BOLIVIA

Republic of Bolivia

República de Bolivia

CAPITAL: La Paz (administrative capital); Sucre (legal and judicial capital)

FLAG: The flag is a horizontal tricolor of red, yellow, and green stripes, representing the animal, mineral, and vegetable kingdoms.

ANTHEM: Himno Nacional, beginning "Bolivianos, el hado propicio coronó nuestros volos anhelos" ("Bolivians, propitious fate crowned our outcries of yearning").

MONETARY UNIT: The boliviano (b) was introduced on 1 January 1987, replacing the peso at a rate of p1,000,000 = b1. There are coins of 2, 5, 10, 20, and 50 cents and 1 boliviano and notes of 2, 5, 10, 20, 50, 100, and 200 bolivianos. b1 = $0.12330 (or $1 = b8.11) as of 2005.

WEIGHTS AND MEASURES: The metric system is the legal standard, but some Spanish weights are still used in retail trade.

HOLIDAYS: New Year's Day, 1 January; Labor Day, 1 May; National Festival, 5–7 August; Columbus Day, 12 October; All Saints' Day, 1 November; Christmas, 25 December. Movable holidays include Carnival, Ash Wednesday, Holy Thursday, Good Friday, Holy Saturday, and Corpus Christi.

TIME: 8 am = noon GMT.

LOCATION, SIZE, AND EXTENT

Situated in South America just n of the Tropic of Capricorn, Bolivia has a total area of 1,098,580 sq km (424,164 sq mi), extending about 1,530 km (950 mi) n–s and 1,450 km (900 mi) e–w. Comparatively, the area occupied by Bolivia is slightly less than three times the size of the state of Montana. Completely landlocked, Bolivia is bounded on the n and ne by Brazil, on the se by Paraguay, on the s by Argentina, on the sw by Chile, and on the w by Peru, with a total boundary length of 6,743 km (4,190 mi).

The capital city of Bolivia, La Paz, is located in the west-central part of the country.

TOPOGRAPHY

Bolivia has three geographic zones: the Andean highlands in the southwest, running north to south; the moist slopes and valleys on the eastern side of the Andes, called the Yungas and Valles; and the eastern tropical lowland plains, or Oriente. In Bolivia, the Andes, divided into two chains, attain their greatest width, about 640 km (400 mi), and constitute about one-third of the country. Between the Cordillera Occidental, forming the border with Chile and cutting Bolivia off from the Pacific, and the complex knots of the Cordillera Oriental lies a broad sedimentary plateau about 4,000 m (13,000 ft) above sea level, called the Altiplano, which contains about 28% of Bolivia's land area and more than half of its population. In the north of this plateau, astride the border with Peru, lies Lake Titicaca, 222 km (138 mi) long and 113 km (70 mi) wide; with its surface at an altitude of 3,805 m (12,484 ft), it is the highest navigable lake in the world. The lake is drained to the south by the 322-km (200-mi) Desaguadero River, which empties into shallow, salty Lake Poopó. Farther south are arid salt flats.

The Cordillera Oriental has high habitable basins and valleys collectively referred to as the Puna. Bolivia's most majestic mountains are in the northern part of the Cordillera Oriental around Lake Titicaca, where the mountain sector is capped with snow; the highest of these is Ancohuma (6,550 m/21,489 ft). Illimani and Illampu, both rising more than 6,400 m (21,000 ft), overlook the city of La Paz, which is protected from cold winds by its position in the spectacular gorge formed by the headwaters of the La Paz River. The three important valleys of this region, Cochabamba, Sucre, and Tarija, are from 1,830 to 3,050 m (6,000 to 10,000 ft) in altitude.

Bolivia's important rivers descend across the Yungas and Valles into the low tropical plains of the Oriente, which comprises three-fifths of the land but has only about one-fifth of the population. The Guaporé, the Mamoré, the Beni, and the Madre de Dios rivers cross the often-flooded northern savanna and tropical forests, all converging in the northeast to form the Madeira, which flows into Brazil. The plains become drier in the southeast, forming Bolivia's scrub-covered Chaco. Crossing the Chaco to the southeast, the Pilcomayo River leaves Bolivia to form the border between Paraguay and Argentina.

CLIMATE

Although Bolivia lies entirely in the tropics, extreme differences in altitude and rainfall give it a great variety in climate. The mean annual temperature of La Paz, at 3,697 m (12,130 ft), is about 8°c (46°f); that of Trinidad, in the eastern lowlands, is 26°c (79°f). In the western highlands, cold winds blow all year round; at night the temperature often drops below freezing, but the sun is intense and the air brilliant during the day. The rainy season lasts from December to February, but during most of the year the high Altiplano plateau is parched and inhospitable. Around Lake Titicaca, rainfall is adequate, but there is less than 13 cm (5 in) a year in the extreme southwest. The fertile valleys in the Cordillera Oriental have a warmer, semiarid Mediterranean climate.

The Yungas and Valles have a semitropical, moist climate that gradually becomes hotter as one descends from the eastern slopes of the Andes to the tropical eastern lowlands. Rainfall is heavy in the northeast, and floods are common in March and April. The lowland plain becomes drier to the south, until it reaches drought conditions near the Argentine border.

FLORA AND FAUNA

Bolivia shares much of the wide variety of flora and fauna found in the four countries surrounding it. Because of the wide range in altitude, Bolivia has plants representative of every climatic zone, from arctic growth high in the sierra to tropical forests in the Amazon basin. On the high plateau above 3,050 m (10,000 ft) grows a coarse bunch grass called ichu, used for pasture, thatching, and weaving mats. A reed called totora, which grows around Lake Titicaca, is used for making small fishing boats (balsas). The low bushlike tola and the resinous mosslike yareta are both used for fuel. The Lake Titicaca region is believed to be the original home of the potato.

In the tropical forest, the quinine-producing quina tree grows, as does the Pará rubber tree. There are more than 2,000 species of hardwoods. Aromatic shrubs are common, as are vanilla, sarsaparilla, and saffron plants. Useful native plants include palms, sweet potatoes, manioc, peanuts, and an astonishing variety of fruits. The Chaco is covered with a prickly scrub collectively called monte; tannin-producing quebracho trees also abound there.

On the Altiplano, the most important animal is the llama, one of the most efficient carrier animals known; alpaca and guanaco and several varieties of cavy (guinea pig) are found there, too. Lake Titicaca has several varieties of edible fish. In the tropical Amazon region are the puma, coati, tapir, armadillo, sloth, peccary, capiguara (river hog), and ant bear, as well as several kinds of monkeys. Birdlife is rich and varied. The Andean condor, usually found in the mountain regions, is the largest flying bird in the Americas. Reptiles and an enormous variety of insects are found below 3,050 m (10,000 ft).

ENVIRONMENT

The chief environmental problem in the densely populated Altiplano is soil erosion, resulting from poor cultivation methods (including slash-and-burn agriculture) and overgrazing. Erosion affects about 30% of the land in Bolivia. Salinity and alkalinization are also a significant problem. Inadequate sanitation and solid-waste disposal, as well as effluents from mining activities, contribute to the Altiplano's declining water quality, which poses a threat both to fish life and to human health. Bolivians have about 316 cu km of renewable water resources, but only 95% of the city dwellers and 68% of all rural people have access to improved water sources. The main sources of water pollution are fertilizers, pesticides, and mining. Most environmental legislation dates from the 1970s, when Bolivia enacted the Health Code of 1978 (which contains provisions governing water quality), the National General Forest Act of 1974, and the Law of Wildlife, National Parks, Hunting, and Fishing (Decree Law No. 12,301) of 1975.

In July 1987, the Bolivian government became the first government in history to agree to protect a part of its environment in return for a reduction of its foreign debt, when Conservation International, a US nonprofit group, purchased $650,000 of the debt in return for Bolivia setting aside 1.5 million hectares (3.7 million acres) of tropical lowlands in three conservation areas. As of 2003, 13.4% of Bolivia's total land area was protected. There are eight Ramsar wetland sites in the nation. The Department of Science and Technology, within the Ministry of Planning and Coordination, plans and coordinates all governmental and intergovernmental activities related to the environment.

As of 2002, there were at least 316 species of mammals, 504 species of birds, and over 17,360 species of plants. According to a 2006 report issued by the International Union for Conservation of Nature and Natural Resources (IUCN), the number of threatened species included 26 types of mammals, 30 species of birds, 2 types of reptiles, 21 species of amphibian, and 70 species of plants. Another 100 species of animals were considered to be near threatened or at a low concern of threat. Endangered species in Bolivia included the puna rhea, South American river turtle, broad-nosed caiman, spectacled caiman, black caiman, jaguar, jaguarundi, margay, ocelot, emperor tamarin, and giant anteater. The llama and the alpaca are also threatened with extinction.

POPULATION

The population of Bolivia in 2005 was estimated by the United Nations (UN) at 8,922,000, which placed it at number 85 in population among the 193 nations of the world. In 2005, approximately 4% of the population was over 65 years of age, with another 37% of the population under 15 years of age. There were 99 males for every 100 females in the country. According to the UN, the annual population rate of change for 2005–10 was expected to be 2.1%, a rate the government viewed as satisfactory. The projected population for the year 2025 was 12,018,000. The population density was 8 per sq km (21 per sq mi).

The UN estimated that 63% of the population lived in urban areas in 2005, and that urban areas were growing at an annual rate of 2.50%. The capital city, La Paz (administrative capital) had a population of 1,477,000 in that year. Sucre (legal and judicial capital), had a population of 190,000. Santa Cruz, a departmental capital, had a metropolitan population of 1,352,000. Other important departmental capitals and their estimated populations include Cochabamba, 815,800; Oruro, 211,700; and Potosí, 115,000.

MIGRATION

Aside from Spaniards during the colonial period, European immigration has been insignificant. Small numbers of Italians, Poles, and Germans have settled mainly in the vicinity of La Paz and Cochabamba, and some Jewish refugees from Nazi Germany arrived in the 1930s. After World War II, about 1,000 Japanese settled in colonies around Santa Cruz and became successful in truck farming, and several hundred Okinawan families established themselves as rice growers in the same area.

From the 1950s to the 1980s, migration to neighboring countries increased: 30,000 left Bolivia in 1950–55; 40,000 left in 1980–85. Since the emigrants tend to have basic training or technical skills, a drain of important human resources is occurring. A number of Bolivian braceros (contract agricultural laborers) go to northwestern Argentina to work in rice and sugar harvests. In the 1970s, Brazilian settlers, drawn by improved railroad and highway way links, migrated to northeastern Bolivia in growing numbers; these immigrants had a substantial influence on the region, since they continued to speak Portuguese and to use Brazilian currency as their medium of exchange. Within the country, migration is swelling the sparsely populated lowlands, particularly in Santa Cruz and its environs. High unemployment among agricultural laborers and miners has caused significant migration to the cities. The net migration rate estimated for 2005 was -1.27 migrants per 1,000 population. The government views the migration levels as satisfactory.

As of 2000, the number of migrants in Bolivia totaled 61,000. In 2004 there were 546 refugees living in Bolivia. Worker remittances for 2003 totaled $85.5 million.

ETHNIC GROUPS

Among the Amerindian population, an estimated 30% are Quechua and 25% are Aymará. Cholos (Bolivians of mixed white and Amerindian lineage) make up another 25 to 30%, and those of wholly European background account for virtually all of the remainder. One reason for the uncertainty of these estimates is that although the distinction between Amerindian, cholo, and white was at one time racial, it has gradually become at least partially sociocultural: Amerindians become cholos when they abandon their native costumes, learn to speak Spanish, and acquire a skill or trade. Not all those classified as whites are without some Amerindian mixture.

The rapidly disappearing Amerindians who populate the tropical plains in the southeast, the Chiriguanos, are believed to be a Guaraní tribe that moved west from Paraguay before the Spanish conquest. The Mojenos, Chiquitanos, and Sirionós inhabit the forest-grassland border in the far east.

LANGUAGES

Spanish, Quechua, and Aymará are all official languages. Spanish as spoken by educated Bolivians differs less from Castilian than do the dialects of many regions in Spain itself. An increasing number of Amerindians also speak Spanish.

RELIGIONS

Roman Catholicism is the official religion. As such, the Roman Catholic Church receives support from the state and exercises a certain degree of political influence through the Bolivian Bishops' Conference. Courses in Catholicism are offered in public schools, but students of other faiths are not required to attend. Non-Catholic organizations register with the Ministry of Foreign Affairs and Worship for tax and legal benefits, but unregistered groups are not restricted from gathering. Freedom of religion is provided for in the constitution and this right is generally respected in practice.

According to a 2001 survey, about 78% of the population were Roman Catholic. Between 16 and 19% of the population were Protestant, including Mennonites, Lutherans, Mormons, Methodists, Seventh-Day Adventists, Baptists, Pentecostals, and various evangelical groups. There is a Mormon temple in Cochabamba which is believed to serve more than 100,000 Mormons from across the country. Less than 0.2% of the population were affiliated with other faiths such as Judaism, Bahaism, Islam, Buddhism, and Shintoism. There is a small Jewish community with a synagogue in La Paz, as well as a Muslim community with a mosque in Santa Cruz. Korean immigrants also have a church in La Paz.

Indigenous beliefs and rituals are exercised by the Aymará, Quechua, Guarani, and Chiquitano, many of whom practice a blend of Roman Catholicism and traditional customs. Common traditional beliefs include a focus on Pachamama, who is a mother earth figure, and Akeko, a god of luck, harvests, and abundance.

TRANSPORTATION

Transportation in Bolivia has been seriously impeded both by the geographic configuration of the country and by the concentration of population and mineral wealth in the mountain regions. Railroads and highways twist along the Andean Range, and are often blocked by mudslides during the rainy season. The shortage of transportation facilities is one of the most serious barriers to economic development. Railroads are almost entirely single, 1.000 m narrow gauge track, totaling 3,519 km (2,189 mi) in 2004. The railway system, National Railway Co, is in two distinct parts separated by the eastern Andes. All of the trackage was government owned and operated until privatized in 1996. A major portion of the railway system, the Andina, services the Altiplano, the western mountainous region, providing vital international connections with Pacific coast ports. The remaining track, the Oriental, connects the eastern city of Santa Cruz with Brazil and Argentina. An important route to Puerto Suárez eventually reaches the Brazilian port of Santos, while the line to Argentina via Villazón continues on to Buenos Aires. Two smaller lines (157 km/98 mi) are run by the Mining Corp. of Bolivia and by the Pulacayo mining enterprise.

In 2003, of a total of 60,762 km (37,794 mi) of roads, only about 4,314 km (2,683 mi) were paved, including 11 km (7 mi) of expressways. The Cochabamba-Santa Cruz highway, completed in 1963, was a major achievement in connecting lowland and highland Bolivia. In 2003 there were 493,600 motor vehicles, of which 203,500 were passenger cars, and 290,100 were commercial vehicles.

Airlines are particularly important in view of Bolivia's topography and the underdevelopment of other means of transportation. In 2004, there were an estimated 1,065 airports, only 16 of which had paved runways as of 2005. The hub of air traffic is El Alto airport near La Paz, the world's highest commercial airport; the other international airport is at Santa Cruz. Lloyd Aéreo Boliviano (LAB), with 50% government capital, services most of the country. In 2003, a total of about 1.768 million passengers were carried on scheduled international and domestic flights. Military Air Transport, operated by the air force, provides some civilian freight and passenger service, and numerous air taxi companies are also in service.

Little use has been made of Bolivia's 10,000 km (6,214 mi) of commercially navigable waterways. The merchant marine had 32 vessels (1,000 GRT or over), totaling 413,407 GRT in 2005. There are no regular riverboat services. Bolivia has free port privileges at Antofagasta and Arica (Chile), at Mollendo (Peru), and at Santos (Brazil).

HISTORY

By about ad 600, Amerindians (believed to belong to the Aymaráspeaking Colla tribe) were settled around the southern end of Lake Titicaca. As they came into contact with coastal tribes, the highly developed classic Tiahuanaco civilization emerged, reaching its peak about ad 900. Lake Titicaca became a place of worship and a great commercial center. Then cultural and political disintegration set in, and by 1300, the Quechua-speaking Incas had conquered the region and had colonized villages in most of what is now Bolivia.

The demise of the Inca empire began in 1527 with the death of the Inca Emperor Huayna Capac. His two sons, Huáscar and Atahualpa, fought a civil war over succession. Francisco Pizarro, taking advantage of the civil war raging between the two heirs, led the Spanish conquest of the Inca Empire in 1532–33. In 1539, Pedro de Anzures established La Plata, subsequently called Charcas and Chuquisaca and now known as Sucre, Bolivia's legal and judicial capital.

The Spaniards did not become interested in the land called Alto Peru, or Upper Peru, until the discovery in 1545 of the fabulously rich silver mine called the Cerro Rico (Rich Hill) de Potosí. Three years later, La Paz was founded on the main silver transport route between Potosí and the coast. In 1559, the audiencia (region under a royal court) of Charcas was established in Upper Peru under the viceroyalty of Lima. The mines continued to produce vast amounts of wealth for the Spanish Empire, and for years the city of Potosí was the largest city in the Western Hemisphere. In 1776, the audiencia was appended to the viceroyalty of La Plata (Buenos Aires).

The independence of Upper Peru came from the revolt of the small, native-born Spanish ruling class. In 1809, a year after Napoleon's invasion of Spain, the Spanish authorities in Chuquisaca (Sucre) were temporarily overthrown, and the local elite proclaimed independence. The movement was quickly put down by Spanish arms. The young government in Buenos Aires showed some interest in the region, having included delegates from Upper Peru when independence was declared at the Congress of Tucumán in 1816. However, independence came from Peru, after Simón Bolívar's victory at the battle of Ayacucho in December 1824. Bolívar then sent his young general, Antonio José de Sucre, to free Upper Peru. On 6 August 1825 a congress at Chuquisaca formally proclaimed the independence of the Republic of Bolívar, a name soon changed to Bolivia. Sucre was chosen as the first president in 1826, and Chuquisaca was renamed Sucre in his honor.

A period of instability followed, with civilians and army officers succeeding one another, usually by force of arms. The almost constant civil war retarded Bolivia's economic organization and helped bring about the loss of a large part of its land. The first of these losses came after the War of the Pacific (1879–84), pitting Chile against Bolivia and Peru. Chile's superior military force routed the Bolivians and seized what was then the Bolivian port of Antofagasta. The postwar settlement took away Bolivia's only coastal territory, as well as the nitrate-rich coastal area around it. Bolivia was forever after a landlocked country, with only rights of access to the Pacific under a 1904 treaty. Another territorial loss came in 1903 with the cession to Brazil of the Acre region, rich in natural rubber, in exchange for an indemnity and other minor concessions. Sucre was driven out of office after only two years. He was succeeded by Gen. Andrés de Santa Cruz, a man with imperial ambitions. In 1836, Santa Cruz conquered Peru and formed the Peruvian-Bolivian Confederation. In 1839, Chilean forces defeated and dissolved the confederation and ended the life term of Santa Cruz.

The economy was aided in the late 19th century by a silver boom. When prices collapsed, silver production gave way to tin mining. The dominance of mining in Bolivia's economy conditioned the political system. A few wealthy mine and plantation owners, allied with various foreign interests, competed for power. Indians, excluded from the system, found their lot unchanged after almost 400 years.

This arrangement began to unravel with yet another loss of Bolivian territory. In 1932, Bolivia warred with Paraguay over the Chaco, the lowland area believed at the time to be rich in oil. Despite their numerical superiority, the Bolivians were defeated by 1935, and Paraguay controlled about three-fourths of the disputed territory. The formal settlement in 1938 gave most of this land to Paraguay, although Bolivia was promised a corridor to the Paraguay River.

The Chaco war pointed out the weaknesses in Bolivia's political and social structure. Bolivia's loss was in part due to the poor morale of its soldiers, an army of conscripted Indians with no loyalty to the elite officer corps. In 1936 Bolivia's rigid caste system cracked, and Col. David Toro came to power with labor support and a vaguely socialist/nationalist platform. The government expropriated Standard Oil of New Jersey's Bolivian properties in 1937. Toro's government attempted social reform, and its efforts to control mining and banking led to fierce opposition. The tension continued after Toro was forced out of office by Col. Germán Busch. Busch challenged Bolivia's three large tin-mining interests, owned by Patiño, Aramayo, and Hochschild. With strong labor backing, Busch arranged for the constitution of 1938, a document guaranteeing the right of labor to organize, universal education, and nationalized subsoil rights. The very next year, Busch died in what was officially ruled a suicide.

World War II brought further strains to Bolivia. As world demand skyrocketed, the tin market boomed, but working conditions remained miserable, and wages remained low. In 1942, protests by tin workers against the "tin barons" and their American financiers were met with force by the government of Gen. Enrique Peñaranda, resulting in the "Catavi massacre." Wishing to retain the strategic materials in mid-war, the United States commissioned a US-Bolivian commission to study working conditions. This report confirmed the workers' grievances, but was completely ignored by Peñaranda. In December of 1943, a coalition of the army and the Nationalist Revolutionary Movement (Movimiento Nacionalista Revolutionario—MNR), which had gained considerable support among the mineworkers, engineered a coup, ousting Peñaranda and putting Maj. Gualberto Villarroel into power. The tin market collapsed at the war's end, weakening the government's power base. In 1946, Villarroel was overthrown and hanged, along with others, by a mob of workers, soldiers, and students, and a conservative government was installed.

In 1951, the MNR's candidate, Víctor Paz Estenssoro, a former associate of Villarroel, apparently won the presidential election, but a military junta stepped in, denying the legality of the vote. Paz, representing the left wing of the MNR, became president in 1952 as a result of a party-led uprising. For the next 12 years, Bolivian politics would be dominated by the MNR.

The leadership of the MNR was shared by four men: Paz, Juan Lechín Oquendo, leftist head of the miners' union, Hernán Siles Zuazo, close ally of Paz, and the right-wing Walter Guevara Arze. A pact among the four was to allow them to take turns in the presidency over the next 16 years. The Paz government made dramatic moves in an attempt to transform Bolivian society. The tin holdings of the three dominant family interests were expropriated, and a comprehensive land reform program was begun, along with wide-scale welfare and literacy programs. Industry was encouraged, the search for oil deposits was accelerated, and a new policy gave Amerindians the right to vote and sought to integrate the Amerindian community more fully into the national economy. The right to vote, previously restricted to literate Bolivian males (who constituted less than 10% of the population), was made universal for all Bolivians over 21.

In 1956, as expected, Hernán Siles succeeded to the presidency. But Siles only governed under Paz's watchful eye, and in 1960, Paz challenged the candidacy of Guevara Arze. Guevara went into exile, and Paz again assumed the presidency, with Lechín as his vice president. Paz became increasingly dictatorial, and the splits within the MNR worsened. Paz conspired to give himself yet another presidential term, complete with rigged elections in June 1964. Siles, now leading the right wing of the MNR, and Lechín, now leading the leftist opposition, conducted a hunger strike protesting Paz's authoritarian designs. Finally, the military defected when it became clear that Paz was without any allies. The military coup occurred in November 1964, with the junta selecting as president Paz's vice president René Barrientos Ortuño.

Barrientos moved quickly to consolidate his new government, removing Paz's old supporters and sending Lechín into exile. In the following year, a military faction forced Barrientos to allow Gen. Alfredo Ovando Candia to become his "co-president." This odd arrangement was resolved in 1966 with new elections. Barrientos and his newly formed Popular Christian Movement won a resounding victory.

In 1967, an active guerrilla movement with pro-Castro tendencies emerged in southeastern Bolivia. The Bolivian authorities imprisoned the French intellectual Jules Régis Debray, who revealed that the famous comrade of Fidel Castro, Ernesto "Che" Guevara, was leading the guerrilla movement. Later in the year, the Bolivian army apprehended and killed Guevara.

Barrientos died in a helicopter crash in April 1969, and a civilian, Vice President Adolfo Siles Salinas, became president. Siles was overthrown in September by Barrientos' former rival, Gen. Ovando, who presented himself as a presidential candidate for 1970 but then canceled the election. In October 1970, President Ovando was overthrown by rightist elements of the military, but the next day a leftist faction succeeded in making Gen. Juan José Torres Gonzales the new president.

The Torres regime was marked by increasing political instability. Backed by students and the Bolivian Labor Council, Torres expelled the US Peace Corps, permitted the expropriation of both US and privately owned Bolivian properties, sanctioned the seizure of land by landless peasants, established a labor-dominated People's Assembly, and declared his support for the reestablishment of diplomatic relations with Cuba. In a bloody three-day revolution in August 1971, the Torres government was ousted by a coalition of the armed forces and political leaders from the MNR and the Bolivian Socialist Falange (Falange Socialista Boliviana—FSB), together with other middle-class groups. The leader of the coup was Hugo Bánzer Suárez, who was installed as president later in the month. Bánzer consolidated his support with the founding of the Nationalist Popular Front, which became the political framework of the new government. Ex-president Paz returned from exile to head the MNR.

The first threats to the Bánzer government came from the left. There were reports late in 1971 of renewed activity by the Guevarist National Liberation Army. The government launched a vigorous antiguerrilla campaign and claimed nearly complete success. In 1973, however, Bánzer's coalition began to splinter. In 1974, when the MNR threatened to withdraw from the coalition, Paz went into exile again. After two coup attempts had been crushed in the fall of 1973 and two others in the summer of 1974, Bánzer formed a new all-military cabinet. In November 1974, the MNR, the FSB, and other political parties were abolished, and trade union meetings were declared illegal.

