Exploring Bolivia's Status: A Developing 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 the largest proportion of indigenous people, who make up around two-thirds of the population. Bolivia is a developing country with a resource-rich economy and is the world's third-largest producer of coca.

Bolivia's history has been marked by a series of coups and countercoups, with the last coup occurring in 1978. The country has also faced challenges such as deep-seated poverty, social unrest, and illegal drug production. In recent years, Bolivia has experienced political instability, with former president Evo Morales resigning in 2019 amid allegations of electoral fraud.

Bolivia's geography is diverse, ranging from the Andean mountains in the west to the Amazon basin in the east. It is the highest and most isolated country in South America and has the second-largest natural gas reserves on the continent.

Bolivia's political history

Independence and Early Republic

Bolivia's struggle for independence began in the city of Sucre on 25 May 1809, with the Chuquisaca Revolution. This was followed by the La Paz revolution on 16 July 1809, marking a complete split from the Spanish government. Bolivia was captured and recaptured many times during the subsequent war by the royalists and patriots, with the republic finally being proclaimed on 6 August 1825. The country was named after Simón Bolívar, a Venezuelan leader in the Spanish American wars of independence.

19th Century

The early years of the Bolivian republic were marked by economic decline and political conflict. The country was led by a series of military strongmen, known as caudillos, and was beset by territorial disputes with neighbouring countries. In 1836, Bolivia formed a short-lived federation with Peru, which was dissolved after Peru's defeat in the War of the Confederation. Bolivia also lost its Pacific coastal region to Chile in the War of the Pacific (1879-1884), becoming a landlocked country.

20th Century

The 20th century saw a period of political and economic instability in Bolivia, with the country losing further territory to neighbouring countries. The country experienced a succession of military and civilian governments, with a CIA-supported coup d'état led by Hugo Banzer in 1971 replacing the socialist government with a military dictatorship. The Revolutionary Nationalist Movement (MNR) emerged as a significant political force, leading a successful revolution in 1952 and introducing sweeping social and economic reforms.

21st Century

Bolivia saw significant economic growth and political stability under the presidency of Evo Morales from 2006 to 2019, who was the first president of indigenous origins. However, Morales was also accused of democratic backsliding, and widespread protests led to his resignation in 2019. Jeanine Áñez declared herself interim president, but was later replaced by Luis Arce, who was elected in 2020.

The country's economy

Bolivia's economy is the 95th-largest in the world in nominal terms and the 87th-largest in purchasing power parity. The country is classified as a lower-middle-income country by the World Bank and has a Human Development Index of 0.703, ranking 114th in the world. Bolivia's economy has historically been dominated by a single commodity focus, shifting from silver to tin to coca. The country has struggled with political instability and difficult topography, which have hindered efforts to modernise its agricultural sector. Additionally, low population growth and low life expectancy have kept the labour supply in flux and prevented industries from flourishing. Bolivia's economy grew rapidly between 1960 and 1977, but persistent deficits and a fixed exchange rate policy in the 1970s led to a debt crisis. Inflation has also been a significant issue, with an annual rate of more than 20,000% in 1985.

However, in the early 21st century, the country's economic fundamentals showed unexpected improvement. During the presidency of Evo Morales from 2006 to 2019, Bolivia's GDP per capita doubled, and the extreme poverty rate declined from 38% to 18%. The mining industry, particularly the extraction of natural gas and zinc, currently dominates the country's export economy. Bolivia has the second-largest natural gas reserves in South America, and exports bring in millions of dollars per day. The country also has the world's largest lithium reserves, although mining these deposits would involve disturbing the country's unique salt flats, which are a major tourist attraction.

Bolivia's manufacturing sector accounts for approximately 18% of its GDP, with leading manufactured goods including textiles, clothing, non-durable consumer goods, processed soy, refined metals, and refined petroleum. The services sector, however, remains underdeveloped due to weak purchasing power. The country's banking sector has suffered from corruption and weak regulation, but reforms initiated in the 1990s are gradually improving the situation.

Bolivia's tourism industry has grown gradually over the past 15 years, but political instability and a lack of first-class accommodations have prevented it from becoming a major destination. The country's energy sector is relatively small but growing, with oil being the primary source of power, followed by natural gas and hydroelectric power. Bolivia has the fifth-largest oil reserves in South America and is self-sufficient in energy production.

Bolivia's population

Bolivia has a multiethnic population, with a large proportion of indigenous people, who make up around two-thirds of the population. The vast majority of Bolivians are mestizo (mixed European and indigenous ancestry), although there are also significant populations of Amerindians, Europeans, Asians, Africans, Arabs, and Jews. Spanish is the official and predominant language, but 36 indigenous languages also have official status, including Guaraní, Aymara, and Quechua.

The population is urbanizing, with about 70% of the population living in urban areas. The largest cities are Santa Cruz de la Sierra, El Alto, and La Paz.

Climate and environment

Bolivia's climate varies drastically from one eco-region to another. The country experiences everything from tropical climates in the eastern lowlands to polar climates in the western Andes.

Llanos

The Llanos region in the northeast of the country has a humid tropical climate with an average temperature of 25°C (77°F). The Amazon rainforest causes significant rainfall in the region. However, in May, there is low precipitation due to dry winds, and skies are mostly clear.

Altiplano

The Altiplano is a high plateau in the Andes with an altitude of 3,600-4,000m. It has a desert-polar climate, with strong and cold winds. The average temperature ranges from 15 to 20°C during the day, but temperatures at night are freezing. Snow is frequent, and frost occurs every month.

Valleys and Yungas

The Yungas region, located in the foothills of the Andes, has a temperate climate. The humid winds from the Oriente fill the valleys with moisture, resulting in a lush rainforest. The mean annual temperature varies between 16 and 20°C, and precipitation can reach up to 1,350mm annually.

Chaco

The Chaco region in southern Bolivia has a subtropical semi-arid climate. It is rainy and humid in January, but the rest of the year is dry and warm.

Climate Change

Bolivia is highly vulnerable to the negative consequences of climate change. The country is home to 20% of the world's tropical glaciers, which are sensitive to temperature changes due to their tropical location. The increasing temperatures have led to accelerated glacial retreat, creating unforeseen water shortages in Andean agricultural towns. Bolivia's government has acknowledged the need to address these issues and is working with organizations like the World Bank to implement new policies and build more resilient water systems.

Bolivia's military

The Bolivian Army is the land branch of the Armed Forces, with around 55,500 men. There are six military regions (regiones militares—RMs) in the army, organised into ten divisions. The Army maintains a small fleet of utility aircraft to support headquarters.

The Bolivian Air Force (Fuerza Aérea Boliviana, FAB) is the air branch of the Armed Forces. The Bolivian Air Force has nine air bases, located at La Paz, Cochabamba, Santa Cruz, Puerto Suárez, Tarija, Villamontes, Cobija, Riberalta, and Roboré.

The Bolivian Naval Force (Fuerza Naval Boliviana in Spanish) is a naval force of around 5,000 personnel. Bolivia has been landlocked since the War of the Pacific in 1879, but the Navy exists to cultivate a maritime consciousness and keep alive the hope of recovering its coast. The Navy has ten naval districts, with flotilla headquarters in Guaqui, Guayaramerín, Puerto Suárez, Riberalta, and San Pedro de Tiquina, and bases in Puerto Busch, Puerto Horquilla, Puerto Villarroel, Trinidad, and Rurrenabaque. The Navy has a total of 173 vessels, most of which are stationed on Lake Titicaca.

Frequently asked questions