Bolivia

In the 1997 elections, General Hugo Banzer, leader of the Nationalist Democratic Action party (ADN) and former dictator (1971–1978), won 22% of the vote, while the MNR candidate won 18%. At the outset of his government, President Banzer launched a policy of using special police-units to eradicate physically the illegal coca of the Chapare region. The MIR of Jaime Paz Zamora remained a coalition-partner throughout the Banzer government, supporting this policy (called the Dignity Plan).^[50] The Banzer government basically continued the free-market and privatization-policies of its predecessor. The relatively robust economic growth of the mid-1990s continued until about the third year of its term in office. After that, regional, global and domestic factors contributed to a decline in economic growth. Financial crises in Argentina and Brazil, lower world prices for export commodities, and reduced employment in the coca sector depressed the Bolivian economy. The public also perceived a significant amount of public sector corruption. These factors contributed to increasing social protests during the second half of Banzer's term.

Between January 1999 and April 2000, large-scale

In 2003 the Bolivian gas conflict broke out. On 12 October 2003, the government imposed martial law in El Alto after 16 people were shot by the police and several dozen wounded in violent clashes. Faced with the option of resigning or more bloodshed, Sánchez de Lozada offered his resignation in a letter to an emergency session of Congress. After his resignation was accepted and his vice president, Carlos Mesa, invested, he left on a commercially scheduled flight for the United States.

The country's internal situation became unfavorable for such political action on the international stage. After a resurgence of gas protests in 2005, Carlos Mesa attempted to resign in January 2005, but his offer was refused by Congress. On 22 March 2005, after weeks of new street protests from organizations accusing Mesa of bowing to U.S. corporate interests, Mesa again offered his resignation to Congress, which was accepted on 10 June. The chief justice of the Supreme Court,

2005–2019 Morales Presidency

The neutrality of this section is disputed. Relevant discussion may be found on the talk page. Please do not remove this message until conditions to do so are met. (September 2020) (Learn how and when to remove this template message)

Former President, Evo Morales

In August 2007, a conflict which came to be known as The Calancha Case arose in Sucre.^{[undue weight? – discuss]} Local citizens demanded that an official discussion of the seat of government be included in the agenda of the full body of the Bolivian Constituent Assembly. The people of Sucre wanted to make Sucre the full capital of the country, including returning the executive and legislative branches to the city, but the government rejected the demand as impractical. Three people died in the conflict and as many as 500 were wounded.^[54] The result of the conflict was to include text in the constitution stating that the capital of Bolivia is officially Sucre, while leaving the executive and legislative branches in La Paz. In May 2008, Evo Morales was a signatory to the UNASUR Constitutive Treaty of the Union of South American Nations.

2009 marked the creation of a new constitution and the renaming of the country to the Plurinational State of Bolivia. The previous constitution did not allow a consecutive reelection of a president, but the new constitution allowed for just one reelection, starting the dispute if Evo Morales was enabled to run for a second term arguing he was elected under the last constitution. This also triggered a new general election in which Evo Morales was re-elected with 61.36% of the vote. His party,

The revenues generated by the partial nationalization of hydrocarbons made it possible to finance several social measures: the Renta Dignidad (or old age minimum) for people over 60 years old; the Juana Azurduy voucher (named after the revolutionary Juana Azurduy de Padilla, 1780–1862), which ensures the complete coverage of medical expenses for pregnant women and their children in order to fight infant mortality; the Juancito Pinto voucher (named after a child hero of the Pacific War, 1879–1884), an aid paid until the end of secondary school to parents whose children are in school in order to combat school dropout, and the Single Health System, which since 2018 has offered all Bolivians free medical care.^[64]

The reforms adopted have made the Bolivian economic system the most successful and stable in the region. Between 2006 and 2019, GDP has grown from $9 billion to over $40 billion, real wages have increased, GDP per capita has tripled, foreign exchange reserves are on the rise, inflation has been essentially eliminated, and extreme poverty has fallen from 38% to 15%, a 23-point drop.^[65]

Interim government 2019–2020

During the 2019 elections, the transmission of the unofficial quick counting process was interrupted; at the time, Morales had a lead of 46.86 percent to Mesa's 36.72, after 95.63 percent of tally sheets were counted.^[66] The Transmisión de Resultados Electorales Preliminares (TREP) is a quick count process used in Latin America as a transparency measure in electoral processes that is meant to provide a preliminary results on election day, and its shutdown without further explanation^{[citation needed]} raised consternation among opposition politicians and certain election monitors.^[67][68] Two days after the interruption, the official count showed Morales fractionally clearing the 10-point margin he needed to avoid a runoff election, with the final official tally counted as 47.08 percent to Mesa's 36.51 percent, starting a wave of protests and tension in the country.