In response to industrial and political unrest, Bánzer announced the restoration of political parties in 1977 and of unions in 1978. He promised to hold new elections in July 1978. Paz again returned from exile to run. The election results were annulled, however, and a new military government came to power in a bloodless coup. Another election took place in July 1979, but because no candidate received a majority and the Congress could not decide whom to select from among the three main candidates, an interim president was named. Another coup followed in November, but constitutional government was restored only two weeks later, in the wake of popular resistance. New presidential and congressional elections in June 1980 again failed to produce a majority winner, and in July there was another coup, staged by Gen. Luis García Meza, who promptly suspended the Congress, banned most political parties and all union activity, and established strict censorship in order to remove the "Marxist cancer" from Bolivia. Paz again went into exile. During the García regime there were frequent reports of arbitrary arrests, use of torture, and other human rights violations. In August 1981, García, who was suspected, along with other top officials in the government, of involvement with the cocaine trade, was deposed in a coup—the 190th in Bolivian history. He went into exile in Argentina in October 1982, and in May 1983, he was ordered arrested on charges of "corruption and economic crimes"—specifically, the fraudulent use of government funds in agricultural, construction, and oil refinery deals. Meanwhile, under two more military governments, political and union rights were gradually restored.

In October 1982, amid a worsening economic situation and increasing labor unrest, the Congress elected Hernán Siles Zuazo to the presidency. Siles, returning to office 22 years after the end of his previous presidency, could still count on electoral support, and had received a plurality of votes in the 1979 and 1980 elections. His shaky coalition faced continued economic problems, including food shortages and rampant inflation, and a right-wing threat from paramilitary groups whose activities were reportedly financed by cocaine smuggling. In November 1983, the Bolivian government announced an austerity program that included a 60% devaluation of the peso and hefty food price increases. By mid-1985, Siles had so mismanaged the economy and the political situation that labor unrest and social tension forced him to call national elections and to agree to relinquish power a full year before the expiration of his term. Bánzer won a plurality of the popular vote, but the MNR won more seats in the congressional elections, resulting in a fourth term of office for the 77-year-old Paz. In a departure from the norm, the MNR and Bánzer's party agreed to cooperate, allowing a comprehensive economic reform package to pass through the legislature.

Faced with runaway inflation, which reached an annual rate of 14,000% in August 1985, the government abandoned controlled exchange rates, abolished price controls, liberalized external trade, and instituted more restrictive monetary and wage policies. The result was sharply lower inflation and interest rates, and a more stable economy, although the shocks of this liberalization were felt through government layoffs and falling consumer buying power.

More importantly, Paz was able to forge a fundamental consensus among competing political parties in support of a continuing democracy. In 1989, despite a hotly contested presidential race, power passed from the MNR to the left-wing movement of the Revolutionary Left (MIR). The peaceful transfer of power from one party to another was a milestone in itself. An equally hopeful sign was the fact that the MIR leader, Jaime Paz Zamora, was able to hold together a coalition with the right-wing national Democratic Alliance (ADN) to serve a full four-year presidential term. In Bolivia, this is a major accomplishment.

The elections of 1993 brought the MNR back to power, with Gonzalo Sánchez de Lozada assuming the presidency. Sánchez chose as his running mate Victor Hugo Cárdenas, an advocate for Bolivia's Aymara-speaking Amerindians. While some saw the move as a cynical ploy, others expressed hope that Bolivia's long-suffering native population might be brought into the political system. Sánchez de Lozada's administration embarked on a wide-ranging program of reforms that included decentralization of government, tariff reduction, educational reform, and most notably, a major privatization campaign. State enterprises that were privatized included the national railroad, the state-owned airline, and the nation's electric power generation facilities. Sánchez de Lozada's plans also included privatization of Bolivia's mining sector through joint ventures with foreign investors. In spite of continued economic stabilization and progress, the government's policies drew protests and labor strikes leading to the declaration of a 90-day state of siege in 1995.

In 1997, Gen. Hugo Bánzer, the former dictator who had tried unsuccessfully to regain power by legal means since his ouster in 1978, came in first in the June presidential elections and, in the absence of an electoral majority, was chosen by Congress to be the nation's next president. Bánzer, a conservative democrat, pledged to halt his predecessor's privatization program while improving basic services and expanding jobs. Shortly into his term, Bánzer faced growing social unrest resulting from an economic crisis and the government's inability to fight corruption and implement an effective anti-narcotics program. Due to health reasons, Bánzer resigned in 2001 before the end of his term and was replaced by his young vice president Jorge Quiroga who served as a caretaking president until Gonzalo Sánchez de Lozada, the plurality winner in the June 2002 election, took office for the second time in his life. After failing to win a majority of the popular vote, Sánchez de Lozada was elected by Congress over second-place finisher, indigenous and peasant activist Evo Morales.

Sánchez de Lozada's second term was marked by social and political upheaval. One year into his term, the economy was stagnant, and social and racial tensions kept the country in turmoil. Sánchez de Lozada's initiative to attract foreign investments to exploit Bolivia's large and rich natural gas reserves was met with indignant opposition by indigenous leaders. Social protests against Sánchez de Lozada turned violent and the government ordered the police to repress protestors. The vice president, Carlos Mesa Gisbert, announced his withdrawal of support for Sánchez, thus forcing him to resign. Mesa was appointed president and promised to implement social and economic reforms to mitigate poverty and bring about political reform. Mesa also took on a harder stance against Chile and promised that Bolivian natural gas would not be exported through Chilean ports. Although he did experience some positive response, Mesa soon found himself under the same heavy fire that brought his predecessor down. Mesa was forced to resign on 9 June 2005. A new care-taking government, led by Supreme Court President Eduardo Rodríguez, took charge to conduct new presidential elections.

Indigenous leader Evo Morales was widely seen as the favorite to win the presidential election. Having led the opposition against Sánchez de Lozada and Mesa, Morales was blamed for the political instability that characterized Bolivia in the preceding years. Yet, he was also the most important indigenous political leader and represented an excluded class of Bolivians who had been historically subjected to neglect and poverty. Thus, his electoral victory was considered the only way to bring about stability and political inclusion.

Presidential elections were held in December 2005. Evo Morales won an absolute majority of the vote (53.7%) and became the first indigenous president in Bolivia's history. He defeated former President Jorge Quiroga (28.6%). Morales's strong showing was unusual for Bolivia, where presidents are usually elected by Congress after candidates fail to get an absolute majority of the vote. Evo Morales is the leader of the Movement Towards Socialism (MAS). MAS obtained a clear majority control of the Chamber of Deputies (72 seats in the 130-member Chamber) and 12 of the 27 seats in the Senate. As of this election there had been no other president in Bolivian history that had enjoyed such a clear mandate. Morales promised to bring about economic reforms to help the marginalized and poor, to fight corruption, and nationalize mining interests.

GOVERNMENT

Constitutionally, Bolivia is a centralist republic. The constitution of 3 February 1967 (amended in 1994) provides for a representative democracy, with its government divided into an executive branch, a bicameral legislature (a Congress consisting of a Chamber of Deputies and a Senate), and the judiciary. President Morales promised to call special elections in 2006 for a constitutional assembly mandated with drafting a new constitution.

Bolivia has had a spotty constitutional history. The current constitution is the result of a series of actions begun by the military junta that took control in November 1964. The junta replaced the 1961 constitution with the 1945 constitution, as amended in 1947. At the same time, it retained those sections of the 1961 constitution that dealt with universal suffrage, nationalization of the tin mines, land reform, and compulsory education. The 1967 constitution was further amended to circumscribe the power of militia forces. In practice, the constitution has not been rigorously observed. Coups and states of siege have been frequent. Congress was dissolved by the armed forces from 1969 to 1979 and again between 1980 and 1982. The constitution was amended in 1994 to give more power to the president and recognize indigenous people. If successful, President Morales would have a new constitution written. It would be the first where an indigenous majority took an active role in shaping the institutional order of Bolivia.

Under the constitution, the president and the vice president are elected by direct popular vote for a four-year term and cannot serve consecutive terms. If no candidate receives a majority in a presidential election, the Congress chooses among the three leading candidates. However, between 1966 and 1978, no presidential elections were held. The president's powers are considerable, and presidential authority often extends beyond the constitution. The president has the prerogative to declare a state of siege and may then rule by decree for 90 days. The Congress consists of 27 senators (three from each department) and 130 deputies. Deputies and senators are elected for five-year terms concurrently with the president. Bolivia utilizes a form of proportional representation to ensure minority representation in the Chamber of Deputies and an incomplete-list system for the Senate. The regular session of Congress lasts for 90 days.

Universal suffrage, with no literacy or property qualifications, was decreed in 1952 for married persons at 18 years and single persons at 21. The constitution includes a bill of rights, which guarantees the right to express ideas freely, petition the government, and obtain a release under a writ of habeas corpus in case of illegal detention.

POLITICAL PARTIES

Bolivia's proportional representation system has encouraged the formation of several political parties. Numerous parties and coalitions have formed and dissolved over the years, usually tied to the personalities of the various leaders.

The Nationalist Revolutionary Movement (Movimiento Nacionalista Revolucionario—MNR) was founded by Víctor Paz Estenssoro, Hernán Siles Zuazo, and others in 1941. Although militant originally, the years have moderated the party's stance. The MNR came to power in 1952, with the help of the Revolutionary Workers Party, the carabineros (national police), and the miners' and peasants' militias. In the subsequent years, the MNR began to rely increasingly on foreign aid, especially from the United States, and became increasingly autocratic and corrupt. Finally, quarreling among the party leadership weakened the party, and by 1964 the MNR's monopoly on power had dissolved. In November 1964, Paz was sent into exile in Peru.

The MNR was then eclipsed by the charisma of President René Barrientos and his Popular Christian Movement. The MNR returned as part of the Nationalist Popular Front, organized by Hugo Bánzer Suárez. Banzer then outlawed the MNR in November 1974. In the late 1970s, the MNR reappeared, along with a dissident MNRI (the "MNR of the left") headed by Hernán Siles.

With the restoration of Bolivian democracy, the MNRI won the presidency under Siles along with a coalition of leftist parties that included the Communist Party of Bolivia and the Movement of the Revolutionary Left (Movimiento de la Izquierda Revolucionaria—MIR), headed by Jaime Paz Zamora. MIR was an active partner in the Siles government; Paz Zamora was the vice president, and several MIR officials were in the cabinet. MIR won the presidency in 1989 after an extremely close election, and only after seeking support from the right wing Democratic Nationalist Alliance (Alianza Democrática Nacionalista—ADN).

The ADN was closely tied to former President Hugo Bánzer Suárez until his death. Bánzer, a former military officer, came to power in an alliance with the MNR, but eventually ruled as a military dictator. This right-wing party was denied power in 1985 by the MNR/MIR coalition. However, the ADN was instrumental in bringing Paz Zamora to power, and held half the ministerial positions in that government. In the most recent presidential election, the ADN candidate only managed to obtain 6.3% of the vote, generating doubt about the future of a party associated with the late leader, Hugo Bánzer.

In June 1997 Bánzer, whose dictatorial regime ruled Bolivia from 1971 to 1978, placed first in the nation's presidential election and, with the backing of Congress, was sworn in as president in August. Bánzer's own party, the ADN, formed a coalition government with the MIR, the UCS, and Condepa. In 2002, former president Sánchez de Lozada narrowly edged peasant activist Evo Morales in the presidential election. As mandated by the constitution, Congress had to choose the president from among the top two vote-getters. Sánchez de Lozada, who had obtained 22.5% of the vote, won with overwhelming support from most established political parties, but new groups and party splinters supported Morales. The alternative candidates demonstrated little willingness to work with the Sánchez de Lozada administration but they also failed to mount an organized and coherent political opposition. The strength of political parties in Bolivia has been weakened by the emergence of populist activists like Morales and by the resistance of aging party leaders like Sánchez de Lozada and Paz Zamora to retire from politics. In addition to the center-left MNR, the leftist MIR, and the center-right ADN, leading political parties include the New Republican Force (NFR) and Movement Toward Socialism (MAS), both populist parties created by presidential candidates Manfred Reyes and Evo Morales respectively. Morales narrowly edged Reyes out in the 2002 presidential election to face Sánchez de Lozada in the runoff election in the electoral college. As a result of no candidate winning a majority in the June 2002 election, Sánchez de Lozada was chosen president by Congress. Morales led MAS strong parliamentary representation during the unstable Sánchez de Losada and Mesa governments. After the 2005 elections, MAS, whose indigenous identity shapes its politics and policies, was the largest political party in the country.

Democratic and Social Power (PDS), a new alliance formed around former President Jorge Quiroga, became the second-largest party in congress after the 2005 elections. With a center-left, free market approach, PDS sought to replace the discredited and weakened rightwing MNR and ADN parties.

LOCAL GOVERNMENT

Bolivia is essentially a unitary system, with a highly centralized national government. Bolivia's nine departments—La Paz, Cochabamba, Chuquisaca, Potosí, Oruro, Santa Cruz, Tarija, El Beni, and Pando—were historically administered by prefects appointed by the president for four-year terms. However, in the 2005 elections, Bolivians also chose their provincial prefects directly. The departments are subdivided into 94 provinces, each headed by a subprefect appointed by the prefect. The provinces are further divided into 1,713 cantons, each of which is under the jurisdiction of a magistrate (corregidor ). As of 1997, Bolivia had 312 municipalities. There are no local legislatures. Important towns and cities have more self-government. Each has a popularly elected council of from 5 to 12 members, but municipal tax ordinances must be approved by the Senate. Mayors (alcaldes ) are also elected. The Amerindian communities, although they are not formal administrative units, are recognized by law.

JUDICIAL SYSTEM

The Bolivian judiciary usually defers to the political direction of the nation's executive. Judicial power is exercised by the Supreme Court, the superior district courts in each department (courts of second instance), and the local courts (courts of first instance). The Supreme Court, which sits at Sucre, is divided into four chambers: two deal with civil cases, one with criminal cases, and one with administrative, mining, and social cases. The 12 Supreme Court judges, called ministros, are chosen for 10-year terms by a two-thirds vote of the Chamber of Deputies from a list of three names submitted for each vacancy by the Senate. They may be reelected indefinitely.

Most cases that reach the Supreme Court are appellate; its area of original jurisdiction is limited mainly to decisions on the constitutionality of laws and to disputes involving diplomats or important government officials. Each district court judge is elected by the Senate for six years from a list of three submitted by the Supreme Court.

The district courts usually hear appeals from the courts of first instance. Judges of the courts of first instance (tribunales and juzgados) are chosen by the Supreme Court from a list submitted by the district courts. There is also a separate national labor court and an agrarian court, dealing with agrarian reform cases.

Defendants have a right to counsel, to confront witnesses, to present evidence, and to appeal. These rights are generally respected.

ARMED FORCES

As of 2005, Bolivia's armed forces totaled 31,500 active personnel, of which the Army numbered 25,000, the Navy 3,500, and the Air Force 3,000 personnel. The Army's equipment included 36 light tanks, 24 reconnaissance vehicles, 77 armored personnel carriers, and over 168 artillery pieces. The Navy's main naval units were 60 patrol/coastal vessels and 18 support vessels. The service also had a 1,700 member Marine force. The Air Force had 37 combat capable aircraft that included 18 fighter ground attack aircraft. Paramilitary forces consisted of a national police force of more than 31,100 and a narcotics police force of over 6,000. Bolivia participated in seven UN peacekeeping missions. The defense budget totaled $146 million in 2005.

INTERNATIONAL COOPERATION

Bolivia is a charter member of the UN, having joined on 14 November 1945, and participates in several specialized agencies, such as the FAO, IFC, IMF, ILO, UNESCO, UNIDO, the World Bank, and WHO. Bolivia joined the WTO on 12 September 1995. The country is also a member of the Cartagena Group (G-11), G-77, Río Group, the Amazon Pact, the Latin American Economic System, the Latin American Integration Association, the OAS, the Inter-American Development Bank, and the Andean Community of Nations. Bolivia is an associate member of Mercosur.

The country is part of the Nonaligned Movement and the Agency for the Prohibition of Nuclear Weapons in Latin American and the Caribbean (OPANAL). Bolivia has offered support to UN efforts in Kosovo (est. 1999), Liberia (est. 2003), Sierra Leone (est. 1999), East Timor (est. 2002), Burundi (est. 2004), Côte d'Ivoire (est. 2004), and the DROC (est. 1999). The country is a signatory of the 1947 Río Treaty, an inter-American security agreement.

In environmental cooperation, Bolivia is part of the Basel Convention, the Convention on Biological Diversity, Ramsar, CITES, International Tropical Timber Agreements, the Kyoto Protocol, the Montréal Protocol, MARPOL, the Nuclear Test Ban Treaty, and the UN Conventions on the Law of the Seas, Climate Change, and Desertification.

ECONOMY

Bolivia is one of the Western Hemisphere's poorest countries, despite an abundance of mineral resources. Its economy has always been dependent on mineral exports, principally of tin, but these have gradually declined since World War II. Little of the nation's great agricultural and forest potential has been developed; agriculture remains little above the subsistence level, and Bolivia must import large quantities of food. Moreover, evidence is that the coca crop eradication program, without effective crop substitution, has led to a substantial contraction in the informal market. The opening in 1999 of the $2-billion, 3,150-km (1,969-mi) Bolivia-Brazil pipeline holds the promise of the development of new export markets—in Brazil and, eventually, in the United States, via extensions into Mexico—for Bolivia's previously untapped natural gas reserves, but the project has been fraught with controversy and delays. Originally agreed to in 1974, construction did not begin until 1994, and then it was under a contract that gave Enron Corporation a 40% share, allegedly without a proper bidding process. Protests against Enron's involvement began immediately, but after Enron's bankruptcy in 2001, many new complaints surfaced concerning its failure to meet the terms of the contract, including its failure to donate a promised $10 million for rural electrification; its failure to supply land deeds for indigenous people whose land was being transversed by the pipeline; its failure to secure financing for the project (a task eventually taken over by Brazil), and, its failure, apparently, to make any investments in the project beyond an undocumented $22 million in the planning stage.

In 2003, President Sánchez de Lozada, who in a previous term had sponsored the "capitalization" program that brought in private foreign investors like Enron as partners in public sector enterprises and who had won a second term in June 2002, faced violent protests that threatened to unseat the government. In February 2003, there were violent clashes with coca farmers, and in March, the police joined protests against an IMF-sponsored tax hike, which the government subsequently rescinded. Sánchez de Lozada appealed to foreign governments, particularly the United States, for $100 million in immediate aid to help his government survive, and as of June 2003, the Bush administration had sent $10 million. The United States gives Bolivia $150 million a year in aid conditional on the government's satisfactory progress in the coca crop eradication and crop substitution program.

Bolivian economic production grew at a fairly steady rate of about 5% during the 1960s and 1970s; but in the 1980s, after the second oil shock, growth turned negative. Inflation, which had averaged 3.5% in the 1960s, averaged 22% in the 1970s, and then got out of control in the early 1980s, after the second oil shock. Attempts to implement IMF austerity programs to contain inflation back-fired in the face of violent protests and government efforts to their limit human costs. When world tin prices plummeted to a fraction of production costs in 1985 after the collapse of the International Tin Agreement (ITA), a consumer-producer international commodity agreement (ICA) for tin, inflation reached as high as 24,000%. After 1985, a strong anti-inflation consensus allowed the government to apply strong austerity measures that brought annual inflation down to 10.87% by 1987. In August 1985, President Paz implemented a drastic anti-inflationary program: he floated the peso, froze public-sector wages, cut public spending, eliminated controls on bank interest rates, authorized banks to make foreign-currency loans and offer foreign-currency accounts, initiated a comprehensive tax reform, eliminated price controls, established a uniform 20% tariff, removed tariff exemptions, eliminated virtually all import and export restrictions, and modified labor laws to permit greater flexibility in hiring and firing. The immediate result was a jump in capital repatriation and retention as a result of the rise in interest rates. The government also restructured several public-sector institutions, including the Central Bank and COMIBOL, the national mining corporation. The Central Bank closed several branches and reduced staff by 70%, and COMIBOL closed numerous mines and dismissed nearly 20,000 workers. Inflation was held to double digits until 1993, after which averages have been held to single digits.

In 1994, the first Sánchez de Lozada government introduced the innovative "capitalization" plan for privatizing six major state enterprises (the national airlines, the railways, electricity, telecommunications, the ironworks, and, most controversially, the oil and gas corporation). The plan provided for a private company to take over 50% ownership plus the operation of the enterprise, with the other shares distributed to the adult population to be deposited in private pension funds. Bolivia's high foreign debt obliged it to seek private partners in order to raise capital. The average GDP growth between 1977 and 1987 was -1.8%, but this improved during the 1990s with an average rate of 4.2%. By 1999, Bolivia was in its second decade of democratic rule and its thirteenth consecutive year of economic expansion. Market reforms were firmly in place, investment was growing steadily and inflation under control, at 4.4% in 1998. Privatization of state-owned industries had improved the investment environment of Bolivia. Growth was led by energy (particularly investments in the gas pipeline to Brazil and in hydrocarbons exploration), mining, and agriculture (particularly in soy products as a substitute for coca).

In 1999, however, real GDP growth slowed to 0.4% due mainly to the Brazilian financial crisis, which caused revenues from the newly opened Bolivia-Brazil gas pipeline to fall well below expectations. Another factor thought to be dampening growth was the success of the coca crop eradication program coupled with a lack of success in crop substitution. An estimated 50,000 to 60,000 hectares of coca had been eliminated by 2002, leaving between 5,000 and 10,000 hectares (although in 2003 there were reports of substantial increases). An improvement to 2.4% growth in GDP in 2000 was cut short by the world-wide economic slowdown in 2001, during which growth fell to 1.2%. Inflation also increased in 2000, to 4.8%, up from 2.4% in 1999, but then declined to 1.6% in 2001. Real GDP growth in 2002 was estimated at 2.5%, and average inflation at a new low of 0.9%.

On 2 April 2002, the IMF agreed to a one-year standby arrangement with the government with credit totaling about $120 million, less than Bolivia's IMF quota. For 2003, the government has laid out a program it hopes to see supported by a three-year arrangement under the IMF's Poverty Reduction and Growth Facility (PRGF), established in 1999 and normally permitting borrowing up to 140% of a country's quota. The program aims at containing public sector borrowing while increasing social expenditures, containing inflation, increasing international reserves, and adopting policies to strengthen the banking sector.

As of 2004, Bolivia's GDP per capita remained lower than many other countries in the region (including Mexico, Chile, Venezuela, Argentina, Uruguay, Brazil, Peru, Ecuador, Colombia, and Paraguay). Its GDP growth rate was also less than all of the same countries, with the exception of Bolivia. With an inflation rate less than 5%, however, Bolivia's consumer prices were near average for the region.

INCOME

The US Central Intelligence Agency (CIA) reports that in 2005 Bolivia's gross domestic product (GDP) was estimated at $23.6 billion. The CIA defines GDP as the value of all final goods and services produced within a nation in a given year and computed on the basis of purchasing power parity (PPP) rather than value as measured on the basis of the rate of exchange based on current dollars. The per capita GDP was estimated at $2,700. The annual growth rate of GDP was estimated at 3%. The average inflation rate in 2005 was 5.4%. It was estimated that agriculture accounted for 12.6% of GDP, industry 35%, and services 52.4%.

According to the World Bank, in 2003 remittances from citizens working abroad totaled $126 million or about $14 per capita and accounted for approximately 1.6% of GDP. Foreign aid receipts amounted to $930 million or about $105 per capita and accounted for approximately 12.3% of the gross national income (GNI).

The World Bank reports that in 2003 household consumption in Bolivia totaled $5.8 billion or about $658 per capita based on a GDP of $8.1 billion, measured in current dollars rather than PPP. Household consumption includes expenditures of individuals, households, and nongovernmental organizations on goods and services, excluding purchases of dwellings. It was estimated that for the period 1990 to 2003 household consumption grew at an average annual rate of 3.3%. In 2001 it was estimated that approximately 37% of household consumption was spent on food, 11% on fuel, 9% on health care, and 14% on education. It was estimated that in 2004 about 64% of the population had incomes below the poverty line.

LABOR

Bolivia's labor force was estimated at 4.22 million in 2005. In 2000, (the latest year for which data was available), the 28.2% of the work force was in manufacturing, while 4.9% was in agriculture, and 66.8% in the services sector. As of 2005, unemployment in Bolivia was estimated to be widespread. In the country's urban areas, the unemployment rate was estimated at 8% that year.

Workers may form and join unions, but the labor courts and inadequate government laws undermine the effectiveness of this right. The government must authorize a union, may dissolve a union, and must confirm the legitimacy of elected officers. Workers, however, are generally not penalized for union activity. The Bolivian Labor Federation theoretically represents all workers, but only one half of the employees actually belong. About 25% of the country's workers in the formal economy belong to unions. However, the formal economy covers only about 30% of the country's entire workforce. Strikes are prohibited in public services, although some strikes were initiated and workers were not penalized.

The law prohibits child labor under age 14, but this is generally ignored. According to statistics from UNICEF and the Bolivian government, about 32% of the country's children and adolescents between the ages of 7 and 19 were engaged in some kind of work. The minimum wage is subject to annual negotiation and in 2005 was set at $55 per month. This does not provide a decent standard of living, and most workers earn more than the minimum. However, the minimum wage does not cover the 30% of workers in the informal sector. The workday is set at eight hours a day with a maximum of 48 hours per week, but this is not effectively enforced.

AGRICULTURE

An estimated 2.9% of Bolivia's land area is devoted to arable farming and permanent crops. Agricultural development has been impeded by extremely low productivity, poor distribution of the population in relation to productive land, and a lack of transportation facilities. Prior to 1953, about 93% of all privately owned land was controlled by only 6.3% of the landowners. The agrarian reform decree of August 1953 was aimed at giving ownership of land to those working it and abolishing the large landholdings (latifundios). By 1980, 30.15 million hectares (74.5 million acres) had been distributed to 591,310 families. In 2004, 43% of Bolivia's economically active population was engaged in agriculture.

