The Republic of Bolivia (Spanish:
República de Bolivia, pronounced [re'pußlika ðe
ßo'lißi?a]), named after Simón Bolívar,
is a landlocked country in central South America. It is bordered
by Brazil on the north and east, Paraguay and Argentina on the south,
and Chile and Peru on the west.
History
Colonial period
The territory now known as Bolivia was called "Upper Peru"
and was under the authority of the Viceroy of Lima. Local government
came from the Audiencia de Charcas located in Chuquisaca (La Plata
— modern Sucre). By the late 16th century Bolivian silver
accounted for one-fifth of the Spanish empire's total budget.[1]
A steady stream of natives served as labor force (the Spanish employed
the pre-Columbian draft system called the mita).[2] As Spanish royal
authority weakened during the Napoleonic wars, sentiment against
colonial rule grew.
The Republic and economic instability (1809)
Independence was proclaimed in 1809, but sixteen years of struggle
followed before the establishment of the republic, named for Simón
Bolívar, on August 6, 1825 (see Bolivian War of Independence).
In 1836, Bolivia, under the rule of Marshal Andres de Santa Cruz,
invaded Peru to reinstall the deposed president, General Luis Orbegoso.
Peru and Bolivia formed the Peru-Bolivian Confederation, with de
Santa Cruz as the Supreme Protector. Following tensions between
the Confederation and Chile, war was declared by Chile on December
28, 1836. Argentina, Chile's ally, declared war on the Confederation
on May 9, 1837. The Peruvian-Bolivian forces achieved several major
victories: the defeat of the Argentinian expedition and the defeat
of the first Chilean expedition on the fields of Paucarpata near
the city of Arequipa.
On the same field the Paucarpata Treaty was signed with the unconditional
surrender of the Chilean and Peruvian rebel army. The treaty assured
the Chilean withdrawal from Peru-Bolivia, the return of captured
Confederate ships, normalized economic relations, and the payment
of Peruvian debt to Chile by the Confederation. Public outrage over
the treaty forced the government to reject it. The Chileans organized
a second expeditionary force, and attacked the Peru-Bolivian confederation,
defeating the Confederation on the fields of Yungay using the same
arms and equipment Santa Cruz had allowed them to retain. After
this defeat, Santa Cruz fled to Ecuador, and the Peruvian-Bolivian
Confederation was dissolved.
Following the independence of Peru, General Gamarra, the Peruvian
president, invaded Bolivia, under the Peruvian flag. The Peruvian
army was decisively defeated at the Battle of Ingaví on November
20, 1841, where General Gamarra himself was killed. The Bolivian
army under General José Ballivián then mounted a counter-offensive
managing to capture the Peruvian port of Arica. Later, both sides
signed a peace in 1842 putting a final end to the war.
Because of a period of political and economic instability in the
early to middle nineteenth century, Bolivia's weakness was demonstrated
during the War of the Pacific (1879–83), during which it lost
its access to the sea, and the adjoining rich nitrate fields, together
with the port of Antofagasta, to Chile. Since independence, Bolivia
has lost over half of its territory to neighboring countries because
of wars. Bolivia also lost the state of Acre (known for its production
of rubber) when Brazil persuaded the state of Acre to secede from
Bolivia in 1903 (see the Treaty of Petrópolis).
An increase in the world price of silver brought Bolivia a measure
of relative prosperity and political stability in the late 1800s.
During the early part of the twentieth century, tin replaced silver
as the country's most important source of wealth. A succession of
governments controlled by the economic and social elite followed
laissez-faire capitalist policies through the first thirty years
of the twentieth century.
Living conditions of the native people, who constituted most of
the population, remained deplorable. Forced to work under primitive
conditions in the mines and in nearly feudal status on large estates,
they were denied access to education, economic opportunity, or political
participation. Bolivia's defeat by Paraguay in the Chaco War (1932–35)
marked a turning-point.[3][4][5]
Rise of the Nationalist Revolutionary Movement (1951)
The llama is one of the icons of the Bolivian altiplano.Main article:
Demographics of Bolivia
The Nationalist Revolutionary Movement (NRM) emerged as a broadly
based party. Denied their victory in the 1951 presidential elections,
the MNR led the successful 1952 revolution. Under President Víctor
Paz Estenssoro, the MNR , having strong popular pressure, introduced
universal suffrage into his political platform, and carried out
a sweeping land-reform promoting rural education and nationalization
of the country's largest tin-mines.