Amidst allegations of fraud perpetrated by the Morales government, widespread protests were organized to dispute the election. On 10 November, the Organization of American States (OAS) released a preliminary report concluding several irregularities in the election,^[69][70][71] though these findings were heavily disputed.^[72] The Center for Economic and Policy Research (CEPR) concluded that "it is very likely that Morales won the required 10 percentage point margin to win in the first round of the election on 20 October 2019."^[73] David Rosnick, an economist for CEPR, showed that "a basic coding error" was discovered in the OAS's data, which explained that the OAS had misused its own data when it ordered the time stamps on the tally sheets alphabetically rather than chronologically.^[74] However, the OAS stood by its findings arguing that the "researchers' work did not address many of the allegations mentioned in the OAS report, including the accusation that Bolivian officials maintained hidden servers that could have permitted the alteration of results".^[75] Additionally, observers from the European Union released a report with similar findings and conclusions as the OAS.^[76][77] The tech security company hired by the TSE (under the Morales administration) to audit the elections, also stated that there were multiple irregularities and violations of procedure and that "our function as an auditor security company is to declare everything that was found, and much of what was found supports the conclusion that the electoral process should be declared null and void".^[78] The New York Times reported on 7 June 2020 that the OAS analysis immediately after the 20 October election was flawed yet fuelled "a chain of events that changed the South American nation's history".^[79][80][81]

2020 Bolivian general election

, results by department

Inauguration of Luis Arce and David Choquehuanca

on 8 November 2020

After weeks of protests, Morales resigned on national television shortly after the Commander-in-Chief of the armed forces General Williams Kaliman had urged that he do so in order to restore "peace and stability".^[82][83] Morales flew to Mexico and was granted asylum there, along with his vice president and several other members of his government.^[84][85] Opposition Senator Jeanine Áñez's declared herself interim president, claiming constitutional succession after the president, vice president and both head of the legislature chambers. She was confirmed as interim president by the constitutional court who declared her succession to be constitutional and automatic.^[86][87] Morales, his supporters, the Governments of Mexico and Nicaragua, and other personalities argued the event was a coup d'état. However, local investigators and analysts pointed out that even after Morales' resignation and during all of Añez's term in office, the Chambers of Senators and Deputies were ruled by Morales' political party MAS, making it impossible to be a coup d'état, as such an event would not allow the original government to maintain legislative power.^[88][89] International politicians, scholars and journalists are divided between describing the event as a coup or a spontaneous social uprising against an unconstitutional fourth term.^{[90][91][92][93][94][95][96][excessive citations]} Protests to reinstate Morales as president continued becoming highly violent: burning public buses and private houses, destroying public infrastructure and harming pedestrians.^{[97][98][99][100][101]} The protests were met with more violence by security forces against Morales supporters after Áñez exempted police and military from criminal responsibility in operations for "the restoration of order and public stability".^[102][103]

In April 2020, the interim government took out a loan of more than $327 million from the International Monetary Fund in order to meet the country's needs during the COVID-19 pandemic.^[104] New elections were scheduled for 3 May 2020. In response to the coronavirus pandemic, the Bolivian electoral body, the TSE, made an announcement postponing the election. MAS reluctantly agreed with the first delay only. A date for the new election was delayed twice more, in the face of massive protests and violence.^{[105][106][107]} The final proposed date for the elections was 18 October 2020.^[108] Observers from the OAS, UNIORE, and the UN all reported that they found no fraudulent actions in the 2020 elections.^[109]

The general election had a record voter turnout of 88.4% and ended in a landslide win for MAS which took 55.1% of the votes compared to 28.8% for centrist former president Carlos Mesa. Both Mesa and Áñez conceded defeat. "I congratulate the winners and I ask them to govern with Bolivia and democracy in mind", Áñez said on Twitter.^[110][111]

Government of Luis Arce: 2020–present

On 8 November 2020, Luis Arce was sworn in as President of Bolivia alongside his Vice President David Choquehuanca.^[112] In February 2021, the Arce government returned an amount of around $351 million to the IMF. This comprised a loan of $327 million taken out by the interim government in April 2020 and interest of around $24 million. The government said it returned the loan to protect Bolivia's economic sovereignty and because the conditions attached to the loan were unacceptable.^[104]

According to the Bolivian Institute of Foreign Trade, Bolivia had the lowest accumulated inflation of Latin America by October 2021.^{[113][114][115]}

Geography

Topographical map of Bolivia

The geography of the country exhibits a great variety of terrain and climates. Bolivia has a high level of biodiversity,^[117] considered one of the greatest in the world, as well as several ecoregions with ecological sub-units such as the Altiplano, tropical rainforests (including Amazon rainforest), dry valleys, and the Chiquitania, which is a tropical savanna.^{[citation needed]} These areas feature enormous variations in altitude, from an elevation of 6,542 meters (21,463 ft) above sea level in Nevado Sajama to nearly 70 meters (230 ft) along the Paraguay River. Although a country of great geographic diversity, Bolivia has remained a landlocked country since the War of the Pacific. Puerto Suárez, San Matías and Puerto Quijarro are located in the Bolivian Pantanal.

Bolivia can be divided into three physiographic regions:

Sol de Mañana (Morning Sun in Spanish), a geothermal field in Eduardo Avaroa Andean Fauna National Reserve

, southwestern Bolivia. The area, characterized by intense volcanic activity, with sulfur spring fields and mud lakes, has indeed no geysers but rather holes that emit pressurized steam up to 50 meters high.

Laguna Colorada

in the Puna de Lipez in Potosí

• The Andean region in the southwest spans 28% of the national territory, extending over 307,603 square kilometers (118,766 sq mi). This area is located above 3,000 meters (9,800 ft) altitude and is located between two big Andean chains, the
  Cordillera Occidental ("Western Range") and the Cordillera Central ("Central Range"), with some of the highest spots in the Americas such as the Nevado Sajama, with an altitude of 6,542 meters (21,463 ft), and the Illimani, at 6,462 meters (21,201 ft). Also located in the Cordillera Central is Lake Titicaca, the highest commercially navigable lake in the world and the largest lake in South America;^[118] the lake is shared with Peru. Also in this region are the Altiplano and the Salar de Uyuni, which is the largest salt flat in the world and an important source of lithium
  .
• The Sub-Andean region in the center and south of the country is an intermediate region between the Altiplano and the eastern llanos (plain); this region comprises 13% of the territory of Bolivia, extending over 142,815 km² (55,141 sq mi), and encompassing the Bolivian valleys and the Yungas region. It is distinguished by its farming activities and its temperate climate.
• The Llanos region in the northeast comprises 59% of the territory, with 648,163 km² (250,257 sq mi). It is located to the north of the Cordillera Central and extends from the Andean foothills to the Paraguay River. It is a region of flat land and small plateaus, all covered by extensive rain forests containing enormous biodiversity. The region is below 400 meters (1,300 ft) above sea level.

