international recognition for soccer, particularly after their national team placed second at the 1997 South American Championship (Copa America). For decades, separate women’s and men’s games have been played in communities throughout the country, and each city has soccer clubs with devoted fans. Clubs for horseback riding, golf, and tennis offer a variety of activities to the country’s growing middle and upper classes. The cities of La Paz, Cochabamba, and Santa Cruz have professional-quality golf courses, including one on the outskirts of La Paz at an elevation of 11,000 feet (3,350 metres). Bicycle and automobile racing are also popular, as are volleyball and basketball; bullfighting has a small following. Bolivian boxers have won Latin American championships, but there are few other indoor sports in the nation, because of a lack of facilities.

The most important folk festival is held in Oruro during the Carnival holidays preceding Lent; many Indian musical and dance groups compete, providing a magnificent display of costumes and decorations. Also during Carnival, Santa Cruz is transformed into a frenzy of dancing, drinking, and celebration as tens of thousands of residents and visitors take part in dance ensembles. Among the religious events is the Great Power (Gran Poder) festival in La Paz during May and the celebration of the Virgin of Urkupina in Cochabamba. Potosí, Tarija, Sucre, and the former Jesuit missions in Santa Cruz and Beni also hold large festivals.

The most important folk festival is held in Oruro during the Carnival holidays preceding Lent; many Indian musical and dance groups compete, providing a magnificent display of costumes and decorations. Also during Carnival, Santa Cruz is transformed into a frenzy of dancing, drinking, and celebration as tens of thousands of residents and visitors take part in dance ensembles. Among the religious events is the Great Power (Gran Poder) festival in La Paz during May and the celebration of the Virgin of Urkupina in Cochabamba. Potosí, Tarija, Sucre, and the former Jesuit missions in Santa Cruz and Beni also hold large festivals.

Bolivia has an active and constitutionally free press, which has been subject to periodic censorship during dictatorial regimes. Each of the departmental capitals except Cobija (in Pando) has at least one daily newspaper. The principal newspapers are El Diario, which is the nation’s oldest; Presencia, published by the Roman Catholic church; La Razón, Última Hora, and La Prensa, all printed in La Paz; El Deber, El Mundo, and El Nuevo Día, in Santa Cruz; and Los Tiempos and La Opinión, in Cochabamba. The Bolivian Times is an English-language magazine published weekly. Newspapers and other publications are quickly distributed by air services, keeping far-flung population clusters informed of national affairs. Many Bolivian periodicals are available on the Internet, which is used increasingly by Bolivian businesses, students, and professionals as a communications and educational tool. Internet cafés have also become popular leisure-time venues and have sprung up in most of the major cities.

Bolivia has an active and constitutionally free press, which has been subject to periodic censorship during dictatorial regimes. Each of the departmental capitals except Cobija (in Pando) has at least one daily newspaper. The principal newspapers are El Diario, which is the nation’s oldest; Presencia, published by the Roman Catholic church; La Razón, Última Hora, and La Prensa, all printed in La Paz; El Deber, El Mundo, and El Nuevo Día, in Santa Cruz; and Los Tiempos and La Opinión, in Cochabamba. The Bolivian Times is an English-language magazine published weekly. Newspapers and other publications are quickly distributed by air services, keeping far-flung population clusters informed of national affairs. Many Bolivian periodicals are available on the Internet, which is used increasingly by Bolivian businesses, students, and professionals as a communications and educational tool. Internet cafés have also become popular leisure-time venues and have sprung up in most of the major cities.

Entel, the formerly state-owned telecommunications company, was taken over by Italian investors in the 1990s, whereupon it began modernizing the country’s long-distance communications services, laying a network of fiber-optic cables and introducing digital cellular phone networks. Telecel is another cellular phone provider.

Entel, the formerly state-owned telecommunications company, was taken over by Italian investors in the 1990s, whereupon it began modernizing the country’s long-distance communications services, laying a network of fiber-optic cables and introducing digital cellular phone networks. Telecel is another cellular phone provider.

The following discussion focuses on events in Bolivia since the time of European conquest. For events in a regional context, see Latin America, history of, and, for in-depth treatment of events prior to the conquest, see pre-Columbian civilizations: Andean civilization.

The following discussion focuses on events in Bolivia since the time of European conquest. For events in a regional context, see Latin America, history of, and, for in-depth treatment of events prior to the conquest, see pre-Columbian civilizations: Andean civilization.

Bolivian society traces its origins to the advanced pre-Columbian civilizations of South America. The high Bolivian plateau known as the Altiplano was already densely populated several centuries before the Spanish conquest in the 16th century.

Bolivian society traces its origins to the advanced pre-Columbian civilizations of South America. The high Bolivian plateau known as the Altiplano was already densely populated several centuries before the Spanish conquest in the 16th century.

In 1809 Chuquisaca and La Paz became two of the earliest cities to rebel against the colonial government appointed by the new Napoleonic ruler of Spain. Many historians have considered this action to be the beginning of the wars of independence in Latin America. Although viceregal authorities in Lima quickly put down the rebellions, similar uprisings were successful in the viceregal capital of Buenos Aires. From that city several revolutionary armies were dispatched without success to liberate Upper Peru; however, the guerrilla units formed in the rugged countryside of Upper Peru kept the revolutionary movements alive for some 16 years. In 1825 an army under the leadership of Marshal Antonio José de Sucre liberated Upper Peru with the aid of defecting royalists, who were mostly Creole elites. The defectors convinced Simón Bolívar and Sucre to allow autonomy for Upper Peru rather than union with either Peru or Argentina, and on August 6, 1825, an Upper Peruvian congress declared the country independent. Few of the guerrilla commanders, representing a more humble constituency, were able to become part of the Creole elite-led government.