Twelve years of tumultuous rule left the MNR divided. In 1964,
a military junta overthrew President Paz Estenssoro at the outset
of his third term. The 1969 death of President René Barrientos
Ortuño, a former member of the junta elected President in
1966, led to a succession of weak governments. Alarmed by public
disorder and the rising Popular Assembly, the military, the MNR,
and others installed Colonel (later General) Hugo Banzer Suárez
as President in 1971. Banzer ruled with MNR support from 1971 to
1974. Then, impatient with schisms in the coalition, he replaced
civilians with members of the armed forces and suspended political
activities. The economy grew impressively during most of Banzer's
presidency, but human rights violations and eventual fiscal crises
undercut his support. He was forced to call elections in 1978, and
Bolivia again entered a period of political turmoil.
Military governments: García Meza and Siles Zuazo (1978)
Elections in 1979 and 1981 were inconclusive and marked by fraud.
There were coups d'état, counter-coups, and caretaker governments.
In 1980, General Luis García Meza Tejada carried out a ruthless
and violent coup d'état that did not have popular support.
He pacified the people by promising to remain in power only for
one year. (At the end of the year, he staged a televised rally to
claim popular support and announced, "Bueno, me quedo,"
or, "All right; I'll stay [in office]."[6] He was deposed
shortly thereafter.) His government was notorious for human-rights-abuses,
narcotics-trafficking, and economic mismanagement; during his presidency,
the inflation that would later cripple the Bolivian economy could
already be felt. Later convicted in absentia for various crimes,
including murder, García Meza was extradited from Brazil
and began serving a thirty-year sentence in 1995.
After a military rebellion forced out García Meza in 1981,
three other military governments in fourteen months struggled with
Bolivia's growing problems. Unrest forced the military to convoke
the Congress elected in 1980 and allow it to choose a new chief
executive. In October 1982, twenty-two years after the end of his
first term of office (1956-60), Hernán Siles Zuazo again
became President.
Sánchez de Lozada and Banzer: Liberalizing the economy (1993-2001)
Sánchez de Lozada pursued an aggressive economic and social
reform agenda. The most dramatic change undertaken by the Sánchez
de Lozada government was the "capitalization" program,
under which investors, typically foreign, acquired 50% ownership
and management control of public enterprises, such as the state
oil corporation, telecommunications system, airlines, railroads,
and electric utilities in return for agreed upon capital investments.
The reforms and economic restructuring were strongly opposed by
certain segments of society, which instigated frequent and sometimes
violent protests, particularly in La Paz and the Chapare coca-growing
region, from 1994 through 1996. The Sánchez de Lozada government
pursued a policy of offering monetary compensation for voluntary
eradication of illegal coca by its growers in the Chapare region.
The policy produced little net reduction in coca, and in the mid-1990s
Bolivia accounted for about one-third of the world's coca that was
being processed into cocaine.
During this time, the umbrella labor-organization of Bolivia, the
Central Obrera Boliviana (COB), became increasingly unable to effectively
challenge government policy. A teachers' strike in 1995 was defeated
because the COB could not marshall the support of many of its members,
including construction- and factory-workers. The state also used
selective martial law to keep the disruptions caused by the teachers
to a minimum. The teachers were led by Trotskyites, and were considered
to be the most militant union in the COB. Their downfall was a major
blow to the COB, which also became mired in internal corruption
and infighting in 1996.
In the 1997 elections, General Hugo Banzer, leader of the ADN party
and former dictator (1971-1978), won 22% of the vote, while the
MNR candidate won 18%. General Banzer formed a coalition of the
ADN, MIR, UCS, and CONDEPA parties, which held a majority of seats
in the Bolivian Congress. The Congress elected him as president,
and he was inaugurated on August 6, 1997. During the election-campaign,
General Banzer had promised to suspend the privatization of the
state-owned oil-company, YPFB. Considering the weak position that
Bolivia was in vis-à-vis international corporations, however,
this seemed unlikely.