Bolivia has three drainage basins:

• The first is the Amazon Basin, also called the North Basin (724,000 km² (280,000 sq mi)/66% of the territory). The rivers of this basin generally have big meanders which form lakes such as Murillo Lake in Pando Department. The main Bolivian tributary to the Amazon basin is the Mamoré River, with a length of 2,000 km (1,200 mi) running north to the confluence with the Beni River, 1,113 km (692 mi) in length and the second most important river of the country. The Beni River, along with the Madeira River, forms the main tributary of the Amazon River. From east to west, the basin is formed by other important rivers, such as the Madre de Dios River, the Orthon River, the Abuna River, the Yata River, and the Guaporé River. The most important lakes are Rogaguado Lake, Rogagua Lake, and Jara Lake.
• The second is the Río de la Plata Basin, also called the South Basin (229,500 km² (88,600 sq mi)/21% of the territory). The tributaries in this basin are in general less abundant than the ones forming the Amazon Basin. The Rio de la Plata Basin is mainly formed by the Paraguay River, Pilcomayo River, and Bermejo River. The most important lakes are Uberaba Lake and Mandioré Lake, both located in the Bolivian marshland.
• The third basin is the Central Basin, which is an
  Poopó Lake. The basin is then formed by Lake Titicaca, Lake Poopó, the Desaguadero River, and great salt flats, including the Salar de Uyuni and Coipasa Lake
  .

Bolivia map of Köppen climate classification.^[119]

The geology of Bolivia comprises a variety of different lithologies as well as tectonic and sedimentary environments. On a synoptic scale, geological units coincide with topographical units. Most elementally, the country is divided into a mountainous western area affected by the subduction processes in the Pacific and an eastern lowlands of stable platforms and shields.

Climate

Chacaltaya ski resort, La Paz Department

• Llanos. A humid tropical climate with an average temperature of 25 °C (77 °F). The wind coming from the Amazon rainforest causes significant rainfall. In May, there is low precipitation because of dry winds, and most days have clear skies. Even so, winds from the south, called surazos, can bring cooler temperatures lasting several days.
• Altiplano. Desert-Polar climates, with strong and cold winds. The average temperature ranges from 15 to 20 °C. At night, temperatures descend drastically to slightly above 0 °C, while during the day, the weather is dry and solar radiation is high. Ground frosts occur every month, and snow is frequent.
• Valleys and Yungas.
  Temperate
  climate. The humid northeastern winds are pushed to the mountains, making this region very humid and rainy. Temperatures are cooler at higher elevations. Snow occurs at altitudes of 2,000 meters (6,600 ft).
• Chaco. Subtropical semi-arid climate. Rainy and humid in January and the rest of the year, with warm days and cold nights.

Issues with climate change

Bolivia is especially vulnerable to the negative consequences of climate change. Twenty percent of the world's tropical glaciers are located within the country,^[122] and are more sensitive to change in temperature due to the tropical climate they are located in. Temperatures in the Andes increased by 0.1 °C per decade from 1939 to 1998, and more recently the rate of increase has tripled (to 0.33 °C per decade from 1980 to 2005),^[123] causing glaciers to recede at an accelerated pace and create unforeseen water shortages in Andean agricultural towns. Farmers have taken to temporary city jobs when there is poor yield for their crops, while others have started permanently leaving the agricultural sector and are migrating to nearby towns for other forms of work;^[124] some view these migrants as the first generation of climate refugees.^[125] Cities that are neighbouring agricultural land, like El Alto, face the challenge of providing services to the influx of new migrants; because there is no alternative water source, the city's water source is now being constricted.

Bolivia's government and other agencies have acknowledged the need to instill new policies battling the effects of climate change. The World Bank has provided funding through the Climate Investment Funds (CIF) and are using the Pilot Program for Climate Resilience (PPCR II) to construct new irrigation systems, protect riverbanks and basins, and work on building water resources with the help of indigenous communities.^[126] Bolivia has also implemented the Bolivian Strategy on Climate Change, which is based on taking action in these four areas:

1. Promoting clean development in Bolivia by introducing technological changes in the agriculture, forestry, and industrial sectors, aimed to reduce GHG emissions with a positive impact on development.
2. Contributing to carbon management in forests, wetlands and other managed natural ecosystems.
3. Increasing effectiveness in energy supply and use to mitigate effects of GHG emissions and risk of contingencies.
4. Focus on increased and efficient observations, and understanding of environmental changes in Bolivia to develop effective and timely responses.^[127]

Bolivia comprises about 20% of the world's tropical

Bolivia's national animal,^{[citation needed]} the llama at Laguna Colorada

.