In 1809 Chuquisaca and La Paz became two of the earliest cities to rebel against the colonial government appointed by the new Napoleonic ruler of Spain. Many historians have considered this action to be the beginning of the wars of independence in Latin America. Although viceregal authorities in Lima quickly put down the rebellions, similar uprisings were successful in the viceregal capital of Buenos Aires. From that city several revolutionary armies were dispatched without success to liberate Upper Peru; however, the guerrilla units formed in the rugged countryside of Upper Peru kept the revolutionary movements alive for some 16 years. In 1825 an army under the leadership of Marshal Antonio José de Sucre liberated Upper Peru with the aid of defecting royalists, who were mostly Creole elites. The defectors convinced Simón Bolívar and Sucre to allow autonomy for Upper Peru rather than union with either Peru or Argentina, and on August 6, 1825, an Upper Peruvian congress declared the country independent. Few of the guerrilla commanders, representing a more humble constituency, were able to become part of the Creole elite-led government.

In recognition of Bolívar’s support, congressional leaders named the new republic Bolivia in his honour, and they invited Sucre, his chief aide, to be the first president.

In recognition of Bolívar’s support, congressional leaders named the new republic Bolivia in his honour, and they invited Sucre, his chief aide, to be the first president.

The new republic was not as viable as its leaders had fervently hoped it would be. Its economic growth was retarded, despite the region’s immense mineral wealth and its historical prominence, because the decline in mining during the 18th century had given way to severe depression resulting from the wars of independence. Between 1803 and 1825 silver production at Potosí declined by more than 80 percent, and, by the time the first national census was taken in 1846, the republic listed more than 10,000 abandoned mines.

The new republic was not as viable as its leaders had fervently hoped it would be. Its economic growth was retarded, despite the region’s immense mineral wealth and its historical prominence, because the decline in mining during the 18th century had given way to severe depression resulting from the wars of independence. Between 1803 and 1825 silver production at Potosí declined by more than 80 percent, and, by the time the first national census was taken in 1846, the republic listed more than 10,000 abandoned mines.

Over the next half-century the Bolivian government attempted to bring its own far-flung regions under centralized control, but Bolivia lacked the population and resources necessary to exploit its Amazonian and Pacific frontiers. Despite the enormous wealth in nitrates (notably saltpetre and guano) on the Bolivian Pacific coast, the country proved incapable of mining them, even with the help of foreign capital, mainly because Bolivia’s upper class remained committed to mining on the Altiplano. Instead, the nitrates were exploited by Peruvian, Chilean, North American, and British companies, and disputes over the taxation of exports led to the War of the Pacific.

Over the next half-century the Bolivian government attempted to bring its own far-flung regions under centralized control, but Bolivia lacked the population and resources necessary to exploit its Amazonian and Pacific frontiers. Despite the enormous wealth in nitrates (notably saltpetre and guano) on the Bolivian Pacific coast, the country proved incapable of mining them, even with the help of foreign capital, mainly because Bolivia’s upper class remained committed to mining on the Altiplano. Instead, the nitrates were exploited by Peruvian, Chilean, North American, and British companies, and disputes over the taxation of exports led to the War of the Pacific.

From the 1840s, heavy Anglo-Chilean investments were made in nitrate mining on the Bolivian coast, beginning with the extraction of guano from the shoreline of Atacama province. Chile increasingly pressed territorial claims and obtained commercial concessions within Bolivia after nitrate deposits were discovered farther inland in the 1860s. Bolivia, responding to this pressure, signed a secret defense pact with Peru in 1873. The following year Bolivian-Chilean relations improved with a revised commercial treaty, but in 1878 the Bolivian government undermined the treaty by attempting to increase taxes on the Chilean-owned Compañía de Salitre (Saltpetre Company) operating in Bolivia, and tensions quickly escalated. Chilean forces occupied Antofagasta in February 1879 and quickly consolidated their hold on the surrounding Bolivian territory. Official declarations of war soon followed. In May 1880 Chilean forces landed at Ilo and Pacocha (both in Peru) and marched south, defeating a combined Bolivian-Peruvian army at the Battle of Tacna; the fall of Arica the next month signaled the end of effective resistance in the area. Rather than attacking directly inland through the treacherous Andes Mountains, the Chileans ignored Bolivia for the rest of the war and proceeded on an invasion of Peru, which resulted in their eventual capture of Lima and Arequipa.

