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Bolivia-The Unfinished Revolution





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Bolivia Index

Although these major steps were never reversed, observers have regarded the revolution as unfinished because it lost momentum after the first years. The divisions within the MNR seriously weakened its attempt to incorporate the support of the Indian peasants, the workers, and the middle class for the government. In 1952 the MNR was a broad coalition of groups with different interests. Juan Oquendo Lechín led the left wing of the party and had the support of the labor sector. Siles Zuazo represented the right wing and had the backing of the middle class. Paz Estenssoro was initially the neutral leader. Because the majority of the MNR elite wanted a moderate course and the left wing demanded radical change, the polarization increased and led eventually to the destruction of the MNR in 1964.

The country faced severe economic problems as a result of the changes enacted by the government. The nationalization of the mines had a negative effect on the economy. The mines of Comibol produced at a loss because of the lack of technical expertise and capital to modernize the aging plants and nearly depleted deposits of low-grade ore. Declining tin prices on the world market contributed to the economic problems in the mining sector. Nevertheless, workers in the management of Comibol increased salaries and the work force by nearly 50 percent.

The decline of agricultural production contributed to the rapidly deteriorating economy during the first years of the revolution. Although anarchy in the countryside was the main reason for the decrease in production, the peasants' inability to produce for a market economy and the lack of transport facilities contributed to the problem. The attempt to increase agricultural production by colonizing the less densely populated valleys was not successful at first. As a result, the food supply for the urban population decreased, and Bolivia had to import food.

High inflation, primarily caused by social spending, also hurt the economy. The value of the peso, Bolivia's former currency, fell from 60 to 12,000 to the United States dollar between 1952 and 1956, affecting primarily the urban middle class, which began to support the opposition.

The bankrupt economy increased the factionalism within the MNR. Whereas the left wing demanded more government control over the economy, the right wing hoped to solve the nation's problems with aid from the United States. The government had sought cooperation with the United States as early as 1953, a move that had given the United States influence over Bolivia's economy. Because of United States pressure, the Bolivian government promised to compensate the owners of nationalized tin mines and drew up a new petroleum code, which again allowed United States investments in Bolivian oil.

During the presidency of Siles Zuazo (1956-60 and 1982-85), who won the election with 84 percent of the vote, United States aid reached its highest level. In 1957 the United States subsidized more than 30 percent of the Bolivian government's central budget. Advised by the United States government and the IMF, the Siles Zuazo regime then in power reduced inflation with a number of politically dangerous measures, such as the freezing of wages and the ending of the government-subsidized miners' stores.

Siles Zuazo's stabilization plan seriously damaged the coalition between the MNR and the COB. The COB called immediately for a general strike, which threatened to destroy an already disrupted economy; the strike was called off only after impassioned appeals by the president. But the conflict between the government and the miners' militias continued as the militias constantly challenged the government's authority. Siles Zuazo faced not only labor unrest in the mines but also discontent in the countryside, where peasant leaders were competing for power. In an effort to quell the unrest, he decided to rebuild the armed forces.

During the Siles Zuazo administration, the strength of the armed forces grew as a result of a new concern for professionalism and training, technical assistance from the United States, and an increase in the size and budget of the military. In addition, the military's role in containing unrest gave it increasing influence within the MNR government.

Although the stabilization plan and the strengthening of the armed forces were resented by Lechín's faction of the party, the first formal dissent came from Walter Guevara Arze and the MNR right wing. Guevara Arze, who had been foreign minister and then minister of government in the first Paz Estenssoro government, split from the MNR to form the Authentic Nationalist Revolutionary Movement (Movimiento Nacionalista Revolucionario Auténtico--MNRA) in 1960, when his presidential hopes were destroyed by Paz Estenssoro's candidacy. Guevara Arze charged that the MNR had betrayed the revolution, and he posed a formidable opposition in the presidential election of 1960.