Bolivia's variable altitudes, ranging from 90–6,542 meters (295–21,463 ft) above sea level, allow for a vast biologic diversity. The territory of Bolivia comprises four types of biomes, 32 ecological regions, and 199 ecosystems. Within this geographic area there are several natural parks and reserves such as the Noel Kempff Mercado National Park, the Madidi National Park, the Tunari National Park, the Eduardo Avaroa Andean Fauna National Reserve, and the Kaa-Iya del Gran Chaco National Park and Integrated Management Natural Area, among others.

Bolivia boasts over 17,000 species of seed plants, including over 1,200 species of

Bolivia has more than 2,900 animal species, including 398 mammals, over 1,400 birds (about 14% of birds known in the world, being the sixth most diverse country in terms of bird species)[131]^{[unreliable source?]}, 204 amphibians, 277 reptiles, and 635 fish, all fresh water fish as Bolivia is a landlocked country. In addition, there are more than 3,000 types of butterfly, and more than 60 domestic animals.

In 2020 a new species of snake, the

Bolivia has gained global attention for its 'Law of the Rights of Mother Earth', which accords nature the same rights as humans.^[133]

Scientists began alerting the Bolivian government to the problem of

In February 2017, the government mobilized $200 million to combat drought and global warming.[128]

Government and politics

Building of the Plurinational Legislative Assembly in central La Paz

Bolivia has been governed by democratically elected governments since 1982; prior to that, it was governed by various dictatorships. Presidents Hernán Siles Zuazo (1982–85) and Víctor Paz Estenssoro (1985–89) began a tradition of ceding power peacefully which has continued, although three presidents have stepped down in the face of extraordinary circumstances: Gonzalo Sánchez de Lozada in 2003, Carlos Mesa in 2005, and Evo Morales in 2019.

Bolivia's multiparty democracy has seen a wide variety of parties in the presidency and parliament, although the Revolutionary Nationalist Movement, Nationalist Democratic Action, and the Revolutionary Left Movement predominated from 1985 to 2005. On 11 November 2019, all senior governmental positions were vacated following the resignation of Evo Morales and his government. On 13 November 2019, Jeanine Áñez, a former senator representing Beni, declared herself acting President of Bolivia. Luis Arce was elected on 23 October 2020; he took office as president on 8 November 2020.

The

The executive branch is headed by a president and vice president, and consists of a variable number (currently, 20) of government ministries. The president is elected to a five-year term by popular vote, and governs from the Presidential Palace (popularly called the Burnt Palace, Palacio Quemado) in La Paz. In the case that no candidate receives an absolute majority of the popular vote or more than 40% of the vote with an advantage of more than 10% over the second-place finisher, a run-off is to be held among the two candidates most voted.^[134]

The Asamblea Legislativa Plurinacional (Plurinational Legislative Assembly or National Congress) has two chambers. The Cámara de Diputados (Chamber of Deputies) has 130 members elected to five-year terms, 63 from single-member districts (circunscripciones), 60 by proportional representation, and seven by the minority indigenous peoples of seven departments. The Cámara de Senadores (Chamber of Senators) has 36 members (four per department). Members of the Assembly are elected to five-year terms. The body has its headquarters on the Plaza Murillo in La Paz, but also holds honorary sessions elsewhere in Bolivia. The Vice President serves as titular head of the combined Assembly.

The Supreme Court Building in the capital of Bolivia, Sucre

Government buildings in Bolivia's judicial capital Sucre

Bolivia has its constitutionally recognized capital in Sucre, while La Paz is the seat of government. La Plata (now Sucre) was proclaimed the provisional capital of the newly independent Alto Perú (later, Bolivia) on 1 July 1826.^[136] On 12 July 1839, President José Miguel de Velasco proclaimed a law naming the city as the capital of Bolivia, and renaming it in honor of the revolutionary leader Antonio José de Sucre.^[136] The Bolivian seat of government moved to La Paz at the start of the twentieth century as a consequence of Sucre's relative remoteness from economic activity after the decline of Potosí and its silver industry and of the Liberal Party in the War of 1899.

The 2009 Constitution assigns the role of national capital to Sucre, not referring to La Paz in the text.^[134] In addition to being the constitutional capital, the Supreme Court of Bolivia is located in Sucre, making it the judicial capital. Nonetheless, the Palacio Quemado (the Presidential Palace and seat of Bolivian executive power) is located in La Paz, as are the National Congress and Plurinational Electoral Organ. La Paz thus continues to be the seat of government.

Foreign relations

The presidents of Cuba, Bolivia, and El Salvador (from l. to r.) greet Nicolás Maduro at his second inauguration as Venezuela's president, in Caracas

, on 10 January 2019

Despite losing its maritime coast, the so-called Litoral Department, after the War of the Pacific, Bolivia has historically maintained, as a state policy, a maritime claim to that part of Chile; the claim asks for sovereign access to the Pacific Ocean and its maritime space. The issue has also been presented before the Organization of American States; in 1979, the OAS passed the 426 Resolution,^[137] which declared that the Bolivian problem is a hemispheric problem. On 4 April 1884, a truce was signed with Chile, whereby Chile gave facilities of access to Bolivian products through Antofagasta, and freed the payment of export rights in the port of Arica. In October 1904, the Treaty of Peace and Friendship was signed, and Chile agreed to build a railway between Arica and La Paz, to improve access of Bolivian products to the ports.

The Special Economical Zone for Bolivia in Ilo (ZEEBI) is a special economic area of 5 kilometers (3.1 miles) of maritime coast, and a total extension of 358 hectares (880 acres), called Mar Bolivia ("Sea Bolivia"), where Bolivia may maintain a free port near Ilo, Peru under its administration and operation^{[138][unreliable source?]} for a period of 99 years starting in 1992; once that time has passed, all the construction and territory revert to the Peruvian government. Since 1964, Bolivia has had its own port facilities in the Bolivian Free Port in Rosario, Argentina. This port is located on the Paraná River, which is directly connected to the Atlantic Ocean.