From the 1840s, heavy Anglo-Chilean investments were made in nitrate mining on the Bolivian coast, beginning with the extraction of guano from the shoreline of Atacama province. Chile increasingly pressed territorial claims and obtained commercial concessions within Bolivia after nitrate deposits were discovered farther inland in the 1860s. Bolivia, responding to this pressure, signed a secret defense pact with Peru in 1873. The following year Bolivian-Chilean relations improved with a revised commercial treaty, but in 1878 the Bolivian government undermined the treaty by attempting to increase taxes on the Chilean-owned Compañía de Salitre (Saltpetre Company) operating in Bolivia, and tensions quickly escalated. Chilean forces occupied Antofagasta in February 1879 and quickly consolidated their hold on the surrounding Bolivian territory. Official declarations of war soon followed. In May 1880 Chilean forces landed at Ilo and Pacocha (both in Peru) and marched south, defeating a combined Bolivian-Peruvian army at the Battle of Tacna; the fall of Arica the next month signaled the end of effective resistance in the area. Rather than attacking directly inland through the treacherous Andes Mountains, the Chileans ignored Bolivia for the rest of the war and proceeded on an invasion of Peru, which resulted in their eventual capture of Lima and Arequipa.

The fall of the Pacific littoral to Chile may, in many ways, have been a blessing for Bolivia, as the defeats in 1880 marked a major turning point in national political history. Since the destruction of the Confederation, Bolivia had gone through one of the worst periods of 19th-century caudillo rule in all of Latin America. However, during the 1860s and ’70s, Andean silver mining had revived, as capital investments were made by Chilean and British investors; the international market for silver had also improved, and new technology was introduced. These conditions created substantial wealth for the mining elite, and, when barracks officers were discredited by the War of the Pacific, the new mining entrepreneurs captured political control of the country.

The fall of the Pacific littoral to Chile may, in many ways, have been a blessing for Bolivia, as the defeats in 1880 marked a major turning point in national political history. Since the destruction of the Confederation, Bolivia had gone through one of the worst periods of 19th-century caudillo rule in all of Latin America. However, during the 1860s and ’70s, Andean silver mining had revived, as capital investments were made by Chilean and British investors; the international market for silver had also improved, and new technology was introduced. These conditions created substantial wealth for the mining elite, and, when barracks officers were discredited by the War of the Pacific, the new mining entrepreneurs captured political control of the country.

Starting with the presidency (1880–84) of Narciso Campero, Bolivia moved into an era of civilian government. The country’s upper classes divided their support between two parties—Liberal and Conservative— and then proceeded to share power through them. This intraclass political party system finally brought Bolivia the stability it needed for economic development: though the parties split on issues such as anticlericalism, they were identical in their desire to promote economic growth. For two decades the country was ruled by the Conservatives, whose principal goal was to encourage the mining industry by developing an international rail network.

Starting with the presidency (1880–84) of Narciso Campero, Bolivia moved into an era of civilian government. The country’s upper classes divided their support between two parties—Liberal and Conservative— and then proceeded to share power through them. This intraclass political party system finally brought Bolivia the stability it needed for economic development: though the parties split on issues such as anticlericalism, they were identical in their desire to promote economic growth. For two decades the country was ruled by the Conservatives, whose principal goal was to encourage the mining industry by developing an international rail network.

The Liberals thus inherited an economically expanding country when they seized power from the Conservatives in the so-called Federal Revolution of 1899. This revolt was supposedly instigated by those wishing to move the institutions of national government from Sucre (formerly Chuquisaca) to La Paz, but in reality it was primarily a power struggle between the Conservative and Liberal parties. Unfortunately for the Conservatives, their strength was too closely tied to the traditional Chuquisaca elite, much of which was identical to the silver-mining class. The Liberals, however, had the bulk of their strength in La Paz, which by this period was three times the size of Sucre and had the largest urban concentration—some 72,000 persons in a country of 1,700,000.

The Liberals thus inherited an economically expanding country when they seized power from the Conservatives in the so-called Federal Revolution of 1899. This revolt was supposedly instigated by those wishing to move the institutions of national government from Sucre (formerly Chuquisaca) to La Paz, but in reality it was primarily a power struggle between the Conservative and Liberal parties. Unfortunately for the Conservatives, their strength was too closely tied to the traditional Chuquisaca elite, much of which was identical to the silver-mining class. The Liberals, however, had the bulk of their strength in La Paz, which by this period was three times the size of Sucre and had the largest urban concentration—some 72,000 persons in a country of 1,700,000.

The Liberal victory was also closely associated with a basic shift in the Altiplano mining economy. As the world silver market began to decline in the 1880s and early ’90s, mining operations began shifting to tin, which is found in association with silver, because tin was suddenly in demand by all the major industrialized countries. By 1900 tin completely superseded silver as Bolivia’s primary export, accounting for more than half of export earnings.

The Liberal victory was also closely associated with a basic shift in the Altiplano mining economy. As the world silver market began to decline in the 1880s and early ’90s, mining operations began shifting to tin, which is found in association with silver, because tin was suddenly in demand by all the major industrialized countries. By 1900 tin completely superseded silver as Bolivia’s primary export, accounting for more than half of export earnings.

Given this new economic complexity and the political stability already achieved by the Conservatives and perpetuated by the Liberals, the tin-mining elite found it profitable to withdraw from direct involvement in national political life. Whereas Bolivian presidents under Conservative rule in the 19th century had been either silver magnates themselves (Gregorio Pacheco, 1884–88; Aniceto Arce, 1888–92) or closely associated with such magnates as partners or representatives (Mariano Baptista, 1892–96; Severo Fernández Alonso, 1896–99), the Liberals and subsequent 20th-century presidents were largely outside the mining elite. No tin magnate actively participated in leadership positions within the political system. Rather, they came to rely on a more effective system of pressure group politics.