Conflicts within the MNR increased during Paz Estenssoro's second term (1960-64). Together with the United States and the Federal Republic of Germany (West Germany), Paz Estenssoro endorsed the "Triangular Plan," which called for a restructuring of the tin-mining industry. The plan demanded the end of the workers' control over Comibol operations, the firing of workers, and a reduction in their salaries and benefits; it was strongly opposed by the COB and Lechín's MNR faction.

In 1964 Paz Estenssoro decided to run again for president, using a revision of the 1961 Constitution that would allow for a consecutive term, and he forced his nomination at a party convention. Lechín, who had hoped to become the presidential candidate, broke away to form the National Leftist Revolutionary Party (Partido Revolucionario de la Izquierda Nacional--PRIN). With his support in the MNR dwindling and opposition from the labor sector mounting, Paz Estenssoro accepted General René Barrientos Ortuño as vice presidential candidate. Because most opposition groups abstained, Paz Estenssoro was reelected with the support of the military and the peasants. Paz Estenssoro had come to rely increasingly on the military, whose role as a peacekeeper had made it an arbiter in politics. But this support was to prove unreliable; the military was already planning to overthrow him. Moreover, rivalry among peasant groups often resulted in bloody feuds that further weakened the Paz Estenssoro government.

During its twelve-year rule, the MNR had failed to build a firm basis for democratic, civilian government. Increasing factionalism, open dissent, ideological differences, policy errors, and corruption weakened the party and made it impossible to establish an institutional framework for the reforms. Not even the peasants, who were the main beneficiaries of the revolution, consistently supported the MNR.

Data as of December 1989



BackgroundBolivia, named after independence fighter Simon BOLIVAR, broke away from Spanish rule in 1825; much of its subsequent history has consisted of a series of nearly 200 coups and countercoups. Democratic civilian rule was established in 1982, but leaders have faced difficult problems of deep-seated poverty, social unrest, and illegal drug production. In December 2005, Bolivians elected Movement Toward Socialism leader Evo MORALES president - by the widest margin of any leader since the restoration of civilian rule in 1982 - after he ran on a promise to change the country's traditional political class and empower the nation's poor, indigenous majority. However, since taking office, his controversial strategies have exacerbated racial and economic tensions between the Amerindian populations of the Andean west and the non-indigenous communities of the eastern lowlands. In December 2009, President MORALES easily won reelection, and his party took control of the legislative branch of the government, which will allow him to continue his process of change.
LocationCentral South America, southwest of Brazil
Area(sq km)total: 1,098,581 sq km
land: 1,083,301 sq km
water: 15,280 sq km
Geographic coordinates17 00 S, 65 00 W
Land boundaries(km)total: 6,940 km
border countries: Argentina 832 km, Brazil 3,423 km, Chile 860 km, Paraguay 750 km, Peru 1,075 km

Coastline(km)0 km (landlocked)

Climatevaries with altitude; humid and tropical to cold and semiarid

Elevation extremes(m)lowest point: Rio Paraguay 90 m
highest point: Nevado Sajama 6,542 m
Natural resourcestin, natural gas, petroleum, zinc, tungsten, antimony, silver, iron, lead, gold, timber, hydropower
Land use(%)arable land: 2.78%
permanent crops: 0.19%
other: 97.03% (2005)