The Banzer government basically continued the free-market and privatization-policies
of its predecessor, and the relatively robust economic growth of
the mid-1990s continued until about the third year of its term in
office. After that, regional, global and domestic factors contributed
to a decline in economic growth. Financial crises in Argentina and
Brazil, lower world prices for export-commodities, and reduced employment
in the coca-sector depressed the Bolivian economy. The public also
perceived a significant amount of public-sector corruption. These
factors contributed to increasing social protests during the second
half of Banzer's term.
At the outset of his government, President Banzer launched a policy
of using special police-units to physically eradicate the illegal
coca of the Chapare region. The policy produced a sudden and dramatic
four-year decline in Bolivia's illegal coca-crop, to the point that
Bolivia became a relatively small supplier of coca for cocaine.
Those left unemployed by coca-eradication streamed into the cities,
especially El Alto, the slum-neighborhood of La Paz. The MIR of
Jaime Paz Zamora remained a coalition-partner throughout the Banzer
government, supporting this policy (called the Dignity Plan).
On August 6, 2001, Banzer resigned from office after being diagnosed
with cancer. He died less than a year later. Banzer's U.S.-educated
Vice President, Jorge Fernando Quiroga Ramírez, completed
the final year of his term.
2002 elections
Quiroga was constitutionally prohibited from running for national
office in 2002.
In the June 2002 national elections, former President Gonzalo Sánchez
de Lozada (MNR) placed first with 29.5% of the vote, followed by
coca-advocate and native peasant-leader Evo Morales (Movement Toward
Socialism, MAS) with 20.9%. Morales edged out populist candidate
Manfred Reyes Villa of the New Republican Force (NFR) by just 700
votes nationwide, earning a spot in the congressional run-off against
Sánchez de Lozada on August 4, 2002.
A July agreement between the MNR and the fourth-place MIR, which
had again been led in the election by former president Paz Zamora,
virtually ensured the election of Sánchez de Lozada in the
congressional run-off, and on August 6 he was sworn in for the second
time. The MNR platform featured three overarching objectives: economic
reactivation (and job creation), anti-corruption, and social inclusion.
Contemporary social crisis and the nationalization of hydrocarbon
resources (2000-2005)
Main article: Bolivian Gas War
Indigenous president
Central La PazThe 2005 Bolivian presidential election was held on
December 18, 2005. The two main candidates were Juan Evo Morales
Ayma of the Movement Toward Socialism (MAS) Party, and Jorge Quiroga,
leader of the Democratic and Social Power (PODEMOS) Party and former
head of the Acción Democrática Nacionalista (ADN)
Party.
Morales won the election with 53.740% of the votes, an absolute
majority unusual in Bolivian elections. He was sworn in on January
22, 2006 for a five-year term. Prior to his official inauguration
in La Paz, he was inaugurated in an Aymara ritual at the archeological
site of Tiwanaku before a crowd of thousands of Aymara people and
representatives of leftist movements from across Latin America.
Though highly symbolic, this ritual was not historically based and
primarily represented native Aymaras — not the main Quechua-speaking
population. Since the Spanish conquest in the early 1500s, this
region of South America, with a majority native population, has
been ruled mostly by descendants of European immigrants, with only
a few mestizo (mixed European and indigenous) rulers. Morales, himself
an Aymara, has stated that the five hundred years of colonialism
are now over and that the era of autonomy has begun.
His recent presidential election victory has also brought new attention
to the U.S. drug-war in South America and its heavy emphasis on
coca-crop-eradication. The US-supported "Plan Dignidad"
(dignity-plan), which seeks to reduce cocaine-production to zero,
is seen by many Bolivians as an attack on their livelihoods and
way of life. Morales, himself a leader among coca-growers, has said
his government will try to interdict drugs, but he wants to preserve
the legal market for coca-leaves and promote export of legal coca-products.