Given this new economic complexity and the political stability already achieved by the Conservatives and perpetuated by the Liberals, the tin-mining elite found it profitable to withdraw from direct involvement in national political life. Whereas Bolivian presidents under Conservative rule in the 19th century had been either silver magnates themselves (Gregorio Pacheco, 1884–88; Aniceto Arce, 1888–92) or closely associated with such magnates as partners or representatives (Mariano Baptista, 1892–96; Severo Fernández Alonso, 1896–99), the Liberals and subsequent 20th-century presidents were largely outside the mining elite. No tin magnate actively participated in leadership positions within the political system. Rather, they came to rely on a more effective system of pressure group politics.

The primary tasks of the Liberal politicians, who ruled Bolivia until 1920 under the leadership of Ismael Montes (twice president: in 1904–08 and 1913–17), were to settle Bolivia’s chronic border problems and to expand the communications network initiated by the Conservatives. In 1904 a definitive peace treaty was signed with Chile, accepting the loss of all Bolivia’s former coastal territories. Also, a dispute with Brazil known as the Acre problem was resolved: this had involved an unsuccessful attempt by the central government to crush an autonomist rebellion (1889–1903) in the rubber-boom territory of Acre on the Brazilian border. Brazil’s covert support of the rebels and the defeat of Bolivian forces finally convinced the Liberals to sell the territory to Brazil in the Treaty of Petrópolis (1903). As a result of the financial indemnities provided by both treaties, Bolivia was able to finance a great era of railroad construction. By 1920 most of the major cities were linked by rail, and La Paz was connected to the two Chilean Pacific ports of Antofagasta and Arica; new lines had been begun or completed to Lake Titicaca, and thus to the Peruvian border, and to Tarija and the Argentine frontier.

The primary tasks of the Liberal politicians, who ruled Bolivia until 1920 under the leadership of Ismael Montes (twice president: in 1904–08 and 1913–17), were to settle Bolivia’s chronic border problems and to expand the communications network initiated by the Conservatives. In 1904 a definitive peace treaty was signed with Chile, accepting the loss of all Bolivia’s former coastal territories. Also, a dispute with Brazil known as the Acre problem was resolved: this had involved an unsuccessful attempt by the central government to crush an autonomist rebellion (1889–1903) in the rubber-boom territory of Acre on the Brazilian border. Brazil’s covert support of the rebels and the defeat of Bolivian forces finally convinced the Liberals to sell the territory to Brazil in the Treaty of Petrópolis (1903). As a result of the financial indemnities provided by both treaties, Bolivia was able to finance a great era of railroad construction. By 1920 most of the major cities were linked by rail, and La Paz was connected to the two Chilean Pacific ports of Antofagasta and Arica; new lines had been begun or completed to Lake Titicaca, and thus to the Peruvian border, and to Tarija and the Argentine frontier.

The period of Liberal rule under President Montes was also the calmest in Bolivian political history, and the Liberals’ success led to the total collapse of the Conservative Party. Not until 1914 was an effective two-party system again established, when many of those outside of politics, along with a large number of new and younger elements, finally organized the Republican Party. Like its predecessors, the Republican Party was a white, upper- and middle-class grouping, with a fundamental belief in liberal and positivist ideologies.

The period of Liberal rule under President Montes was also the calmest in Bolivian political history, and the Liberals’ success led to the total collapse of the Conservative Party. Not until 1914 was an effective two-party system again established, when many of those outside of politics, along with a large number of new and younger elements, finally organized the Republican Party. Like its predecessors, the Republican Party was a white, upper- and middle-class grouping, with a fundamental belief in liberal and positivist ideologies.

The abrasive quality of the strong-willed Montes and the disintegration of the ruling Liberal Party finally permitted the Republicans to stage a successful coup d’état in 1920 and become the ruling party. Upon achieving political power, however, the new party immediately split into two warring sections based on a personality conflict between two Montes-style politicians—Juan Bautista Saavedra, a La Paz lawyer who captured control of the Republican Party’s junta in 1920 and was national president from 1921 to 1925, and Daniel Salamanca, a Cochabamba landowner who took his following into a separate party, the so-called Genuine Republican Party, which was often supported in its activities by the Liberals. The rivalry between these two men became the dominant theme in Bolivian politics for the next decade, until the Salamanca forces captured the presidency.

The abrasive quality of the strong-willed Montes and the disintegration of the ruling Liberal Party finally permitted the Republicans to stage a successful coup d’état in 1920 and become the ruling party. Upon achieving political power, however, the new party immediately split into two warring sections based on a personality conflict between two Montes-style politicians—Juan Bautista Saavedra, a La Paz lawyer who captured control of the Republican Party’s junta in 1920 and was national president from 1921 to 1925, and Daniel Salamanca, a Cochabamba landowner who took his following into a separate party, the so-called Genuine Republican Party, which was often supported in its activities by the Liberals. The rivalry between these two men became the dominant theme in Bolivian politics for the next decade, until the Salamanca forces captured the presidency.

Below the surface of this political battle of personalities, the national economy in the 1920s was undergoing serious change. A brilliant post-World War I recovery in the Bolivian tin-mining industry in the early years of the decade led by 1929 to the industry’s highest production figures. This enormous output occurred, however, in a period of steady price decline (a trend that continued long after the Great Depression of the 1930s). By 1930 the international tin market was in serious crisis, and Bolivian production suffered. The year 1930 also marked the end of major new capital investment in Bolivian tin mining; thereafter production costs rose higher and lower-grade ores were more often produced.