Except around Lake Titicaca, about two-thirds of the cultivated land on the Altiplano lies fallow each year. Dry agriculture is the rule, and the most important crops are potatoes, corn, barley, quinoa (a millet-like grain), habas (broad beans), wheat, alfalfa, and oca (a tuber). The potato is the main staple; dehydrated and frozen to form chuño or tunta, it keeps indefinitely. The Yungas and Valles contain about 40% of the cultivated land. The eastern slopes, however, are too steep to permit the use of machinery, and erosion is a serious problem despite the practice of terracing. The most lucrative crop in the Yungas is coca, which is chewed by the local population and from which cocaine is extracted. The government allows up to 12,000 hectares (29,600 acres) of legal coca cultivation to supply the legitimate pharmaceutical market. The net production of coca leaf was estimated at 29,100 tons in 2003, down from 85,000 tons in 1995. Coca leaf production represents about 20% of world production. Coffee, cacao, bananas, yucca, and aji (a widely used chili pepper) are also important. In the fertile irrigated valleys, the important crops are corn, wheat, barley, vegetables, alfalfa, and oats. The Tarija area is famous for grapes, olives, and fruit. The region east of Santa Cruz de la Sierra, where most of the nation's unused fertile lands lie, is considered the "promised land" of Bolivian agriculture. Lowland rice production is increasing rapidly and already satisfies domestic need. The sugar grown there is used mostly for alcohol, but in the 1960s, the mills increased their refining capacity, thus meeting internal consumption requirements. In the tropical forests of the northeast, the Indians practice slash-and-burn agriculture.

The leading commercial crops are soybeans, cotton, sugar, and coffee. Production in 2004 for selected crops was soybeans, 1,670,000 tons; seed cotton, 80,000 tons; sunflowers, 167,000 tons; wheat, 107,900 tons; coffee, 24,000 tons; sugar, 4.8 million tons; and rice, 304,500 tons. Droughts and freezing weather in the west during the 1990s caused harvests to fall for basic crops like quinoa, potatoes, barley, and garden vegetables.

ANIMAL HUSBANDRY

In 2004 there were an estimated 6.8 million head of cattle, 8.6 million sheep, 1.5 million goats, 3 million hogs, 635,000 donkeys, and 323,000 horses. Poultry numbered 75 million in 2004.

The main cattle-raising department is El Beni, in the tropical northeast, which has about 30% of the nation's cattle. In 1994, a joint program began with Brazil to eradicate and control hoof and mouth disease in cattle, which had caused exports of beef to fall that year. Cochabamba is the leading dairy center, and improved herds there supply a powdered-milk factory. Genetic development helped increase milk production from an average of 113,000 tons annually during 1989–91 to 233,000 tons by 2004. The Amerindians of the high plateau depend on the llama because it can carry loads at any altitude and provides leather, meat, and dung fuel. Leading animal product exports are hides, alpaca and vicuña wool, and chinchilla fur. Breeding of alpacas and llamas is by and large left to chance; disease is rampant, and production is low, considering the relatively large numbers of animals. Llamas and alpacas are grown for their wool and meat in the Altiplano of La Paz, Potosí, and Oruro. In 1995, the llama population was about two million, and the alpacas numbered 324,336. The United Nations and the Integrated Association of Camelmen in the High Andes began a program in 1994 to improve the quality of the animals' meat and wool.

FISHING

Fishing is a minor activity in Bolivia. A few varieties of fish are caught in Lake Titicaca by centuries-old methods and sent to La Paz. The catch was 6,974 tons in 2003. Bolivia has some of the world's largest rainbow trout, and Bolivian lakes are well stocked for sport fishing.

FORESTRY

Bolivia is potentially one of the world's most important forestry nations. More than half of the total area is held as public land by the state, and more than 40 million hectares (100 million acres) of forest and woodland are maintained as reserves or for immediate exploitation. About 53% of Bolivia's land area consists of forests and woodlands. Trees are mostly evergreens and deciduous hardwoods, with the richest forests on the Andes' eastern slope along the tributaries of the Amazon; humid tropical and subtropical forests account for 37% of Bolivia's forests. More than 2,000 species of tropical hardwoods of excellent quality, such as mahogany, jacaranda, rosewood, palo de balsa, quina, ironwood, colo, and cedar, abound in this area. Sawmills are few, however, and the almost total lack of transportation facilities has made exploitation expensive. Most of the sawmills are in the eastern department of Santa Cruz. Roundwood production in 2003 was 2.86 million cu m (101 million cu ft), up from 1.6 million cu m (56 million cu ft) in 1991. About 50% of Bolivia's exports are derived from forestry.

MINING

Bolivia has traditionally been a mining country—mining was the country's top industry—producing antimony, bismuth, copper, gold, lead, silver, tungsten, and zinc. It had large reserves of gold, lithium, iron ore, natural gas, and petroleum.

Production totals for 2003 were: zinc, 144,985 metric tons; gold, 9,362 kg; silver, 465,309 kg; tin, 16,755 metric tons; lead, 9,740 metric tons; antimony, 2,911 metric tons; tungsten, 556 metric tons; rough amethyst, 144 kg; hydraulic cement, 1,138,000 metric tons; and arsenic, 276 metric tons. The richest and most productive alluvial gold deposits were located in Challana and the Kaka, the Mapiri, and the Tipuani River valleys, in the northern area of La Paz Department.

For two centuries following the discovery of silver at Cerro Rico de Potosiacute in 1545, the area that became Bolivia was the largest producer of silver. Cerro Rico was protected as a United Nations Educational, Scientific, and Cultural Organization site, making the use of expensive backfill mining techniques necessary to maintain the mountain's shape. New studies at the base of the mountain estimated 3.3 million kg of silver in its gravel bed channel deposits.

Bolivia's tradition of state-owned monopolies has been a highly politicized topic; the government's capitalization plan became a way to bring Bolivia the benefits of privatization, without entirely turning over state companies to private investors. Mining codes enacted in 1991 allowed foreign firms to operate with fewer restrictions and replaced royalties with a 30% tax on profits. By 1994, privately owned commercial mines became the dominant producers, responsible for 52% of the value of all mine production. In 2000, the medium-sized mining sector was responsible for 59% of the value of mine production; the small-sized mining sector accounted for 36%; and COMIBOL's share was 2%, down from 25% in 1997, and 51% in 1985. Starting in 1999, companies looking to invest in the minerals sector were granted a deferral on value-added tax and customs duty payments, representing a savings of up to 20% on investment project costs. The large number of available prospects and a new mining code have encouraged mineral exploration in the country.

ENERGY AND POWER

Capacity at Bolivian electric power plants rose from 267,000 kW in 1970 to 1.3 million kW in 2001 and stood at 1.228 million kW in 2002. Of the last amount, 25% was hydroelectric and 75% thermal. Electric power output in 2000 was 3.8 billion kWh, of which 50.1% was hydroelectric, 48.4% was from fossil fuels, and 1.5% was from other sources. In 2002, electric power output rose to an estimated 4.049 billion kWh, of which, 2.202 billion kWh was generated by hydroelectric means; 1.766 was produced by thermal sources; and 0.081 billion kWh was from geothermal or other sources. Bolivia's national electrical grid, Sistema Interconectado Nacional (SIN) connects approximately 83% of the nation's installed generating capacity. The 17% that remains is independent of the grid and is classified as "Aislados." As of 2003, SIN was supplied by nine generating firms, of which, three: Empresa Electrica Valle Hermoso (EVH); Empresa de Generacion Guaracachi (EGSA); and Compania Boliviana de Energia Electrica (COBEE), supplied 58% of the power. Consumption of electricity in 2000 totaled 3.6 billion kWh. In 2002, consumption was estimated at 3.8 billion kWh.

According to the Oil and Gas Journal (OGJ), Bolivia has the fifth-largest proven reserves of crude oil in South America at 441 million barrels as of January 2004. However, the estimates tend to vary. Bolivia's Ministry of Mining and Hydrocarbons reports that the nation's proven reserves stand at 462 million barrels, as of end 2003. While Bolivia's domestic oil production is able to meet the country's internal needs, the country must still import certain petroleum products, in particular, diesel. As of November 2004, refinery capacity stood at 67,000 barrels per day. Production of natural gas has gradually increased from the mid-1980s until the early 1990s. Meanwhile, estimates of Bolivia's natural gas reserves keep growing. In 2002, Bolivia's natural gas reserves were put at 680 billion cu m (24 trillion cu ft), according to an official estimate. As of January 2004, the nation's proven reserves of natural gas were placed at 27.6 trillion cu ft by the Bolivian government. If potential reserves are included, Bolivia may have the second-largest in South America. Estimated production in 2000 was 3.3 billion cu m (116 billion cu ft). In 2004, production totaled 8.5 billion cu m.

The first phase of a pipeline project linking Bolivia to São Paulo, Brazil, was completed in February 1999 at a cost of $2.1 billion and went into operation later the same year. Future pipeline plans include a pipeline to northern Chile, and a project to run a pipeline to Asunción, Paraguay, with a possible extension to Curitiba, Brazil. In February 2002 Bolivia and Brazil signed an agreement pledging further cooperation in the energy sector, including the possibility of a new $5 billion gas pipeline.

INDUSTRY

Historically, industrial development has been severely restricted by political instability, the small domestic market, the uncertain supply of raw materials, and the lack of technically trained labor. Domestic industry supplies less than one-fourth of the processed food and manufactured goods consumed. Over one-half of manufacturing output is in nondurable consumer goods—food, beverages, tobacco, and coffee. Handicrafts and hydrocarbons account for much of the remainder.

At their peak, Bolivia's tin mines accounted for 70% of the country's total export earnings, but in 1985 the London Metal Exchange abruptly halved the price of tin, causing economic chaos. The ensuing economic stabilization program was a mixed blessing to industry. The easing of foreign-exchange restrictions, the uniform 20% tariff, and the significant reduction in duties on nonessential consumer goods improved the availability of raw materials and semi-manufactured goods, thereby stimulating industrial growth.

In 1992, growth in the construction industry was a remarkable 15%, sustained both by the larger number of public works projects and by private investment. By 1995, this growth had slowed to 5%. The manufacturing sector grew by 3.8% in 1995, with the largest gains occurring in agriculture-based industries despite the problems resulting from the precarious state of agriculture. The mining and hydrocarbon sector contracted because of the decline in mining output and stagnation in the production of petroleum and natural gas. The drastic reduction of COMIBOL's production resulted from the closing of several mines and frequent labor disputes. The slump in the hydrocarbons subsector was because of the depletion of a number of wells, lack of investment in exploring for new deposits, and the torrential rains that damaged the infrastructure of the state-owned company.

In the late 1990s, Bolivia experienced a renaissance in the mining and hydrocarbons sectors due to privatization of the stateowned interests in these sectors. This attracted foreign interest in developing the energy and minerals potential of the country. In 2002, Bolivia had three oil refineries with a production capacity of 63,000 barrels per day.

The construction and manufacturing sectors were experiencing a slowdown in 2002, after three years of a stagnant economy. The development of the country's infrastructure was expected to be an engine for industrial growth, however. The opening of a gas pipeline to Brazil in 1999 was expected to take in much of Bolivia's natural gas production.

SCIENCE AND TECHNOLOGY

The Bolivian National Academy of Sciences was founded in 1960. Notable scientific and technological research institutes and learned societies include the Bolivian Geological Service and Bolivian Petroleum Institute, both in La Paz. Bolivia has eight universities offering courses in basic and applied sciences. In 1987–97, science and engineering students accounted for 30% of college and university enrollments. In 2002, Bolivia had 118 researchers and 6 technicians per million people actively engaged in research and development (R&D). In that same year, Bolivian expenditures on R&D totaled $60.692 million or 0.28% of GDP. Higher education accounted for 31% of R&D expenditures in 2002, with 20% coming from the government, 14% from foreign sources, 19% from nonprofit institutions, and 16% from business. Undistributed expenditures accounted for the remainder. High technology exports in 2002 totaled $15 million, or 7% of all manufactured exports.

DOMESTIC TRADE

La Paz is the chief marketing center. Oruro is second to La Paz as a market for imported goods and is the main distributing center for mining supplies. Santa Cruz is also quickly becoming an important market center for imported goods. Cochabamba distributes its agricultural production to La Paz and the mining districts. Though most retail is accomplished through small shops and street vendors, there are a number of large import houses and wholesalers in the major cities. In more rural areas, most buying and selling is carried on at weekly markets and village fairs and barter may still be common. Advertising has become highly developed over the past few years, with television being the most used medium, followed by newspapers and radio. There are at least 12 major market research firms active in the country.

In the past decade, the government has sponsored several programs of capitalization/privatization for public sector enterprises. Under these programs, investors receive 50% of the companies' shares and management control but are required to invest directly into the company for a number of years. However, many of these companies are controlled by foreign investors, which has made some capitalization plans nationally unpopular. In 2000, violent protests over plans to capitalize the water company of Cochabamba forced the government to cancel an arrangement with foreign investors and keep the utility under public control.

Regular retail store hours are weekdays, 9 am to noon and 2:30 to 6:30 pm. Business hours differ somewhat by city. In La Paz and Cochabamba, hours are 9 am to noon and 2:30 pm to 6:30 or 7 pm. In Santa Cruz, hours are generally from 7 or 8 am to 4:30 pm with a two-hour lunch break around the middle of the workday. Bank hours are 9 am to noon and 2 to 4:30 pm.

FOREIGN TRADE

Bolivia depends primarily on its mineral exports, especially zinc, natural gas, and gold. Tin exports, which had been an integral part of the Bolivian export schedule, have been gradually decreasing since 1946. The 1985 devaluation of tin caused major problems in the Bolivian economy, and now tin plays a minor role in Bolivia's exports, as the country moves to diversify. Exports of natural and manufactured gas and petroleum are expected to surpass those of other minerals in the future, as a new pipeline has facilitated exports of natural and manufactured gas to neighboring Brazil. In 2004, natural gas exports totaled $619.6 million, and zinc exports totaled $151 million. Agricultural exports include wood, oil seeds, soya, and animal feed. Principal imports include $984.6 million in raw materials and semi-manufactures, $498.4 million in capital goods, and $407.4 million in consumer goods.

The United States has historically been Bolivia's chief trading partner. However, recently Bolivia has been diversifying its trade relations to include more regular trade with regional and European partners. As a member of the Comunidad Andina (CAN—Andean Community), Bolivia has been trading with the other members, including Peru, Venezuela, Colombia, and Ecuador. Since 1997, Bolivia has also been an associate member of the Mercado Comun del Sur (Mercosur—the Southern Cone customs union). Though devaluations in Brazil and Argentina (1999 and 2002 respectively) and nontariff barriers in CAN have discouraged trade somewhat, Brazil has nonetheless become Bolivia's main trading partner due to gas exports (something that China has been increasingly interested in importing, as well). Bolivia's drive to diversify its exports is assisted by Chinese demand for soybeans and other Bolivian commodity exports.

BALANCE OF PAYMENTS

Unlike many nations, Bolivia has no large earnings from tourism or shipping to compensate for trade deficits. After World War II, falling exports and rising imports led to depletion of the nation's gold and foreign currency reserves. By 1969, in part because of increased US aid, the unfavorable balance had been considerably reduced; five years later, thanks to import restrictions and a sharp rise in export earnings, Bolivia had a favorable payments balance of $72.5 million. In the late 1970s, Bolivia's international financial position again began to worsen, and by the end of 1986, the country had accumulated $3.7 billion in foreign debt (perhaps $100 million of it in the private sector), an amount equal to the GDP. External debt equaled $4.4 billion at the end of 2000.

In 2000, foreign direct investment stood at $750 million, some 25% lower than in 1999, due in part to the completion of capitalization contracts. Foreign direct investment was concentrated in the hydrocarbons and service sectors. Bolivia's inclusion in the IMF/World Bank Heavily Indebted Poor Countries (HIPC) Initiative will provide the country significant debt relief by both bilateral and multilateral creditors.

The International Monetary Fund (IMF) reported that in 2003, Bolivia had exports of goods totaling $1.57 billion and imports totaling $1.50 billion, making for the first positive trade balance since 1999, when the trade balance was at a $487 million deficit. The current account balance was also positive in 2003, at $35.6 million; the balance had been steadily decreasing annually from the deficit of $488 million recorded in 1999.

BANKING AND SECURITIES

The Central Bank of Bolivia, established in 1928 and reorganized in 1945, is the sole bank of issue. The 1995 Central Bank Law refined the CBB's controls on the banking sector. The Superintendent of Banks regulates the operations of banks, and the Prudential Norms Financial Committee (CONFIP) regulates finance companies. The Bolivian Development Corp. channels credits from the Inter-American Development Bank into industrial expansion projects.

There are 13 private banks, accounting for over 85% of the deposits and loans of the financial system. Private banks, which had been under strict control since 1953, were largely deregulated in mid-1985. Commercial banks include: Banco Boliviano Americano (BBA), Banco de Credito de Bolivia, Banco de la Nacion Argentina, Banco de La Paz, Banco de la Union, Banco Economico, Banco Industrial SA (BISA), Banco Mercantil, Banco Nacional de Bolivia, Banco Real, Banco Santa Cruz, and Citibank. The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $717.9 million. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $3.7 billion. The money market rate, or the rate at which financial institutions lend to one another in the short term, was 6.99%. The discount rate, the interest rate at which the central bank lends to financial institutions in the short term, was 8.5%.

The Bolivian Stock Exchange is the main stock exchange, with seven listed companies trading in 1995. There is also the Santa Cruz Stock Exchange.

INSURANCE

In 1995, there were over 20 insurance companies doing business in Bolivia. The insurance industry in Bolivia grew during the 1990s, as premium income increased 170% between 1988 and 1998, while the country's GDP grew only 86%. Liablity insurance grew at the extraordinary rate of 555% within that same time frame. Motor vehicle insurance is the largest sector, comprising 43% of the market, and is followed by fire, engineering, and miscellaneous risks insurance. Members of the Bolivian Insurance Association accounted for 93% of all 1998 premiums.

PUBLIC FINANCE

Many of the expenditures and revenues of autonomous agencies—government development, mining, petroleum corporations, and the universities—do not appear in the central budget. Also, an estimated 15% of revenues come from illegal drug shipments. Since April 1992, comprehensive privatization has helped decrease the need for public sector expenses. In 1996, both current and capital spending had been reduced as a percentage of GDP. On the one hand, state capital spending, in the productive sector, fell overall as the privatization and capitalization programs relieved the state of responsibility for the capital spending of leading industrial enterprises; on the other, social investment rose sharply.

The US Central Intelligence Agency (CIA) estimated that in 2005 Bolivia's central government took in revenues of approximately $2.9 billion and had expenditures of $3.4 billion. Revenues minus expenditures totaled approximately -$522 million. Total external debt was $6.43 billion.

The International Monetary Fund (IMF) reported that in 2003, the most recent year for which it had data, central government revenues were b14,123 million and expenditures were b18,806 million. The value of revenues in US dollars was us$1,844 million and expenditures us$2,433 million, based on a market exchange

rate for 2003 of us$1 = b7.6592 as reported by the IMF. Government outlays by function were as follows: general public services, 19.8%; defense, 6.2%; public order and safety, 7.3%; economic affairs, 15.7%; environmental protection, 0.9%; housing and community amenities, 0.8%; health, 9.6%; recreation, culture, and religion, 0.2%; education, 22.6%; and social protection, 17.0%.

TAXATION

The Bolivian revenue system contains an unusually large number of taxes, leading to complexity and confusion that make the system difficult to enforce. Income taxes are extremely low, with a flat individual rate of 13%. In December 1994, a 25% tax on corporate income was established which replaced the 3% national income tax on corporations' taxable net worth. Both local and foreign corporations can receive tax holidays, exemptions, and other benefits if they invest in new companies or in production of nontraditional exports. There is an effective tax rate of 12.5% on income and net dividends to nonresident parent companies. There are taxes on the value of particular assets, such as motor vehicles, boats, and airplanes, which can be deducted from income tax, and taxes of 10–18% on the price of a vehicle. Bolivia also levies excise taxes on alcoholic and nonalcoholic beverages (1.61 bolivianos and 0.20 bolivianos per liter, respectively) and a 50% tax on tobacco products. There is also a 20% tax on perfumes and a 30% tax on cosmetics, and other items classed as luxuries. A value-added tax (VAT) of 13%, which can be deducted from income tax, is in effect. The hydrocarbons industry, as outlined in the Hydrocarbon Law, pays an 18% royalty and tax rate for new projects, and a 60% royalty and tax rate on existing projects.

CUSTOMS AND DUTIES

Export and import duties have traditionally been an important source of government revenue, but in mid-1985, as part of a drive to stimulate the economy, the government established a uniform 20% duty (which has since been lowered to 10%) on all imports, eliminated tariff exemptions, removed import restrictions except for those related to health and state security, and eliminated all export controls except those on dangerous substances, endangered species, and cultural treasures. Most import charges end up totaling between 30 and 45%. This is considerably higher than the 20% uniform duty due to inspection company fees (2%), customs tariffs (2% for publications, 5% for capital goods, and a 10% flat rate), customs warehouse fees, Internal Revenue Service fees (15%), a specific consumption tax (for luxury goods, up to 60%), customs broker fees (up to 2%), and monies for forms and fees. Customs brokers charge up to 20% in fees to cover their own tax liability.

The 1990 Investment Law created a number of Free Trade Zones (FTZs), including those in El Alto, Puerto Aguirre, Cochabamba, Santa Cruz, Oruro, and Desaguadero. Bolivia had free trade agreements with MERCOSUR countries (Brazil, Argentina, Paraguay, Uruguay, and Chile) starting in 1997. In 1994, Bolivia signed a free trade agreement with Mexico and continues to lower or eliminate trade barriers.

FOREIGN INVESTMENT

The Patiño, Hochschild, and Aramayo mining groups, expropriated in 1952, accounted for nearly all the foreign capital in mining at that time. In 1955, Bolivia issued the Petroleum Code, safeguarding foreign investment in the exploitation of petroleum, and US oil companies began large-scale exploration and development. Although the investment law of December 1971 granted substantial benefits to foreign investors, political instability, inadequate infrastructure, and Bolivia's poor debt-repayment record held foreign investments down. The 1990 Investment Law guaranteed basic rights to foreign investors: national treatment, free currency conversion, no restrictions on remittances, and the right to international arbitration in most industries. Under the Capitalization Program (Bolivia's version of privatization) in 1996–97, 50% ownership in five of the largest parastatals—in transportation, energy, and telecommunications—was exchanged for the pledge of $1.7 billion in new investment by foreign "strategic partners." Subsequent laws governed activities in the mining, hydrocarbon, and banking sectors. Bolivia's economic future lies in the development of large reserves of natural gas discovered by foreign companies working in Bolivia. Plans to construct pipelines to deliver gas to Mexico and California depend on foreign investment.

Bolivia has free trade zones (FTZs) in El Alto (the Department of La Paz), Santa Cruz, and Cochabamba. In 2000, foreign investment activities were the focus of two widespread social protests. In April, protests spread nationwide over the issue of foreign investment in municipal water systems and in September/October, economically damaging roadblocks were thrown up around the country by indigenous farmers, coca growers, and a variety of labor and social movements to protest the government's policies. Relevant to the investment climate, in 2003 Bolivia remained on the US government's list of 23 "major" drug-producing and/or drug-transit countries.

Foreign direct investment (FDI) inflow to Bolivia averaged $928 billion from 1997 to 1999 under the impetus of the Capitalization Program, but then dropped to an average of $670 million for 2000 and 2001 mainly due to the fall in investment from Argentina (from $158 million in 1999 to $9.2 million in 2000) and Brazil ($144 million to $38.5 million). The United States has been Bolivia's major foreign investor, accounting for a third to a half of all investment. In 1999 and 2000, other major investors were the Netherlands ($145 million total), Italy ($116.2 million total) and Spain ($59 billion total). Smaller investments were made by Chile, Peru, and Canada.

As an associate member of Mercosur, Bolivia has benefited from increasing investment from regional partners and Europe. In the place of the United States, which invested in the privatized oil and electricity industries, now Brazil, Italy, and the United Kingdom are big investors. However, the Economist Intelligence Unit predicts that political uncertainty may stem foreign investment in energy in 2006.

ECONOMIC DEVELOPMENT

In 1985, Bolivia was one of the first Latin American countries to institute market liberalizations—following the model set by Chile years earlier. In 1993, newly elected President Lozada furthered these liberalizations by increasing privatizations, which were called capitalizations in order to deflect criticism, increasing money spent on education and decreasing the federal government's regulatory power.

Unrest among the large indigenous population and the difficulties of cracking down on cocoa leaf production hampered economic development in South America's poorest country. Bolivia reached the completion point of the International Monetary Fund (IMF) and World Bank's Heavily Indebted Poor Country (HIPC) debt relief initiative in 2001, becoming the second country to do so, after Uganda. Total debt-service relief under the HIPC Initiative was to amount to around $2 billion. The HIPC assistance and bilateral debt relief was to reduce Bolivia's total external debt by one-half. A $121 million Stand-By Agreement with the IMF was approved in April 2003, and was due to expire in April 2004. In 2003, the government was pursuing policies aimed toward poverty reduction and the stabilization of the financial system, including the enacting of a modern bankruptcy law. Many public sector enterprises have been capitalized, meaning investors in Bolivia may acquire a 50% share and management control of the public enterprises by investing in them directly over a period of years rather than paying cash to the government. The capitalization program raised foreign direct investment in Bolivia in the amount of $1.7 billion in stock during 1996–2002. Total external debt, however, ranged between $5.5 billion and close to $5.8 billion from 1999–2003 with a slight dip to $4.7 billion in 2001. In 2003, the total external debt to GDP ratio was 70.3%. In December 2005, $232 million in debt to the IMF was cancelled.

Evo Morales became president in January 2006, and it was expected that economic policy would become more state-led during his five-year term. Increased public spending will likely cause the fiscal deficit—a deficit that had narrowed in May 2005 due to revenues generated by the new hydrocarbons law—to grow in 2006–2007.

SOCIAL DEVELOPMENT

Social security coverage, through private insurance, is compulsory for all workers, and voluntary coverage is available to the self-employed. Those covered by the program receive medical, hospital, dental, and pharmaceutical care for themselves and their families. Old age pensions begin at age 65. Maternity benefits cover female workers and workers' wives. Family allowances include cash payments for birth, nursing, and burial and monthly subsidies for each unmarried child. Employers contribute 2% of payroll for workers' compensation and are also required to grant two months' severance pay to dismissed employees. Employees contribute 10% of earnings for old age, and additional amounts for other benefits.