Irrigated land(sq km)1,320 sq km (2003)
Total renewable water resources(cu km)622.5 cu km (2000)
Freshwater withdrawal (domestic/industrial/agricultural)total: 1.44 cu km/yr (13%/7%/81%)
per capita: 157 cu m/yr (2000)
Natural hazardsflooding in the northeast (March-April)
Environment - current issuesthe clearing of land for agricultural purposes and the international demand for tropical timber are contributing to deforestation; soil erosion from overgrazing and poor cultivation methods (including slash-and-burn agriculture); desertification; loss of biodiversity; industrial pollution of water supplies used for drinking and irrigation
Environment - international agreementsparty to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Hazardous Wastes, Law of the Sea, Marine Dumping, Ozone Layer Protection, Ship Pollution, Tropical Timber 83, Tropical Timber 94, Wetlands
signed, but not ratified: Environmental Modification, Marine Life Conservation
Geography - notelandlocked; shares control of Lago Titicaca, world's highest navigable lake (elevation 3,805 m), with Peru
Population9,775,246 (July 2009 est.)
Age structure(%)0-14 years: 35.5% (male 1,767,310/female 1,701,744)
15-64 years: 60% (male 2,877,605/female 2,992,043)
65 years and over: 4.5% (male 193,196/female 243,348) (2009 est.)
Median age(years)total: 21.9 years
male: 21.3 years
female: 22.6 years (2009 est.)
Population growth rate(%)1.772% (2009 est.)
Birth rate(births/1,000 population)25.82 births/1,000 population (2009 est.)
Death rate(deaths/1,000 population)7.05 deaths/1,000 population (July 2009 est.)

Net migration rate(migrant(s)/1,000 population)-1.05 migrant(s)/1,000 population (2009 est.)
Urbanization(%)urban population: 66% of total population (2008)
rate of urbanization: 2.5% annual rate of change (2005-10 est.)
Sex ratio(male(s)/female)at birth: 1.05 male(s)/female
under 15 years: 1.04 male(s)/female
15-64 years: 0.96 male(s)/female
65 years and over: 0.79 male(s)/female
total population: 0.98 male(s)/female (2009 est.)
Infant mortality rate(deaths/1,000 live births)total: 44.66 deaths/1,000 live births
male: 48.56 deaths/1,000 live births
female: 40.57 deaths/1,000 live births (2009 est.)

Life expectancy at birth(years)total population: 66.89 years
male: 64.2 years
female: 69.72 years (2009 est.)

Total fertility rate(children born/woman)3.17 children born/woman (2009 est.)
Nationalitynoun: Bolivian(s)
adjective: Bolivian
Ethnic groups(%)Quechua 30%, mestizo (mixed white and Amerindian ancestry) 30%, Aymara 25%, white 15%

Religions(%)Roman Catholic 95%, Protestant (Evangelical Methodist) 5%
Languages(%)Spanish 60.7% (official), Quechua 21.2% (official), Aymara 14.6% (official), foreign languages 2.4%, other 1.2% (2001 census)

Country nameconventional long form: Plurinational State of Bolivia
conventional short form: Bolivia
local long form: Estado Plurinacional de Bolivia
local short form: Bolivia
Government typerepublic; note - the new constitution defines Bolivia as a "Social Unitarian State"
Capitalname: La Paz (administrative capital)
geographic coordinates: 16 30 S, 68 09 W
time difference: UTC-4 (1 hour ahead of Washington, DC during Standard Time)
note: Sucre (constitutional capital)
Administrative divisions9 departments (departamentos, singular - departamento); Beni, Chuquisaca, Cochabamba, La Paz, Oruro, Pando, Potosi, Santa Cruz, Tarija
Constitution7-Feb-09

Legal systembased on Spanish law and Napoleonic Code; has not accepted compulsory ICJ jurisdiction; the 2009 Constitution incorporates indigenous community justice into Bolivia's judicial system

Suffrage18 years of age, universal and compulsory (married); 21 years of age, universal and compulsory (single)
Executive branchchief of state: President Juan Evo MORALES Ayma (since 22 January 2006); Vice President Alvaro GARCIA Linera (since 22 January 2006); note - the president is both chief of state and head of government
head of government: President Juan Evo MORALES Ayma (since 22 January 2006); Vice President Alvaro GARCIA Linera (since 22 January 2006)
cabinet: Cabinet appointed by the president
elections: president and vice president elected on the same ticket by popular vote for a single five-year term; election last held 6 December 2009 (next to be held in 2014); note - per the new constitution, presidents can serve for a total of two consecutive terms
election results: Juan Evo MORALES Ayma elected president; percent of vote - Juan Evo MORALES Ayma 64%; Manfred REYES VILLA 26%; Samuel DORIA MEDINA Arana 6%; Rene JOAQUINO 2%; other 2%