Below the surface of this political battle of personalities, the national economy in the 1920s was undergoing serious change. A brilliant post-World War I recovery in the Bolivian tin-mining industry in the early years of the decade led by 1929 to the industry’s highest production figures. This enormous output occurred, however, in a period of steady price decline (a trend that continued long after the Great Depression of the 1930s). By 1930 the international tin market was in serious crisis, and Bolivian production suffered. The year 1930 also marked the end of major new capital investment in Bolivian tin mining; thereafter production costs rose higher and lower-grade ores were more often produced.

The installation of Salamanca in the presidency after the revolt of 1930 seemingly involved little change in traditional Bolivian government. But because the Great Depression cut brutally into national income and forced a large part of the vital mining industry to close, Salamanca was forced to take new measures. When he attempted to manipulate the inflation rate, however, he ran into bitter hostility from the Liberal Party, which had been his key partner in the 1930 overthrow of the regular Republican Party. The conflict between these two forces in the central government led to a tense political climate, and Salamanca was forced to accept a Liberal veto over internal economic decisions. He refused, nevertheless, to permit the Liberals to join his cabinet; rather, he sought to overcome Liberal congressional control and to weaken growing strike movements by turning national attention to other themes. To this end, Salamanca had available the traditional recourse to patriotism and foreign war in the form of a long-standing border conflict with Paraguay.

The installation of Salamanca in the presidency after the revolt of 1930 seemingly involved little change in traditional Bolivian government. But because the Great Depression cut brutally into national income and forced a large part of the vital mining industry to close, Salamanca was forced to take new measures. When he attempted to manipulate the inflation rate, however, he ran into bitter hostility from the Liberal Party, which had been his key partner in the 1930 overthrow of the regular Republican Party. The conflict between these two forces in the central government led to a tense political climate, and Salamanca was forced to accept a Liberal veto over internal economic decisions. He refused, nevertheless, to permit the Liberals to join his cabinet; rather, he sought to overcome Liberal congressional control and to weaken growing strike movements by turning national attention to other themes. To this end, Salamanca had available the traditional recourse to patriotism and foreign war in the form of a long-standing border conflict with Paraguay.

In the mid-1920s Bolivia and Paraguay had each begun a major program of fort construction in the largely uninhabited and poorly demarcated Chaco Boreal territory on Bolivia’s southeastern frontier. At the height of the Depression, Salamanca advocated an even heavier armament and fortification program and secured major European loans. A border incident developed between the two states in June 1932, and Salamanca deliberately provoked a full-scale Bolivian reprisal, which led to open war between the two countries.

In the mid-1920s Bolivia and Paraguay had each begun a major program of fort construction in the largely uninhabited and poorly demarcated Chaco Boreal territory on Bolivia’s southeastern frontier. At the height of the Depression, Salamanca advocated an even heavier armament and fortification program and secured major European loans. A border incident developed between the two states in June 1932, and Salamanca deliberately provoked a full-scale Bolivian reprisal, which led to open war between the two countries.

The Chaco War was a long and costly disaster for Bolivia. In three years of bitter fighting on its southeastern frontiers, Bolivia sustained some 57,000 deaths, and it lost far more territory than Paraguay had claimed even in its most extreme prewar demands. The fact that Bolivia had entered the war with a better equipped and supposedly far better trained army only aggravated the sense of frustration among the younger literate veterans—the so-called Chaco generation—at the total failure of Bolivian arms. Charging that the traditional politicians and the international oil companies had led Bolivia into its disastrous war, the returning veterans set up rival socialist and radical parties and challenged the traditional political system.

The Chaco War was a long and costly disaster for Bolivia. In three years of bitter fighting on its southeastern frontiers, Bolivia sustained some 57,000 deaths, and it lost far more territory than Paraguay had claimed even in its most extreme prewar demands. The fact that Bolivia had entered the war with a better equipped and supposedly far better trained army only aggravated the sense of frustration among the younger literate veterans—the so-called Chaco generation—at the total failure of Bolivian arms. Charging that the traditional politicians and the international oil companies had led Bolivia into its disastrous war, the returning veterans set up rival socialist and radical parties and challenged the traditional political system.

The initial result of this challenge was the overthrow of civilian rule and the first military government in Bolivia since 1880. In 1936 the younger army officers seized the government, and, under the leadership of Colonel David Toro in 1936–37 and Major Germán Busch in 1937–39, they tried to reform Bolivian society. During this so-called era of military socialism the Standard Oil Company holdings were confiscated, an important labour code was created, and an advanced, socially oriented constitution was written in 1938; yet little else was changed.

The initial result of this challenge was the overthrow of civilian rule and the first military government in Bolivia since 1880. In 1936 the younger army officers seized the government, and, under the leadership of Colonel David Toro in 1936–37 and Major Germán Busch in 1937–39, they tried to reform Bolivian society. During this so-called era of military socialism the Standard Oil Company holdings were confiscated, an important labour code was created, and an advanced, socially oriented constitution was written in 1938; yet little else was changed.