Although guaranteed equal rights under the law, women by and large do not enjoy the same social status as men due to limited political power and social traditions. In most cases, women earn less than men for doing similar work. Spousal abuse and domestic violence are widespread in Bolivia. As of 2004, the government had taken little action to combat domestic abuse. Laws are in place to protect women, but they are irregularly enforced. Sexual harassment, although illegal, is considered to be common.

The government does not give priority to improve the welfare of children. Government surveys show that nearly one in three children are physically or psychologically abused. Corporal punishment is used widely at home and in schools. Child labor and prostitution continue to be major problems.

Human rights improved in 2004 but there were still problems in many areas including excessive force, extortion, and improper arrest by security forces. The prison system is harsh and life-threatening.

HEALTH

Health conditions have been notably poor, owing to poor hygiene and an insufficient number of doctors and hospitals, especially in rural areas. The most common disorders are acute respiratory diseases, tuberculosis, malaria, hepatitis, and Chagas' disease. In 1996, 618 per 100,000 people were diagnosed with malaria and in 1999 there were 238 cases of tuberculosis per 100,000 people. In 1995, cholera was reported in 2,293 cases. Malnutrition is a serious and growing problem, with 27% of children under five-years-old considered malnourished as of 2000. In the same year, 79% of the population had access to safe drinking water and 66% of the rural population had adequate sanitation. In 2004, there were an estimated 73 physicians, 107 nurses, and 8 dentists per 100,000 people. Bolivia had 3,165 public and private health care facilities, with a total of 12,554 beds, as of 2002. The country's public health care expenditures as of 1999 equaled an estimated 6.5% of GDP. The 1997–2002 Strategic Health Plan was designed to ensure universal access to primary care through a system of basic insurance.

There was a birth rate of 31 per 1,000 people in 1999. Approximately 49% of married women (ages 15–49) were using contraception as of 2000. The government of Bolivia paid 65% of vaccination costs in 1995. In 1999, one-year-old children were immunized at the following rates: diphtheria, pertussis, and tetanus, 78%, and measles, 79%. The infant mortality rate has declined from 117 per 1,000 live births in 1985 to 53 per 1,000 in 2005. As of 2000, an estimated 27% of all children were suffering from malnutrition. Life expectancy in 2005 was estimated at 65.5 years. The overall death rate was 8 per 1,000 people.

The HIV/AIDS prevalence was 0.10 per 100 adults in 2003. As of 2004, there were approximately 4,900 people living with HIV/AIDS in the country. Health conditions in Bolivia have improved since the World Health Initiative Program in 1991. The Bolivian government has taken a greater role in the health of its citizens.

HOUSING

At the 2001 census, there were a total of about 2,270,731 housing units nationwide. The majority of all housing units were detached private dwellings. About 66% of all housing units are owner occupied. According to reports from Habitat for Humanity, about 52% of all homes are built with adobe and 69% have dirt floors.

Although the government intended to provide adequate drinking water systems for all places of 2,000 or more inhabitants and to alleviate the sewage system shortage, water systems remain inadequate in some areas. In 2000, only about 79% of the population had access to improved water sources and only 66% had access to improved sanitation.

EDUCATION

Primary education, which lasts for eight years, is compulsory and free of charge. Secondary education lasts for another four years and students have the option of choosing either a general education or a technical studies track. The academic year runs from March to December. The language of instruction is Spanish.

In 2001, about 46% of all children between the ages of three and five were enrolled in some type of preschool program. Primary school enrollment in 2003 was estimated at about 95% of age-eligible students. The same year, secondary school enrollment was about 71% of age-eligible students. Most students complete their primary education. The student-to-teacher ratio for primary school was at about 24:1 in 2003; the ratio for secondary school was about 24:1.

Bolivia has about 10 state-funded and 23 private universities. The University of San Andrés (founded in 1930) in La Paz is Bolivia's largest university; the University of San Francisco Xavier in Sucre, dating from 1624, is one of the oldest universities in Latin America. In 2003, it was estimated that about 39% of age-eligible students were enrolled in tertiary education programs. The adult literacy rate for 2004 was estimated at about 86.5%, with 92.9% for males and 80.4% for females.

As of 2003, public expenditure on education was estimated at 6.3% of GDP, or 19.7% of total government expenditures.

LIBRARIES AND MUSEUMS

There are a small number of public libraries throughout Bolivia, with a combined collection of 200,000 volumes. The National Archives and Library in Sucre (114,000 volumes) serves as a public library for that city and as a depository library of the United Nations. A second facility, the United Nations Information Center, is located in La Paz. Another important public library is the Mariscal Andrés de Santa Cruz Municipal Library (80,000 volumes) in La Paz. The most important university libraries are those of the University of San Andrés in La Paz (121,000 volumes) and the University of San Simón in Cochabamba (62,000 volumes). The Department of Culture operates a large library in La Paz with 140,000 volumes, as does the Institute of Bolivian Culture, housing 150,000 volumes.

The National Museum of Archaeology (1846) in La Paz is the most prominent museum. Also in La Paz are the National Museum of Art (1961) and the National Museum of Tihuanaca, featuring the art and culture of the indigenous people of Bolivia. There are several provincial museums, including the House of Liberty in Sucre, commemorating Bolivian independence, and the Institute of Anthropology and Archaeology Museum in Cochabamba.

MEDIA

In 2003, there were an estimated 72 mainline telephones for every 1,000 people. The same year, there were approximately 152 mobile phones in use for every 1,000 people. The telegraph system is owned by the Ministry of Communications; remote parts of the country are connected by wireless.

A government-owned television station broadcasts from La Paz, but there are several privately owned stations in the country as well. There were 171 AM and 73 FM radio stations in 1999. There were 48 television stations as of 1997. In 2003, there were an estimated 671 radios for every 1,000 people. Due to low literacy rates, radio is the most important source of news and information for many rural dwellers. In 2003, there were 22.8 personal computers for every 1,000 people and 32 of every 1,000 people had access to the Internet. There were 16 secure Internet servers in the country in 2004.

In 2004 there were at least 13 major daily newspapers. The largest La Paz daily newspapers are El Diario, La Razon, El Deber, and Presencia (2004 circulation figures were unavailable). Important provincial dailies are Los Tiempos (Cochabamba), with 19,000 circulation, and El Mundo (Santa Cruz), with 15,000.

The Constitution of Bolivia provides for the freedom of speech and press, and the government is said to allow free operation of electronic and print media. However, the penal code provides that persons found guilty of slandering government officials may be jailed, though it is said that this law is infrequently enforced.

ORGANIZATIONS

Learned societies include the Institute of Bolivian Sociology, the Society of Geographic and Historical Studies, the Center of Philosophical Studies, the Bolivian Language Academy, the National Academy of Fine Arts, the National Academy of Sciences, the Archaeological Society of Bolivia, and the Tiahuanaco Institute of Anthropology, Ethnology, and Prehistory.

Youth organizations include Girl Guides, the Scout Association of Bolivia, YWCA/YMCA, and programs of the Special Olympics.

The National Chamber of Commerce and the National Chamber of Industry are both headquartered in La Paz. There are departmental chambers of commerce throughout the country.

There are national chapters of the Red Cross, Habitat for Humanity, UNICEF, and Caritas.

TOURISM, TRAVEL, AND RECREATION

The dry season (May–November) is Bolivia's peak tourist season. La Paz and Sucre have many colonial churches and buildings, and there are Inca ruins on the islands of Lake Titicaca, which also offers opportunities for fishing and sailing. The world's highest ski run is located at Chacaltaya. Mountain climbing and hiking are available on the country's cordilleras and other peaks.

In 2003, there were about 367,000 visitor arrivals in Bolivia, including 209,715 visitors from the Americas. Tourism receipts totaled $176 million. Hotel rooms numbered 20,611 with 33,338 beds and a 20% occupancy rate. Visitors stayed an average of two nights.

In 2005, the US Department of State estimated the cost of staying in La Paz at $109 per day. Costs in Santa Cruz were an estimated $127 per day and in Cochabamba, $98 per day. In other areas, daily expenses averaged $83 per day.

FAMOUS BOLIVIANS

Pedro Domingo Murillo (1757–1810) was the precursor and first martyr of Bolivian independence. Andrés de Santa Cruz (1792–1865), who considered himself the "Napoleon of the Andes," dominated the early years of the independent nation. The most infamous of the 19th-century Bolivian dictators was Mariano Melgarejo (1818–71). Ismael Móntes (1861–1933), who was president of Bolivia from 1904 to 1909 and from 1913 to 1917, is identified in Bolivian history as the "great president." Simón Patiño (1861–1947), the richest of the "big three" tin barons, began his career as a loan collector and acquired his first mine by chance; he later became one of the world's wealthiest men. Víctor Paz Estenssoro (1907–2001), architect of the national revolution of 1952 and founder of the MNR, served as president during from 1952 to 1956 and was reelected in 1960 and 1964; he was deposed shortly thereafter by a military junta but returned to office from 1985 to 1989. Hernán Siles Zuazo (1914–1996), also connected with the MNR and later founder of the MNRI, was president in 1956–60 and again in 1982–85. Juan Lechín Oquendo (1914–2001), a leader of the 1952 uprising, led the powerful Bolivian Workers' Federation from its formation in 1952 until 1987. Juan Evo Morales Ayma (b.1959) became the first Amerindian president of Bolivia in 2006.

Bolivia's outstanding literary figure is Gabriel René-Moreno (1836–1909), a historian, sociologist, and literary critic. The highly original poet and philosopher Franz Tamayo (1879–1956), although belonging to the landed aristocracy, was a champion of the downtrodden Amerindian. Tamayo was elected president in 1935, but an army revolt prevented him from taking power. Alcides Argüedas (1879–1946) achieved fame throughout Latin America with his historical works on Bolivia and his novels Wata wara and Raza de bronce, concerned with the plight of the Indian; his critical sociological study Pueblo enfermo provoked an enduring controversy. The archaeologist and anthropologist Arturo Posnansky (1874–1946), born in Austria, did pioneering work in studying the civilization that once flourished at Lake Titicaca. Jaime Laredo (b.1941) is a world-famous violinist.

DEPENDENCIES

Bolivia has no territories or colonies.

BIBLIOGRAPHY

Alexander, Robert Jackson. The Bolivarian Presidents: Conversations and Correspondence with Presidents of Bolivia, Peru, Ecuador, Colombia, and Venezuela. Westport, Conn.: Praeger, 1994.

Calvert, Peter. A Political and Economic Dictionary of Latin America. Philadelphia: Routledge/Taylor and Francis, 2004.

Garretón, Manuel Antonio, and Edward Newman, (eds.). Democracy in Latin America: (Re)constructing Political Society. New York: United Nations University Press, 2001.

Goldstein, Daniel M. The Spectacular City: Violence and Performance in Urban Bolivia. Durham, N.C.: Duke University Press, 2004.

Health in the Americas, 2002 edition. Washington, D.C.: Pan American Health Organization, Pan American Sanitary Bureau, Regional Office of the World Health Organization, 2002.

Herndon, William Lewis. Exploration of the Valley of the Amazon, 1851–1852. New York: Grove Press, 2000.

Klein, Herbert S. Bolivia: the Evolution of a Multi–ethnic Society, 2nd ed. New York: Oxford University Press, 1992.

Lopez Levy, Marcela. Bolivia. Herndon, Va.: Stylus Pub. LLC, 2001.

Morales, Waltraud Q. Bolivia: Land of Struggle. Boulder, Colo.: Westview Press, 1992.

Sanabria, Harry. The Coca Boom and Rural Social Change in Bolivia. Ann Arbor: University of Michigan Press, 1993.

Thoumi, Francisco E. Illegal Drugs, Economy and Society in the Andes. Washington, D.C.: Woodrow Wilson Center Press, 2003.

Bolivia

Compiled from the October 2007 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:

Republic of Bolivia

PROFILE

Geography

Area: 1.1 million sq. km. (425,000 sq. mi.); about the size of Texas and California combined.

Cities: Capital—La Paz (administrative—pop. 800,385); Sucre (constitutional—292,080). Other major cities—Santa Cruz (1,486,115), Coch-abamba (587,220), El Alto (858,716). (Population estimates 2004).

Terrain: High plateau (altiplano), temperate and semitropical valleys, and the tropical lowlands.

Climate: Varies with altitude—from humid and tropical to semiarid and cold.

People

Nationality: Noun and adjective—Bolivian(s).

Population: (July 2007 estimated) 9,119,152.

Annual population growth rate: 1.42%.

Religions: Predominantly Roman Catholic; minority Protestant.

Languages: Spanish (official); Quechua, Aymara, Guarani.

Education: (2001) Years compulsory—ages 7-14. Literacy—86.7%.

Health: (2003) Infant mortality rate—50.4 per 1,000 births.

Work force: (2003, 4.1 million) Nonagricultural employment—2.48 million; services, including government—42%; industry and commerce—58%.

Ethnic groups: (2001) 55% indigenous (primarily Aymara, and Quechua), 30% mestizo or mixed, 15% European.

Government

Type: Republic.

Independence: August 6 1825.

Constitution: 1967; revised 1994.

Government branches: Executive—president and cabinet. Legislative—bicameral Congress. Judicial—five levels of jurisdiction, headed by Supreme Court with a separate Constitutional Court.

Political subdivisions: Nine departments (similar to states).

Political parties: Movement Toward Socialism (MAS), Social Democratic Power (PODEMOS), Nationalist Revolutionary Movement (MNR), National Unity (UN)

Suffrage: Universal adult, obliga-ory.

Economy (2006)

GDP: $10.3 billion.

Annual growth rate: 4.5%.

Per capita income: $1,030 (PPP).

Natural resources: Hydrocarbons (natural gas, petroleum); minerals (zinc, silver, lead, gold, and iron).

Agriculture: 12.8% of GDP) Major products—Soybeans, cotton, potatoes, corn, sugarcane, rice, wheat, coffee, beef, barley, and quinoa. Arable land—27%.

Industry: (36.0% of GDP) Types—Mineral and hydrocarbon extraction, manufacturing, commerce, textiles, food processing, chemicals, plastics, mineral smelting, and petroleum refining.

Services: including government (51.2%).

Trade: Exports—$3.7 billion (2006). Major export products—natural gas, tin, zinc, coffee, silver, wood, gold, jewelry, soybeans, and byproducts. Major export markets—U.S. (12%), Brazil (42.7%), Colombia (7.5%), U.K. (2%), Argentina (10.6%), Peru (4.7%), and Japan (6.1%). Imports—$2.9 billion. Major products—machinery and transportation equipment, consumer products, construction and mining equipment. Major suppliers—U.S. (9.2%), Argentina (18.8%), Brazil (24.6%), Chile (12.2%), Peru (7.3%).

PEOPLE

Bolivia's ethnic distribution is estimated to be 55% indigenous, 15% European, and 30% mixed or mestizo (self-identified). The largest of the approximately three-dozen indigenous groups are the Quechua (29% or 2.5 million), Aymara (24% or 2 million), Chiquitano (1% or 180,000), and Guarani (1% or 125,000). No other indigenous groups represent more than 0.5% of the population. There are small German, former Yugoslav, Asian, Middle Eastern, and other minorities, many of whose members descend from families that have lived in Bolivia for several generations.

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 10 per square kilometer (25 per sq. mi.) in the central highlands. The annual population growth rate is about 1.45% (2006).

La Paz is the highest of the world's capital cities—3,600 meters (11,800 ft.) above sea level. The adjacent city of El Alto, at 4,200 meters (13,800 ft.) above sea level, is one of the fastest-growing in the hemisphere. Santa Cruz, the commercial and industrial hub of the eastern lowlands, also is experiencing rapid population and economic growth.

The great majority of Bolivians are Roman Catholic (the official religion), although Protestant denominations are expanding rapidly. Many indigenous communities interweave pre-Columbian and Christian symbols in their religious practices.

About half of the people speak Spanish as their first language. Approximately 90% of the children attend primary school but often for a year or less. The literacy rate is low in many rural areas.

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 Iskanwaya. The country abounds in other sites that are difficult to reach and have seen little archaeological exploration. The Spanish brought their own tradition of religious art which, in the hands of local indigenous 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 Perez de Holguin, 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.

Bolivian artists of stature in the 20th century include, among others, Guzman de Rojas, Arturo Borda, Maria Luisa Pacheco, and Marina Nunez del Prado. Bolivia has 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.

HISTORY AND POLITICAL CONDITIONS

The Andean region probably has been inhabited for some 20,000 years. Beginning about the 2nd century B.C., the Tiwanakan culture developed at the southern end of Lake Titicaca. This culture, centered around and named for the great city of Tiwanaku, developed advanced architectural and agricultural techniques before it disappeared around 1200 A.D., probably because of extended drought. Roughly contemporaneous with the Tiwanakan culture, the Moxos in the eastern lowlands and the Mollos north of present-day La Paz also developed advanced agricultural societies that had dissipated by the 13th century. In about 1450, the Quechua-speaking Incas entered the area of modern highland Bolivia and added it to their empire. They controlled the area until the Spanish conquest in 1525.

During most of the Spanish colonial period, this territory was called “Upper Peru” or “Charcas” 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). Bolivian silver mines produced much of the Spanish empire's wealth, and Potosi, site of the famed Cerro Rico—“Rich Mountain”—was, for many years, the largest city in the Western Hemisphere. As Spanish royal authority weakened during the Napoleonic wars, sentiment against colonial rule grew. Independence was proclaimed in 1809, but 16 years of struggle followed before the establishment of the republic, named for Simon Bolivar, on August 6, 1825.

Independence did not bring stability. For nearly 60 years, coups and short-lived constitutions dominated Bolivian politics. Bolivia's weakness was demonstrated during the War of the Pacific (1879-83), when it lost its seacoast and the adjoining rich nitrate fields to Chile. 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 20th century, tin replaced silver as the country's most important source of wealth. A succession of governments controlled by the economic and social elites followed laissez-faire capitalist policies through the first third of the century.

Living conditions of the indigenous peoples, 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. Great loss of life and territory discredited the traditional ruling classes, while service in the army produced stirrings of political awareness among the indigenous people. From the end of the Chaco War until the 1952 revolution, the emergence of contending ideologies and the demands of new groups convulsed Bolivian politics.

Revolution and Turmoil

The Nationalist Revolutionary Movement (MNR) emerged as a broadly based party. Denied its victory in the 1951 presidential elections, the MNR led the successful 1952 revolution. Under President Victor Paz Estenssoro, the MNR introduced universal adult suffrage, carried out a sweeping land reform, promoted rural education, and nationalized 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 Rene Barrientos, a former member of the junta elected President in 1966, led to a succession of weak governments. Alarmed by public disorder, the military, the MNR, and others installed Col. (later General) Hugo Banzer Suarez 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. Elections in 1978, 1979, and 1980 were inconclusive and marked by fraud. There were coups, counter-coups, and caretaker governments. In 1980, Gen. Luis Garcia Meza carried out a ruthless and violent coup. His government was notorious for human rights abuses, narcotics trafficking, and economic mismanagement. Later convicted in absentia for crimes, including murder, Garcia Meza was extradited from Brazil and began serving a 30-year sentence in 1995.

After a military rebellion forced out Garcia Meza in 1981, three other military governments in 14 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—22 years after the end of his first term of office (1956-60)—Hernan Siles Zuazo again became President. Severe social tension, exacerbated by economic mismanagement and weak leadership, forced him to call early elections and relinquish power a year before the end of his constitutional term.

Return to Democracy

In the 1985 elections, the Nationalist Democratic Action Party (ADN) of Gen. Banzer won a plurality of the popular vote (33%), followed by former President Paz Estenssoro's MNR (30%) and former Vice President Jaime Paz Zamora's Movement of the Revolutionary Left (MIR, at 10%). But in the congressional runoff, the MIR sided with MNR, and Paz Estenssoro was chosen for the fourth time as president. When he took office in 1985, he faced a staggering economic crisis. Economic output and exports had been declining for several years. Hyperinflation had reached an annual rate of 24,000%. Social unrest, chronic strikes, and drug trafficking were widespread.

In four years, Paz Estenssoro's administration achieved economic and social stability. The military stayed out of politics and all major political parties publicly and institutionally committed themselves to democracy. Human rights violations, which badly tainted some governments earlier in the decade, were greatly reduced. However, Paz Estenssoro's remarkable accomplishments were not won without sacrifice. The collapse of tin prices in October 1985, coming just as the government was moving to reassert its control of the mismanaged state mining enterprise, forced the government to lay off over 20,000 miners. The highly successful shock treatment that restored Bolivia's financial system also led to some unrest and temporary social dislocation.

MNR candidate Gonzalo Sanchez de Lozada finished first in the 1989 elections (23%), though, again, no candidate received a majority of popular votes, so Congress determined who would be president. The Patriotic Accord (AP) between Gen. Banzer’ ADN and Jaime Paz Zamora’ MIR, the second- and third-place finishers (at 22.7% and 19.6%, respectively), led to Paz Zamora's assuming the presidency.

Paz Zamora was a moderate, center-left president whose political pragmatism in office outweighed his Marxist origins. He continued the economic reforms begun by Paz Estenssoro. Paz Zamora also took a fairly hard line against domestic terrorism, authorizing a 1990 attack on terrorists of the Nestor Paz Zamora Committee and the 1992 crackdown on the Tupac Katari Guerrilla Army (EGTK).

The 1993 elections continued the tradition of open, honest elections and peaceful democratic transitions of power. The MNR defeated the ruling coalition, and Gonzalo “Goni” Sanchez de Lozada was named president by a coalition in Congress.

Sanchez de Lozada pursued an aggressive economic and social reform agenda, relying heavily on successful entrepreneurs-turned-politicians like him. The most dramatic program—”capitalization,” a form of privatization under which investors acquired 50% ownership and management control of the state oil corporation, telecommunications system, airlines, railroads, and electric utilities, with moneys directed to the pension system instead of the Treasury—was strongly opposed by certain segments of society, with frequent and sometimes violent protests from 1994 through 1996.

In the 1997 elections, Gen. Hugo Banzer, leader of the ADN, defeated the MNR candidate. The Banzer government continued the free market and privatization policies of its predecessor, and the relatively robust economic growth of the mid-1990s continued until regional, global, and domestic factors contributed to a decline in economic growth. Job creation remained limited throughout this period, and public perception of corruption was high. Both factors contributed to increasing social protests during the second half of Banzers term.

Banzer instructed 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. In 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 Quiroga, completed the final year of the term.

In the 2002 national elections, former President Sanchez de Lozada (MNR) again placed first with 22.5% of the vote, this time followed by coca-grow-ing syndicate leader Evo Morales (Movement Toward Socialism, MAS) with 20.9%. The MNR platform featured three overarching objectives: economic reactivation (and job creation), anti-corruption, and social inclusion.

A four-year economic recession, tight fiscal situation, and longstanding tensions between the military and police led to the February 12-13, 2003, violence that left more than 30 people dead and nearly toppled Sanchez de Lozada's government. The government stayed in power, but was unpopular.

Trouble began again in September 2003 when a group of tourists became trapped in the town of Sorata. After days of unfruitful negotiations, Bolivian security forces launched a rescue operation, but on the way out, were ambushed by armed peasants and a number of people were killed on both sides. The incident ignited passions throughout the highlands and united a loose coalition of protestors to pressure the government into halting the proposed project to export liquefied natural gas, most likely through Chile. Anti-Chile sentiment and memories of three major cycles of non-renewable commodity exports (silver through the 19th century, guano and rubber later in that century, and tin in the 20th century) touched a nerve with many citizens. Tensions grew and La Paz was subjected to protesters’ blockades. Violent confrontations ensued, and most of the approximately 60 deaths occurred when security forces tried to bring supplies into the besieged city.

In the end, large demonstrations forced Sanchez de Lozada to resign on October 17, 2003. Vice President Carlos Mesa Gisbert assumed office and restored order. Mesa appointed a nonpolitical cabinet and promised to revise the constitution through a constituent assembly, revise the hydrocarbons law, and hold a binding referendum on the country's natural gas deposits. The referendum took place on July 18, 2004, and Bolivians voted overwhelmingly in favor of development of the nation's hydrocarbons resources. But the referendum did not end social unrest. Large-scale protests led to Congress approving a confiscatory hydrocarbons law on May 17, 2005. After a brief pause, demonstrations resumed, particularly in La Paz and El Alto. President Mesa offered his resignation on June 6, and Eduardo Rodriguez, the president of the Supreme Court, assumed office in a constitutional transfer of power. Rodriguez announced that he was a transitional president, and called for early elections within six months.

Current Administration

On December 18, 2005, MAS candidate Juan Evo Morales Ayma was elected to the presidency by 54% of the voters. During his campaign, Morales, a coca union leader of indigenous descent, vowed to nationalize hydrocarbons and alleviate poverty and discrimination toward indigenous people. Morales was and remains highly critical of the “neo-liberal” economic policies that have been implemented in Bolivia over the past several decades. On January 22, 2006, Morales and his Vice President Alvaro García Linera were inaugurated into office.

Since then, President Morales has moved to fulfill his campaign promises, including raising the ceiling for licit coca cultivation from 12,000 hectares to 20,000 hectares. On May 1, 2006, the government issued a decree “nationalizing” the hydrocarbons sector and calling for the renegotiation of contracts with hydrocarbons companies. In November 2006, the government and companies signed new contracts that should result in higher revenues for the government; however, vagaries in the contracts are requiring further negotiations and clarification. Morales has continued to promote greater state control of natural resource industries, particularly hydrocarbons and mining. These policies have pleased Morales’ supporters, but have complicated Bolivia's relations with some of its neighboring countries, foreign investors, and members of the international community.

President Morales also secured passage of legislation convoking a special election for delegates to a constituent assembly to draft a new constitution. The MAS performed well in those elections, capturing 137 of 255 seats. The assembly convened on August 6, 2006, and planned to complete its work by August 2007; however, the Congress extended its mandate to December 14, 2007. The assembly has made little progress to date, largely due to a political deadlock over the constituent assembly's voting rules. Although rules were ostensibly clarified in February 2007, the subject reemerged in August, after the legality of a vote to exclude the location of the capital was contested by the opposition. As of September 2007, the constituent assembly was in recess until October.

