Bolivia's Long Journey: A Third World Country's Story

Bolivia, officially the Plurinational State of Bolivia, is a landlocked country in central South America. It is the second-poorest country in South America and has a tumultuous history of coups and countercoups. Bolivia is named after Simón Bolívar, a Venezuelan leader in the Spanish American wars of independence. The country gained independence from Spain in 1825 and has since experienced a series of military and civilian governments. Bolivia's modern history has been marked by political instability, economic challenges, and efforts to address social inequalities and empower the indigenous majority.

Bolivia's political history

In the late 19th and early 20th centuries, Bolivia experienced a period of relative stability and prosperity due to an increase in the world price of silver, its main export at the time. However, this ended with the Chaco War against Paraguay in the 1930s, which Bolivia lost, resulting in further territorial losses. The post-war period saw the emergence of new political groups and the Bolivian National Revolution, which attempted to nationalise resources and expand suffrage.

The latter half of the 20th century was marked by a series of military dictatorships and democratic governments, often characterised by political repression, economic instability, and social unrest. One of the most notorious dictatorships was that of Hugo Banzer, who came to power in a CIA-backed coup in 1971 and cracked down on left-wing opposition parties. Banzer was ousted in 1978 but returned as the democratically elected president in 1997.

The early 21st century was dominated by Evo Morales, Bolivia's first indigenous president, who implemented a radical programme aimed at addressing social inequalities. Morales resigned in 2019 following a disputed election, leading to an interim government headed by Jeanine Áñez. In 2020, Luis Arce, a colleague of Morales, was elected president, returning the country to civilian rule.

Bolivia's economic landscape

Bolivia is a landlocked country in west-central South America, with a land area of over one million square kilometres. It is a lower-middle-income country with a diverse economic landscape, ranging from agriculture and mining to manufacturing and tourism. Bolivia's economy is the 95th-largest in the world in nominal terms and the 87th-largest in purchasing power parity.

Natural Resources and Agriculture

Bolivia's economy has historically been heavily dependent on natural resources, particularly silver, tin, and coca. The country has the second-largest natural gas reserves in South America and is a significant producer of zinc, silver, and gold. Bolivia's agricultural sector is focused on subsistence farming, with crops such as corn, wheat, and potatoes. The country also has a small timber industry and a fishing industry that taps into its freshwater lakes and streams.

Manufacturing and Industry

The manufacturing sector in Bolivia accounts for approximately 18% of its gross domestic product. Leading manufactured goods include textiles, clothing, processed soy, refined metals, and petroleum. The food and beverage industry is the biggest sector within manufacturing, with soybean and its derivatives being major exports. The oil refining industry is also important, as is the textiles industry.

Services and Tourism

The services sector in Bolivia is underdeveloped due to weak purchasing power among its population. The retail sector struggles with weak demand and competition from contraband goods. Tourism has gradually grown over the past 15 years, with Bolivia's natural attractions and cultural heritage sites attracting visitors. However, political instability and a lack of first-class accommodations have prevented the country from becoming a major tourist destination.

Trade and Foreign Investment

Bolivia has preferential trade agreements with neighbouring countries and is a member of regional organisations such as the Andean Community and the Common Market of the South (Mercosur). The country has a positive trade balance, with exports exceeding imports. Leading export destinations include Brazil, the United States, Switzerland, and Venezuela. Foreign investment in Bolivia has been focused on mining and natural gas extraction, and the country has implemented market-liberal policies to encourage private investment.

Bolivia's population

The official and predominant language in Bolivia is Spanish, which is spoken by about two-thirds of the population. However, the country also recognizes 36 indigenous languages, including Quechua, Aymara, and Guarani, which are commonly spoken.

Bolivia's geography

Bolivia is a landlocked country in west-central South America. It is bordered by Brazil to the north and east, Paraguay to the southeast, Argentina to the south, Chile to the southwest, and Peru to the west. Bolivia has been landlocked since it lost its Pacific coast territory to Chile in the War of the Pacific in 1879–84. However, agreements with neighbouring countries have granted it indirect access to the Pacific and Atlantic Oceans.

The Sub-Andean region, located in the centre and south of the country, serves as an intermediate zone between the Altiplano and the eastern lowlands. This region makes up about 13% of Bolivia's territory and includes the Bolivian valleys and the Yungas region. The Yungas, characterised by rugged terrain and a humid climate, is known for its agricultural activities.

The Llanos region, covering the northeastern part of Bolivia, constitutes about 59% of the country's territory. This region is a vast expanse of flat land and small plateaus covered by tropical rainforests. The Llanos region is home to the Amazon Basin and includes the departments of Beni, Pando, and the northern part of Santa Cruz. The region is sparsely populated but has seen rapid economic development, particularly in the city of Santa Cruz, which is a centre for the petroleum and natural gas industries.

Bolivia's foreign relations

Bolivia has traditionally maintained normal diplomatic relations with all countries in its hemisphere, except Chile. Its foreign relations are handled by the Ministry of Foreign Affairs, which is currently headed by Chancellor of Bolivia, Rogelio Mayta.

Bolivia's foreign policy has a heavy economic component. The country has been active in the Organization of American States (OAS), the Rio Group, and MERCOSUR, with which it signed an association agreement in 1996. Bolivia promotes its policies on sustainable development and the empowerment of indigenous people.

Relations with Chile

Bolivia's relations with Chile have been strained since the War of the Pacific (1879–1883), when Bolivia lost the coastal province of Atacama, leaving the country landlocked. Relations were severed from 1962 to 1975 in a dispute over the use of the waters of the Lauca River. They resumed in 1975 but were broken again in 1978, as the two countries could not reach an agreement over the Atacama border dispute, which might have granted Bolivia a sovereign corridor to the sea.

Relations with Cuba

Relations with Cuba were broken in the 1960s following Castro's rise to power, but resumed under the Paz Estenssoro Administration in 1985, which came to power through democratic elections.

Relations with the United States

Bolivia has traditionally had strong ties with the United States. Economically, the US has been a long-standing consumer of Bolivian exports and a partner in development projects. Relations soured with the election of Evo Morales, a trade union leader of coca growers, who campaigned against coca eradication, citing the legitimate uses of coca leaves in traditional Aymara and Quechua culture. This policy conflicted with the eradication policy of the US. In 2008, the Bolivian government suspended the operations of the US Drug Enforcement Administration (DEA), accusing the organisation of being a front for violating the country's sovereignty and supporting an unsuccessful coup d'état. Bolivia's government also expelled the US ambassador.

Relations with Venezuela

On 15 November 2019, Interim President of Bolivia, Jeanine Áñez, severed diplomatic relations with Venezuela, accusing Venezuelans with ties to the embassy in La Paz of "plotting against internal security". However, on 12 November 2020, President Luis Arce re-established diplomatic relations with Venezuela.

Frequently asked questions