Civilian dissident groups finally began to organize themselves into powerful national opposition parties in the 1940s. The two most important of these were the middle-class and initially fascist-oriented Nationalist Revolutionary Movement (Movimiento Nacionalista Revolucionario; MNR) and the Marxist and largely pro-Soviet Party of the Revolutionary Left (Partido de la Izquierda Revolucionaria; PIR). Both groups established important factions in the national congress of 1940–44. In 1943 the civilian president General Enrique Peñaranda was overthrown by a secret military group, Reason for the Fatherland (Razón de Patria; RADEPA). RADEPA allied itself with the MNR and tried to create a new-style government under Colonel Gualberto Villaroel (1943–46), but little was accomplished except for the MNR’s political mobilization of the Indian peasants. Opposed as fascist-oriented by the right and left, the Villaroel government was overthrown in 1946 in a bloody revolution in which Villaroel was hanged in front of the presidential palace.

Civilian dissident groups finally began to organize themselves into powerful national opposition parties in the 1940s. The two most important of these were the middle-class and initially fascist-oriented Nationalist Revolutionary Movement (Movimiento Nacionalista Revolucionario; MNR) and the Marxist and largely pro-Soviet Party of the Revolutionary Left (Partido de la Izquierda Revolucionaria; PIR). Both groups established important factions in the national congress of 1940–44. In 1943 the civilian president General Enrique Peñaranda was overthrown by a secret military group, Reason for the Fatherland (Razón de Patria; RADEPA). RADEPA allied itself with the MNR and tried to create a new-style government under Colonel Gualberto Villaroel (1943–46), but little was accomplished except for the MNR’s political mobilization of the Indian peasants. Opposed as fascist-oriented by the right and left, the Villaroel government was overthrown in 1946 in a bloody revolution in which Villaroel was hanged in front of the presidential palace.

April 1952 thus marks the beginning of the so-called Bolivian National Revolution, which became one of Latin America’s most influential social upheavals. That year, universal suffrage was granted with the abolition of literacy requirements. Moreover, the MNR and its mine-worker and peasant supporters were pledged to a fundamental attack on the tin-mining elite and its allied political supporters. In October 1952 the three largest tin-mining companies were nationalized, and one of the most far-reaching land-reform decrees ever enacted in the Western Hemisphere came into effect in August 1953. Not only were Indians granted land, freed from servile labour obligations, and granted the right to vote, but they were also given large supplies of arms. From that point on, the Indian peasants of Bolivia became a powerful, if largely passive, political force upon which all subsequent governments based their strength.

April 1952 thus marks the beginning of the so-called Bolivian National Revolution, which became one of Latin America’s most influential social upheavals. That year, universal suffrage was granted with the abolition of literacy requirements. Moreover, the MNR and its mine-worker and peasant supporters were pledged to a fundamental attack on the tin-mining elite and its allied political supporters. In October 1952 the three largest tin-mining companies were nationalized, and one of the most far-reaching land-reform decrees ever enacted in the Western Hemisphere came into effect in August 1953. Not only were Indians granted land, freed from servile labour obligations, and granted the right to vote, but they were also given large supplies of arms. From that point on, the Indian peasants of Bolivia became a powerful, if largely passive, political force upon which all subsequent governments based their strength.

The most important leader of the MNR, Víctor Paz Estenssoro, was president of Bolivia in 1952–56 and instituted the most revolutionary part of the party’s program. In 1956 he was replaced by the more conservative Hernando (Hernán) Siles Zuazo, whose primary concern was to stop inflation, which had completed the revolutionary process by virtually destroying the older middle-class supporters of the MNR. Siles initiated an economic program, with massive financial support from the United States, that brought inflation under control; at the same time, he also suspended most of the advanced social programs of the revolution. The government ended worker coadministration of the nationalized mine companies and cut back on social services. It also invited North American petroleum companies back into Bolivia for the first time since 1937, when Standard Oil of Bolivia had been confiscated by the Toro government.

The most important leader of the MNR, Víctor Paz Estenssoro, was president of Bolivia in 1952–56 and instituted the most revolutionary part of the party’s program. In 1956 he was replaced by the more conservative Hernando (Hernán) Siles Zuazo, whose primary concern was to stop inflation, which had completed the revolutionary process by virtually destroying the older middle-class supporters of the MNR. Siles initiated an economic program, with massive financial support from the United States, that brought inflation under control; at the same time, he also suspended most of the advanced social programs of the revolution. The government ended worker coadministration of the nationalized mine companies and cut back on social services. It also invited North American petroleum companies back into Bolivia for the first time since 1937, when Standard Oil of Bolivia had been confiscated by the Toro government.

When Paz Estenssoro returned to the presidency in 1960, he further consolidated the achievements of Siles and revived, with U.S. support, the power of the army. Paz Estenssoro’s attempt in 1964 to renew his presidential term for another four years splintered and temporarily destroyed the MNR, however, and the military overthrew his government.

When Paz Estenssoro returned to the presidency in 1960, he further consolidated the achievements of Siles and revived, with U.S. support, the power of the army. Paz Estenssoro’s attempt in 1964 to renew his presidential term for another four years splintered and temporarily destroyed the MNR, however, and the military overthrew his government.

With the support of many conservatives and the peasant masses, the vice president, General René Barrientos, seized the government and proceeded to dissolve most of the organized labour opposition, marking the beginning of a string of military leaders. From 1964 until his death in 1969, Barrientos continued with the process of conservative economic reform and political retrenchment, and he attempted to demobilize all popular groups except the peasants, who had gained some power as a result of the National Revolution. Partly because of that empowerment, the Argentine-born Cuban revolutionary Che Guevara failed to mobilize peasants in a remote region of the country, and in 1967 his poorly organized guerrillas were destroyed by units of the Bolivian Armed Forces, who had been trained by the U.S. military and supported by the U.S. Central Intelligence Agency.