In 2018, Bolivia signed the UN treaty on the Prohibition of Nuclear Weapons.^[139][140]

The dispute with Chile was taken to the International Court of Justice. The court ruled in support of the Chilean position, and declared that although Chile may have held talks about a Bolivian corridor to the sea, the country was not required to negotiate one or to surrender its territory.^[141]

Military

The

There are 54 prisons in Bolivia, which incarcerate around 8,700 people as of 2010^[update]. The prisons are managed by the Penitentiary Regime Directorate (Spanish: Dirección de Régimen Penintenciario). There are 17 prisons in departmental capital cities and 36 provincial prisons.^[143]

Administrative divisions

Mount Illimani overlooking La Paz, the capital city of the La Paz Department

and the seat of government of Bolivia

Bolivia has nine departments—Pando, La Paz, Beni, Oruro, Cochabamba, Santa Cruz, Potosí, Chuquisaca, Tarija.

According to what is established by the Bolivian Political Constitution, the Law of Autonomies and Decentralization regulates the procedure for the elaboration of Statutes of Autonomy, the transfer and distribution of direct competences between the central government and the autonomous entities.^[144]

There are four levels of decentralization: Departmental government, constituted by the Departmental Assembly, with rights over the legislation of the department. The governor is chosen by universal suffrage. Municipal government, constituted by a Municipal Council, with rights over the legislation of the municipality. The mayor is chosen by universal suffrage. Regional government, formed by several provinces or municipalities of geographical continuity within a department. It is constituted by a Regional Assembly. Original indigenous government, self-governance of original indigenous people on the ancient territories where they live.

No.	Department	Capital
1	Pando	Cobija	Territorial division of Bolivia
2	La Paz	La Paz
3	Beni	Trinidad
4	Oruro	Oruro
5	Cochabamba	Cochabamba
6	Santa Cruz	Santa Cruz de la Sierra
7	Potosí	Potosí
8	Chuquisaca	Sucre
9	Tarija	Tarija

El Palmar Nature Preserve, in northern Chuquisaca

A proportional representation of Bolivia exports, 2019

Driven largely by its natural resources Bolivia has become a region leader in measures of economic growth, fiscal stability and foreign reserves,[145] although it remains a historically poor country. Bolivia's estimated 2012 gross domestic product (GDP) totaled $27.43 billion at official exchange rate and $56.14 billion at purchasing power parity. Despite a series of mostly political setbacks, between 2006 and 2009 the Morales administration spurred growth higher than at any point in the preceding 30 years. The growth was accompanied by a moderate decrease in inequality.^[146] Under Morales, per capita GDP doubled from US$1,182 in 2006 to US$2,238 in 2012. GDP growth under Morales averaged 5 percent a year, and in 2014 only Panama and the Dominican Republic performed better in all of Latin America.^[147] Bolivia's nominal GDP increased from 11.5 billion in 2006 to 41 billion in 2019.^[148]

Bolivia in 2016 boasted the highest proportional rate of financial reserves of any nation in the world, with Bolivia's rainy day fund totaling some US$15 billion or nearly two-thirds of total annual GDP, up from a fifth of GDP in 2005. Even the IMF was impressed by Morales' fiscal prudence.^[147]

Historical challenges

A major blow to the Bolivian economy came with a drastic fall in the price of tin during the early 1980s, which impacted one of Bolivia's main sources of income and one of its major mining industries.^[149] Since 1985, the government of Bolivia has implemented a far-reaching program of macroeconomic stabilization and structural reform aimed at maintaining price stability, creating conditions for sustained growth, and alleviating scarcity. A major reform of the customs service has significantly improved transparency in this area. Parallel legislative reforms have locked into place market-liberal policies, especially in the hydrocarbon and telecommunication sectors, that have encouraged private investment. Foreign investors are accorded national treatment.^[150]

In April 2000, Hugo Banzer, the former president of Bolivia, signed a contract with Aguas del Tunari, a private consortium, to operate and improve the water supply in Bolivia's third-largest city,

Once Bolivia's government depended heavily on foreign assistance to finance development projects and to pay the public staff. At the end of 2002, the government owed $4.5 billion to its foreign creditors, with $1.6 billion of this amount owed to other governments and most of the balance owed to multilateral development banks. Most payments to other governments have been rescheduled on several occasions since 1987 through the Paris Club mechanism. External creditors have been willing to do this because the Bolivian government has generally achieved the monetary and fiscal targets set by IMF programs since 1987, though economic crises have undercut Bolivia's normally good record. However, by 2013 the foreign assistance is just a fraction of the government budget thanks to tax collection mainly from the profitable exports to Brazil and Argentina of natural gas.

Agriculture

Agriculture is less relevant in the country's GDP compared to the rest of Latin America. The country produces close to 10 million tons of

Bolivia's most lucrative agricultural product continues to be coca, of which Bolivia is currently the world's third largest cultivator.^[155][156]

Mineral resources

The Cerro Rico in Potosí

, still an important mining site since the colonial times.