GOVERNMENT ORGANIZATION

The 1967 constitution, revised 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 deliberating legislation initiated by the executive. The judiciary, consisting of a Supreme Court, an independent Constitutional Court, and departmental and lower courts, has long been plagued by 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.

For the first time in history, Bolivians chose their departmental prefects (similar to governors) by popular vote on December 18, 2005. Bolivia's nine departments received greater autonomy under the administrative decentralization law of 1995, although several departments—especially Santa Cruz and Tarija—are seeking increased autonomy. In a July 2006 referendum, Bolivia's four eastern provinces voted in favor of increasing regional autonomy, and the other five provinces opposed the measure. The autonomy movement rallied around Sucre's August 2007 demand that the constituent assembly consider moving all branches of government to the traditional capital. Civic committees in six departments (Santa Cruz, Tarija, Beni, Pando, Cochabamba, and Chuquisaca) supported hunger strikes and protests in Sucre, which led to Bolivian Government-spon-sored talks between Sucre and La Paz leaders, which were inconclusive as of September 2007. Some government-aligned parliamentarians have advocated popular elections for the civic committees, which they claim disproportionately represent elite and opposition interests. Bolivian cities and towns are governed by directly elected mayors and councils. Municipal elections were held in December 2004, with councils elected to 5-year terms. The popular participation law of April 1994, which requires a 20% allocation of national revenues to municipalities for discretionary use, has enabled previously neglected communities to make improvements in their facilities and services.

Principal Government Officials

Last Updated: 2/1/2008

Pres.: Juan Evo MORALES Ayma

Vice Pres.: Alvaro GARCIA Linera

Min. of Defense: Walker SAN MIGUEL Rodriguez

Min. of Economic Development: Celinda SOSA Luna

Min. of Education: Maria Magdalena CAJIAS de la Vega

Min. of Finance: Luis Alberto ARCE Catacora

Min. of Foreign Relations & Worship: David CHOQUEHUANCA Cespedes

Min. of Govt.: Alfredo RADA Velez

Min. of Health & Sports: Nila HEREDIA Miranda

Min. of Hydrocarbons: Carlos VILLEGAS Quiroga

Min. of Labor: Walter Juvenal DELGADILLO

Min. of Mining & Metals: Luis Alberto ECHAZU Alvarado

Min. of Planning & Development: Gabriel LOZA Telleria

Min. of the Presidency: Juan RamonQUINTANA Taborga

Min. of Rural Development & Agriculture: Susana RIVERO Guzman

Min. of Services & Public Works: Jerjes MERCADO Suarez

Min. Without Portfolio for Justice: Celima TORRICO Rojas

Min. Without Portfolio for Water: Abel MAMANI Marca

Presidential Del. for Political Affairs:

Presidential Del. for Public Transparency & Integrity:

Pres., Central Bank:

Ambassador to the US: Gustavo GUZMAN Saldana

Permanent Representative to the UN, New York: Efrain Hugo SILES ALVARADO

Bolivia maintains an embassy in the United States at 3014 Massachusetts Ave., NW, Washington, DC 20008 (tel. 202-483-4410); consulates in Los Angeles, San Francisco, Miami, New Orleans, and New York; and honorary consulates in Atlanta, Chicago, Cincinnati, Houston, Mobile, Seattle, St. Louis, and San Juan.

ECONOMY

Bolivia's estimated 2006 gross domestic product (GDP) totaled $10.3 billion. Economic growth was estimated at about 4.5%, and inflation was estimated at about 4.3%.

In 1985, the Government of Bolivia implemented a far-reaching program of macroeconomic stabilization and structural reform aimed at maintaining price stability, creating conditions for sustained growth, and alleviating poverty. The most important change involved the “capitalization” (privatization) of numerous public sector enterprises. Parallel legislative reforms locked in place market-oriented policies that encouraged private investment.

Foreign investors are accorded national treatment, and foreign ownership of companies is virtually unrestricted in Bolivia. Many of these reforms are currently under review. Nationalizations have taken place in both the hydrocarbon and mining sectors, and the role of the state in the economy continues to be a primary goal of the Morales administration. Foreign direct investment (FDI) inflows have dwindled as has long-term investment across most industrial sectors.

The hydrocarbon sector provides the most prominent example of the current investment climate. Bolivia has the second-largest natural gas reserves in South America. The Bolivian state oil corporation, Yacimientos Petroliferos Fiscales Bolivianos (YPFB), has contracts to supply Brazil with natural gas through existing pipelines until 2019. Moreover, in 2006, YPFB signed a “ramp-up” contract with Argentina that steadily increases export levels until 2010, when gas deliveries to Argentina should be more than four times current levels. It does not appear, however, that Bolivia will be able to supply both the domestic market and these contractual obligations. Lack of investment has led to stagnating production. It is estimated that from 2006 to 2007 production will actually decrease slightly. Companies appear to be investing only what is necessary to maintain current operations.

In April 2000, violent protests over plans to privatize the water utility in the city of Cochabamba led to nationwide disturbances. The government eventually cancelled the contract without compensation to the investors, returning the utility to public control. International shareholders’ outstanding claims were finally resolved in January 2006, when the Government of Bolivia agreed to purchase 80% of the shares in Aguas del Tunari, the joint venture company originally selected to manage the Cochabamba water concession.

Bolivian exports were approximately $3.7 billion for 2006, up from $652 million in 1991. Imports were $2.9 billion in 2006. Bolivia enjoyed a $500 million trade surplus in the first half of 2006. Bolivian tariffs are uniformly low (10%), with capital equipment entering duty-free or incurring 5% tariffs.

Bolivia's trade with neighboring countries is growing, in part because of several regional preferential trade agreements. Bolivia is a member of the Andean Community (CAN) and enjoys nominally free trade with other member countries (Peru, Ecuador, and Colombia). Bolivia is also an associate member of Mercosur (Southern Cone Common Market). The Andean Trade Promotion and Drug Eradication Act (ATPDEA) allows numerous Bolivian products to enter the United States duty-free, including alpaca and llama products and, subject to a quota, cotton textiles. The Bolivian Government has expressed interest in extending ATP-DEA benefits beyond their February 2008 expiration date (extended from June 2007). In 2006, the United States exported $197 million of merchandise to Bolivia and imported $362 million. Bolivia's major exports to the United States are tin, gold, jewelry, and wood products, with textiles playing an increasingly important role. Its major imports from the United States are electronic equipment, chemicals, vehicles, wheat, and machinery. A bilateral investment treaty (BIT) between the United States and Bolivia came into effect in 2001.

Agriculture accounts for roughly 12.8% 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 in the CAN market. The extraction of minerals and hydrocarbons accounts for another 11% of GDP and manufacturing around 17%.

The Government of Bolivia remains heavily dependent on foreign assistance to finance development projects. At the end of 2006, the government owed $3.2 billion to foreign creditors, with 12% of this amount owed to other governments and the balance owed to multilateral development banks. Between 1986 and 1998, Bolivia attended seven rounds of negotiations with Paris Club creditors and received U.S. $1.35 billion of bilateral debt forgiveness. The United States forgave almost all of Bolivia's bilateral debt between 1999 and 2002 and strongly supported efforts to have multilateral institutions do the same. Bolivia received U.S. $1.95 billion in debt relief from HIPC (Heavily Indebted Poor Countries) I in 1998 and HIPC II in 2001, including almost complete bilateral debt forgiveness.

In June 2005, the G-8 countries decided to provide renewed World Bank and International Monetary Fund (IMF) debt relief for the 18 participant nations of HIPC I and II through the Multilateral Debt Relief Initiative (MDRI). Bolivia received U.S. $232.5 million in debt relief from the IMF in January 2006 and approximately U.S. $1.5 billion in debt relief from the World Bank in June 2006. The Inter-American Development Bank (IDB) forgave $1 billion in debt in March 2007. Bolivia was one of three countries in the Western Hemisphere selected for eligibility for the Millennium Challenge Account in 2004. Bolivia qualified again in 2005 and 2006, and presented a proposal to the Millennium Challenge Corporation in December 2005, which has been superseded by a new proposal submitted September 2007.

FOREIGN RELATIONS

Bolivia traditionally has maintained normal diplomatic relations with all hemispheric states except Chile. Relations with Chile, strained since Bolivia's defeat in the War of the Pacific (1879-83) and its loss of the coastal province of Atacama, were severed from 1962 to 1975 in a dispute over the use of the waters of the Lauca River. Relations were resumed in 1975, but broken again in 1978, over the inability of the two countries to reach an agreement that might have granted Bolivia sovereign access to the sea. They are maintained today below the ambassadorial level.

In the 1960s, relations with Cuba were broken following Castro's rise to power, but resumed under the Paz Estenssoro administration in 1985. Under President Morales, relations between Bolivia and Cuba have improved considerably, and Cuba has sent doctors and teachers to Bolivia. Relations have also improved with Venezuela, which has provided financial assistance to Bolivian municipalities, armed forces, and police since Morales took office. The Bolivian and Venezuelan Governments are also working closely together in the petrochemical industry, with plans to expand cooperation into the mining sector and advance the Venezuelan-sponsored Bolivarian Alternative for the Americas (ALBA) trading bloc. The Bolivian Government announced it would pursue formal relations with Iran and Libya in September 2007, with plans to cooperate in the petrochemical industry and increase Bolivian exports to both countries.

Bolivia has pursued a foreign policy with a heavy economic component and the Morales government seems to be following in this same tradition. Bolivia has become more active in the Organization of American States (OAS), the Rio Group, and in Mercosur, with which it signed an association agreement in 1996. Bolivia promotes its policies on sustainable development and the empowerment of indigenous people.

Bolivia is a member of the UN and some of its specialized agencies and related programs, the Organization of American States (OAS), CAN, Non-Aligned Movement, International Parliamentary Union, Latin American Integration Association (ALADI), World Trade Organization (WTO), Rio Treaty, Rio Group, Amazon Pact, and an associate member of Mercosur. As an outgrowth of the 1994 Summit of the Americas, Bolivia hosted a hemispheric summit conference on sustainable development in December 1996.

U.S.-BOLIVIAN RELATIONS

Although President Morales has been publicly critical of U.S. policies, the United States and Bolivia have a tradition of cordial and cooperative relations. Development assistance from the United States to Bolivia dates from the 1940s, and the U.S. remains a major partner for economic development, improved health, democracy, and the environment. In 1991, the U.S. Government forgave all of the $341 million debt owed by Bolivia to the U.S. Agency for International Development (USAID) as well as 80% ($31 million) of the amount owed to the Department of Agriculture for food assistance. The United States has also been a strong supporter of forgiveness of Bolivia's multilateral debt under the HIPC initiatives.

The United States Government channels its development assistance to Bolivia through USAID. USAID is well known in Bolivia, especially in rural areas where thousands of projects have been implemented. USAID has been providing assistance to Bolivia since the 1960s and works with the Government of Bolivia, the private sector, and the Bolivian people to achieve equitable and sustainable development. USAID/Bolivia provides about $85 million annually in development assistance through bilateral agreements with the Bolivian Government and unilateral agreements with other organizations. USAID programs are implemented by non-governmental organizations (NGOs), the private sector, and the Bolivian Government. USAID's programs support Bolivia's National Development Plan and are designed to address key issues, such as poverty and the social exclusion of historically disadvantaged populations, focusing efforts on Bolivia's peri-urban and rural populations. USAID's programs in Bolivia strengthen democratic institutions; provide economic opportunities for disadvantaged populations through business development and trade; improve family health; promote sustainable use of natural resources and biodiversity conservation; provide farmers alternatives to illicit coca cultivation; and improve food security.

Public criticisms of the U.S. Government were made on a number of fronts in 2007, including of USAID-supported democracy programs and, in particular, the U.S. Government's non-partisan support across the political spectrum. The Bolivian Government is lobbying for an extension of ATPDEA trade preferences and approval of a compact with the Millennium Challenge Corporation (MCC). President Morales delivered a $657 million proposal on September 24, 2007 to MCC officials, which focuses on transportation and agriculture development in northern Bolivia.

The control of illegal narcotics is a major issue in the bilateral relationship. For centuries, Bolivian coca leaf has been chewed and used in traditional rituals, but in the 1970s and 1980s the emergence of the drug trade led to a rapid expansion of coca cultivation used to make cocaine, particularly in the tropical Chapare region in the Department of Cocha-bamba (not a traditional coca growing area). In 1988, a new law, Law 1008, recognized only 12,000 hectares in the Yungas as sufficient to meet the licit demand of coca. Law 1008 also explicitly stated that coca grown in the Chapare was not required to meet traditional demand for chewing or for tea, and the law called for the eradication, over time, of all “excess” coca.

To accomplish that goal, successive Bolivian governments instituted programs offering cash compensation to coca farmers who eradicated voluntarily, and the government began developing and promoting suitable alternative crops for peasants to grow. Beginning in 1997, the government launched a more effective policy of physically uprooting the illegal coca plants, and Bolivia's illegal coca production fell over the next 4 years by up to 90%. This “forced” eradication remains controversial, however, and well-organized coca growers unions have blocked roads, harassed police eradicators, and occasionally used violence to protest the policy. In response, previous government security forces have used force. In some cases confrontations between security forces and coca growers or distributors have resulted in injuries and fatalities, raising human rights concerns. The Morales government has embarked on a policy of voluntary eradication and social control. Although violent confrontations between police and coca growers/distributors have decreased under the new approach, its long-term efficacy remains to be proven.

Bolivia plans to expand, at least for a limited time, legal coca production to 20,000 hectares and stresses development of legal commercial uses for coca leaf. Although the U.S. prefers long-term limits that track more closely with current estimated legal domestic demand of around 4,000 to 6,000 hectares, it will continues to support counter-narcotics efforts in Bolivia as the 20,000 hectare proposal is still significantly below current cultivation, which has oscillated between about 23,000 and 28,000 hectares since 2001.

The United States also heavily supports parallel efforts to interdict the smuggling of coca leaves, cocaine, and precursor chemicals. The U.S. Government has, in large measure, financed alternative development programs and the counter-narcotics police effort. The U.S. recertified Bolivia as not having “failed demonstrably” in 2007 to cooperate on counter-narcotics issues, finding Bolivia's interdiction efforts strongly positive, though against a backdrop of steadily rising production and trafficking of cocaine. Recent Bolivian governments have supported U.S. Government counter-narcotics programs.

In addition to working closely with Bolivian Government officials to strengthen bilateral relations, the U.S. Embassy provides a wide range of services to U.S. citizens and businesses. Political and economic officers deal directly with the Bolivian Government in advancing U.S. interests, but are also available to provide information to American citizens on local economic and political conditions in the country. Commercial officers work closely with numerous U.S. companies that operate direct subsidiaries or have investments in Bolivia, providing information on Bolivian trade and industry regulations and administering several programs intended to aid U.S. companies starting or maintaining businesses in Bolivia. The Consular Section of the Embassy, and the two consular agencies in Cochabamba and Santa Cruz, provide vital services to the estimated 13,000 American citizens resident in Bolivia. Among other services, the Consular Section and the consular agencies assist Americans who wish to participate in U.S. elections while abroad and also provide notarial services. Some 40,000 U.S. citizens visit annually. The Consular Section also offers passport and emergency services to tourists as needed during their stay in Bolivia. The Consular Section is currently analyzing a new Bolivian regulation that would require U.S. citizens entering Bolivia for tourism to obtain a visa.

The Consular Section will provide information about this new visa requirement on the Embassy's website at http://bolivia.usembassy.gov. In addition to the services provided to U.S. citizens, the Consular Section adjudicates thousands of immigrant and non-immigrant visas at the Embassy in La Paz each year.

Principal U.S. Embassy Officials

Last Updated: 2/19/2008

LA PAZ (E) Av. Arce # 2780, APO/ FPO APO AA 34032, (591) (2) 216-8000, Fax (591) (2) 216-8111, Workweek: Mon-Fri, 08:30-17:30, Website: http://bolivia.usembassy.gov.

Other Contact Information
U.S. Department of State
2201 C Street, NW
Washington, DC 20520
Main Switchboard: 202-647-4000

Department of Commerce,
Trade Information Center,
International Trade
Administration
1401 Constitution Avenue
Washington, DC 20230
Tel: 800-USA-TRADE
Internet: Country Commercial Guide for Bolivia—http://www.buyusainfo.net/docs/x_3201945.pdf

U.S. exporters seeking general export information/assistance or country-specific commercial information should consult with the nearest Export Assistance Center or the U.S. Department of Commerce's Trade Information Center at (800) USA-TRADE or go to the following website: http://www.export.gov.

American Chamber of Commerce in Bolivia
Edificio Hilda, Oficina 3
Avenida 6 de Agosto
Apartado Postal 8268
La Paz, Bolivia
Tel: (591) 2-2432573
Fax: (591) 2-2432472

TRAVEL

Consular Information Sheet

December 12, 2007

Country Description: Bolivia is a constitutional democracy and one of the least-developed countries in South America. Tourist facilities are generally adequate, but vary greatly in quality. The capital is La Paz, accessible by Bolivia's international airport in El Alto.

Entry Requirements: A U.S. passport valid for at least six months from the date of proposed entry into Bolivia is required to enter and depart Bolivia.

Effective December 1, 2007, U.S. citizens seeking to enter Bolivia as tourists must have an entry visa. Bolivian tourist visas can be applied for by mail or in person at Bolivian consulates in the U.S., as well as at Bolivian ports of entry, such as at Bolivia's international airports and at land border crossings. Bolivian tourist visas are valid for five years from the date of issuance and allow the bearer to enter the country three times in a year for a cumulative stay of not more than ninety days.

The cost of the tourist visa is $100 U.S. dollars. The $100 fee can be paid in cash, by deposit to the Bolivian Consulate's bank account or by money order. Tourists applying for their visa upon arrival to Bolivia must pay this fee in cash to immigration authorities. In addition to the $100 fee, the applicant must present a visa application form with a 4x4 color photograph, a passport with a validity of not less than 6 months, evidence of a hotel reservation or a letter of invitation in Spanish, proof of economic solvency (credit card, cash or a current bank statement), and an International Vaccination Certificate for yellow fever.

Please visit the Embassy of Bolivia web site at http://www.bolivia-usa.org for details on how to apply or contact the nearest Bolivian Embassy or Consulate. Bolivian consulates in the United States are located in Houston, Los Angeles, Miami, Oklahoma City, New York, San Francisco, Seattle, and Washington, DC.

U.S. citizens whose passports are lost or stolen in Bolivia must obtain a replacement passport and present it, together with a police report of the loss or theft, to a Bolivian government immigration office in order to obtain permission to depart. For more information on replacement passport procedures, please consult the U.S. Embassy's web site at http://bolivia.usembassy.gov. An exit tax is charged when departing Bolivia by air. Travelers with Bolivian citizenship or residency pay an additional fee upon departure. While the Bolivian Government does not currently require travelers to purchase roundtrip air tickets in order to enter the country, some airlines have required travelers to purchase round-trip tickets prior to boarding aircraft bound for Bolivia. Some tourists arriving by land report that immigration officials did not place entry stamps in their passports, causing problems at checkpoints and upon departure.

Additional Requirements for Minors: In an effort to prevent international child abduction, the Bolivian Government has initiated procedures at entry/exit points. Minors (under 18) who are citizens or residents of Bolivia and who are traveling alone, with one parent or with a third party, must present a copy of their birth certificate and written authorization from the absent parent(s) or legal guardian, specifically granting permission to travel alone, with one parent or with a third party. When a parent is deceased, a notarized copy of the death certificate is required in lieu of the written authorization. If documents are prepared in the United States, the documents must be translated into Spanish, notarized, and authenticated by the Bolivian Embassy or a Bolivian consulate within the United States. If documents are prepared in Bolivia, only notarization by a Bolivian notary is required. Using these documents, a travel permit may be obtained from the Juzgado del Menor. This requirement does not apply to children who enter the country with a U.S. passport as tourists, unless they hold dual U.S./Bolivian citizenship or have been in Bolivia for more than 90 consecutive days.

The new visa requirement states that unaccompanied minors to Bolivia must present an official Parental Authorization and Consent Certificate duly provided by the appropriate authorities. Until the government of Bolivia provides further specifics on this document, we recommend that all unaccompanied minors to Bolivia carry a letter of permission from their parents or legal guardians authorizing travel.

Safety and Security: The countrywide emergency number for the police, including highway patrol, is 911. The corresponding number for the fire department is 119. The National Tourism Police has offices in La Paz and Cochabamba, with plans to expand to Santa Cruz, providing free assistance to tourists. These services include English-speaking officials who may assist tourists in filing police reports of lost/stolen documents or other valuables. The La Paz office is located at Plaza del Stadium, Edificio Olympia, planta baja, Miraflores, telephone number 222-0516, open 24 hours per day. The Cochabamba office is located at Plaza 14 de Septiembre, Edificio Prefectura, tel. (4) 451-0023, open 0730 to 2000, seven days a week. Protests, strikes, and other civic actions can occur at any time and disrupt transportation on a local and national level. This is particularly true before, during and after elections or other changes in government. While protest actions generally begin peacefully, they have the potential to become violent. The police have used tear gas to break up protests. In addition to rallies and street demonstrations, protesters sometimes block roads; they have reacted with force when travelers attempt to pass through or go around roadblocks and occasionally have used explosives to press their point

U.S. citizens should avoid roadblocks and demonstrations. Demonstrations protesting government or private company policies occur frequently, even in otherwise peaceful times. Roadblocks and demonstrations in June 2005 led to the closure of the El Alto airport in La Paz; similar actions in 2006 led to the closure of the Viru Viru International Airport in Santa Cruz. Both incidents resulted in cancellation and/or diversion of flights and other inconveniences to travelers. U.S. citizens planning travel to or from Bolivia should take into consideration the possibility of disruptions to air service in and out of La Paz and other airports. Americans should monitor Bolivian media reports for updates. The Embassy strongly recommends that U.S. citizens avoid areas where roadblocks or public demonstrations are occurring or planned. Political rallies should similarly be avoided in light of press reports of violence at some rallies in various parts of Bolivia.

U.S. citizens who find themselves in a roadblock should not attempt to “run” a roadblock, as this may aggravate the situation and lead to physical harm. Taking alternative, safe routes, or returning to where the travel started may be the safest courses of action under these circumstances. U.S. citizens embarking on road trips should monitor news reports and may contact the American Citizen Services Unit of the U.S. Embassy in La Paz at (591)(2)216-8297 or the U.S. consular agencies in Cochabamba at (591)(4)425-6714 and/or Santa Cruz at (591) (3) 351-3477 for updates. Given that roadblocks may occur without warning and have stranded travelers for several days, travelers should take extra food and water.

The U.S. Embassy also advises its employees to maintain at least two weeks’ supply of drinking water and canned food in case roadblocks affect supplies, as occurred in January 2007 around Cochabamba. For more information on emergency preparedness, please consult the Federal Emergency Management Authority (FEMA) web site at http://www.fema.gov. That web site includes a Spanish language version.

Americans living or traveling in Bolivia are encouraged to register and update their contact information at the U.S. Embassy in La Paz and/or the U.S. consular agencies in Cocha-bamba and Santa Cruz, Bolivia. Registration may be done online and in advance of travel. Information on registering may be found at the Department of State'stravel registration web site.

Increased political and social tensions in Bolivia have recently led to violent protests and marches throughout Bolivia. Clashes between opposing social groups and the authorities continue to break out, often at short notice. On November 24-25, 2007, there were serious violent disturbances in Sucre which left hundreds injured and claimed the lives of three individuals.

In January 2007, political and social strife in Cochabamba led to violent confrontations, resulting in three confirmed deaths and over one hundred injured. A U.S. citizen was among those injured.

In February and October 2003, approximately one hundred people died during violent demonstrations and protests in downtown La Paz and the nearby city of El Alto. These demonstrations also affected Cocha-bamba and other towns and villages in the Altiplano. While the protests and demonstrations subsided, many of the underlying social, political, and economic causes remain, and in January 2007 several intercity roads, including Bolivia's major east-west highway, were closed by blockades for several weeks. Since 2000 the resort town of Sorata, located seventy miles north of La Paz, has been cut off by blockades on three occasions, ranging from one week to one month. Visitors contemplating travel to Sorata should contact the Consular Section in La Paz prior to travel.

In the Chapare region between Santa Cruz and Cochabamba and the Yungas region northeast of La Paz violence and civil unrest, primarily associated with anti-narcotics activities, periodically create a risk for travelers to those regions.

Confrontations between area residents and government authorities over coca eradication have resulted in the use of tear gas and stronger force by government authorities to quell disturbances. Pro-coca groups have expressed anti-U.S. sentiments and may attempt to target U.S. Government or private interests. U.S. citizen visitors to the Chapare or Yungas regions are encouraged to check with the Consular Section of the U.S. Embassy prior to travel. Violence has also erupted between squatters unlawfully invading private land and security forces attempting to remove them.

For the latest security information, Americans traveling abroad should regularly monitor the Department of State, Bureau of Consular Affair’ Internet site at http://travel.state.gov, where the current Travel Warnings and Travel Alerts, including the Worldwide Caution Travel Alert, can be found. Travelers interested in the most recent information provided to American citizens registered with the Embassy should visit the U.S. Embassy La Paz web site at http://bolivia.usembassy.gov/travel_warnings__announcements.html. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada, or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444.

Crime: The U.S. Department of State currently classifies Bolivia as a medium to high crime threat country. Street crime, such as pick pocketing, assaults following ATM withdrawals, and theft from parked vehicles, occurs with some frequency in Bolivia. U.S. citizens have also had backpacks, passports and other property stolen at bus terminals or while traveling on buses as well as at Internet cafes and in other situations where the U.S. citizen is distracted or the property left unattended. Theft of cars and car parts, particularly late-model four-wheel-drive vehicles, is common. Hijacking of vehicles has occurred, and travelers should take appropriate precautions to avoid being victimized. In November 2003, an American citizen was murdered during an attempted carjacking in Santa Cruz.