Legislative branchbicameral Plurinational Legislative Assembly or Asamblea Legislativa Plurinacional consists of Chamber of Senators or Camara de Senadores (36 seats; members are elected by proportional representation from party lists to serve five-year terms) and Chamber of Deputies or Camara de Diputados (130 seats; 76 members are directly elected from their districts [7 or 8 of these are chosen from indigenous districts] and 54 are elected by proportional representation from party lists to serve five-year terms).
elections: Chamber of Senators and Chamber of Deputies - last held 6 December 2009 (next to be held in 2015)
election results: Chamber of Senators - percent of vote by party - NA; seats by party - MAS 26, PPB-CN 10; Chamber of Deputies - percent of vote by party - NA; seats by party - MAS 89, PPB-CN 36, UN 3, AS 2

Judicial branchSupreme Court or Corte Suprema (judges elected by popular vote from list of candidates pre-selected by Assembly for six-year terms); District Courts (one in each department); Plurinational Constitutional Court (five primary or titulares and five alternate or suplente magistrates elected by popular vote from list of candidates pre-selected by Assembly for six-year terms; to rule on constitutional issues); Plurinational Electoral Organ (seven members elected by the Assembly and the president; one member must be of indigenous origin to six-year terms); Agro-Environmental Court (judges elected by popular vote from list of candidates pre-selected by Assembly for six-year terms; to run on agro-environmental issues); provincial and local courts (to try minor cases)

Political pressure groups and leadersBolivian Workers Central or COR; Federation of Neighborhood Councils of El Alto or FEJUVE; Landless Movement or MST; National Coordinator for Change or CONALCAM; Sole Confederation of Campesino Workers of Bolivia or CSUTCB
other: Cocalero groups; indigenous organizations (including Confederation of Indigenous Peoples of Eastern Bolivia or CIDOB and National Council of Ayullus and Markas of Quollasuyu or CONAMAQ); labor unions (including the Central Bolivian Workers' Union or COB and Cooperative Miners Federation or FENCOMIN)
International organization participationCAN, FAO, G-77, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, LAES, LAIA, Mercosur (associate), MIGA, MINUSTAH, MONUC, NAM, OAS, OPANAL, OPCW, PCA, RG, UN, UNASUR, UNCTAD, UNESCO, UNFICYP, UNIDO, Union Latina, UNMIL, UNMIS, UNOCI, UNWTO, UPU, WCL, WCO, WFTU, WHO, WIPO, WMO, WTO
Flag descriptionthree equal horizontal bands of red (top), yellow, and green with the coat of arms centered on the yellow band
note: similar to the flag of Ghana, which has a large black five-pointed star centered in the yellow band; in 2009, a presidential decree made it mandatory for a so-called wiphala - a square, multi-colored flag representing the country's indigenous peoples - to be used alongside the traditional flag

Economy - overviewBolivia is one of the poorest and least developed countries in Latin America. Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large northern hemisphere markets. In 2005, the government passed a controversial hydrocarbons law that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company. In early 2008, higher earnings for mining and hydrocarbons exports pushed the current account surplus to 9.4% of GDP and the government's higher tax take produced a fiscal surplus after years of large deficits. Private investment as a share of GDP, however, remains among the lowest in Latin America, and inflation remained at double-digit levels in 2008. The decline in commodity prices in late 2008, the lack of foreign investment in the mining and hydrocarbon sectors, and the suspension of trade benefits with the United States will pose challenges for the Bolivian economy in 2009.
GDP (purchasing power parity)$43.38 billion (2008 est.)
$40.88 billion (2007 est.)
$39.08 billion (2006 est.)
note: data are in 2008 US dollars
GDP (official exchange rate)$16.6 billion (2008 est.)
GDP - real growth rate(%)6.1% (2008 est.)
4.6% (2007 est.)
4.8% (2006 est.)
GDP - per capita (PPP)$4,500 (2008 est.)
$4,300 (2007 est.)
$4,200 (2006 est.)
note: data are in 2008 US dollars
GDP - composition by sector(%)agriculture: 11.3%
industry: 36.9%
services: 51.8% (2008 est.)
Labor force4.454 million (2008 est.)

