THE GEOGRAPHY (Foreign Office UK)
Area: 1.28 million sq km (425,000 sq
mi)
Population: 8.28 million (2001 prov)
Legal Capital: Sucre (population:
132,000)
Political Capital: La Paz (population 0.8
million; conurbation 1.5 million)
People: Indigenous, primarily Aymara,
Quechua, and Guarani (65%), Mestizo
(35%)
Language(s): Spanish, Quechua,
Aymara (all official) plus numerous
other indigenous languages
Religion(s): Roman Catholic (95%),
Protestant (Evangelical Methodist)
Currency: Boliviano
Major political parties: Accion
Democratica Nacionalista (ADN);
Movimiento de la Izquierda
Revolucionaria (MIR); Movimiento
Nacionalista Revolucionario (MNR)
Government: Democracy with elections
held every five years. The 1964
constitution (revised in 1994) provides
for an executive and a legislature
consisting of a 27-member Senate and
130-member Chamber of Deputies.
GEOGRAPHY
Bolivia is land-locked in Central South
America bordered by Peru (900km)
and Chile (861km) to the west, Brazil
(3,400km) to the north and east and
Paraguay (750km) and Argentina
(832km) to the south. Straddled by the
Andes, it is a land of gaunt mountains,
cold desolate plateaux and
semi-tropical lowlands in an area the
size of Spain and France together.
Bolivia shares control of Lake Titicaca,
the world's highest navigable lake
(elevation 3,805m), with Peru. Sucre,
in the south of the country, is the legal
capital. The political capital and centre
of government is La Paz, situated to
the west, which at 3,640m is the
highest capital city in the world.
THE HISTORY (Foreign Office UK)
The area became part of the
Quechua-speaking Inca Empire around
1450 but was subsequently conquered
by the Spanish in 1525. During the
colonial era, the area was known as
'Upper Peru' or 'Charcas', ruled by the
Spanish Viceroy of Lima. In this period,
Bolivian silver mines were responsible
for much of the Spanish Empire's
wealth. Potosi, site of the famed Cerro
Rico (the 'Rich Mountain'), was the
largest city in the Americas for many
years. Independence was proclaimed in
1809, but sixteen years of struggle
against the Spanish authorities followed
before the establishment of the
Republic, named after Simon Bolivar,
on 6 August 1825. The
post-independence period saw Bolivia
dominated by 60 years of instability,
coups and new constitutions. Its
internal weakness was aptly
demonstrated by the loss of its
strategically important sea coast and
rich mineral fields to Chile following
the war of the Pacific (1879-83).
Following this setback, Bolivia enjoyed
relative stability and prosperity aided
by high global demand for silver.
However, as supplies dwindled, tin
replaced it as the most important
source of Bolivian wealth by the early
20th century.
Recent History
There have been democratically
elected governments in Bolivia since
1982 following decades of political
instability and a number of military
coups. The Congress convoked in 1980
was reconstituted in 1982 and chose
former president Hernan Siles Zuazo
(1956-60) as premier. However, social
tensions and economic mismanagement
led him to call fresh elections in 1985.
In these elections, Hugo Banzer's
National Democratic Action Party
(ADN) emerged with a majority
followed by Paz Estenssoro's MNR and
former Vice-President Jaime Paz
Zamora's Movement of the
Revolutionary Left (MIR). In the
Presidential run-off, Estenssoro
emerged victorious and embarked on
his fourth term in office in 1985. He
had been President in 1952-56,
1960-64 and again in 1964 before being
toppled in a coup. However, he faced
unprecedented problems including
hyperinflation running at 14,000%, a
large debt burden, a collapse in the
price of tin, strikes and the unchecked
trafficking of illegal narcotics.
Estenssoro's administration achieved
notable economic success and political
and social stability. However, later
faced with a collapse in the tin price,
he laid off 25,000 tin miners and
introduced shock therapy to the
financial-system which lead to social
unrest and dislocation.
In 1989 elections, a close result led to
coalition between Zamora's MIR and
Banzer's ADN. Zamora assumed the
presidency and the MIR and ADN split
control of the ministries. The
administration took a hard line against
domestic terrorism but was less
effective against narco-trafficking
with accusations of links with narcotic
kingpins.
The 1993 elections continued the
tradition of democratic transition with
the MNR defeating the ADN/MIR
coalition by a 34% to 20% margin. The
MNR's Gonzalo 'Goni' Sanchez de
Lozada was selected by a coalition. He
pursued an aggressive economic (in
particular introducing a capitalisation
programme) policy and social reform
agenda, relying much on Entenssoro
administration veterans. Economic
restructuring faced opposition,
particularly from those in La Paz and in
the Chapare coca-growing region.
In the 1997 elections, Banzer won the
Presidency with 22% of the vote. In
November 1997, his government
produced a 5-year Action Plan which
concentrated on four basic areas: the
economy; the eradication of drugs;
institutional development; and the social
sector (poverty, education, health and
housing). However, these policies,
particularly the successful large-scale
eradication of coca, faced vocal
opposition.
THE ECONOMY (Foreign Office UK)
GDP:
US$ 7.93 bn (2001)
GDP per head: US$ 931 (2001)
Annual Growth: 2.2% (2002)
Inflation: 2.2% (2002)
Major Industries: Natural gas, mining
and agriculture
Major trading partners: United States,
Japan, Brazil, Chile, Peru, Argentina
INTERNATIONAL RELATIONS
Bolivia's Relationship with its
Neighbours
Bolivia's relationship with Chile is
influenced by its desire to regain
access to the sea (lost during the War
of the Pacific with Chile). Diplomatic
relations with Chile were formally
severed during Banzer's de facto
presidency of 1978 and have never
been fully re-established. They have
representation at Consul-General level.
Relations are however businesslike.
Bilateral discussions have focussed on
economic issues and a desire to deepen
regional integration. Then Bolivian
President Quiroga and Chilean
President Lagos met at the Financing
for Development Conference in
Monterrey in March 2002 and again in
May in La Paz when Lagos attended the
funeral of former Bolivian President
Hugo. The Vice President of Chile, Jose
Miguel Insulza attended the inauguration
of the new President of Bolivia,
Gonzalo Sanchez de Lozada.
Bolivia is a hard working member of
the Andean Community. On 17 June
2002 the Andean Community adopted
the Lima Agreement establishing the
'Andean Charter for Peace and
Security, Limitation and Control of
External Defence Expenditure'. The
Charter opens the way for a common
Andean security policy and the creation
of an Andean Peace Zone. The charter
also includes an undertaking to limit
expenditure on external defence.
Progress is being made on the Andean
Common External Tariff (CET) but
some outstanding issues remain.
Bolivia's Relationship with the
International Community
Bolivia is a member of the UN, the IMF,
the World Bank, the Inter- American
Development Bank (IDB), the
Organisation of American States
(OAS), the Andean Community and the
World Trade Organisation (WTO). It is
also an associate member of the
southern cone customs union,
Mercosur.
Bolivia's relationship with the US
dominates foreign policy. The US
remains Bolivia's most important
trading partner and source of foreign
investment. Although the US recognises
the significant progress made by
Bolivia in eradicating the surplus coca
crop, coca production and
drug-trafficking will remain a central
bilateral issue.
Flags Of The World: República de Bolivia; Republic of Bolivia
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