The Coronilla Hill, a Cochabamba landmark adjacent to the main Bus Terminal and near several markets, hostels, and restaurants, has become an increasingly dangerous place for tourists and local citizens alike. The local police, tourist authorities, and press have declared the area off limits and cautioned people to enter the area at their own peril. American citizens have been assaulted in the area. The police have made several sweeps of the area in an attempt to bring the population of street people, most of whom are reportedly drug addicts and alcohol abusers, under control. Nonetheless, incidents of crime continue. Police reports indicate that the thieves in that area have gone from purse snatching and burglary to increasingly violent assaults on passersby. The Embassy therefore recommends that U.S. citizens avoid this area.

Beginning in June 2007, the U.S. Embassy in La Paz began receiving reports of U.S. citizens traveling by bus from Copacabana to La Paz being kidnapped and robbed of their ATM cards and other valuables. This crime reportedly involves U.S. citizens taking an evening bus from Copacabana. While the bus is scheduled to stop at the La Paz bus terminal, the driver will stop short of that location, typically near the General Cemetery late at night. Disembarking and disoriented passengers then have little option but to hail a waiting taxi. Thieves in collusion with the taxi driver enter the taxi to blindfold and coerce the U.S. citizen(s) into surrendering cash, cameras, ATM cards, and other valuables. U.S. citizen victims to date report that once the thieves withdrew funds using the ATM cards the U.S. citizens were released without further harm. U.S. citizens traveling from Copacabana should try to arrive during daylight hours, verify the final destination, and buy tickets directly at the Copacabana bus terminal rather than from third parties.

Bolivian police state that there are eight organized criminal groups operating in the La Paz area. The techniques employed by these groups vary, but there are a few major patterns that can be identified.

There have been reports of “false police”—persons using police uniforms, identification, and even buildings modified to resemble police stations—intercepting and robbing foreign tourists including U.S. citizens. Under Bolivian law, police need a warrant from the “fiscal”or prosecutor to detain a suspect. Any searches or seizures must occur at a bona fide police station in the presence of the fiscal. The warrant requirement also applies to suspected drug trafficking cases, although such searches and seizures may occur without a fiscal present. If detained, U.S. citizens should request to see the warrant and demand immediate contact with the nearest U.S. Consular Office (in La Paz, Cochabamba or Santa Cruz).

According to press reports, criminals using the “false police” method focus on foreigners in areas frequented by tourists including bus terminals and tourist markets such as Sagarnaga Street in La Paz. The perpetrators will identify a potential victim and have an accomplice typically driving a white taxi offer taxi services to the potential victim. They focus on European/American tourists who are not wearing a traditional “trekker” backpack and are traveling without a large number of bags. A few blocks after the potential victim boards the taxi another accomplice, pretending to be a recently arrived tourist, boards the taxi with the potential victim. With all the accomplices then in place, the “false police” stop the taxi, “search” the passengers, and rob the victim. As part of this scam, the false police may take the victim to a “ffalse police”station.

A similar variation also introduces a “tourist” to the victims. This introduction can take place on a bus, taxi, train, or just walking down the street. The “tourist” will befriend the victims and might seek assistance in some manner. After a period of time, the “police” intercept the victims and the “ttourist.” At this point, the “police” discover some sort of contraband (usually drugs) on the “tourist.” The entire group is then taken to the “police station.” At this point, the “police” seize the documents, credit cards, and ATM cards of the victims. The perpetrators obtain pin numbers, sometimes by threat of violence, and the scam is complete.

Another technique again introduces a “tourist” to the victims. This “tourist” can be any race or gender and will probably be able to speak the language of the victims. This meeting can happen anywhere and the goal of the “tourist” is to build the trust of the victims. Once a certain level of trust is obtained, the “tourist” suggests a particular mode of transportation to a location (usually a taxi). The “taxi” picks up the victims and the “tourist” and delivers the group to a safe house in the area. At this point the victims are informed that they are now kidnapped and are forced to give up their credit cards and ATM cards with pin numbers.

Bolivian police sources state that two Austrian citizens fell victim to this scam and had their bank accounts emptied through use of their ATM card. The perpetrators then suffocated the victims and buried them in clandestine graves, where police found their bodies on April 3, 2006. During that timeframe, a Spanish citizen also purportedly fell prey to this scam, and his body was found nearby. In most instances, the victims are released, but the murder of the victims is still a possibility. The techniques and the perpetrators are convincing. Authentic uniforms, badges, and props help persuade the victims that the situation is real and valid. All tourists visiting Bolivia should exercise extreme caution. Visitors should be suspicious of all “coincidences” that can happen on a trip. If the tourist has doubts about a situation, the tourist should immediately remove him/herself from the scene.

Thefts of bags, wallets, and backpacks are a problem throughout Bolivia, but especially in the tourist areas of downtown La Paz and the Altiplano. Most thefts involve two or three people who spot a potential victim and wait until the bag or backpack is placed on the ground, often at a restaurant, bus terminal, Internet cafe, etc. In other cases, the thief places a disagreeable substance on the clothes or backpack of the intended victim, and then offers to assist the victim with the removal of the substance. While the person is distracted, the thief or an accomplice grabs the bag or backpack and flees. In such a situation, the visitor should decline assistance, secure the bag/ backpack, and walk briskly from the area. To steal wallets and bags, thieves may spray water on the victim's neck, and while the person is distracted, an accomplice takes the wallet or bag. At times the thief poses as a policeman, and requests that the person accompany him to the police station, using a nearby taxi. The visitor should indicate a desire to contact the U.S. Embassy and not enter the taxi. Under no circumstances should you surrender ATM or credit cards, or release a PIN number. While most thefts do not involve violence, in some instances the victim has been physically harmed and forcibly searched for hidden valuables. This is particularly true in “choke and rob” assaults where the victims, including U.S. citizens, reported being choked from behind until they lost consciousness and later awoke to find all of their possessions gone. These assaults have happened during both day and night. Visitors should avoid being alone on the streets, especially a night and in isolated areas. In 2001, female tourists reported being drugged and raped by a tourist guide in the city of Rurrenabaque in the Beni region. Visitors should be careful when choosing a tour operator and should not accept any type of medication or drugs from unreliable sources. The Embassy also has received reports of sexual assaults against female hikers in the Yungas Valley, near the town of Coroico. Visitors to Coroico are advised to avoid hiking alone or in small groups.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: Throughout the country, both personal hygiene and sanitary practices in food handling are far below U.S. standards. As a result, gastrointestinal illness is widespread among both local people and visitors. Medical care in large cities is adequate for most purposes but of varying quality. Ambulance services are limited to non-existent. Medical facilities are generally not adequate to handle serious medical conditions. Pharmacies are located throughout Bolivia and prescription and over the counter medications are widely available.

Western Bolivia, dominated by the Andes and high plains (Altiplano), is largely insect-free. However, altitude sickness is a major problem. Eastern Bolivia is tropical, and visitors to that area are subject to related illnesses. Dengue is endemic throughout eastern Bolivia, including in Santa Cruz city. Since January 2007, however, there have been several thousand cases, representing a significantly increased incidence, and part of a region-wide trend. Although dengue is usually not a fatal disease, there have been a small number of fatalities. News media periodically report outbreaks of rabies, particularly in the larger cities.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC's Internet site at http://wwwn.cdc.gov/travel.

For information about outbreaks of infectious diseases abroad consult the World Health Organization's (WHO) web site at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith/en.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation.

High Altitude Health Risks: Official U.S. Government travelers to La Paz are provided with the following information: The altitude of La Paz ranges from 10,600 feet to over 13,000 feet (3,400 to 4,000 meters) above sea level. Much of Western Bolivia is at the same altitude or higher, including Lake Titicaca, the Salar de Uyuni, and the cities of Oruro and Potosi. The altitude alone poses a serious risk of illness, hospitalization, and even death, even for those in excellent health.

Prior to departing the U.S. for high-altitude locations (over 10,000 feet above sea level), travelers should discuss the trip with their personal physician and request information on specific recommendations concerning medication and lifestyle tips at high altitudes. Coca-leaf tea is a popular beverage and folk remedy for altitude sickness in Bolivia. Possession of this tea, which is sold in bags in most Bolivian grocery stores, is illegal in the United States. The State Department's Office of Medical Services cautions official U.S. Government travelers planning to visit La Paz to consider the following risks and advice.

Sickle cell anemia or sickle cell trait: 30 percent of persons with sickle cell trait are likely to have a crisis at elevations of more than 8,000 feet. U.S. citizens with this condition have required urgent medical evacuation from La Paz to the U.S.

Heart disease: Any person who has heart disease, or known risk factors for heart disease, should consult their doctor about their risks of ascending to altitude, and whether any testing of their heart would be in order. Even U.S. citizens who adjust well initially to the altitude in La Paz have subsequently suffered heart attacks and been hospitalized.

Lung disease: Anyone with emphysema should consult closely with their doctor and seriously reconsider coming to La Paz or surrounding, high altitude areas. Anyone with asthma should consult their doctor; mild asthma may be manageable at high altitude, but it is important to remember that emergency care and intensive respiratory care are very, very limited even in the city of La Paz, and are absent outside the city. U.S. citizens with respiratory ailments have previously been medically evacuated from La Paz to other countries to receive medical treatment.

Given potential complications from altitude sickness, pregnant women should consult their doctor before travel to La Paz and other high-altitude areas of Bolivia.

All people, even healthy and fit persons, will feel symptoms of hypoxia (lack of oxygen) upon arrival at high altitude. Most people will have increased respiration and increased heart rate. Many people will have headaches, difficulty sleeping, lack of appetite, minor gastric and intestinal upsets, and mood changes. Many travelers limit physical activity for the first 36 to 48 hours after arrival and avoid alcohol and smoking for at least one week after arrival.

For additional information, travelers should visit the World Health Organization's web site at http://www.who.int/ith/en/ as well as the CDC's travel warning on high altitude sickness at http://wwwn.cdc.gov/travel.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Bolivia is provided for general reference only, and may not be totally accurate in a particular location or circumstance. U.S. citizens planning on driving in Bolivia, despite the hazards described below, should obtain an international driver'slicense through their local automobile club before coming to Bolivia.

Road conditions in Bolivia are hazardous. Although La Paz, Santa Cruz, and Cochabamba are connected by improved highways, the vast majority of roads in Bolivia are unpaved. Few highways have shoulders, fencing or barriers, and highway markings are minimal. Yielding for pedestrians in the cities is not the norm. For trips outside the major cities, especially in mountainous areas, a four-wheel-drive vehicle is highly recommended. Travel during the rainy season (November through March) is difficult, as most routes are potholed, and some roads and bridges are washed out. Added dangers are the absence of formal training for most drivers, poor maintenance and overloaded vehicles, lack of lights on some vehicles at night, and intoxicated or overly tired drivers, including commercial bus and truck drivers.

The majority of intercity travel in Bolivia is by bus, with varying levels of safety and service. Bus accidents, at times attributed to drunk drivers or mechanical failures, have caused scores of deaths and severe injuries. In recent years there have been major bus crashes on the highway between La Paz and Oruro, Cochabamba and Santa Cruz, and on the Yungas road. The old Yungas road is considered one of the most dangerous routes in the world. Taxis, vans, and buses dominate intracity transportation. From a crime perspective, public transportation is relatively safe and violent assaults are rare. However, petty theft of unattended backpacks and other personal items does occur. For reasons of safety, visitors are advised to use radio taxis whenever possible. U.S. citizens taking unlicensed taxis have reported being robbed and assaulted.

Drivers of vehicles involved in traffic accidents are expected to remain at the scene until the arrival of local police authorities. Any attempt to leave the scene is in violation of Bolivian law. The Embassy believes any attempt to flee the scene of an accident would place the driver and passengers at greater risk of harm than remaining at the scene until the arrival of local police.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Bolivia's Civil Aviation Authority as being in compliance with International Civil Aviation Organization (ICAO) aviation safety standards for oversight of Bolivia's air carrier operations. For more information, travelers may visit the FAA's web site at http://www.faa.gov.

There are limited flights within Bolivia and to neighboring countries. Flight delays and cancellations are common. In April 2007, Bolivia's transportation superintendent suspended the domestic and international operations of Lloyd Aereo Boliviano (LAB), citing the firm's frequent flight cancellations and shaky finances. This action has resulted in missed connecting flights and disruption to travelers’ itineraries. U.S. citizens should keep this information in mind when making travel plans.

Special Circumstances: In the run-up to the July 2006 Constituen Assembly elections, President Morales accused the United States military of infiltrating Bolivia with operatives disguised as “students and tourists.” As an apparent result of these comments, some U.S. citizens have reported harassment by Bolivian officials and been subjected to unwanted media attention. In one case, a local Bolivian newspaper wrongly identified an American citizen as an operative for the Central Intelligence Agency. In October 2006, two American citizens apparently seeking to view a government conference in Cochabamba were detained and denounced by the Bolivian Government as “spies” then ordered to leave Bolivia. Americans planning on traveling to Bolivia should be aware of the political atmosphere and the possibility of unwanted attention from pro-governmental groups and other Bolivian officials.

For information on in-country visa procedures and requirements, please consult the Bolivian Immigration Service at fax/telephone (591-2) 211-0960, street address Avenida Camacho entre Loayza y Bueno, La Paz, Bolivia. In emergency cases, the Immigration Service may permit temporary residency applicants to retrieve their passports from those applications. However, under current regulations in such cases the applicant would need to commence the application anew, including paying the corresponding fees. Any U.S. documents, such as birth, marriage, divorce or death certificates, to be presented in Bolivia must first be authenticated in the U.S. at the nearest Bolivian Embassy or consulate. For information on those procedures, please consult the Department of State Office of Authentications web site at http://www.state.gov/m/a/auth, and the nearest Bolivian Embassy or consulate.

Marriage: Please see our information on marriage in Bolivia, available on the Embassy's web site at http://bolivia.usembassy.gov.

Mountain Trekking and Climbing Safety: U.S. citizens are advised to exercise extreme care when trekking or climbing in Bolivia. Since June 2002, four American citizens have died in falls while mountain climbing in Bolivia. Three of the deaths occurred on Illimani, a 6,402-meter peak located southeast of La Paz. Many popular trekking routes in the Bolivian Andes cross passes as high as 16,000 feet. Trekkers must have adequate clothing and equipment, not always available locally, and should be experienced mountain travelers. It is not prudent to trek alone. Solo trekking is the most significant factor contributing to injuries and robberies. The safest option is to join an organized group and/or use a reputable firm to provide an experienced guide and porter who can communicate in both Spanish and English. If you develop any of the following symptoms while climbing at altitude—severe headache, weakness, vomiting, shortness of breath at rest, cough, chest tightness, unsteadiness—descend to a lower altitude immediately. Trekkers and climbers are strongly encouraged to purchase adequate insurance to cover expenses in case of injury or death.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Bolivian laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Bolivia are severe, and convicted offenders can expect long jail sentences and heavy fines. Foreigners who bought dynamite at local markets have been detained by the police; products available on the open market may not be legal for a foreigner to possess. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

It often takes years to reach a decision in Bolivian legal cases, whether involving property disputes, civil, or criminal matters. Depending on the circumstances of the case, the court can order a defendant held in jail for the duration of the case. Prison conditions are primitive, and prisoners are expected to pay for food and lodging. For further information, please see the Annual Human Rights Report for Bolivia at http://www.state.gov/g/drl/rls/shrd/2005/63949.htm. Lists of local Bolivian attorneys and their specialties are available from the Consular Section of the U.S. Embassy in La Paz and the Consular Agencies in Santa Cruz and Cochabamba at http://bolivia.usembassy.gov.

Children's Issues: For information on international adoption of children and international parental child abduction, see the Office of Children's Issues website at http://travel.state.gov/family. Pending U.S. implementation of the Hague Convention on International Adoptions, under Bolivian law U.S. citizens who are not resident in Bolivia are not permitted to adopt Bolivian children.

Registration and Embassy Locations: Americans living or traveling in Bolivia are encouraged to register with the nearest U.S. Embassy or Consular Agency through the State Department's travel registration web site, and to obtain updated information on travel and security within Bolivia. Americans without Internet access may register directly with the nearest U.S. Embassy or Consular Agencies in Cochabamba and Santa Cruz. By registering, American citizens make it easier for the Embassy or Consular Agency to contact them in case of emergency.

The U.S. Embassy is located at 2780 Avenida Arce in La Paz, between calles Cordero and Campos; telephone (591-2) 216-8297 during business hours 8:30 a.m.-5:30 p.m., or (591-2) 216-8000 for after-hours emergencies; fax (591-2) 216-8808; Internet http://bolivia.usembassy.gov. The U.S. Embassy in La Paz is open for American Citizen Services Monday and Thursday from 1:30PM to 5:00PM and Tuesdays and Fridays from 08:30 to12:30 and from 2:00PM to 4:00PM, except U.S. and Bolivian holidays. Questions should be directed to the email address USCit.Services.Bolivia@gmail.com or consularlapaz@state.gov.

There are two consular agencies in Bolivia, which provide limited services to American citizens, but are not authorized to issue passports. Anyone requesting service at one of the consular agencies should call ahead to verify that the service requested would be available on the day you expect to visit the agency.

Santa Cruz: The Consular Agency in Santa Cruz is located at 146 Avenida Roque Aguilera (Tercer Anillo); telephone (591-3) 351-3477, 351-3479, or 351-3480; fax (591-3) 351-3478. The U.S. Consular Agency in Santa Cruz is open to the public Mondays from 09:00 to 12:30 and from 2:00PM to 5:00PM and on Tuesday through Friday from 09:00 to 12:30, except U.S. and Bolivian holidays.

Cochabamba: The Consular Agency in Cochabamba is located at Avenida Oquendo 654, Torres Sofer, room 601; telephone (591-4) 411-6313; fax (591-4) 425 -6714. The U.S. Consular Agency in Cochabamba is open to the public Monday through Friday from 08:30 a.m.—12:30 p.m. and Tuesday and Thursday afternoons from 2:00 p.m. to 3:00 p.m., excluding U.S. and Bolivian holidays.

International Adoption

July 2006

The information in this section has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at http://travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Please Note: Bolivia does not allow intercountry adoptions to countries that have not ratified the Hague Convention on Intercountry Adoption, including the United States. U.S. citizens who are also citizens of Bolivia, or who are legal residents of Bolivia, may adopt Bolivian children. American citizens interested in adopting from Bolivia should contact the Consular Section of the U.S. Embassy in La Paz via e-mail at consularlapaz @state.gov.

Patterns of Immigration: Please review current reports online at http://travel.state.gov/family.

Adoption Authority: The governmental authority responsible for adoption matters in Bolivia is the Vice-Ministry of Gender and Generational Affairs(Viceministerio de Género y Asuntos Generacionales), which may be reached via the following contact information: Av. 16 de Julio #1219, La Paz, Bolivia, Telephone: 591—2-212 4725; 591-2 -212 4727, Email: vicejunite@alamo. entelnet.bo.

Eligibility Requirements for Adoptive Parents: Bolivia allows both married and single people to adopt. Prospective adoptive parents must be between 25 to 50 years of age or 15 years older than the adopted child to adopt a child in Bolivia.

Residency Requirements: U.S. citizens must be legal residents of Bolivia in order to adopt in Bolivia.

Time Frame: Bolivian adoptions can be time-consuming. Recent experience suggests that the total time required will be several months to over one year. When a married couple is adopting, it is sufficient for one spouse to remain in Bolivia for the duration of the adoption process; it is not necessary that both do so. However, both adoptive parents must be present for the preliminary hearing on provisional placement, the evaluation, and the ratification of the adoption by the court. At least one prospective adoptive parent should plan to stay in Bolivia for approximately four to six weeks. Adoptive parents are advised NOT to make travel plans for an adoptive child until they have the child's U.S. visa. The Immigrant Visa Unit at the U.S. Embassy in La Paz will do its best to process adoption visa paperwork quickly; however, unexpected delays in the adoption process are possible. The U.S. Citizenship and Immigration Service and consular officials have no authority to intervene in any Bolivian legal process.

Adoption Agencies and Attorneys: Due to the current restrictions on intercountry adoptions in Bolivia, there are currently no licensed adoption agencies in Bolivia handling the adoption of Bolivian children by U.S. citizens. The U.S. Embassy in La Paz maintains a list of attorneys who may be able to help U.S. citizens who are legal residents of Bolivia or U.S.-Bolivian dual nationals pursuing adoptions.

Adoption Fees: The U.S. Embassy in La Paz estimates the average attorney and legal fees for an adoption in Bolivia to be between $5,000 and $7,000.

Adoption Procedures: Bolivia has two types of adoptions: national and intercountry. However, Bolivia does not allow intercountry adoptions to countries that have not ratified the Hague Convention on Intercountry Adoption, including the United States. The following information is provided for use in cases in which the adoptive parents are resident in Bolivia or hold dual U.S.-Bolivian nationality. In order to be eligible for adoption, a Bolivian child must be “abandoned.” Abandonment is a legal finding made by the Bolivian court, and must occur before the child is assigned to prospective adoptive parents. In effect, this prohibits so-called “direct” adoptions, in which the birth parent gives a child directly (or via an intermediary) to specific prospective adoptive parents for adoption. In addition, this effectively bars adoptive parents from searching for and locating a child on their own. Prospective adoptive parents must work with the Vice-Ministry of Gender and Generational Affairs to locate a child that is eligible for adoption. Once the prospective adoptive parents are matched with a child, they must then apply to the Bolivian court that has jurisdiction over the child. A Bolivian attorney must submit the request for adoption to the Vice-Ministry of Gender and Generational Affairs along with a copy a social worker's report of the prospective adoptive child.

Adoption proceedings can, by law, take from 25 to 45 working days from the date of the first hearing, although it is not uncommon for the procedures to take even longer. The length of the process often depends on which court has jurisdiction over the case.

Once the final adoption decree has been issued, the adoption is recorded in a national registry maintained by the Vice-Ministry of Gender and Generational Affairs. At this point, at least one of the adoptive parents will need to go to the Consular Section of the U.S. Embassy in La Paz to file an 1-600 petition. The Consular Section in La Paz forwards the petition to the United States Citizenship and Immigration Services (USCIS) office in Lima, Peru for adjudication and approval. If approved, the petition is then returned to the Consular Section's Immigrant Visa (IV) Unit for visa processing. The Immigrant Visa Unit will then coordinate with the adoptive parents to arrange an immigrant visa interview on behalf of the child. For further information regarding U.S. immigration requirements and how to apply for a visa for adoptive children, please see the sections below entitled “U.S. Immigration Requirements” and “Applying for a Visa for Your Child at the U.S. Embassy in Bolivia.”

Required Documents: The following is a general list of documents that are required for adoption in Bolivia. Prospective adoptive parents should be aware that other documents may be required. Prospective adoptive parents are advised to have several extra copies of each document on hand when traveling to Bolivia. Documents to be submitted by the prospective adoptive parents include (but are not limited to) the following:

1. The adoptive parents’ birth certificates;
2. The adoptive parents’ marriage certificate(s), if applicable;
3. Home study conducted by an approved adoption service provider;
4. Physical and psychological health certificates;
5. Financial and employment certifications;
6. 2-3 Personal references and police clearances;
7. Evidence that prospective parent(s) has participated in and completed a parenting workshop (this may be undertaken in the United States).

Each document must be authenticated in the United States.

Embassy of Bolivia
3014 Massachusetts Ave., N.W.
Washington, D.C. 20008 Tel: (202) 483-4410
Bolivia also has Consulates General in Houston, Miami, New York, Oklahoma City and Seattle.

U.S. Immigration Requirements: Prospective adopting parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at http://travel.state.gov/family.

U.S. Embassy in Bolivia: Avenida Arce 2780, between calles Cordero and Campos, La Paz, Bolivia.

Additional Information: Specific questions about adoption in Bolivia may be addressed to the U.S. Embassy in La Paz. General questions regarding international adoption may be addressed to the Office of Children's Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-407-4747.

BOLIVIA

Republic of Bolivia

República de Bolivia

COUNTRY OVERVIEW

LOCATION AND SIZE.

Bolivia is a central South American country. It shares borders with Brazil in the northeast and east; Paraguay in the east and southeast; Argentina in the south; Chile in the west; and Peru in the west and northwest. Bolivia has an area of 1,098,580 square kilometers (424,162 square miles), of which 14,190 square kilometers (5,479 square miles) are water. Bolivia is just slightly less than 3 times the size of the U.S. state of Montana. Bolivia is divided into 3 distinct geographical areas: (1) the high mountains ( cordillera ) with its high plateau ( altiplano ), (2) the intermediate valleys (between the mountains and the lowlands), and (3) the eastern plains of the Amazon and Plate river system.

POPULATION.

The population of Bolivia was estimated to be 8,280,000 in 2000. In 1950, it was 2.7 million. The annual population growth rate is 2.2 percent. One of the greatest changes has been the shift from rural to urban areas. It is estimated that currently 65 percent of the population reside in urban locations, and in some urban areas the growth rate has been close to 5 percent. The growth rate of the rural population between 1950 and 2000 has remained at about 1 percent, and in some areas there has been a steady population loss. The cities of La Paz-El Alto (twin cities) have over a million inhabitants: La Paz with 792,000 and El Alto with 405,000. The city of Santa Cruz has a population of 1,300,000, and Cochabamba has 408,000.

There has been a notable exodus of the high plateau ( altiplano ) and mountain ( cordillera ) population to the eastern lowlands. This movement was due mainly to the decline of the mining industry, the harsh climatic conditions, and the availability of land in the east. It is estimated that between 1975 and 1985 about 5,000 families migrated per year, totaling around 300,000 people. The integration of the newcomers of different ethnicity and language (Aymara and Quechua) has been relatively smooth and peaceful. The first generations of these migrants, who moved from an environment of frigid temperatures to a subtropical climate, have maintained their culture to a great extent. About 55 percent of the Bolivian population is composed of people of indigenous lifestyle (Quechua, 30 percent; Aymaras, 25 percent); there is a small number in the southeast who are Guaranís with their own language. (Guaraní is an official language in neighboring Paraguay.) Those of mixed race (Indian and European origin) comprise 30 percent of Bolivians. Those of European origin (mainly Spanish), plus some from the Near East who arrived between 1890 and 1920 and from the Far East (mainly Japan), make up another 15 percent. Percentages are inexact as people are identified by their ethnic lifestyle, dress, and primary language. There are several main Indian languages of which Quechua is the dominant, Aymara a close second, and Guaraní a distant third. Official languages are Spanish, along with Quechua, Aymara, and Guaraní in the regions where they are spoken. In 1992, 87 percent of all Bolivians could speak Spanish as compared to 78 percent in 1976. About 12 percent can speak only the indigenous languages, compared to 20 percent in 1976. There have been attempts to introduce bilingual education, especially in the rural areas. Financial constraints and the lack of qualified teachers are impediments to full implementation.