Mining is a major sector of the economy, with most of the country's exports being dependent on it.^[157] In 2019, the country was the eighth largest world producer of silver;^[158] fifth largest world producer of tin^[159] and antimony;^[160] seventh largest producer of zinc,^[161] eighth largest producer of lead,^[162] fourth largest world producer of boron;^[163] and the sixth largest world producer of tungsten.^[164] The country also has considerable gold production, which varies close to 25 tons/year, and also has amethyst extraction.^[165]

Bolivia has the world's largest lithium reserves, second largest antimony reserves, third largest iron ore reserves, sixth largest tin reserves, ninth largest lead, silver, and copper reserves, tenth largest zinc reserves, and undisclosed but productive reserves of gold and tungsten. Additionally, there is believed to be considerable reserves of uranium and nickel present in the country's largely under-explored eastern regions. Diamond reserves may also be present in some formations of the Serranías Chiquitanas in Santa Cruz Department.

Bolivia has the second largest natural gas reserves in South America.^[166] Its natural gas exports bring in millions of dollars per day, in royalties, rents, and taxes.^[167] From 2007 to 2017, what is referred to as the "government take" on gas totaled approximately $22 billion.^[167]

Most of Bolivia's gas comes from megafields located in San Alberto, San Antonio, Margarita, and Incahuasi.^[168] These areas are in the territory of the indigenous Guarani people, and the region is frequently viewed as a remote backwater by non-residents.^[168]

The government held a binding referendum in 2005 on the Hydrocarbon Law. Among other provisions, the law requires that companies sell their production to the state hydrocarbons company Yacimientos Petroliferos Fiscales Bolivianos (YPFB) and for domestic demand to be met before exporting hydrocarbons and increased the state's royalties from natural gas.^[169] The passage of the Hydrocarbon law in opposition to then-President Carlos Mesa can be understood as part of the Bolivian gas conflict which ultimately resulted in election of Evo Morales, Bolivia's first indigenous president.^[170]

Lithium mine in the Salar de Uyuni

.

The US Geological Service estimates that Bolivia has 21 million tonnes of lithium, which represent at least 25% of world reserves - the largest in the world. However, to mine for it would involve disturbing the country's salt flats (called Salar de Uyuni), an important natural feature which boosts tourism in the region. The government does not want to destroy this unique natural landscape to meet the rising world demand for lithium.^[171] On the other hand, sustainable extraction of lithium is attempted by the government. This project is carried out by the public company "Recursos Evaporíticos" subsidiary of COMIBOL.

It is thought that due to the importance of lithium for batteries for electric vehicles and stabilization of electric grids with large proportions of intermittent renewables in the electricity mix, Bolivia could be strengthened geopolitically. However, this perspective has also been criticized for underestimating the power of economic incentives for expanded production in other parts of the world.^[172]

Foreign-exchange reserves

The amount in reserve currencies and

' government.

Foreign-exchange reserves 2000–2014 (MM US$) [173]

Fuente: Banco Central de Bolivia, Gráfica elaborada por: Wikipedia .

Tourism

Salar de Uyuni, one of the most visited sites in Bolivia.^[174]

The income from tourism has become increasingly important. Bolivia's tourist industry has placed an emphasis on attracting ethnic diversity.^[175] The most visited places include Nevado Sajama, Torotoro National Park, Madidi National Park, Tiwanaku and the city of La Paz.

The best known of the various festivals found in the country is the "Carnaval de Oruro", which was among the first 19 "Masterpieces of the Oral and Intangible Heritage of Humanity", as proclaimed by UNESCO in May 2001.^[176]

Transport

Roads

Bolivia's Yungas Road was called the "world's most dangerous road" by the Inter-American Development Bank, called (El Camino de la Muerte) in Spanish.^[177] The northern portion of the road, much of it unpaved and without guardrails, was cut into the Cordillera Oriental Mountain in the 1930s. The fall from the narrow 12 feet (3.7 m) path is as much as 2,000 feet (610 m) in some places and due to the humid weather from the Amazon there are often poor conditions like mudslides and falling rocks.^[178] Each year over 25,000 bikers cycle along the 40 miles (64 km) road. In 2018, an Israeli woman was killed by a falling rock while cycling on the road.^[179]

The Apolo road goes deep into La Paz. Roads in this area were originally built to allow access to mines located near Charazani. Other noteworthy roads run to Coroico, Sorata, the Zongo Valley (Illimani mountain), and along the Cochabamba highway (carretera).^[180] According to researchers with the Center for International Forestry Research (CIFOR), Bolivia's road network was still underdeveloped as of 2014. In lowland areas of Bolivia there is less than 2,000 kilometers (2,000,000 m) of paved road. There have been some recent investments; animal husbandry has expanded in Guayaramerín, which might be due to a new road connecting Guayaramerín with Trinidad.^[181] The country only opened its first duplicated highway in 2015: a 203 km stretch between the capital La Paz and Oruro.^[182]

Air

Boliviana de Aviación (BoA) is a state-owned company and the country's largest airline. Two BoA Boeing 737-300s parked at Jorge Wilstermann International Airport

.

TAM – Transporte Aéreo Militar (the Bolivian Military Airline) was an airline based in La Paz, Bolivia. It was the civilian wing of the 'Fuerza Aérea Boliviana' (the Bolivian Air Force), operating passenger services to remote towns and communities in the North and Northeast of Bolivia. TAM (a.k.a. TAM Group 71) has been a part of the FAB since 1945. The airline company has suspended its operations since 23 September 2019.^[183]

Boliviana de Aviación, often referred to as simply BoA, is the flag carrier airline of Bolivia and is wholly owned by the country's government.^[184]

A private airline serving regional destinations is Línea Aérea Amaszonas,^[185] with services including some international destinations.

