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Bolivia Index
In the 1980s, the growth of Bolivia's narcotics
industry
dominated United States-Bolivia relations. Drug
enforcement
programs in Bolivia were begun in the mid-1970s and
gathered
strength in the early part of the 1980s. Concern over
military
officers' growing ties to cocaine trafficking led to a
tense
relationship that culminated in June 1980 in the
military's
expulsion of the ambassador of the United States, Marvin
Weisman,
as a persona non grata. The "cocaine coup" of July 1980
led to a
total breakdown of relations; the Carter administration
refused
to recognize General García Meza's government because of
its
clear ties to the drug trade. President Ronald Reagan
continued
the nonrecognition policy of his predecessor. Between July
1980
and November 1981, United States-Bolivian relations were
suspended.
In November 1981, Edwin Corr was named as the new
ambassador,
thus certifying Bolivian progress in narcotics control.
Ambassador Corr played a key role in forcing the military
to step
down. In the subsequent democratic period, Corr helped
shape the
drug enforcement efforts of the weak UDP government. In
1983
President Siles Zuazo signed an agreement through which
Bolivia
promised to eradicate 4,000 hectares of coca over a
three-year
period in return for a US$14.2 million aid package. Siles
Zuazo
also promised to push through legislation to combat the
booming
drug industry.
With United States funding and training, an elite
antinarcotics
force known as the Rural Area Police Patrol Unit (Unidad
Móvil
Policial para Áreas Rurales--Umopar) was created
(see The Security Forces
, ch. 5). Siles Zuazo's government,
however, was
incapable of carrying out an effective antinarcotics
program.
Opposition from social groups, the significance of
traditional
coca use in Bolivia, and the absence of a major drug law
were the
most commonly cited explanations for this failure. Between
1982
and 1985, the total number of hectares under cultivation
doubled,
and the flow of cocaine out of Bolivia increased
accordingly. In
May 1985, in a final effort to save face with Washington,
the
Siles Zuazo government approved a decree calling for
extensive
drug enforcement programs; the United States perceived
this
effort as too little and too late, however.
Under Paz Estenssoro's government (1985-89), which made
sincere
efforts to combat the drug trade, relations with the
United
States improved significantly. As a result, aid to support
economic reforms increased dramatically. In 1989 Bolivia
received
the greatest amount of United States aid in South America
and the
third highest total in Latin America, behind El Salvador
and
Honduras. The major obstacle to harmonious relations,
however,
remained the prevalence of drug trafficking.
During the Paz Estenssoro government, United States
policy
toward Bolivia was split between congressional efforts to
enforce
the 1985 Foreign Assistance Act, limiting aid to countries
that
engaged in drug trafficking, and the Reagan
administration's
stated objective of helping consolidate and strengthen
democratic
institutions in Latin America. Both aspects of United
States
policy were responsible for setting the course of
relations with
Bolivia.
In August 1985, Corr was replaced by Edward Rowell, who
worked
closely with the new Paz Estenssoro government to combat
Bolivia's economic crisis and the flourishing drug trade.
Rowell
arrived in La Paz shortly after a visit of members of the
Select
Committee on Narcotics Abuse and Control of the United
States
House of Representatives. The committee's report revealed
a deep
distrust for Paz Estenssoro's stated intention to carry on
with
the drug battle and to implement fully the provisions of
the May
1985 decree. In June 1986, owing to pressures from the
United
States Congress, Washington announced the suspension of
US$7.1
million in aid because Bolivia had not satisfied the coca
eradication requirements of the 1983 agreement.
Simultaneously, however, the Bolivian government
secretly
entered into Operation Blast Furnace, a joint
Bolivian-United
States effort aimed at destroying cocaine laboratories in
Beni
Department and arresting drug traffickers
(see Narcotics Trafficking
, ch. 5). Despite the outcry from political
party
leaders on the left, who argued that the operation
required
Bolivian congressional approval because it involved
foreign troop
movements through the nation's territory, Operation Blast
Furnace
began in July 1986 with the presence of over 150 United
States
troops. Paz Estenssoro's government survived the tide of
opposition because of the support forthcoming from the
ADN-MNR
pacto.
Despite Bolivia's evident willingness to fight the drug
war, the
United States Congress remained reluctant to certify the
country's compliance with the Foreign Assistance Act. In
October
1986, the Bolivian envoy to Washington, Fernando Illanes,
appeared before the United States Senate to report on the
progress made under Operation Blast Furnace and on the
intention
of the Bolivian government to approve an effective drug
law to
both eradicate the coca leaf and control the proliferation
of
cocaine production. Revelations of continued involvement
in the
drug trade by Bolivian government officials, however,
undermined
the efforts of Paz Estenssoro's administration to satisfy
the
demands of the United States Congress.