On May 1, 2006, Morales announced his intent to re-nationalize
Bolivian hydrocarbon assets. While stating that the nationalization-initiative
would not be an expropriation, Morales sent Bolivian troops to occupy
fifty-six gas-installations simultaneously. Troops were also sent
to the two Petrobras-owned refineries in Bolivia, which provide
over 90% of Bolivia's refining-capacity. A deadline of 180 days
was announced, by which all foreign energy-firms were required to
sign new contracts giving Bolivia majority ownership and as much
as 82% of revenues (the latter for the largest natural-gas-fields).
That deadline has since passed, and all such firms have signed contracts.
Reports from the Bolivian government and the companies involved
are contradictory as to plans for future investment. By far the
biggest customer for Bolivian hydrocarbons has been Brazil, which
imports two-thirds of Bolivia's natural gas via pipelines operated
by the huge semi-private Petrobras (PBR). Since gas can only be
exported from landlocked Bolivia via PBR's large (and expensive)
pipelines, the supplier and customer are strongly linked. How the
nationalization will unfold is quite uncertain, as PBR has announced
plans to produce sufficient natural gas by 2011 to replace that
now supplied by Bolivia. Bolivia's position is strengthened both
by the knowledge that hydrocarbon-reserves are more highly valued
now than at the times of previous nationalizations, and by the pledged
support of President Hugo Chávez of Venezuela.
Fulfilling a campaign promise, Morales opened on August 6, 2006
the Bolivian Constituent Assembly to begin writing a new constitution
aimed at giving more power to the indigenous majority[7]. Problems
immediately arose when, unable to garner the two-thirds votes needed
to include controversial provisions in the constitutional draft,
Morales' party announced that only a simple majority (50%+) would
be needed to draft individual articles while two-thirds needed to
pass the document in full. Violent protests arose in December 2006
in parts of the country for both two-thirds and departmental autonomy;
mostly in the eastern third of the country, where much of the hydrocarbon
wealth is located. Conservative sectors in this region threaten
to secede from the nation if Morales does not include them in the
constitutional process. MAS and its supports believed two-thirds
voting rules would give an effective veto for all constitutional
changes to the conservative minority. Later in August 2007, more
conflicts arose in Sucre, as the city demanded the discussion of
the seat of government inside the assembly, hoping the executive
and legislative branch could return to the city, but the city faced
denial from the assembly and the government. With the conflict turning
into violence, the assembly was moved into a military area in Sucre,
with only MAS and its allies in on the session, a pre-script was
approved on November 24, the subsequent riots left three dead and
six Departments not recognizing the new constitution, claiming it
only represents the indigenous people of the country.
In January 2007 a clash between middle class city dwellers and
poorer rural campesinos left two dead and over 130 injured in the
central city of Cochabamba. The campesinos had paralyzed the city
by blockading the highways, bridges, and main roads, and days earlier
had set fire to the departmental seat of government, trying to force
the resignation of the elected Prefect of Cochabamba, Manfred Reyes
Villa after he demanded a re-vote on departmental autonomy having
been previously defeated by popular vote. The city dwellers clashed
with the campesinos, breaking the blockade and routing the protesters,
while the police did little to interfere on either side. Further
attempts by the campesinos to reinstate the blockade and threaten
the government were unsuccessful, but the underlying tensions have
not been resolved.
Politics
CochabambaMain article: Politics of Bolivia
The 1967 constitution, amended in 1994, provides for balanced executive,
legislative, and judicial powers. The traditionally strong executive,
however, tends to overshadow the Congress, whose role is generally
limited to debating and approving legislation initiated by the executive.
The judiciary, consisting of the Supreme Court and departmental
and lower courts, has long been riddled with corruption and inefficiency.
Through revisions to the constitution in 1994, and subsequent laws,
the government has initiated potentially far-reaching reforms in
the judicial system and processes.
Bolivia's nine departments received greater autonomy under the
Administrative Decentralization law of 1995. Departmental autonomy
further increased with the first popular elections for departmental
governors (prefectos) on 18 December 2005, after long protests by
pro-autonomy-leader department of Santa Cruz. Bolivian cities and
towns are governed by directly elected mayors and councils. Municipal
elections were held on 5 December 2004, with councils elected to
five-year terms. The Popular Participation Law of April 1994, which
distributes a significant portion of national revenues to municipalities
for discretionary use, has enabled previously neglected communities
to make striking improvements in their facilities and services.