Although a civil transport airline,

The three largest, and main international airports in Bolivia are El Alto International Airport in La Paz, Viru Viru International Airport in Santa Cruz, and Jorge Wilstermann International Airport in Cochabamba. There are regional airports in other cities that connect to these three hubs.^[186]

Rail

This section is an excerpt from Rail transport in Bolivia.[edit]

Railways in Bolivia (interactive map

)
━━━ Routes with passenger traffic
━━━ Routes in usable state
·········· Unusable or dismantled routes

Passenger trains in Bolivia (interactive map

)

The Bolivian rail network has had a peculiar development throughout its history.

Bolivia owns a communications satellite which was offshored/outsourced and launched by China, named Túpac Katari 1.^[187] In 2015, it was announced that electrical power advancements include a planned $300 million nuclear reactor developed by the Russian nuclear company Rosatom.^[188] Bolivia was ranked 104th in the Global Innovation Index in 2021, up from 110th in 2019.^{[189][190][191][192]}

Water supply and sanitation

Bolivia's drinking water and sanitation coverage has greatly improved since 1990 due to a considerable increase in sectoral investment. However, the country has the continent's lowest coverage levels and services are of low quality. Political and institutional instability have contributed to the weakening of the sector's institutions at the national and local levels.

Two concessions to foreign private companies in two of the three largest cities – Cochabamba and La Paz/El Alto – were prematurely ended in 2000 and 2006 respectively. The country's second largest city, Santa Cruz de la Sierra, manages its own water and sanitation system relatively successfully by way of cooperatives. The government of Evo Morales intends to strengthen citizen participation within the sector. Increasing coverage requires a substantial increase of investment financing.

According to the government the main problems in the sector are low access to sanitation throughout the country; low access to water in rural areas; insufficient and ineffective investments; a low visibility of community service providers; a lack of respect of indigenous customs; "technical and institutional difficulties in the design and implementation of projects"; a lack of capacity to operate and maintain infrastructure; an institutional framework that is "not consistent with the political change in the country"; "ambiguities in the social participation schemes"; a reduction in the quantity and quality of water due to climate change; pollution and a lack of integrated water resources management; and the lack of policies and programs for the reuse of wastewater.^[193]

Only 27% of the population has access to improved sanitation, 80 to 88% has access to improved water sources. Coverage in urban areas is bigger than in rural ones.^[194]

Some regions of Bolivia are largely under the power of the ganaderos, the large cattle and pig owners, and many small farmers are still reduced to peons. Nevertheless, the presence of the state has been clearly reinforced under the government of Evo Morales. The government tends to accommodate the interests of large landowners while trying to improve the living and working conditions of small farmers.^[195]

Agriculture

The agrarian reform promised by Evo Morales - and approved in a referendum by nearly 80 per cent of the population - has never been implemented. Intended to abolish latifundism by reducing the maximum size of properties that do not have an "economic and social function" to 5,000 hectares, with the remainder to be distributed among small agricultural workers and landless indigenous people, it was strongly opposed by the Bolivian oligarchy. In 2009, the government gave in to the agribusiness sector, which in return committed to end the pressure it was exerting and jeopardizing until the new constitution was in place.^[195]

However, a series of economic reforms and projects have improved the condition of modest peasant families. They received farm machinery, tractors, fertilizers, seeds and breeding stock, while the state built irrigation systems, roads and bridges to make it easier for them to sell their produce in the markets. The situation of many indigenous people and small farmers was regularized through the granting of land titles for the land they were using.^[195]

In 2007, the government created a "Bank for Productive Development" through which small workers and agricultural producers can borrow easily, at low rates and with repayment terms adapted to agricultural cycles. As a result of improved banking supervision, borrowing rates have been reduced by a factor of three between 2014 and 2019 across all banking institutions for small and medium-sized agricultural producers. In addition, the law now requires banks to devote at least 60% of their resources to productive credits or to the construction of social housing.^[195]

With the creation of the Food Production Support Enterprise (Emapa), the government sought to stabilize the domestic market for agricultural products by buying the best prices for the production of small and medium-sized farmers, thus forcing agribusinesses to offer them fairer remuneration. According to Vice President Àlvaro García Linera, "by setting the rules of the game, the State establishes a new balance of power that gives more power to small producers. Wealth is better redistributed to balance the power of the agribusiness sector. This generates stability, which allows the economy to flourish and benefits everyone.^[195]

Demographics

People in La Paz city center

According to the last two censuses carried out by the Bolivian National Statistics Institute (Instituto Nacional de Estadística, INE), the population increased from 8,274,325 (from which 4,123,850 were men and 4,150,475 were women) in 2001 to 10,059,856 in 2012.[198]

In the last fifty years the Bolivian population has tripled, reaching a population growth rate of 2.25%. The growth of the population in the inter-census periods (1950–1976 and 1976–1992) was approximately 2.05%, while between the last period, 1992–2001, it reached 2.74% annually.

Some 67.49% of Bolivians live in urban areas, while the remaining 32.51% in rural areas. The most part of the population (70%) is concentrated in the departments of La Paz, Santa Cruz and Cochabamba. In the Andean Altiplano region the departments of La Paz and Oruro hold the largest percentage of population, in the valley region the largest percentage is held by the departments of Cochabamba and Chuquisaca, while in the Llanos region by Santa Cruz and Beni. At national level, the population density is 8.49, with variations marked between 0.8 (Pando Department) and 26.2 (Cochabamba Department).