Congressional efforts in the United States to sanction
Bolivia
contributed to the degree of frustration felt by the Paz
Estenssoro government. Ambassador Rowell, however, was
able to
convince the Reagan administration that the Bolivian
government
was a trustworthy partner in the drug war. In spite of
another
reduction in United States aid in late 1987, the Reagan
administration certified that Bolivia had met the
requirements of
Section 481(h) of the Foreign Assistance Act. Still, the
United
States Congress was dissatisfied and, in early 1988,
decertified
Bolivia's progress.
Bolivia's efforts met with some encouragement from the
Reagan
administration. The United States supported Bolivia's
negotiations with international banks for debt reduction
and
provided substantial aid increases in terms of both drug
assistance and development programs. United States aid to
Bolivia, which totaled US$65 million in 1987, reached
US$90
million in 1988. Although the Reagan administration
requested
almost US$100 million for fiscal year 1989, disbursement
was
contingent on the congressional certification of Bolivian
progress on eradication programs. Despite this increase in
assistance, it paled in comparison with total cocaine
production
revenues, conservatively estimated at US$600 million.
Bolivian
opponents to the drug enforcement focus therefore argued
that
although the United States advocated drug enforcement and
interdiction programs, it was unwilling to fund them.
United States satisfaction with Bolivian efforts in
terms of
stabilizing the economy, consolidating democracy, and
fighting
the drug war, however, was evidenced in 1987-88 with the
announcement of several AID programs. Specifically,
assistance
was targeted to rural development projects in the Chapare
region
of Cochabamba Department, the center of the cocaine
industry.
Other AID programs in health, education, and privatization
of
state enterprises were also initiated. More ambitious
projects
aimed at strengthening democratic institutions, such as
legislative assistance and administration of justice, were
scheduled for initiation in 1989. AID also proposed the
creation
of an independent center for democracy. Future AID
disbursements,
however, were contingent on Bolivia's meeting of the terms
of the
Foreign Assistance Act and agreements signed with the
United
States government for the eradication of 5,000 to 8,000
hectares
of coca plantations between January and December 1989.
In 1988 Bolivia moved closer toward satisfying United
State
demands for more stringent drug laws. In July the Bolivian
Congress passed, and Paz Estenssoro signed, a
controversial bill
known as the Law of Regulations for Coca and Controlled
Substances
(see Threats to Internal Security
, ch. 5).
The bombing incident during Secretary of State George
P.
Shultz's visit to Bolivia in early August 1988, attributed
to
narcoterrorists, raised concern that a wave of
Colombian-style
terrorism would follow
(see Narcotics Trafficking
, ch. 5).
Shultz's visit was intended to praise Bolivia's effort in
the
drug trade; however, in certain Bolivian political circles
it was
perceived as a direct message about pressing ahead with
coca
eradication efforts.
Nevertheless, with the approval of the 1988
antinarcotics law
and a new mood in Washington about Bolivia, Ambassador
Robert S.
Gelbard's arrival in La Paz in early October 1988 was an
auspicious event. The ambassador headed efforts to confer
"special case" status for Bolivia in order to allow for a
more
rapid disbursement of aid. In return, Bolivian government
officials pointed out that United States-Bolivian
relations were
at their highest level ever.
Gelbard's honeymoon, however, was short lived. On
October 26,
Umopar troops killed one person and injured several others
in the
town of Guayaramerín in Beni. As was the case with another
violent incident in Villa Tunari in June 1988, the left
and the
COB perceived Umopar's actions as the byproduct of a
zealous and
misguided antidrug policy. The presence of United States
Drug
Enforcement Administration (DEA) agents in Guayaramerín
also
renewed questions about the role of United States drug
enforcement agents. As 1988 ended, controversy also
surrounded
the announcement that, under United States Army
civic-action
programs, United States technicians would help remodel and
expand
the airports in the cities of Potosí and Sucre
(see Foreign Military Assistance in the 1980s
, ch. 5).
United States support for the Bolivian government was
expected
to continue. In large measure, however, United States
policy
depended on the perception in the United States Congress
of
Bolivia's progress in controlling the drug trade.
Operation Blast
Furnace, the 1988 antinarcotics law, and the arrest of
several
drug lords demonstrated that Bolivia had become a loyal
and
useful partner in the United States war on drugs.
Washington
expected Bolivian cooperation to continue after the May
1989
elections.