The president is elected to a five-year term by popular vote. Elected
president Gonzalo Sanchez de Lozada resigned in October 2003, and
was substituted by vice-president Carlos Mesa. Mesa was in turn
replaced by chief justice of the Supreme Court Eduardo Rodríguez
in June 2005. Six months later, on December 18, 2005, the Socialist
native leader, Evo Morales, was elected president.
Legislative branch
Bolivia's government is a republic. The Congreso Nacional (National
Congress) has two chambers. The Cámara de Diputados (Chamber
of Deputies) has 130 members elected to five-year terms, seventy
from single-member districts (circunscripciones) and sixty by proportional
representation. The Cámara de Senadores (Chamber of Senators)
has twenty-seven members (three per department), elected to five-year
terms.
Bolivia has had a total of 193 coups d'etat from independence until
1981, thereby averaging a change of government once every ten months.
Credit for the past quarter century of relative political stability
is largely attributed to President Víctor Paz Estenssoro,
who ceded power peacefully after cutting hyperinflation which reached
as high as 14,000 percent.[8]
Military
The Bolivian military comprises three branches: an Army, Navy and
Air Force. The legal age for voluntary admissions is 18; however,
when the numbers are small the government recruits anyone as young
as 14[9]. It is estimated that 20% of the Bolivian army is between
the ages 14 and 16 while another 20% is from 16 to 18. The tour
of duty is generally 12 months. The Bolivian government annually
spends $130 million on defense.[10]
Departments and provinces
Map of the departments of BoliviaMain articles: Departments of Bolivia,
Provinces of Bolivia, Municipalities of Bolivia, and Cantons of
Bolivia
Bolivia is divided into nine departments (departamentos); capitals
in parentheses:
Beni (Trinidad)
Chuquisaca (Sucre)
Cochabamba (Cochabamba)
La Paz (La Paz)
Oruro (Oruro)
Pando (Cobija)
Potosí (Potosí)
Santa Cruz (Santa Cruz de la Sierra)
Tarija (Tarija)
Additionally, the departments are further divided into 100 provinces
(provincias), and the provinces are each divided into municipalities
(municipios) and cantons (cantones), which handle local affairs.
Geography
Map of Bolivia from the CIA World Factbook.Main article: Geography
of Bolivia
At 1,098,580 km² (424,135 mi²), Bolivia is the world's
28th-largest country (after Ethiopia). It is comparable in size
to Mauritania, and it has about 1.5 times the area of the US state
of Texas. [11]
Colours of Altiplano BolivianoBolivia has been a landlocked nation
since 1879, when it lost its coastal department of Litoral to Chile
in the War of the Pacific. However, it does have access to the Atlantic
via the Paraguay river.
An enormous diversity of ecological zones are represented within
Bolivia's territory. The western highlands of the country are situated
in the Andes mountains and include the Bolivian Altiplano. The eastern
lowlands include large sections of Amazonian rainforests and Chaco.
The highest peak is Nevado Sajama at 6,542 metres (21,463 ft) located
in the department of Oruro. Lake Titicaca is located on the border
between Bolivia and Peru. The Salar de Uyuni, the world's largest
salt flat, lies in the southwest corner of the country, in the department
of Potosí.
Major cities are La Paz, El Alto, Santa Cruz de la Sierra, and
Cochabamba.
Economy
Main article: Economy of Bolivia
Bolivia is the poorest country in South America. This has been attributed
to high levels of corruption and the imperialist role of foreign
powers in the country since the colonization.[citation needed] The
country is rich in natural resources, and has been called a "donkey
sitting on a gold-mine" because of this. Apart from famous
mines, which were known by the Incas and later exploited by the
Spaniards, Bolivia owns the second largest natural gas field in
South America after Venezuela. Furthermore, El Mutún in the
Santa Cruz department represents 70% of the world's iron and magnesium.[citation
needed]
Bolivia's 2002 gross domestic product (GDP) totaled USD $7.9 billion.
