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Bolivia Index

The succession of elections and coups that followed the military's withdrawal from politics in 1978 revealed the deterioration of Bolivian institutional life (see table 15, Appendix). In the absence of military leadership for the process of transition, parties, factions, and other groups searched for a formula to carry them to the presidency. Nearly seventy political parties registered for the general elections in 1978, including at least thirty MNR factions.

In this context, it became evident that elections would not solve the structural problems facing Bolivia. In 1979, 1980, and 1985, the winning party could only muster a plurality of votes during the elections. As a result, the legislature became the focal point of political activity as parties and tiny factions maneuvered to influence the final outcome of the general elections. For example, in 1980 Congress elected as president Hernán Siles Zuazo, who had won a plurality of votes. Simultaneously, factions of the military linked to narcotics and other illicit activities were unwilling to surrender control of the state to civilian politicians who threatened to investigate charges of human rights violations and corruption during the Banzer years.

The July 17, 1980, coup by General Luis García Meza Tejada represented a two-year interruption of the transition to democracy. García Meza's military regime was one of the most corrupt in Bolivian history; García Meza and his collaborators maintained close links with cocaine traffickers and neofascist terrorists. Faced with international isolation and repudiation from nearly every political and social group, García Meza and the generals that succeeded him ruled with brute force. By 1982 disputes among rival officers and pressure from abroad, political parties, the private sector, and labor eventually led to the convocation of Congress that had been elected in 1980.

Siles Zuazo of the Democratic and Popular Unity (Unidad Democrática y Popular--UDP) coalition, was again elected president by Congress on October 10, 1982. The UDP was an amorphous entity that grouped Siles Zuazo's own Nationalist Revolutionary Movement of the Left (Movimiento Nacionalista Revolucionario de Izquierda--MNRI), the Bolivian Communist Party (Partido Comunista Boliviano--PCB), and the relatively young Movement of the Revolutionary Left (Movimiento de la Izquierda Revolucionaria--MIR). Having been denied the presidency in three consecutive elections, Siles Zuazo's rise to power was an auspicious occasion. He enjoyed overwhelming popular support and appeared to have a mandate to implement populist reforms. The military and its civilian allies were completely discredited and were no longer a threat or an alternative to rule Bolivia.

By 1982, however, Bolivia faced the most severe economic and political crisis of the preceding three decades. The economy was beset by chronic balance of payments and fiscal deficits. The most immediate manifestation of the crisis was an inability to service payments on its foreign debt of nearly US$3 billion (see Growth and Structure of the Economy , ch. 3). By 1982 the gross domestic product (GDP--see Glossary) had dropped by nearly 10 percent. Siles Zuazo thus faced the dilemma of trying to democratize the country in the context of economic scarcity and crisis. The UDP promised to enact a more equitable development program that would address labor's demands for higher wages and other benefits. As the crisis deepened, however, labor became increasingly disaffected.

The economic plight exacerbated tensions between populist and antipopulist wings of the MNR and other political parties that had been latent since the revolution. Because the UDP controlled only the executive, political conflict was heightened. Congress remained firmly in control of a de facto alliance between Paz Estenssoro's MNR (the faction that retained the party's name) and Banzer's Nationalist Democratic Action (Acción Democrática Nacionalista--ADN).

Conflict between branches of government had been manifest since the beginning of the transition process. Legislators formed complex coalitional blocs to choose executives, whom they promptly turned on and sought to subvert. Congressionally sanctioned coups, labeled "constitutional coups," were only one example of the prevailing political instability.

Under Siles Zuazo, the full complexity of the crisis emerged. From the outset, the government was weakened by a serious confrontation between the legislature and the executive over alternative solutions to the economic predicament. Responsibility for resolving the crisis rested with the executive, whereas Congress exercised its oversight powers. Additionally, the presence of minuscule parties in Congress exacerbated the confrontation between the UDP and the parties in the legislature.

As a result of the government's inability to deal with Congress, Siles Zuazo relied on executive decrees. Congress, in turn, charged the president with unconstitutional behavior and threatened to impeach or overthrow him in a constitutional coup. During the three years of his presidency, Siles Zuazo was unable to put down the congressional threat, directed by opposition parties but bolstered by groups from his own UDP.

Between 1982 and 1985, the Siles Zuazo government attempted to address Bolivia's economic crisis by negotiating several tentative paquetes económicos (stabilization programs) with the International Monetary Fund (IMF--see Glossary). Each was the center of a recurring political battle that put Siles Zuazo in the middle of a class struggle between the powerful COB, which represented labor, peasants, and sectors of the middle class, and the relatively small but organized private sector led by the Confederation of Private Entrepreneurs of Bolivia (Confederación de Empresarios Privados de Bolivia -- CEPB). This conflict reflected a recurring debate in Bolivia between models of development and the question of what class should bear its costs. It also revealed the extent of Bolivia's reliance on foreign aid.

Between 1982 and 1985, the CEPB and COB attempted to pressure the government to enact policies favorable to their interests. Siles Zuazo would decree a stabilization program designed to satisfy the IMF and the United States internationally and the CEPB domestically. The COB would respond with strikes and demonstrations, often backed by peasants and regional civic associations. Lacking congressional support, the government would modify the program to the point of annulling its effectiveness through wage increases and subsidies, thereby provoking the wrath of the CEPB and IMF.

By 1984 the government was completely immobilized and incapable of defining effective economic policies. The result was the transformation of a severe economic crisis into a catastrophe of historic proportions. During the first half of 1985, inflation reached an annual rate of over 24,000 percent. In addition, Bolivia's debt-servicing payments reached 70 percent of export earnings. In December 1984, lacking any authority to govern because of the conflict with Congress, labor, the private sector, and regional groups, the Siles Zuazo government reached the point of collapse. As the crisis intensified, the opposition forced Siles Zuazo to give up power through a new round of elections held in July 1985.

The 1985 elections reflected the complex nature of the Bolivian political process. Banzer, who had stepped down in disgrace in 1978, won a slight plurality with 28.5 percent; the old titan of the MNR, Paz Estenssoro, finished a close second with 26.4 percent. A faction of the MIR, headed by Vice President Jaime Paz Zamora, took third. An indication of the left's fall from the grace of the electorate was the MNRI's showing of only 5 percent.

In Congress the MNR moved quickly to form a coalition that would enable Paz Estenssoro to gain the presidency. After luring the MIR with promises of state patronage, a coalition was formed, and Paz Estenssoro was elected president of Bolivia for the fourth time since 1952. Although enraged by the outcome of the congressional vote, Banzer and the ADN made the calculated decision to accept it. In so doing, the former dictator protected his long-term political interests.

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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