Data as of December 1989
- Bolivia-The United States FOREIGN MILITARY ASSISTANCE IN THE 1980s
- Bolivia-Mission and Organization THE ARMED FORCES
- Bolivia-Natural Regions
- Bolivia-Mountains and Altiplano
- Bolivia-Attitudes Toward Antinarcotics Forces
- Bolivia-Altiplano, Yungas, and Valley Indians
- Bolivia-Rural Society SOCIAL ORGANIZATION
- Bolivia-RELIGION
- Bolivia-The Private Sector
- Bolivia-Revolutionary Nationalism: Ovando and Torres
- Bolivia-Informal Sector
- Bolivia-Radical Military Government PRELUDE TO REVOLUTION, 1935-52
- Bolivia-Lowlands
- Bolivia-Struggle for Independence INDEPENDENCE FROM SPAIN AND THE EARLY NATIONAL PERIOD, 1809-39
- Bolivia-The Rise of New Political Groups
- Bolivia-The Media
- Bolivia-Migration MIGRATION AND URBANIZATION
- Bolivia-Petroleum and Natural Gas
- Bolivia-General Procedures
- Bolivia-The Middle Class
- Bolivia-GOVERNMENT AND POLITICS
- Bolivia-Regional Civic Committees
- Bolivia-Whites
- Bolivia-MINING
- Bolivia-Transition to Democracy
- Bolivia -COUNTRY PROFILE
- Bolivia-Electricity
- Bolivia-The "Sexenio," 1946-52
- Bolivia-Civic Action
- Bolivia-Formal Sector LABOR
- Bolivia-The Economy of Upper Peru
- Bolivia-Radical Reforms THE BOLIVIAN NATIONAL REVOLUTION, 1952-64
- Bolivia-The Banzer Regime
- Bolivia-State, Church, and Society
- Bolivia-HEALTH AND SOCIAL SECURITY
- Bolivia-War of the Pacific FROM THE WAR OF THE PACIFIC TO THE CHACO WAR, 1879- 1935
- Bolivia-Chapter 1 - Historical Setting
- Bolivia-Mestizos and Cholos
- Bolivia-Reorganization of the Armed Forces, 1952-66
- Bolivia-Livestock
- Bolivia-The United States
- Bolivia-Other Foreign Military Ties
- Bolivia-Chapter 5 - National Security
- Bolivia-TRANSPORTATION AND COMMUNICATIONS
- Bolivia-Fiscal Policy ECONOMIC POLICY
- Bolivia-The Military
- Bolivia-Coca
- Bolivia-Foreword
- Bolivia-Narcoterrorism
- Bolivia-Political Forces and Interest Groups
- Bolivia-Regional Police Structure
- Bolivia-Land Use
- Bolivia-Chapter 3 - The Economy
- Bolivia-Construction of Bolivia: Bolívar, Sucre, and Santa Cruz
- Bolivia-BOLIVIA
- Bolivia-The Peasantry
- Bolivia-SOCIETY
- Bolivia-Cash Crops
- Bolivia-Democracy and Economic Stabilization
- Bolivia-Military Justice
- Bolivia-Chapter 4 - Government and Politics
- Bolivia-Narcotics Corruption
- Bolivia-Early History EVOLUTION OF THE MILITARY ROLE IN SOCIETY AND GOVERNMENT
- Bolivia-MANUFACTURING AND CONSTRUCTION
- Bolivia-Foreign Trade FOREIGN ECONOMIC RELATIONS
- Bolivia-The Presidency of Barrientos MILITARY RULE, 1964-82
- Bolivia-Revenues
- Bolivia-The Republican Party and the Great Depression
- Bolivia-POLITICAL INSTABILITY AND ECONOMIC DECLINE, 1839-79
- Bolivia-The 1989 Elections
- Bolivia-AGRICULTURE
- Bolivia-Crops
- Bolivia-Family and Kin
- Bolivia-The Counterinsurgency Decade
- Bolivia-NATIONAL SECURITY:
- Bolivia-The Unfinished Revolution
- Bolivia-Subversive Groups
- Bolivia-Land Reform and Land Policy
- Bolivia-Urbanization
- Bolivia-ETHNIC GROUPS
- Bolivia-Reconstruction and the Rule of the Conservatives
- Bolivia-POPULATION AND REGIONAL DISTRIBUTION
- Bolivia-Communications
- Bolivia-The Criminal Justice System CRIME AND PUNISHMENT
- Bolivia-PRE-COLUMBIAN CIVILIZATIONS
- Bolivia-Conscription MANPOWER AND TRAINING
- Bolivia-CONSTITUTIONAL BACKGROUND
- Bolivia-ECONOMY
- Bolivia-Special Police Forces
- Bolivia-EDUCATION
- Bolivia-Departmental and Local Government
- Bolivia-Farming Technology
- Bolivia-The Penal System
- Bolivia-Recruitment and Training
- Bolivia-The Third World
- Bolivia-Forestry and Fishing
- Bolivia-GEOGRAPHY
- Bolivia-Expenditures
- Bolivia-Acknowledgments
- Bolivia-Military Schools
- Bolivia-Organized Labor
- Bolivia-Air Force
- Bolivia-Foreign Assistance
- Bolivia-Preface
- Bolivia-Monetary and Exchange Rate Policies
- Bolivia-ENERGY
- Bolivia
- Bolivia-Civil Aeronautics
- Bolivia-Land Tenure
- Bolivia-Defense Budget
- Bolivia-Narcotics Trafficking THREATS TO INTERNAL SECURITY
- Bolivia-The Electoral System
- Bolivia-The Legislature
- Bolivia-Conquest and Settlement CONQUEST AND COLONIAL RULE, 1532-1809