Economic growth is about 2.5% a year, and inflation was expected
to be between 3% and 4% in 2002 (it was under 2% in 2001).
Bolivia’s current lackluster economic situation can be linked
to several factors from the past three decades. The first major
blow to the Bolivian economy came with a dramatic fall in the price
of tin during the early 1980s, which impacted one of Bolivia’s
main sources of income and one of its major mining-industries.[12]
The second major economic blow came at the end of the Cold War in
the late 1980s and early 1990s as economic aid was withdrawn by
western countries who had previously tried to keep a market-liberal
regime in power through financial support. The third economic blow
came from the U.S.-sponsored eradication of the Bolivian coca-crop,
which, at its peak, figured in 80% of the world's cocaine-production.[citation
needed] Along with the reduction in the coca-crop came a huge loss
of income to the Bolivian economy, particularly to members of the
peasant-class.
Since 1985, the government of Bolivia has implemented a far-reaching
program of macroeconomic stabilization and structural reform aimed
at maintaining price-stability, creating conditions for sustained
growth, and alleviating scarcity. A major reform of the customs-service
in recent years has significantly improved transparency in this
area. The most important structural changes in the Bolivian economy
have involved the capitalization of numerous public-sector enterprises.
(Capitalization in the Bolivian context is a form of privatization
where investors acquire a 50% share and management-control of public
enterprises by agreeing to invest directly into the enterprise over
several years rather than paying cash to the government).
Parallel legislative reforms have locked into place market-liberal
policies, especially in the hydrocarbon- and telecommunication-sectors,
that have encouraged private investment. Foreign investors are accorded
national treatment, and foreign ownership of companies enjoys virtually
no restrictions in Bolivia. While the capitalization-program was
successful in vastly boosting foreign direct investment (FDI) in
Bolivia ($1.7 billion in stock during 1996-2002), FDI flows have
subsided in recent years as investors complete their capitalization-contract-obligations.
In 1996, three units of the Bolivian state oil-corporation (YPFB)
involved in the exploration, production, and transportation of hydrocarbons
were capitalized, facilitating the construction of a gas-pipeline
to Brazil. The government has a long-term sales-agreement to sell
natural gas to Brazil through 2019. The Brazil pipeline carried
about 12 million cubic metres (424 million cu. ft) per day in 2002.
Bolivia has the second-largest natural-gas-reserves in South America,
and its current domestic use and exports to Brazil account for just
a small portion of its potential production. The government expects
to hold a binding referendum in 2004 on plans to export natural
gas. Widespread opposition to exporting gas through Chile touched
off protests that led to the resignation of President Sánchez
de Lozada in October 2003.
In April 2000, Bechtel signed a contract with Hugo Banzer, the
former president of Bolivia, to privatize the water-supply in Bolivia's
third-largest city, Cochabamba. The contract was officially awarded
to a Bechtel subsidiary named Aguas del Tunari, which had been formed
specifically for that purpose. Shortly thereafter, the company tripled
the water-rates in that city, an action which resulted in protests
and rioting among those who could no longer afford clean water.
Drawing water from community wells or gathering rainwater was made
illegal. [13][14] Martial law was declared, and Bolivian police
killed at least six people and injured over 170 protesters. Amidst
Bolivia's nationwide economic collapse and growing national unrest
over the state of the economy, the Bolivian government was forced
to withdraw the water-contract. In November 2001, Bechtel and its
principal co-investor, Abengoa of Spain, filed suit before the International
Centre for Settlement of Investment Disputes at the World Bank.
They sued the Bolivian government for $50 million ($25 million in
damages and $25 million in lost profits). The legal battle attracted
attention and pressure from many anti-neoliberal globalization and
anti-capitalist groups. Admist protest and pressure, an agreement
was signed in Bolivia on January 19th, 2006. Bechtel and Abengoa
of Spain agreed to abandon their lawsuit against the country in
return for a token payment of 2 Bolivianos (about 30 American cents).
Bolivian exports were $1.3 billion in 2002, from a low of $652
million in 1991. imports were $1.7 billion in 2002. Bolivian tariffs
are a uniformly low 10%, with capital equipment charged only 5%.