With the support of many conservatives and the peasant masses, the vice president, General René Barrientos, seized the government and proceeded to dissolve most of the organized labour opposition, marking the beginning of a string of military leaders. From 1964 until his death in 1969, Barrientos continued with the process of conservative economic reform and political retrenchment, and he attempted to demobilize all popular groups except the peasants, who had gained some power as a result of the National Revolution. Partly because of that empowerment, the Argentine-born Cuban revolutionary Che Guevara failed to mobilize peasants in a remote region of the country, and in 1967 his poorly organized guerrillas were destroyed by units of the Bolivian Armed Forces, who had been trained by the U.S. military and supported by the U.S. Central Intelligence Agency.

The death of Barrientos in early 1969 brought the vice president, Luis Adolfo Siles Salinas, into office; he was forcibly replaced in midyear by General Alfredo Ovando Candía, who nationalized Gulf Oil Company holdings. Ovando was in turn forced out of office in October 1970 by the more radical General Juan José Torres. Of the several military regimes that governed between 1964 and 1979, that led by Torres was the most radical; for a time the Torres government replaced Congress with a workers’ soviet. In 1971 Torres was replaced by Col. Hugo Banzer Suárez, and the most repressive regime of the period came to power. During the next seven years the government suppressed the labour movement, sent troops to occupy the mines, suspended all civil rights, and prohibited the peasant syndicates. Nevertheless, this was also an era of unprecedented economic growth in Bolivia, fueled by a sudden increase in world mineral prices and the completion of some of the basic social and economic changes that had begun with the National Revolution of 1952. Paramount among these changes were the relative decline of the importance of tin and the emergence of commercial agricultural exports for the first time in Bolivian republican history. It was also a period when the national population increased rapidly, achieving between 1950 and 1976 an annual net growth rate of 2.1 percent. Finally, the Banzer regime was unique in contemporary Bolivian affairs because it gave national representation to the new commercial agricultural interests of the Santa Cruz region.

The death of Barrientos in early 1969 brought the vice president, Luis Adolfo Siles Salinas, into office; he was forcibly replaced in midyear by General Alfredo Ovando Candía, who nationalized Gulf Oil Company holdings. Ovando was in turn forced out of office in October 1970 by the more radical General Juan José Torres. Of the several military regimes that governed between 1964 and 1979, that led by Torres was the most radical; for a time the Torres government replaced Congress with a workers’ soviet. In 1971 Torres was replaced by Col. Hugo Banzer Suárez, and the most repressive regime of the period came to power. During the next seven years the government suppressed the labour movement, sent troops to occupy the mines, suspended all civil rights, and prohibited the peasant syndicates. Nevertheless, this was also an era of unprecedented economic growth in Bolivia, fueled by a sudden increase in world mineral prices and the completion of some of the basic social and economic changes that had begun with the National Revolution of 1952. Paramount among these changes were the relative decline of the importance of tin and the emergence of commercial agricultural exports for the first time in Bolivian republican history. It was also a period when the national population increased rapidly, achieving between 1950 and 1976 an annual net growth rate of 2.1 percent. Finally, the Banzer regime was unique in contemporary Bolivian affairs because it gave national representation to the new commercial agricultural interests of the Santa Cruz region.

Between 1978 and 1982 there were 10 governments in Bolivia, including several periods of military rule. The old MNR reemerged in 1978, and a complex set of new political parties and movements developed. These new groups gained wide support in the national elections of 1978 and 1979, and the electorate showed an even balance between conservative and radical positions. Moreover, peasants for the first time no longer voted as a bloc but were as equally divided as the urban populace.

Between 1978 and 1982 there were 10 governments in Bolivia, including several periods of military rule. The old MNR reemerged in 1978, and a complex set of new political parties and movements developed. These new groups gained wide support in the national elections of 1978 and 1979, and the electorate showed an even balance between conservative and radical positions. Moreover, peasants for the first time no longer voted as a bloc but were as equally divided as the urban populace.

The new regime immediately lost credibility in the international community because of its repressive measures and because U.S. officials implicated some of its leaders in illegal cocaine trafficking; because of these illicit ties, García Meza’s coup has become known as the “cocaine coup.” Years later Luis Arce Gómez, who had served as minister of the interior under García Meza, was convicted in Miami, Florida, on cocaine trafficking charges, and in 1995 García Meza himself was extradited to Bolivia from Brazil and convicted.

The new regime immediately lost credibility in the international community because of its repressive measures and because U.S. officials implicated some of its leaders in illegal cocaine trafficking; because of these illicit ties, García Meza’s coup has become known as the “cocaine coup.” Years later Luis Arce Gómez, who had served as minister of the interior under García Meza, was convicted in Miami, Florida, on cocaine trafficking charges, and in 1995 García Meza himself was extradited to Bolivia from Brazil and convicted.