OVERVIEW OF ECONOMY

Since the early Spanish period and until recently, Bolivia was a mineral producing country. The silver extracted from the rich mountain of Potosí was a mainstay of Spain and her colonial empire. There is a saying that, if it were possible, a wide bridge made of pure silver could be constructed from Potosí to Madrid with all the silver that was mined from this fabulous Cerro Rico. Currently small quantities are still mined at Potosí. The famous mint, Casa de Moneda, in Potosí is a heritage site visited by many tourists. For most of the 20th century Bolivia was one of the largest world producers of tin and tungsten (known in Bolivia as wolfram).

During World War II, the allied nations depended on Bolivian tin since Malaya (today Malaysia), the other leading tin producer, was occupied by Japanese forces. In fact, Bolivia was, until recently, considered a country with a mono-economy (an economy based on a single activity), and it depended on the price fluctuations in the world market of the minerals that it produced. As of 2001, Bolivia has a more diversified economy. Exports of oil and natural gas are important components of Bolivia's exports. Agriculture has also emerged as a large sector and produces many exports, including agro-industrial products which are the fastest growing segment, especially soybeans. Growing conditions on the eastern plains are exceptionally good for soybeans. In 2000 Bolivia's exports rose by 20 percent because of greater production of soybeans and natural gas.

Tourism has consistently increased. Statistics from the Financial Times indicate that the country averaged about 250,000 tourists per year in the early 1990s, though Bolivian sources claim a much higher number. Production for 500,000 tourists to visit Bolivia every year which is quite realistic. The country has multiple attractions: traditional societies, fine handicrafts, a great variety of climates with majestic landscapes, preserved colonial sites, a wide diversity of animals and plants, many years of political and economic stability with a rather low crime rate, and reasonable prices. Bolivia has many attractions for eco-tourism . However, lack of a good infrastructure including poor ground transportation, the presence of illegal coca leaf cultivation (Bolivia often is falsely portrayed as a leading cocaine-producing country), and the high altitudes of western Bolivia (historically and culturally the most interesting part of the country) have impeded more rapid growth in tourism.

A slow but constant growth of the gross national product (GNP) and annual per capita income is encouraging. Yet unemployment in early 2001 was 8 percent, and involuntary underemployment was around 40 percent. Bolivia is one of the 22 countries that has been classified as a highly indebted poor country (HIPC) by the World Bank and the International Monetary Fund (IMF).

Bolivia tries to cope with its illegal coca leaf production and the needs of its growing population. Coca leaf production has declined a great deal due to the present government's determined policy to eradicate all illegal plants. But in early 2000, there were still 2,300 hectares in production. While Bolivia is still relatively sparsely inhabited, the annual population growth remains 2.2 percent. This rate is among the highest of the South American countries and needs more attention. Improvement in basic education, reduction in poverty, underemployment, and the level of corruption are also priorities which concern the people and government of Bolivia. Vibrant and free media bring Bolivia's weaknesses and strengths to local, national, and international attention.

COCA. The coca leaf is the basic ingredient for producing cocaine. Several decades ago Bolivia was the largest producer of the coca plant, from which the leaves are harvested. In the 1970s when cocaine became a valuable product in the international drug culture, the coca leaf assumed an importance that it never had before. Bolivia became an important country for the illegal production of cocaine because it grew the basic ingredient—the leaf. Coca plants suddenly became an important element in the Bolivian economy and politics.

Historically, coca leaves were cultivated as early as the pre-Inca epochs. They were used with frequency, mainly by the Indian population, to help alleviate hunger and the effects of the frigid temperatures and the altitude. The leaves are legal, and in modern times are used to make coca tea which is thought to help altitude sickness and stomach ailments. But also in modern times the leaves can be converted into coca paste which is then made into cocaine. In general, Bolivia is not a cocaine-producing nation. The leaves are harvested and illegally sold to those who convert it into paste and then into cocaine outside of Bolivia (although some paste is now made in Bolivia). Since the demand for coca leaves increased rapidly in the 1980s and 1990s, growing and selling more than was needed for traditional internal consumption became illegal. So coca leaf production was classified as "legal" (for the traditional use) and "in excess," avoiding the locally unpopular term, "illegal."

The cultivation and sale of the illegal crop became an undetermined but appreciable part of the Bolivian economy and exports. It is often claimed that in the 1980s coca leaf (and some paste) exports equaled or surpassed all legal exports, coming to at least 15 percent of Bolivia's real revenues. The Bolivian government estimates that coca-leaf production expanded from 1.63 million kilograms from 4,100 hectares in 1977 to 45 million kilograms from 48,000 hectares in 1987. The number of growers rose from 7,600 to about 40,000. Most of this took place in the central sub-tropical region of Chapare (the transitional area from the mountainous valleys to the eastern lowlands), which is well-suited for producing leaves of high acidity—a characteristic that is desirable for making cocaine.

In 1988, a new law allocated 12,000 hectares in the Yungas region east of La Paz for the legal growth and harvesting of coca leaves for traditional use in Bolivia. Coca grown in the Yungas region lacks acidity—a characteristic that is preferred for traditional uses. Incentives were provided with U.S. aid to convert the illegal farming, mainly in the Chapare, into productive crops such as bananas, pineapples, and hearts of palm. In 2000, Bolivia and the United States claimed that about 40,000 hectares of coca had been eradicated and the land converted into new crops since 1998 in the Chapare. The goal is to eliminate all illegal coca by 2002. In February 2001, the Bolivian government claimed that all "in excess" coca production had been eradicated, but the responsible Bolivian media claimed that 2,300 hectares of illegal coca plants still were in production in early 2001. The government also stipulated that the legal coca harvest in the Yungas can be bought only by 700 registered retailers. Currently, Bolivia has had commendable success in a noticeable reduction of illegal coca plants. However, protests by the growers of "in excess" coca, most of them modest farmers, continues.

POLITICS, GOVERNMENT, AND TAXATION

Bolivia gained independence from Spain in 1825. It has had 61 presidents, 1 of them a woman, Lydia Gueiler Tejada (1979-80). Some held the office more than once, consequently making 79 governments. The shortest were a few days long, the longest 10 years. Only 37 presidents came to power by legal means; the others gained the presidency by revolution. Most of the revolutions were simple bloodless palace revolutions (coups d'etat). A few presidents who achieved power by revolution were later elected legally, including President Hugo Banzer, who was elected in 1997 for a 5-year term. He had been a military dictator from 1971 to 1978. Bolivia has had 18 constitutions; the last one from 1967 was extensively amended in 1994.

The significant revolution of 1952 which introduced great economic, political, and social reforms was engineered by the Movement of the National Revolution (MNR) Party. The MNR is still one of the dominant parties although it has splintered. One splinter is the Movement of the Revolutionary Left (MIR), which is far more moderate than its name implies. It held the presidency between 1989 and 1993, and then the MNR returned to power. In 1997, ex-dictator Hugo Banzer won the presidency as a candidate of the Democratic National Action (ADN) Party, which is considered right of center, forming a coalition with the left of center MIR and several smaller parties. In the forthcoming election of 2002 the MNR, MIR, and ADN are expected to present candidates, as will some other parties which have little hope of winning. These others can be defined as 6 leftist parties, 3 populist parties, 1 evangelical party, and 3 indigenous parties. The indigenous parties have been quite visible with colorful public demonstrations and displays but have little broad support.

Candidate, leader of the MNR party, and president (1993-97), Gonzalo Sánchez de Lozada was educated and lived in the United States. The MNR shifted its leftist and nationalist tendencies to a more centrist position that was devoted to privatization and globalism (gener-ally identified as neo-liberalism). This charge produced lively debates and intense political activities which have continued into the Banzer presidency. Banzer's coalition government has only fine-tuned the policies of his predecessor, with much emphasis on the eradication of illegal ("in excess") coca plants and the substitution of other crops that are useful for export. Former president Sánchez de Lozada is a leading candidate for the presidency in 2002. Another leading candidate is the MIR leader Jaime Paz Zamora who was president from 1989 to 1993.

The main source of government revenue is taxation. According to the IMF Bolivia report of 2000, the total revenues of Bolivia in 1998 represented 24.8 percent of its GDP, with tax revenues at 19.5 percent of the GDP. In 1998, indirect taxes constituted 47.4 percent of tax revenues, including the value-added tax (VAT) with 29 percent, excise taxes with 6.7 percent, and transaction taxes with 8.4 percent. Transaction taxes are often known as stamp taxes. Taxes from hydrocarbons provided 23.8 percent of total taxes, mining royalties only 0.04 percent, and customs duties 7 percent. Personal income and property taxes constituted 6.9 percent, and corporate income and property taxes were 0.1 percent.

Personal income tax is a flat 13 percent, but for everyone there is a basic deduction of 2 minimum salaries. (As of January 1998 the minimum salary was Bs300 per month.) The VAT tax paid for personal consumption is deductible from the income tax with proper receipts. There is a social security system which was reformed and partially privatized in 1997. Employees must contribute 12.5 percent of their salaries with a ceiling of 60 minimum salaries (computed as US$415 a month). There are no local income taxes and no joint filing for husband and wife.

INFRASTRUCTURE, POWER, AND COMMUNICATIONS

Bolivia has a changing infrastructure. Communication has rapidly adapted to new technology, as exemplified by the continued rapid growth of cellular phone use. At the same time some of the traditional and still useed infrastructure has deteriorated, especially the fine railway system in western and central Bolivia whose construction

started in 1877. In 1976 diesel engines replaced steam locomotives.

The 3,685-kilometer (2,290-mile) single track railroad, most of it narrow gauge, has 2 unconnected systems. The Western Network, built much earlier, connects La Paz with Cochabamba and the Chilean ports of Arica and Antofagasta. It also connects with Argentina. In bygone days a railroad journey from La Paz to Buenos Aires was popular and comfortable. The Eastern Network connects the city of Santa Cruz to Sao Paulo, Brazil. Another line goes from Santa Cruz to Argentina. Many attempts to connect the 2 systems with a link from Cochabamba to Santa Cruz have never succeeded. The same is true of the so-called "inter-oceanic corridor" that would go from the Brazilian Atlantic coast to the Chilean Pacific coast, passing through Bolivia. Currently most Bolivian railroads are in disrepair. In 1964 there were 103 locomotives, but only 34 in 1995. The Bolivian railway system was a state corporation known as ENFE. In 1991, a Japanese study estimated that upgrading the railway system would require US$46 billion over 30 years. Hopes to privatize and capitalize the system were only partially accomplished when in 1995 the Chilean consortium, Cruz Blanca, acquired 50 percent of ENFE. By 1999, Bolivia again had 55 operating locomotives with around 2,000 railway cars. The passenger load was 750,000 in 1992 and is still below 1 million per year. Freight also has declined sharply.

Currently most Bolivians travel by inter-city buses, called flotas. There are many private bus companies, large and small. Those who can afford it go between the principal cities by air, and if going on to a nearby small town use the flota. Until 1992, there was a single national airline owned by the state, Lloyd Aereo Boliviano (LAB), established in 1925 and one of the oldest airlines in the Americas. As with the railroads it was capitalized and privatized when 50 percent was acquired by the Brazilian airline company, VASP. The completely private company, Aerosur, competes with LAB for internal flights. The Bolivian armed forces operate Transportes Aereos Militares (TAM) which carries paying passengers. In 1999, LAB still had 65 percent of the customers. LAB also flies to the United States (Miami) and neighboring South American countries. About a dozen foreign airlines fly to the 3 Bolivian international airports, La Paz/El Alto, Cochabamba, and Santa Cruz which have runways over 3,050 meters long. An Argentine airline flies to Tarija which is close to Argentina and Paraguay. The World Factbook claims that Bolivia has 1,382 airports, of which 1,016 have paved runways of under 915 meters. Many of these are little used.

Bolivia is an inland country but has free port privileges in Argentina, Brazil, Peru, and Chile, and river ports in Paraguay. There is some shipping on the large inland lake, Titicaca, which also carries many tourists between Bolivia and Peru. Navigation on the many large rivers that are part of the Amazon and Plate river systems is un-organized, underdeveloped, and uncounted but offers much potential with small, primitive river ports currently available. Navigation is possible on about 19,000 kilometers (11,806 miles) of the rivers.

Bolivia has about 43,000 kilometers (26,720 miles) of highways of which only 2,000 kilometers (1,242 miles) are paved. In recent years, Bolivia has made highway construction and maintenance a priority. Bolivia's electric power generating capacity is rated at 787 megawatts. Electricity consumption in 1998 was 2,412 billion kilowatt-hours. The state electric agency, ENDE, was also capitalized and privatized by 3 U.S. consortia in 1997. The state-owned long distance telephone company, ENTEL, was purchased in 1995 by an Italian firm. ENTEL has a monopoly until 2001. It is an active cellular phone provider, with service among the cheapest in Latin America. In 1998, there were 27 cellular phones per 1,000 inhabitants (in 1996, 18 per 1,000), and use is growing at an ever increasing rate. Local traditional phone calls are managed by local owner cooperatives but are state regulated. In the largest cities (La Paz, Cochabamba, and Santa Cruz) 3 of these are responsible for 85 percent of all local calls. In 1987, Bolivia had 145,000 telephones, which grew to 370,000 in 1996. The use of computers is also accelerating. In 1998, there were 7.5 per 1,000 inhabitants. Televisions are 116 per 1,000 (about one-quarter are black and white) and radios 675 per 1,000. Bolivia has 18 significant newspapers. Currently it is reported that there are approximately 190 radio stations and 60 TV stations.

The privatization of the state-owned LAB, ENFE, ENDE, and ENTFL has created much controversy and is an important issue in present-day Bolivian politics.

ECONOMIC SECTORS

Bolivia is a country known for its great contrasts, and that reputation also applies to the country's economy. An often cited remark attributed to an early traveler is that Bolivia is a "beggar sitting on a golden throne." There is a core of truth to this comment. Its fabulous riches have often served Bolivia badly. Since independence in 1825, Bolivia has lost close to 50 percent of its national territory, including its Pacific coast, to its neighbors who coveted the riches. But Bolivia is still rich in resources. In March 2001, the excellent newspaper La Razón of La Paz stated that Bolivia has recently been identified as the country with the largest petroleum deposits in South America. It reported that Bolivia has a possible 70 trillion cubic feet of reserves, surpassing those of Venezuela. Yet Bolivia is among the 2 dozen countries in the world that has been classified as a highly indebted poor country (HIPC) by the World Bank. Bolivia is one of 8 countries that is now receiving full HIPC assistance since it has fulfilled all the World Bank requirements for debt reduction aid.

Traditionally Bolivia's main economic sector was mining, and a decline in mining brought severe hardships aggravated by political instability, nationalist rhetoric, and a rapid increase in the cultivation of coca to serve as a basis for cocaine. In recent years, however, the economy has been diversified, led by increased agricultural production, especially in the fast developing eastern lowlands, with much of the output destined for export. Nearly all of the illegal coca production has been curtailed. Natural gas and oil are developing. For example, according to La Razón, exports of natural gas to Brazil increased by 170 percent from early 1999 to early 2001.

Reducing the high level of poverty is a priority of all economic and political sectors and is supported by ample foreign aid from many countries who welcomed Bolivia's economic prudence in the 1990s.

AGRICULTURE

Agriculture remains an important sector of the total. In the 1990s, it represented about 16 percent of the Bolivian economy. Estimates showed a 3.5 percent decline in 1998 because of adverse weather conditions, but a 2.6 percent growth was predicted for 1999. Bad weather in 2000 and 2001, especially the worst rains in many decades, will have a serious impact. Agro-industrial products have the fastest growth of Bolivia's exports. The eastern Amazon plains are rich in nutrients that yield above average harvests, such as 2.5 to 3 metric tons per hectare for soybeans, compared to the usual 1.5 metric tons elsewhere. At the same time, the climate allows 2 harvests per year. Much of the soybean crop is processed into oil, flour, and animal feed. The annually increasing soybean and soy products output and their export represent a most promising element in the Bolivian economy.

Modern agro-industrial activity in the east stands in contrast to traditional small-scale and subsistence farming in the mountainous west, especially on the cold and windy high plateau ( altiplano ). There farming has been in crisis for decades. One positive element is the great increase of quinoa production. This traditional, nutritious grain is grown only at high altitudes and has been used for thousands of years by the local inhabitants. Production has grown an average 20 percent per annum in recent years, as quinoa has become popular as a health food in the United States, Canada, and Europe. In 1992, over 2 million kilograms were exported. There also has been a much greater demand, stimulated by exports of sweaters and textiles, for alpaca wool. (The alpaca is a type of llama indigenous to the altiplano .) In 1994, exports of alpaca wool came to US$4 million, and they have been rising. Bolivia, Peru, and Ecuador are the countries in which the potato originated and from which it was taken by the Spanish to Europe. With over 100 varieties, potatoes represent the most traditional crop of the subsistence farming in the western high mountains and the altiplano. Other agricultural products of Bolivia are coffee, cocoa, corn, sugarcane, rice, tropical fruits, temperate climate fruits from the transitional central valleys, especially Cochabamba, and a variety of timber. Legal coca must also be included. Coca leaves are used in coca tea (legal) which is used for medical purposes mainly against effects of the altitude and against diarrhea.

INDUSTRY

MINING.

Until recently mining has been the mainstay of the Bolivian economy. In the 1940s, minerals constituted over 70 percent of Bolivia's exports, mainly tin and tungsten. During World War II, the Allied Powers depended on Bolivian tin.

In the past, Bolivia was considered a mono-economy, but minerals currently constitute a smaller part of Bolivia's exports, declining to below 40 percent and to less than one-third of Bolivia's foreign exchange. But recently mining regained a larger share because of increased extraction of gold and especially zinc. Zinc production in 1997 was 154,230 metric tons. Still, in 1997 mining represented only 5.5 percent of the GDP; that production consisted of zinc, gold, lead, tin, antimony, tungsten, silver, copper, cement, and ulexite (a white crystalline mineral). There are expectations of developing Bolivia's large iron reserves. El Mutun, a 40,000 metric ton deposit located close to the Brazilian border, is considered one of the largest in the world. About 80,000 Bolivians still depend on mining for their livelihood.

The 1952 Bolivian Revolution nationalized most of the mines, then owned mainly by 3 men usually identified as the Tin Magnates. A state mining agency, Corporacion Minera Boliviana (COMIBOL), was established and in the 1980s was responsible for two-thirds of Bolivia's mining output. In the late 1980s, Bolivia slowly began to capitalize on and privatize mining, and by the mid-1990s COMIBOL's share of mineral production had fallen to less than 30 percent. COMIBOL's bloated work-force, which had reached about 30,000 in 1984, was reduced to under 3,000. At the same time joint ventures between COMIBOL and private concerns came into existence. In 1997, COMIBOL produced 30.6 percent of the declining tin production and only 4.3 percent of the increasing zinc production; all other mineral production was by private enterprise.

Petroleum and natural gas are now important in the Bolivian economy, making up 5.6 percent of the GDP. The State Petroleum Corporation (YPFB) is no longer the largest producer, though, since the 1996 Hydrocabon Law permitted capitalization and privatization of YPFB as well as concessions to foreign companies, most of which are from the United States, Brazil, and Argentina. In 1998, petroleum production was 12,628,000 barrels of which the YPFB share was 7,110,000. Natural gas production in 1998 was 109,673 million cubic feet of which 99 percent was from private enterprise. Starting in 1999, the US$450 million, 488-kilometer (303-mile) gas pipeline permitted exports to Brazil. Bolivia's hydrocarbon production satisfies national demand, with roughly one-third available for export, mainly to Brazil and Argentina. According to official sources in Bolivia, the country hopes to become the natural gas distributor for the Southern Cone (southern nations of South America).

MANUFACTURING.

The principal manufactures have hardly changed in several decades. Growth is related to population growth, and from 1990 to 1996 the annual increase in manufacturing averaged 4.6 percent per year. Traditional woolens, weavings, leather goods, and jewelry generally grew more because of their greater popularity outside Bolivia and with tourists whose numbers to Bolivia also increased.

The manufacturing industry represents 16.8 percent of the GDP. In 1997, according to the Bolivian Statistical Institute, there were 1,725 manufacturing enterprises with at least 5 workers, altogether employing 52,000 people. This number represents 15 percent of the Bolivian labor force . The 330 manufacturers that had over 50 employees accounted for 36,000 workers. In 1997, total industrial output was valued at US$1.03 billion. Manufacturing sectors include food and beverages and tobacco; textiles, clothing, leather and footwear; wood products and furniture; printing and publishing; industrial chemicals and pharmaceuticals; and plastic, glass, and rubber products. Most of the manufacturing industries are located in the cities, especially in La Paz/El Alto, Cochabamba, and Santa Cruz. Except for traditional jewelry, leather, and woolen goods, the manufactured goods are mostly for internal consumption.

SERVICES

TOURISM.

Bolivia is a popular destination for tourists who are motivated and somewhat hardy. Tourism is a growth industry because of the country's many attractions. There are traditional cultures; antiquity sites; preserved colonial villages, towns and cities; diverse climates with majestic scenery; a variety of flora and fauna with good fishing in the rivers and lakes; availability of exquisite textiles and jewelry; sports like trekking, mountain climbing to over 6,000-meter peaks, skiing, and rafting; and camping in rather undeveloped but unforgettable national parks. Bolivia is ideal for eco-tourism. The country has, at 6,000 meters, the highest ski slope (Chacaltaya) in the world near La Paz. Among the popular tourist spots are the pre-Inca ruins of Tihuanaco, Lake Titicaca, the still preserved colonial cities of Potosí and Sucre, and the colonial Jesuit missions in the eastern lowlands. Then there is La Paz, the highest capital city of the world; Cochabamba, often called the "city of eternal spring"and dynamic Santa Cruz, the large urban center of the eastern lowlands. Numerous local fiestas draw many visitors, the best known being La Diablada in Oruro during carnival week. New attractions for some tourists are the locations where the celebrated 20th-century Marxist leader Che Guevarra was captured and mortally wounded, and the stark village of San Vicente on the windy altiplano where in 1908 the romanticized U.S. outlaws, Butch Cassidy and the Sundance Kid, were ambushed and killed.

In 1997, 375,000 tourists visited Bolivia. Of these 60 percent came from the Americas, 35 percent from Europe, 4 percent from Asia, and 1 percent from Africa. Income from tourism in 1997 was US$180 million. Bolivia would like to boost this to US$1 billion by 2005. The government is actively promoting tourism and encouraging tourists to stay longer and also make it a prime destination. Most tourists spend only a few days in the country, combining their visit with longer stays in the neighboring countries.

FINANCIAL SERVICES.

By mid-1995, Bolivia's Superintendency of Banks reported 58 financial institutions. In 1995, banking assets totaled US$4 billion, representing a growth of 11 percent from the previous year. In 2000, the assets came close to US$5 billion. The Superintendency had licensed 17 banks and 13 savings and loan institutions. Later 2 banks, Banco Sur and Banco Cochabamba, went into receivership, and 2 banks, Multibanco and Banco La Paz, were absorbed by Citibank and Banco de Crato, respectively.

These events highlighted the importance of the Superintendency of Banks, a government agency created in 1993. The Superintendency is in charge of the licensed SBEF (Bolivian Banking and Financial Institutions) which includes licensed banks, savings and loan institutions, credit unions, and small financial service institutions. Of the licensed banks 6 are responsible for 71 percent of all transactions (Banco de Santa Cruz, Banco Industrial, Banco Hipotecario Nacional, Banco Nacional de Bolivia, Banco Mercantil, and Banco Boliviano Americano). The director of the Superintendency is appointed by the president of the Republic from nominees presented by the National Senate, who must choose them with at least a two-thirds vote. The person selected by the president must then have the approval of the lower house of the Congress. The director is appointed for 6 years. A new director was selected and appointed in March 2001. The Banco Central, the national bank, is in charge of issuing and controlling the Bolivian national currency and is not under the control of the Superintendency of Banks.

RETAIL.

Bolivia, like most nonindustrial nations, has not developed the retail sector. Its larger cities have many retail stores, most of them family owned. There are hardly any chain or international franchise stores. Small towns have basic stores that are privately owned. Bolivia is a country of small traders and street vendors. The town markets are most important and draw numerous vendors, traders, and hawkers . These shopping areas are well regulated by the municipalities. Nearly all of them have stalls selling prepared food, which are popular with moderate and low income inhabitants. Probably the largest market is La Cancha in Cochabamba, with a few thousand independent traders and all kinds of wares. It has become a popular place for tourists. While it remains impossible to calculate the total business transactions of these individual entrepreneurs, they are an important and dynamic part of the Bolivian economy.

INTERNATIONAL TRADE

In 1998, Bolivia's exports were valued at US$1.103 billion and imports totaled US$1.983 billion. (The CIA World Factbook indicates 2000 trade figures of US$1.26 billion in exports and US$1.86 billion in imports.) Chief trading partners for exports were the European Union (16 percent), the United States (12 percent), Peru (11 percent), Argentina (10 percent), and Colombia (7 percent). Imports were from the United States (32 percent), Japan (24 percent), Brazil (15 percent), Argentina (11 percent), Peru (4 percent), and Germany (3 percent). The Central Bank of Bolivia reports that the United States is the largest trading partner when both exports and imports are considered.