Bolivia's trade-deficit was $460 million in 2002.
Salt mounds in Salar de UyuniBolivia's trade with neighboring countries
is growing, in part because of several regional preferential trade-agreements
it has negotiated. Bolivia is a member of the Andean Community and
enjoys nominally free trade with other member countries (Peru, Ecuador,
Colombia, and Venezuela.) Bolivia began to implement an association-agreement
with Mercosur (Southern Cone Common Market) in March 1997. The agreement
provides for the gradual creation of a free-trade-area covering
at least 80% of the trade between the parties over a 10-year period,
though economic crises in the region have derailed progress at integration.
The U.S. Andean Trade Preference and Drug Enforcement Act (ATPDEA)
allows numerous Bolivian products to enter the United States free
of duty on a unilateral basis, including alpaca- and llama-products
and, subject to a quota, cotton textiles.
The United States remains Bolivia's largest trading-partner. In
2002, the United States exported $283 million of merchandise to
Bolivia and imported $162 million. Bolivia's major exports to the
United States are tin, gold, jewelry, and wood-products. Its major
imports from the United States are computers, vehicles, wheat, and
machinery. A Bilateral Investment Treaty between the United States
and Bolivia came into effect in 2001.
Agriculture accounts for roughly 15% of Bolivia's GDP. The amount
of land cultivated by modern farming-techniques is increasing rapidly
in the Santa Cruz area, where weather allows for two crops a year.
Soybeans are the major cash crop, sold into the Andean Community
market. The extraction of minerals and hydrocarbons accounts for
another 10% of GDP and manufacturing for less than 17%.
Bolivia's government remains heavily dependent on foreign assistance
to finance development-projects. At the end of 2002, the government
owed $4.5 billion to its foreign creditors, with $1.6 billion of
this amount owed to other governments and most of the balance owed
to multilateral development-banks. Most payments to other governments
have been rescheduled on several occasions since 1987 through the
Paris Club mechanism. External creditors have been willing to do
this because the Bolivian government has generally achieved the
monetary and fiscal targets set by IMF programs since 1987, though
economic crises in recent years have undercut Bolivia's normally
good record. The rescheduling of agreements granted by the Paris
Club has allowed the individual creditor-countries to apply very
soft terms to the rescheduled debt. As a result, some countries
have forgiven substantial amounts of Bolivia's bilateral debt. The
U.S. government reached an agreement at the Paris Club meeting in
December 1995 that reduced by 67% Bolivia's existing debt-stock.
The Bolivian government continues to pay its debts to the multilateral
development banks on time. Bolivia is a beneficiary of the Heavily
debted Poor Countries (HIPC) and Enhanced HIPC debt-relief-programs,
which by agreement restricts Bolivia's access to new soft loans.
Bolivia was one of three countries in the Western Hemisphere selected
for eligibility for the Millennium Challenge Account and is participating
as an observer in FTA negotiations.
In 2004, the government gave great importance to the development
of port-facilities at Puerto Busch on the Paraguay River. Farther
north in Puerto Suárez and Puerto Aguirre, which are connected
to the Paraguay via the Tamengo Canal, which passes through Brazil,
mid-size container-ships traverse. As of 2004 about half of Bolivia's
exports leave via the Paraguay River. When Puerto Busch is finished,
larger ocean-going ships will be able to dock in Bolivia. This will
greatly increase Bolivia's competitiveness, in that they will have
a reduced need for foreign ports, such as those in Peru and Chile,
which adds to the price of exports and imports. Tobacco is produced
by Bolivian farmers – in 1992, over 1,000 million tons –
but even more is imported to satisfy domestic demand.
Demographics
Cristo de la Concordia in Cochabamba.Main article: Demographics
of Bolivia
Bolivia's ethnic distribution is estimated to be 30% Quechua-speaking
and 25% Aymara-speaking Amerindians. The largest of the approximately
three-dozen native groups are the Quechuas (2.5 million), Aymaras
(2 million), then Chiquitano (180,000), and Guaraní (125,000).