- Bolivia-Incidence of Crime
- Bolivia
- Bolivia-The Legacy of the 1952 Revolution POLITICAL DYNAMICS
- Bolivia-Extradition
- Bolivia-The Judiciary
- Bolivia-Tin and Related Metals
- Bolivia-Transportation
- Bolivia
- Bolivia-Army
- Bolivia
- Bolivia-Structure of the Mining Industry
- Bolivia-Other Metals and Minerals
- Bolivia-Balance of Payments
- Bolivia-Banking and Financial Services SERVICES
- Bolivia-The Executive GOVERNMENTAL STRUCTURE
- Bolivia
- Bolivia-The Soviet Union
- Bolivia-Military Intervention in Politics, 1970-85
- Bolivia-Bilateral and Legislative Antinarcotics Measures
- Bolivia
- Bolivia-Yungas and Other Valleys
- Bolivia-GROWTH AND STRUCTURE OF THE ECONOMY
- Bolivia-Chapter 2 - The Society and Its Environment
- Bolivia-The Legacy of the Chaco War
- Bolivia-Neighboring Countries
- Bolivia-The Chaco War
- Bolivia-GEOGRAPHY
- Bolivia-Lowland Indians
- Bolivia-Urban Society
- Bolivia-Navy
- Bolivia-INTRODUCTION
- Bolivia-The Liberal Party and the Rise of Tin
- Bolivia-FOREIGN RELATIONS
- Bolivia
- Bolivia-Debt
- Bolivia-The Upper Class
- Bolivia-Climate
- Bolivia-Impact of Narcotics Trafficking
Background | | Bolivia, 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.
|
Location | | Central 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 coordinates | | 17 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)
|
Climate | | varies 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 resources | | tin, 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 hazards | | flooding in the northeast (March-April)
|
Environment - current issues | | the 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 agreements | | party 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 - note | | landlocked; shares control of Lago Titicaca, world's highest navigable lake (elevation 3,805 m), with Peru
|
Population | | 9,775,246 (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.)
|
Nationality | | noun: 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 name | | conventional long form: Plurinational State of Bolivia conventional short form: Bolivia local long form: Estado Plurinacional de Bolivia local short form: Bolivia
|
Government type | | republic; note - the new constitution defines Bolivia as a "Social Unitarian State"
|
Capital | | name: 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 divisions | | 9 departments (departamentos, singular - departamento); Beni, Chuquisaca, Cochabamba, La Paz, Oruro, Pando, Potosi, Santa Cruz, Tarija
|
Constitution | | 7-Feb-09
|
Legal system | | based on Spanish law and Napoleonic Code; has not accepted compulsory ICJ jurisdiction; the 2009 Constitution incorporates indigenous community justice into Bolivia's judicial system
|
Suffrage | | 18 years of age, universal and compulsory (married); 21 years of age, universal and compulsory (single)
|
Executive branch | | chief 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 branch | | bicameral 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 branch | | Supreme 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 leaders | | Bolivian 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 participation | | CAN, 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 description | | three 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 - overview | | Bolivia 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 force | | 4.454 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 index | | 59.2 (2006) 44.7 (1999)
|
Investment (gross fixed)(% of GDP) | | 18% of GDP (2008 est.)
|
Budget | | revenues: $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)
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Market value of publicly traded shares | | $NA (31 December 2008) $2.263 billion (31 December 2007) $2.223 billion (31 December 2006)
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Economic aid - recipient | | $582.9 million (2005 est.)
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Public debt(% of GDP) | | 45.2% of GDP (2008 est.) 46.3% of GDP (2007 est.)