García Meza resigned in August 1981, faced with widespread opposition, domestic and international condemnation, and a deteriorating economy. Congress was reinstated, and in 1982 it returned Hernando Siles Zuazo to the presidency; Jaime Paz Zamora became vice president. During the next year Siles wrestled with disagreements within the ruling government coalition, heavy deficits incurred by the state mining company Comibol, and social unrest, all of which contributed to the collapse of the economy and a breakup of the ruling coalition. When Siles stepped down in 1985, a year before the expiration of his term, hyperinflation was at unprecedented levels, the economy was in shambles with banks virtually shut down, state mines were suffering enormous losses, and the industrial sector was at the edge of collapse. In addition, unusually strong El Niño weather patterns caused disastrous crop failures. With the legitimate economy failing, cocaine trafficking became a major source of foreign exchange; the government, because of its lack of resources and the strong opposition it faced from coca leaf farmers, was unable to curtail the trafficking. Despite all his government’s failings, however, his main legacy was to turn over power to a democratically elected president.

García Meza resigned in August 1981, faced with widespread opposition, domestic and international condemnation, and a deteriorating economy. Congress was reinstated, and in 1982 it returned Hernando Siles Zuazo to the presidency; Jaime Paz Zamora became vice president. During the next year Siles wrestled with disagreements within the ruling government coalition, heavy deficits incurred by the state mining company Comibol, and social unrest, all of which contributed to the collapse of the economy and a breakup of the ruling coalition. When Siles stepped down in 1985, a year before the expiration of his term, hyperinflation was at unprecedented levels, the economy was in shambles with banks virtually shut down, state mines were suffering enormous losses, and the industrial sector was at the edge of collapse. In addition, unusually strong El Niño weather patterns caused disastrous crop failures. With the legitimate economy failing, cocaine trafficking became a major source of foreign exchange; the government, because of its lack of resources and the strong opposition it faced from coca leaf farmers, was unable to curtail the trafficking. Despite all his government’s failings, however, his main legacy was to turn over power to a democratically elected president.

Elections in 1997 gave Banzer a plurality of the vote, and he emerged victorious in the Congressional decision through the support of the UCS and the populist Conscience of Nationhood (Conciencia de Patria; Condepa) party, which was led by Carlos Palenque, a popular radio and television talk-show host. The new government intensified the war on drugs and furthered its predecessors’ efforts toward economic development. Banzer resigned before the end of his term, which Vice Pres. Jorge Quiroga completed.

Elections in 1997 gave Banzer a plurality of the vote, and he emerged victorious in the Congressional decision through the support of the UCS and the populist Conscience of Nationhood (Conciencia de Patria; Condepa) party, which was led by Carlos Palenque, a popular radio and television talk-show host. The new government intensified the war on drugs and furthered its predecessors’ efforts toward economic development. Banzer resigned before the end of his term, which Vice Pres. Jorge Quiroga completed.

Sánchez de Lozada won the 2002 presidential elections; however, his term was plagued by a recession and peasant protests. Violence escalated between armed peasants and police in February 2003, resulting in the deaths of 30 people and leading to the temporary toppling of Sánchez de Lozada’s government. More protests later that year demanding nationalization of the country’s natural gas resources reignited social unrest and brought about even more deaths. Sánchez de Lozada was finally forced to resign in October 2003 and was replaced by Vice Pres. Carlos Mesa Gisbert. Mesa’s decision to revise the hydrocarbon law for natural gas deposits did not forestall violent demonstrations, and he, too, resigned.

Sánchez de Lozada won the 2002 presidential elections; however, his term was plagued by a recession and peasant protests. Violence escalated between armed peasants and police in February 2003, resulting in the deaths of 30 people and leading to the temporary toppling of Sánchez de Lozada’s government. More protests later that year demanding nationalization of the country’s natural gas resources reignited social unrest and brought about even more deaths. Sánchez de Lozada was finally forced to resign in October 2003 and was replaced by Vice Pres. Carlos Mesa Gisbert. Mesa’s decision to revise the hydrocarbon law for natural gas deposits did not forestall violent demonstrations, and he, too, resigned.

Under Morales the country remained politically divided between the wealthy provinces and the impoverished indigenous communities. On the other hand, inflation had been brought under control, the economy was growing faster than the regional average, and the Bolivian peso, renamed the boliviano, was stabilized. In April 2009 Morales signed a law authorizing early presidential and legislative elections, set to take place that December. Morales, with the continued support of the indigenous majority, easily won a second term in the country’s presidential election. In the concurrent legislative elections, the MAS gained the majority of seats in both houses of Congress. In his second term Morales presided over an economy buoyed by a surging natural gas market, and he initiated a broad range of infrastructure projects. In 2013 the Bolivian constitutional court ruled that Morales could run for a third presidential term, and the following year he claimed victory in the first round of elections.

Under Morales the country remained politically divided between the wealthy provinces and the impoverished indigenous communities. On the other hand, inflation had been brought under control, the economy was growing faster than the regional average, and the Bolivian peso, renamed the boliviano, was stabilized. In April 2009 Morales signed a law authorizing early presidential and legislative elections, set to take place that December. Morales, with the continued support of the indigenous majority, easily won a second term in the country’s presidential election. In the concurrent legislative elections, the MAS gained the majority of seats in both houses of Congress. In his second term Morales presided over an economy buoyed by a surging natural gas market, and he initiated a broad range of infrastructure projects. In 2013 the Bolivian constitutional court ruled that Morales could run for a third presidential term, and the following year he claimed victory in the first round of elections.

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