So the full Amerindian population is at 55% and the remaining 30%
is Mestizo (mixed Amerindian and European) and around 15% are Whites.[15]
The white population consists mostly of criollos, which in turn
consist of families of relatively unmixed Spanish ancestry, descended
from the early Spanish colonists. These have formed much of the
aristocracy since independence. Other smaller groups within the
white population are Germans who founded the national airline Lloyd
Aereo Boliviano, as well as Italian, American, Basque, Croatian,
Russian, Polish and other minorities, many of whose members descend
from families that have lived in Bolivia for several generations.
Also noteworthy is the Afro-Bolivian community that numbers more
than 0.5% of the population, descended from African slaves that
were transported to work in Brazil and then migrated westward into
Bolivia. They are mostly concentrated in the Yungas region (Nor
Yungas and Sud Yungas provinces) in the department of La Paz, some
three hours from La Paz city. There are also Japanese who are concentrated
mostly in Santa Cruz de la Sierra, and Middle Easterners who became
prosperous in commerce.
Bolivia is one of the least developed countries in South America.
Almost two-thirds of its people, many of whom are subsistence farmers,
live in poverty. Population-density ranges from less than one person
per square kilometer in the southeastern plains to about ten per
square kilometer (twenty-five per sq. mi) in the central highlands.
As of 2006, the population is increasing about 1.45% per year.[16]
The great majority of Bolivians are Roman Catholic (the official
religion), although Protestant denominations are expanding strongly.[16]
According to a 2001 survey conducted by the National Statistical
Institute, 78 percent of the population is Roman Catholic, 16 percent
is Protestant and 3 percent follow other religions of Christian
origin.[1] Islam practiced by the descendants of Middle Easterners
is almost nonexistent. There is also a small Jewish community that
is almost all Ashkenazi in origin. More than 1% of Bolivians practice
the Bahá'í Faith (giving Bolivia one of the largest
percentages of Bahá'ís in the world). There are colonies
of Mennonites in the department of Santa Cruz.[17] Many Native communities
interweave pre-Columbian and Christian symbols in their worship.
About 80% of the people speak Spanish as their first language, although
the Aymara and Quechua languages are also common. Approximately
90% of the children attend primary-school but often for a year or
less. The literacy-rate is low in many rural areas, but, according
to the CIA, the literacy-rate is 87% nationwide, a rate similar
to Brazil's, but below the South American average. The cultural
development of what is present-day Bolivia is divided into three
distinct periods: pre-Columbian, colonial, and republican. Important
archaeological ruins, gold and silver ornaments, stone monuments,
ceramics, and weavings remain from several important pre-Columbian
cultures. Major ruins include Tiwanaku, Samaipata, Incallajta, and
Iskanawaya. The country abounds in other sites that are difficult
to reach and have seen little archaeological exploration.[16]
The Spanish brought their own tradition of religious art which,
in the hands of local native and mestizo builders and artisans,
developed into a rich and distinctive style of architecture, painting,
and sculpture known as "Mestizo Baroque". The colonial
period produced not only the paintings of Pérez de Holguín,
Flores, Bitti, and others but also the works of skilled but unknown
stonecutters, woodcarvers, goldsmiths, and silversmiths. An important
body of native baroque religious music of the colonial period was
recovered in recent years and has been performed internationally
to wide acclaim since 1994.[16]
Bolivian artists of stature in the twentieth century include Guzmán
de Rojas, Arturo Borda, María Luisa Pacheco, and Marina Núñez
del Prado.
Bolivia has a rich folklore. Its regional folk music is distinctive
and varied. The "devil dances" at the annual carnival
of Oruro are one of the great folkloric events of South America,
as is the lesser known carnival at Tarabuco.[16]
Culture
Bolivian culture has been heavily influenced by the Quechua, the
Aymara, as well as by the popular cultures of Latin America as a
whole.
The best known of the various festivals found in the country is
the "Carnaval de Oruro", which was among the first 19
"Masterpieces of the Oral and Intangible Heritage of Humanity,"
as proclaimed by the UNESCO in May of 2001.
Entertainment includes football (soccer), which is the national
sport, as well as table football, which is played on street-corners
by both children and adults.
Zoos are a popular attraction, with a diverse population of interesting
creatures, but with lack of proper funding.
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