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Agriculture - products | | soybeans, coffee, coca, cotton, corn, sugarcane, rice, potatoes; timber
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Industries | | mining, smelting, petroleum, food and beverages, tobacco, handicrafts, clothing
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Industrial production growth rate(%) | | 10.6% (2008 est.)
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Current account balance | | $2.015 billion (2008 est.) $1.984 billion (2007 est.)
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Exports | | $6.448 billion (2008 est.) $4.49 billion (2007 est.)
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Exports - commodities(%) | | natural gas, soybeans and soy products, crude petroleum, zinc ore, tin
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Exports - partners(%) | | Brazil 60.1%, US 8.3%, Japan 4.1% (2008)
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Imports | | $4.641 billion (2008 est.) $3.24 billion (2007 est.)
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Imports - commodities(%) | | petroleum products, plastics, paper, aircraft and aircraft parts, prepared foods, automobiles, insecticides, soybeans
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Imports - partners(%) | | Brazil 26.7%, Argentina 16.3%, US 10.5%, Chile 9.5%, Peru 7.1%, China 4.8% (2008)
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Reserves of foreign exchange and gold | | $7.722 billion (31 December 2008 est.) $5.318 billion (31 December 2007 est.)
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Debt - external | | $5.931 billion (31 December 2008) $5.385 billion (31 December 2007)
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Stock of direct foreign investment - at home | | $5.998 billion (31 December 2008)
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Stock of direct foreign investment - abroad | | $NA
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Exchange rates | | bolivianos (BOB) per US dollar - 7.253 (2008 est.), 7.8616 (2007), 8.0159 (2006), 8.0661 (2005), 7.9363 (2004)
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Currency (code) | | boliviano (BOB)
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Telephones - main lines in use | | 690,000 (2008)
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Telephones - mobile cellular | | 4.83 million (2008)
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Telephone system | | general 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)
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Internet country code | | .bo
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Internet users | | 1 million (2008)
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Airports | | 952 (2009)
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Pipelines(km) | | gas 4,883 km; liquid petroleum gas 47 km; oil 2,475 km; refined products 1,589 km (2008)
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Roadways(km) | | total: 62,479 km paved: 3,749 km unpaved: 58,730 km (2004)
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Ports and terminals | | Puerto 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
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Military branches | | Bolivian Armed Forces: Bolivian Army (Ejercito Boliviano, EB), Bolivian Navy (Fuerza Naval Boliviana, FNB; includes marines), Bolivian Air Force (Fuerza Aerea Boliviana, FAB) (2009)
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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)
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Manpower available for military service | | males age 16-49: 2,295,746 females age 16-49: 2,366,828 (2008 est.)
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Manpower fit for military service | | males age 16-49: 1,666,697 females age 16-49: 1,906,396 (2009 est.)
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Manpower reaching militarily significant age annually | | male: 108,304 female: 104,882 (2009 est.)
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Military expenditures(% of GDP) | | 1.9% of GDP (2006)
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Disputes - international | | Chile 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
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Electricity - production(kWh) | | 5.495 billion kWh (2007 est.)
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Electricity - production by source(%) | | fossil fuel: 44.4% hydro: 54% nuclear: 0% other: 1.5% (2001)
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Electricity - consumption(kWh) | | 4.665 billion kWh (2007 est.)
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Electricity - exports(kWh) | | 0 kWh (2008 est.)
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Electricity - imports(kWh) | | 0 kWh (2008 est.)
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Oil - production(bbl/day) | | 51,360 bbl/day (2008 est.)
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Oil - consumption(bbl/day) | | 60,000 bbl/day (2008 est.)
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Oil - exports(bbl/day) | | 10,950 bbl/day (2007 est.)
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Oil - imports(bbl/day) | | 6,172 bbl/day (2007 est.)
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Oil - proved reserves(bbl) | | 465 million bbl (1 January 2009 est.)
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Natural gas - production(cu m) | | 14.2 billion cu m (2008 est.)
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Natural gas - consumption(cu m) | | 2.41 billion cu m (2008 est.)
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Natural gas - exports(cu m) | | 11.79 billion cu m (2008)
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Natural gas - proved reserves(cu m) | | 750.4 billion cu m (1 January 2009 est.)
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HIV/AIDS - adult prevalence rate(%) | | 0.2% (2007 est.)
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HIV/AIDS - people living with HIV/AIDS | | 8,100 (2007 est.)
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HIV/AIDS - deaths | | fewer than 500 (2007 est.)
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Major infectious diseases | | degree 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)
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Literacy(%) | | definition: age 15 and over can read and write total population: 86.7% male: 93.1% female: 80.7% (2001 census)
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Education expenditures(% of GDP) | | 6.4% of GDP (2003)
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