Labor force - by occupation(%)agriculture: 40%
industry: 17%
services: 43% (2006 est.)
Unemployment rate(%)7.5% (2008 est.)
7.5% (2007 est.)
note: data are for urban areas; widespread underemployment
Population below poverty line(%)60% (2006 est.)
Household income or consumption by percentage share(%)lowest 10%: 0.5%
highest 10%: 44.1% (2005)
Distribution of family income - Gini index59.2 (2006)
44.7 (1999)
Investment (gross fixed)(% of GDP)18% of GDP (2008 est.)
Budgetrevenues: $8.039 billion
expenditures: $7.5 billion (2008 est.)
Inflation rate (consumer prices)(%)14% (2008 est.)
8.7% (2007 est.)

Stock of money$3.998 billion (31 December 2008)
$3.032 billion (31 December 2007)
Stock of quasi money$6.339 billion (31 December 2008)
$4.729 billion (31 December 2007)
Stock of domestic credit$5.433 billion (31 December 2008)
$4.759 billion (31 December 2007)
Market value of publicly traded shares$NA (31 December 2008)
$2.263 billion (31 December 2007)
$2.223 billion (31 December 2006)
Economic aid - recipient$582.9 million (2005 est.)

Public debt(% of GDP)45.2% of GDP (2008 est.)
46.3% of GDP (2007 est.)
Agriculture - productssoybeans, coffee, coca, cotton, corn, sugarcane, rice, potatoes; timber
Industriesmining, smelting, petroleum, food and beverages, tobacco, handicrafts, clothing

Industrial production growth rate(%)10.6% (2008 est.)

Current account balance$2.015 billion (2008 est.)
$1.984 billion (2007 est.)
Exports$6.448 billion (2008 est.)
$4.49 billion (2007 est.)

Exports - commodities(%)natural gas, soybeans and soy products, crude petroleum, zinc ore, tin
Exports - partners(%)Brazil 60.1%, US 8.3%, Japan 4.1% (2008)
Imports$4.641 billion (2008 est.)
$3.24 billion (2007 est.)

Imports - commodities(%)petroleum products, plastics, paper, aircraft and aircraft parts, prepared foods, automobiles, insecticides, soybeans
Imports - partners(%)Brazil 26.7%, Argentina 16.3%, US 10.5%, Chile 9.5%, Peru 7.1%, China 4.8% (2008)

Reserves of foreign exchange and gold$7.722 billion (31 December 2008 est.)
$5.318 billion (31 December 2007 est.)
Debt - external$5.931 billion (31 December 2008)
$5.385 billion (31 December 2007)

Stock of direct foreign investment - at home$5.998 billion (31 December 2008)
Stock of direct foreign investment - abroad$NA
Exchange ratesbolivianos (BOB) per US dollar - 7.253 (2008 est.), 7.8616 (2007), 8.0159 (2006), 8.0661 (2005), 7.9363 (2004)

Currency (code)boliviano (BOB)