The largest population center is located in the so-called "central axis" and in the Llanos region. Bolivia has a young population. According to the 2011 census, 59% of the population is between 15 and 59 years old, 39% is less than 15 years old. Almost 60% of the population is younger than 25 years of age.

Genetics

According to a genetic study done on Bolivians, average values of Native American, European and African ancestry are 86%, 12.5%, and 1.5%, in individuals from La Paz and 76.8%, 21.4%, and 1.8% in individuals from Chuquisaca; respectively.^[199]

Ethnic and racial classifications

Danza de los macheteros, typical dance from San Ignacio de Moxos

, Bolivia

Aymara

man, near Lake Titicaca, Bolivia

There are small numbers of European citizens from Germany, France, Italy and Portugal, as well as from other countries of the Americas, as Argentina, Brazil, Chile, Colombia, Cuba, Ecuador, the United States, Paraguay, Peru, Mexico and Venezuela, among others. There are important Peruvian colonies in La Paz, El Alto and Santa Cruz de la Sierra.

There are around 140,000 Mennonites in Bolivia of Friesian, Flemish and German ethnic origins.^[205][206]

Indigenous peoples

The

• Andean ethnicities
  • Aymara people. They live on the high plateau of the departments of La Paz, Oruro and Potosí, as well as some small regions near the tropical flatlands.
  • Quechua people. They mostly inhabit the valleys in Cochabamba and Chuquisaca. They also inhabit some mountain regions in Potosí and Oruro. They divide themselves into different Quechua nations, as the Tarabucos, Ucumaris, Chalchas, Chaquies, Yralipes, Tirinas, among others.
  • Uru people
• Ethnicities of the Eastern Lowlands
  • Guaraníes: made up of Guarayos, Pausernas, Sirionós, Chiriguanos, Wichí, Chulipis, Taipetes, Tobas, and Yuquis.
  • Tacanas: made up of Lecos, Chimanes, Araonas, and Maropas.
  • Panos: made up of Chacobos, Caripunas, Sinabos, Capuibos, and Guacanaguas.
  • Aruacos: made up of Apolistas, Baures,
    Chané
    , Movimas, Cayabayas, Carabecas, and Paiconecas (Paucanacas).
  • Chapacuras: made up of Itenez (More), Chapacuras, Sansinonianos, Canichanas, Itonamas, Yuracares, Guatoses, and Chiquitanos.
  • Botocudos: made up of Bororos and Otuquis.
  • Zamucos: made up of
    Ayoreos
    .

Language

Bolivia has great linguistic diversity as a result of its

Church of San Lorenzo de Carangas, Potosí, mid-16th century–1744.^[208][209]

Plautdietsch, a German dialect, is spoken by about 70,000 Mennonites in Santa Cruz. Portuguese is spoken mainly in the areas close to Brazil.

Bilingual education was implemented in Bolivia under the leadership of President Evo Morales. His program placed emphasis on the expansion of indigenous languages in the educational systems of the country.^[210]

Religion

Bolivia is a constitutionally secular state that guarantees the freedom of religion and the independence of government from religion.^[212]

According to the 2001

The Association of Religion Data Archives (relying on the World Christian Database) records that in 2010, 92.5% of Bolivians identified as Christian (of any denomination), 3.1% identified with indigenous religion, 2.2% identified as Baháʼí, 1.9% identified as agnostic, and all other groups constituted 0.1% or less.^[215]

Much of the indigenous population adheres to different traditional beliefs marked by

Approximately 67% of Bolivians live in urban areas,[218] among the lowest proportion in South America. Nevertheless, the rate of urbanization is growing steadily, at around 2.5% annually. According to the 2012 census, there are total of 3,158,691 households in Bolivia – an increase of 887,960 from 2001.^[198] In 2009, 75.4% of homes were classified as a house, hut, or Pahuichi; 3.3% were apartments; 21.1% were rental residences; and 0.1% were mobile homes.^[219] Most of the country's largest cities are located in the highlands of the west and central regions.

INE
	Rank	Name	Department	Pop.	Rank	Name	Department	Pop.
El Alto	1	Santa Cruz de la Sierra	Santa Cruz	1,453,549	11	Montero	Santa Cruz	109,518	Cochabamba
	2	El Alto	La Paz	848,840	12	Trinidad	Beni	106,422
	3	La Paz	La Paz	764,617	13	Warnes	Santa Cruz	96,406
	4	Cochabamba	Cochabamba	630,587	14	Yacuíba	Tarija	91,998
	5	Oruro	Oruro	264,683	15	La Guardia	Santa Cruz	89,080
	6	Sucre	Chuquisaca	259,388	16	Riberalta	Beni	89,003
	7	Tarija	Tarija	205,346	17	Viacha	La Paz	80,388
	8	Potosí	Potosí	189,652	18	Villa Tunari	Cochabamba	72,623
	9	Sacaba	Cochabamba	169,494	19	Cobija	Pando	55,692
	10	Quillacollo	Cochabamba	137,029	20	Tiquipaya	Cochabamba	53,062

^[220]

Culture

Bolivian children playing tarka

The cultural development is divided into three distinct periods: precolumbian, colonial, and republican. Important archaeological ruins, gold and silver ornaments, stone monuments, ceramics, and weavings remain from several important pre-Columbian cultures. Major ruins include Tiwanaku, El Fuerte de Samaipata, Inkallaqta and Iskanwaya. The country abounds in other sites that are difficult to reach and have seen little archaeological exploration.^[221]