Telephones - main lines in use690,000 (2008)
Telephones - mobile cellular4.83 million (2008)
Telephone systemgeneral assessment: privatization begun in 1995; reliability has steadily improved; new subscribers face bureaucratic difficulties; most telephones are concentrated in La Paz and other cities; mobile-cellular telephone use expanding rapidly; fixed-line teledensity of 7 per 100 persons; mobile-cellular telephone density slighly exceeds 50 per 100 persons
domestic: primary trunk system, which is being expanded, employs digital microwave radio relay; some areas are served by fiber-optic cable; mobile cellular systems are being expanded
international: country code - 591; satellite earth station - 1 Intelsat (Atlantic Ocean) (2008)
Internet country code.bo
Internet users1 million (2008)
Airports952 (2009)
Pipelines(km)gas 4,883 km; liquid petroleum gas 47 km; oil 2,475 km; refined products 1,589 km (2008)
Roadways(km)total: 62,479 km
paved: 3,749 km
unpaved: 58,730 km (2004)

Ports and terminalsPuerto Aguirre (inland port on the Paraguay/Parana waterway at the Bolivia/Brazil border); Bolivia has free port privileges in maritime ports in Argentina, Brazil, Chile, and Paraguay
Military branchesBolivian Armed Forces: Bolivian Army (Ejercito Boliviano, EB), Bolivian Navy (Fuerza Naval Boliviana, FNB; includes marines), Bolivian Air Force (Fuerza Aerea Boliviana, FAB) (2009)
Military service age and obligation(years of age)18-49 years of age for 12-month compulsory military service; when annual number of volunteers falls short of goal, compulsory recruitment is effected, including conscription of boys as young as 14; 15-19 years of age for voluntary premilitary service, provides exemption from further military service (2009)
Manpower available for military servicemales age 16-49: 2,295,746
females age 16-49: 2,366,828 (2008 est.)
Manpower fit for military servicemales age 16-49: 1,666,697
females age 16-49: 1,906,396 (2009 est.)
Manpower reaching militarily significant age annuallymale: 108,304
female: 104,882 (2009 est.)
Military expenditures(% of GDP)1.9% of GDP (2006)
Disputes - internationalChile and Peru rebuff Bolivia's reactivated claim to restore the Atacama corridor, ceded to Chile in 1884, but Chile offers instead unrestricted but not sovereign maritime access through Chile for Bolivian natural gas and other commodities; an accord placed the long-disputed Isla Suarez/Ilha de Guajara-Mirim, a fluvial island on the Rio Mamore, under Bolivian administration in 1958, but sovereignty remains in dispute

Electricity - production(kWh)5.495 billion kWh (2007 est.)
Electricity - production by source(%)fossil fuel: 44.4%
hydro: 54%
nuclear: 0%
other: 1.5% (2001)
Electricity - consumption(kWh)4.665 billion kWh (2007 est.)
Electricity - exports(kWh)0 kWh (2008 est.)
Electricity - imports(kWh)0 kWh (2008 est.)
Oil - production(bbl/day)51,360 bbl/day (2008 est.)
Oil - consumption(bbl/day)60,000 bbl/day (2008 est.)
Oil - exports(bbl/day)10,950 bbl/day (2007 est.)
Oil - imports(bbl/day)6,172 bbl/day (2007 est.)
Oil - proved reserves(bbl)465 million bbl (1 January 2009 est.)
Natural gas - production(cu m)14.2 billion cu m (2008 est.)
Natural gas - consumption(cu m)2.41 billion cu m (2008 est.)
Natural gas - exports(cu m)11.79 billion cu m (2008)
Natural gas - proved reserves(cu m)750.4 billion cu m (1 January 2009 est.)
HIV/AIDS - adult prevalence rate(%)0.2% (2007 est.)
HIV/AIDS - people living with HIV/AIDS8,100 (2007 est.)
HIV/AIDS - deathsfewer than 500 (2007 est.)
Major infectious diseasesdegree of risk: high
food or waterborne diseases: bacterial diarrhea, hepatitis A, and typhoid fever
vectorborne diseases: dengue fever, malaria, and yellow fever
water contact disease: leptospirosis (2009)
Literacy(%)definition: age 15 and over can read and write
total population: 86.7%
male: 93.1%
female: 80.7% (2001 census)

Education expenditures(% of GDP)6.4% of GDP (2003)








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