Bolivia is a member of the Andean Community (along with Colombia, Venezuela, Ecuador, and Peru) that is supposedly free of trade barriers. Since 1994, Bolivia has had a free trade agreement with Mexico. The EU, Japan, and the United States all permit Bolivian exports to enter their market free or at reduced rates. Bolivia

ratified membership in GATT in 1990 and in 1995 in the World Trade Organization (WTO). Bolivia is an associate member of MERCOSUR, which gives it trade benefits with the 11 members of the Latin American Integration Association (ALADI). By 2007, 95 percent of the trade with MERCOSUR will be tariff free. Bolivia is also a signatory to the Amazonic Cooperation River Basin Treaty. Bolivia has 9 Free Trade Zones (FTZ) fully operating. The most important are El Alto (serving La Paz), Cochabamba, Santa Cruz, Desaguadero on the border with Peru, and the dynamic Puerto Aguiffe on the Brazilian border.

MONEY

The Bolivian currency has had severe fluctuations as a consequence of the Chaco War (1932-35); the 1952 revolution with its drastic economic, political, and social reforms; and the collapse of much of the mining industry, especially tin extraction and export. In 1975, the boliviano was devalued by 66 percent (US$1=Bs20.40). In 1979, there was a further 25 percent devaluation . By 1982, the Bolivian currency had totally collapsed, and until 1985 Bolivia suffered hyperinflation, one of the worst cases in recent world history. Inflation reached 23,000 percent with US$1 traded at Bs1,055,000. In 1985, strong economic measures were undertaken to reconstruct the Bolivian economy and its currency. Currently it is one of the most stable currencies in Latin America, with a free floating exchange rate and pegged to the U.S. dollar. Inflation has declined from 13 percent to 3 percent in 1999. In March 2001, US$1=Bs6.48. (In 1995, it was Bs4.86.) The U.S. dollar circulates freely and is generally accepted as payment, mainly in urban areas.

Bolivia has about 18 private banks, some with links to foreign banks such as Citibank. The Banco Central (Central Bank), established in 1929 but with roots going back to 1871, is a semi-independent government agency. Its mandate is to implement the Bolivian government's fiscal and monetary policies , including issuing the currency. Its governing board is nominated by the president of the Republic, and it needs the approval of two-thirds

of the elected representatives of the lower chamber. Terms are staggered, and the term of the president of bank cannot coincide with the term of the president of the Republic. The Banco Central and some private banks have recently received praise from international agencies for their stability and fiscal soundness.

There is a small Bolivian Stock Exchange which was started in 1989, but there is no published index of stock prices. In 1989, the exchange's transactions came to Bs4.3 billion but only to Bs3.9 billion in 1999. The exchange deals mostly with fixed-income securities. It is expected that the stock exchange will grow and become more important and visible.

POVERTY AND WEALTH

Bolivia is considered a poor country with the lowest GDP per capita among the Latin countries of South America (Guyana, Suriname, and French Guiana are lower). At the same time, Bolivia's exact ranking depends on the varied use and interpretations of the statistical information by different organizations and media. While the excellent Financial Times survey of Bolivia of 1994 places it as the second poorest country in the hemisphere (after Haiti), the U.S. Agency for International Development (USAID) ranks Bolivia in 2000 as the fifth poorest. Yet there has been improvement. In 1993, the per capita income was given as US$856 and is currently cited as just over US$1,000. Bolivia is one of the 22 countries that have qualified for debt relief by the World Bank in its HIPC (highly indebted poor countries) program. At the same time, the Human Development Report 2000 has Bolivia in the category of Medium Human Development (as are Ecuador, Peru, and Paraguay—the last 2 share a border with Bolivia) and not in the Low category such as Haiti and many African nations. Bolivia's neighbors, Brazil, Chile, and Argentina, are in the High rank.

In 1998, Bolivia signed a 3-year ESAF (enhanced structural adjustment funding), now called poverty reduction growth facility (PRGF), agreement with the International Monetary Fund. Bolivia was able to comply with

the World Bank criteria and those of PRGF, which made it eligible for "enhanced" HIPC aid. The Bolivian media reported in February 2001 that Bolivia and 8 other countries of the 41 countries classified as poor with a high indebtedness reached all the required steps for the enhanced program. Bolivia's debt will be reduced by 45 percent.

Bolivia's Ministry of Finance shows evidence of improvement with a decrease in the poverty rate from 85.5 percent in 1976 to 70.2 percent in 1992. The World Bank reported for 1999 that Bolivia had a 67 percent overall rate of poverty, which was 81 percent in the rural areas. In 2000, USAID reported that 94 percent of Bolivians who live in rural areas live below the poverty level, and of these 88 percent are considered indigenous people. Poverty remains a leading cause for the high infant (67 per 1,000) and maternal (3.9 per 1,000) mortality rates. Poverty in the rural areas, with 65 percent involuntary underemployment, is the single main cause for migration to the urban areas.

Bolivia can appear to the visitor as a rather prosperous country compared to many other poor countries, mostly because it has enjoyed a stable economy and political system since the mid-1980s, a tolerable crime rate, and an expanding middle class. In 1991, 20 percent of the workforce received 54 percent of all income, and 50 percent received only 17 percent. To this must be added that Bolivia still has low population density of 7.9 persons per square kilometer (20 per square mile) of land suited for agriculture.

Bolivia is favored with much foreign aid because of its qualification for enhanced HIPC, its coca plant eradication and crop substitution policies, and its economic and political stability. In 1997, U.S. aid funding came to US$163 million, Japan US$65 million, Netherlands US$60 million, Germany US$47.5 million, and Sweden US$20 million. Multilateral donations came to US$264.2 million. The IMF reported that in 1998 total foreign aid was Bs598 billion. The Paris Consultative Group of 26 donor countries pledged a 44 percent increase in 1998 to support Bolivia's socio-economic reforms and investment programs. Therefore, Bolivia has, and will in the future, depend heavily on foreign aid if it continues a policy that encompasses globalization (identified by those opposed as neo-liberalism).

WORKING CONDITIONS

The Bolivian labor force is variously estimated at 2.5 million to 3.4 million. Reliable, exact data are not available, mainly because agricultural workers are uncounted. In addition, increasing numbers of the workforce rely on self-employment. Labor participation in 1997 from the available workforce was 82.3 percent male and 59.8 percent female, giving an overall 70.7 percent. Unemployment runs close to 40 percent. At the same time, hunger and homelessness are hardly present. Extended family ties and intra-family support are strong and traditional. Out-migration of unskilled workers to neighboring countries, especially Argentina, is estimated at 30,000 per year. There is a minimum wage (often not complied with) of about US$45 per month as of March 2001.

58 Worldmark Encyclopedia of National Economies

Labor unions in Bolivia are a significant political and economic force. But the number of members, past and present, is in dispute. There are 2 unions, the Confederation of Bolivian Workers (COB), which has a monopoly of the urban workers, and the Confederation of the United Workers of Bolivian Peasants (CSUTCB), which represents all rural workers. Both COB and CSUTCB have their roots in the social and political struggle of the 1940s which culminated in the revolution of 1952. For decades, both of these unions were an integral part of the government and claimed co-responsibility for the 1952 revolution that introduced radical political, economic, and social changes. However, in the 1980s, the unions became less influential and their membership declined. A reliable source estimated that COB membership in 1992 was between 150,000 and 200,000. COB and CSUTCB are ideologically oriented—anti-free market and strongly opposed to privatization and capitalization, to the World Bank and IMF and their programs and loans to Bolivia, and to foreign ownership or co-ownership of means of production. COB still can mount frequent strikes, stoppages, and demonstrations as leverage.

CSUTCB's roots also go back to the 1940s with the struggle for indigenous rights which included universal voting rights, significant agrarian reform including the breakup of the large private farms, and the abolition of peonage (a system which forces debtors into the service of their creditors), all of which were achieved in 1952. In the 1980s, CSUTCB too lost government affiliation and support which has never been regained. The exodus of many rural highlanders to the eastern lowlands weakened the group's power base in the western highlands and central valleys. In the late 1980s and the 1990s, the CSUTCB regained strength because of the policies of the government, pressured by the United States, to destroy the illegal coca farms with crop substitution, which nearly all of the growers (with mostly small farms and plots) strongly opposed. One union leader was elected by the coca growers to the Bolivian legislature. Like the COB, the CSUTCB opposes privatization which is often with foreign funding, presence, and pressures (identified as neo-liberal policies of the government).

A power struggle between various leaders of the supposedly united rural federation has lately been intense, primarily because regional differences undermine a unified front. For example, the coca issue is predominant in the central valleys, especially in the Chapare (Department of Cochabamba), where the farmers of coca have gained some modest economic affluence. Yet, the coca problem is not too meaningful to the rural inhabitants of the mountains and highlands ( altiplano and cordillera ) of western Bolivia, where poverty is the main issue. This region has also experienced a resurgence in ethnic pride and identity, including a nostalgic look back to the pre-colonial days of the great Inca Empire. There are current claims that the great gains of the 1952 revolution were too little or are being reversed by the "neo-liberal" policies of the IMF, World Bank, the United States, and the EU. These rural leaders, even more than the COB, have often been disruptive by organizing marches, blockades, demonstrations, sit-ins, and hunger strikes, but so far they have failed to change the government policies.

The COB and CSUTCB and their leaders use modern technologies such as cellular phones and web sites to present their case to the Bolivian people and the international community. All indications are that they will actively participate in the 2002 general elections. As working conditions have improved slowly over the years the unions have failed to gain more support. Average personal income in 2000 reached US$1,300 a year, up from somewhat less than US$1,000 in the 1980s.

COUNTRY HISTORY AND ECONOMIC DEVELOPMENT

PRE-15TH CENTURY. The country now known as Bolivia is inhabited by the Tihuanaco, Aymara, and Kolla civilizations (rich in archaeological remains).

MID-15TH CENTURY. Most of modern Bolivia becomes part of the Inca Empire, mainly during the rule of Inca Pachacuti (1438-71), who imposes the Inca economic system and the Quechua language. Administratively this southern region of the Inca Empire is called Kollasuyo.

1538. The Spanish establish the city of Chuquisaca (now called Sucre). This part of the Spanish Empire is known as Charcas or Upper Peru.

1545. The rich silver deposits of the hill of Potosí are located and the great age of silver begins. The royal city of Potosí becomes one of the largest and richest in the Spanish Empire.

1809. The War of Independence in Spanish America starts in the city of Chuquisaca.

1825. The independence of Upper Peru/Charcas is declared on August 6. The new nation is called Bolivia in honor of Simon Bolivar.

1828-48. Attempts to unify Peru and Bolivia fail.

1847-64. The age of quinoa, a nutritious grain indigenous to high altitudes, provides a large income to the Bolivian treasury.

1864-80. The discovery of rich deposits on the Bolivian Pacific coast (in the Atacama Desert) produces the age of guano and saltpeter.

1867. Bolivia is forced to sign an unfavorable treaty with Brazil, ceding 300,000 square kilometers (115,830 square miles) that had provided easy access to the Amazon and Plate river systems.

1879-80. In the War of the Pacific Bolivia, allied with Peru, Bolivia defends its ownership of the guano and saltpeter deposits. Chile captures the entire Bolivian coast and converts Bolivia into a landlocked nation.

1889. Rubber extraction begins in the tropical northeast of Bolivia, bringing Bolivia again into conflict with Brazil.

1898. A short civil war is fought mainly over the issue of moving the capital to the more dynamic and rapidly growing city of La Paz. The opposition party that supported La Paz is victorious but the constitution is not changed to make La Paz the constitutional capital.

1899. La Paz becomes the seat of the government although the Supreme Court remains in Sucre.

1903. Bolivia is forced to cede the rubber-rich Acre region to Brazil.

1932-35. The large-scale Chaco War with Paraguay erupts over disputed ownership of the Chaco region of southeast Bolivia, with its rich oil deposits. Paraguay gains most of the Chaco but the greatest oil reserves remain with Bolivia. By 1935, Bolivia has lost 49 percent of its 1825 territory to its bordering neighbors through war or forced treaties.

1942-45. During World War II, Bolivia becomes one of the main suppliers of needed minerals, such as tin, to the allied nations.

1952. The Movement of the National Revolution (MNR) gains power by a revolution and undertakes drastic reforms: universal suffrage, nationalization of the tin mines, significant agrarian reform, abolition of peonage, and creation of a new Bolivian military.

1969. The Andean Pact which includes Bolivia, Peru, Ecuador, Colombia, and Venezuela is established.

1981. Bolivia starts its longest period of peaceful democratic elections and government.

1996. Bolivia becomes an associate member of the regional Southern South American Economic Zone called MERCOSUR.

1997. The Andean Pact becomes operative with a permanent Andean Community secretariat in Lima, Peru.

2001. President Hugo Banzer resigns for health reasons. Vice President Jorge Quiroga becomes Bolivia's 63rd president.

FUTURE TRENDS

Since the mid-1980s, Bolivia has had political and economic stability, with fiscal prudence beyond most South American countries. Annual economic growth during the 1990s averaged about 4 percent and is expected to continue. Still, from 1999 to 2000 the economy slowed for various reasons, including a decline in international prices for some of Bolivia's exports. International financial organizations also believe that exports will grow to nearly US$1.5 billion in the next few years, which would be a 20 percent increase. This prediction is based on expected greater exports of natural gas to Brazil and increased cultivation of soybeans.

Bolivia is strongly committed to reducing the high poverty level, which requires more funding for basic education, especially in the rural areas. The goal is to reduce poverty by 40 percent by 2015. Secondary and university educations must be more attuned to modern technologies. The unmeasured migration of skilled professionals to industrial countries, such as the United States, Canada, and EU members, needs to be reduced by providing more opportunities and better salaries. For the general election in 2002, few anticipate any meaningful disturbances and most predict a smooth transition. The energetic freedom of the media is expected to continue. Opposition from labor and certain business sections to the fiscal reforms necessary for HIPC debt relief as well as other structural changes will continue. The restlessness of the illegal coca leaf growers and their opposition to the destruction of their crop and to crop substitution is not expected to end and will likely produce limited, sporadic violence. The same can be said of the indigenous groups, especially in the highlands, in their demands for more cultural rights and awareness. The significant radical changes of the 1952 revolution as well as the more conservative economic reforms since the 1980s all have borne fruit. Currently, Bolivia is far more peaceful and stable at the present than the 2 other Andean nations, Peru and Ecuador, which also have a considerable indigenous population.

DEPENDENCIES

Bolivia has no territories or colonies.

BIBLIOGRAPHY

Arnade, Charles. Bolivian History. Cochabamba: Los Amigos del Libro, 1984.

"Bolivia: Inequality and Poverty: A Macrovision." Social Watch. <http://www.chasque.apc.org:8081/socwatch/>. Accessed March 2001.

"Bolivia: Interim Poverty Report Reduction Strategy Paper, January 13, 2000." International Monetary Fund. <http://www.imf.org/external/NP/prsp/2000/bol/01/index.htm>. Accessed February 2001.

"Country Assistance Strategy: Bolivia, 1998." World Bank Group. <http://www.worldbank.org>. Accessed March 2001.

Crabtree, John, and Laurence Whitehead, editors. Towards Democratic Viability: The Bolivian Experience. Palgrave Press in association with St. Antony's College: Oxford, 2001.

"Financial Times Survey: Bolivia." Financial Times. 9 November 1994.

Guzman, Augusto. Historia de Bolivia. 8th edition. Cochabamba: Los Amigos del Libro, 1998.

IMF. Bolivia: Statistical Annex. IMF Staff Country Report No. 00138. Washington DC: International Monetary Fund, March 2000.

IMF. Debt Relief under the Heavily Indebted Poor Countries (HIPC) Initiative: A Factsheet. <http://www.imf.org/external/np/hipc/hipc.htm>. Accessed March 2001.

La Razón. <http://www.la-razon.com>. Accessed February 2001.

"Latin America and Caribbean: Bolivia, 1999." World Bank Group. <http://www.worldbank.org>. Accessed March 2001.

Lehman, Kenneth D. Bolivia and the United States. Athens: University of Georgia Press, 1999.

MacLean Stearman, Allyn. Camba and Kolla: Migration and Development in Santa Cruz, Bolivia. Gainesville: University of Florida Presses, 1985.

Morales, Waltraud. Bolivia, Land of Struggle. Boulder: Westview Press, 1992.

Muller, Karin. Along the Inca Road. Washington D.C.: National Geographic Society, Adventure Press, 2000.

Osborn, Harold. Bolivia: A Land Divided. 3rd edition. London: Oxford University Press, 1964.

Republica de Bolivia: INE (National Institute of Statistics). <http://www.ine.gov.bo>. Accessed March 2001.

Statesman's Yearbook. London: Palgrave, annual.

U.S. Agency for International Development (USAID). Bolivia. <http://www.usaid.gov/pubs>. Accessed March 2001.

U.S. Central Intelligence Agency. The World Factbook 2001. <http://www.odci.gov/cia/publications/factbook>. Accessed October 2001.

U.S. Department of State. "International Narcotics Control Strategy Report, 1998: Bolivia." <http://www.state.gov/www/global/narcotics_law/1998_narc_report/samer98.html>. Accessed March 2001.

—Charles W. Arnade

CAPITAL:

Constitutional capital: Sucre. Actual capital: La Paz. (The Supreme Court of Bolivia is permanently located in Sucre.)

MONETARY UNIT:

Boliviano (Bs). One boliviano equals 100 cents. There are coins of 10, 20, and 50 cents and Bs1 and 2. (A Bs5 coin is scheduled to be put into circulation sometime in 2001.) Paper bills are for Bs5, 10, 20, 100 and 200.

CHIEF EXPORTS:

Tin, antimony, lead, zinc, gold, petroleum, natural gas, soybeans, sugar, coffee, quinoa, rice, vegetable oils, timber, native jewelry, alpaca wool.

CHIEF IMPORTS:

Consumer goods, foodstuffs, and agricultural, industrial, and transportation equipment.

GROSS DOMESTIC PRODUCT:

US$8.5 billion (1998; Bs47.2 billion, according to the Bolivia report from the IMF). [The CIA World Factbook 2001 indicates a GDP of US$20.9 billion in 2000, determined at purchasing power parity. The CIA figures are disputed in Bolivia.]

BALANCE OF TRADE:

Exports: US$1.104 billion (1998); US$1.018 billion (1999 estimated); US$1.459 billion (2000) (according to the National Institute of Statistics of Bolivia). Imports: US$1.766 billion (1998); US$1.436 billion (1999 estimated); US$1.976 billion (2000) (according to the National Institute of Statistics of Bolivia). [The CIA World Factbook 2001 indicates exports of US$1.26 billion (f.o.b, 2000) and imports of US$1.86 billion (f.o.b., 2000). The CIA figures are disputed in Bolivia.]

Bolivia

History & Background

The Republic of Bolivia, in the center of South America, is land-locked and surrounded by 5 countries: Paraguay, Argentina, and Chile in the south; Brazil in the east; and Peru in the north. Because it is split by some of the highest mountains in the world, isolation plagues educational progress. La Paz is the government capital of Bolivia, but Sucre is the legal capital and the seat of the judiciary power of the country.

The geographic, political, and economic factors of Bolivia and its demography have long been an impediment to easy progress and development. The country covers 1,098,581 square kilometers (about 425,000 square miles) and, according to the National Institute of Statistics it has an average of about 7.58 inhabitants per square kilometer. The estimates of population range from 8,000,000 to 8,328,700 inhabitants in 2000, depending on the sources. By any estimate, Bolivia has one of the lowest demographic densities in the western hemisphere and a yearly population growth of only about 2.3 percent. Its inhospitable living conditions are reflected in the percentages of land types: 20 percent desert, 11 percent land with negligible irrigation, 40 percent rain forest, approximately 25 percent pasture and meadows, 2 percent inland water, and 2 percent Andean range, including an uninhabited area called the "Altiplano" with arctic weather at more than 5,500 meters high. Only two percent is arable land. As for the population, only 57 percent have access to potable water, and 76 percent have inadequate sanitary facilities. However, in the early 1990s this unfortunate state of affairs began to improve.

Like the rest of the Andean region, Bolivia is believed to have been permanently inhabited for about 21,000 years. Its history is usually divided into three broad historical periods: Pre-colonial (from the origins until 1525), Colonial (1525-1809), and Republican (from 1809 until now). Agriculture seems to have started around 3000 A.D., but not much is known of the period previous to the Tiwanakan culture that started about 600 B.C.E. Centered around Tiwanaku, south of Lake Titicaca, the Tiwanakan civilization developed through colonization rather than conquest. The ruins of Tiwanaku reveal advanced architectural techniques. The causes of the city's disappearance around 1200 A.D. are still a subject of speculation, but it signals the rise of the Aymara kingdom. The Aymara improved the food supply through a very sophisticated system of irrigation, the source of an agricultural prosperity that sustained a large population. The drying out of its system of canals seems a likely explanation for the decline of the region. The Aymara could not contain the expansion of the Quechua-speaking ethnic group. Around 1450, the latter added the highlands to the empire they already controlled. In the early fifteenth century they took the name of Incas after their rulers, and they remained in power until the arrival of the Spanish in 1525. Other ethnic cultures like the Moxos in the lowlands and the Mollos north of where La Paz stands also disappeared in the thirteenth century.

During the Colonial Period, the region became known as "Upper Peru" since it depended on the Viceroyalty of Lima, but it was also known as Charcas because the local government was centered in Chuquisaca (now Sucre). Due to the region's abundance of silver, the Spanish settled and prospered. The conquest brought with it the Roman Catholic Church. The church, led primarily by the Jesuits, became the prime provider of education and continues to deeply influence education, though a parallel private system has become a new feature of Bolivia since 1989. The take-over of education by the Jesuits deeply affected the indigenous populations. First, Spanish, the language of the oppressor, so dominated education that Quechua, Aymara, Guarani/Chiriguano, Chiquitano, and the many other existing native languages were absolutely ignored in the very places where they were the languages of the majority. This change had a dramatic effect inasmuch as the indigenous populations, who still represented 56 percent of the population in 2001, were denied education unless they first became bilingual. Furthermore, since no provision existed for their learning Spanish, the indigenous populations became and remained second-class citizens within their own territories.

The representatives of the Roman Catholic Church privileged their own compatriots, the newly arrived Spaniards and Europeans, so that education, with the exception of a few Indian leaders, excluded Indians and women. Under the best of circumstances, education became the choice instrument of transculture, of subversion, and of the loss of the Amerindian cultural heritage and identity. The fact that 95 percent of the total population of Bolivia is now Catholic demonstrates the degree of the sweeping transcultural indoctrination that occurred in the country after the arrival of the Spanish. Although independence was declared in 1809, it was not until August 6, 1825, when, after a long struggle, Bolivia was established. Named in honor of Simon Bolivar, one of the heroes of Independence, the country, at the time of independence, was more than twice its present size. After the independence a series of brief, unstable constitutions were implemented. When the country engaged in the war of the Pacific against Chile and Peru (1879-1883) it was weak, due to a succession of coups. In 1884, Chile won the nitrate-rich Atacama desert, Bolivia's only seacoast access. This loss irremediably damaged the economy.

At the end of the nineteenth century, Bolivia's situation was somewhat improved by the world increase in the price of silver and later by the exploitation of tin. But bad capitalist policies left the majority of indigenous population living under the most primitive conditions in deplorable poverty, all for the benefit of a small elite.

Bolivia engaged in the Chaco war against Paraguay from 1932 until 1935, and was defeated, losing about 60,000 men, a large part of its territory, and its last strategic access to the sea through the Paraguay River. After the war, the Revolutionary Nationalist Movement, MNR, emerged as a popular party. The Amerindians, representing the majority in numbers, had gained political awareness while serving in the Bolivian military; nevertheless, they had no access to education, no economic opportunities, and no representation in politics. They grew tired of having no representation in the political arena, and their demands remained inadequately answered. The last straw came when the MNR, which had gained victory in the 1951 presidential elections, was denied its victory. Soon afterwards a rebellion erupted, culminating in the 1952 revolution. A civilian government was established under the presidency of MNR leader Victor Paz Estenssoro (1952-1964). A series of reforms improved the conditions of indigenous peoples: universal suffrage, the development of rural education, the spread of primary education, and the implementation of important land reforms. Most of the Altiplano taken from the Amerindians was returned to them. Tin mines were nationalized, as were both the Bolivian mining corporations.

In spite of such progress, human rights were not respected, and a military junta overthrew the presidency in 1964. One of its members, Rene Barrientos, was elected president in 1966 but died soon after in 1969. It was during his presidency in October 1967, that Che Guevara attempted to start a Cuban type revolution. The army later executed him. In response, a series of military coups occurred and weak governments succeeded until Colonel Hugo Banzer Suarez became president in 1971. In spite of an impressive growth of the economy during his presidency, the suspension of political activities that he enforced reduced his initial popularity. Fraudulent successive elections took place in 1978 and 1979. There was a short break of successions in 1979 and 1980 when Lidia Gueiler Tejada became the first female president, but in 1980, after coups and counter-coups, the ruthless General Luis Garcia Meza, a known human rights abuser and trafficker in narcotics, led a violent coup. He remained in office only until 1981. After leaving office, General Luis Garcia Meza was convicted in absentia, extradited from Brazil, and began serving a 30-year sentence in 1995.

Several short-lived military governments and other weak leaders followed until 1985. Paz Estenssoro was then returned to power thanks to a coalition between the MIR (Movimiento de Izquierda Revolucionario or Revolutionary Left Movement) and the MNR, winning over General Hugo Banzer Suarez, representing the Nationalist Democratic Action Party (ADN). However, the situation he inherited was precarious. The economy was in crisis, annual inflation was at 24,000 percent, strikes and unrest were rampant, and drug trafficking was widespread. Paz Estenssoro managed to achieve stability in four years but at a high price. The 1985 collapse of tin prices forced his government to lay off more than 20,000 workers, leading to social unrest. In the 1989 elections, General Hugo Banzer Suarez, who had learned his lesson from the previous elections, formed the Patriotic Accord (AP) with the MIR and won. Paz Zamora became the president and continued the reforms begun by Estenssoro. He ordered the 1992 crackdown against the domestic terrorism of the Tupac Katari Guerrilla Army (EGTK). His integrity became questionable when he was later investigated for his personal ties to drug trafficker Isaac Chavarria.

In 1993, MNR's Gonzalo Sanchez de Lozada was selected as president by a coalition between the MBL (Movimiento Bolivia Libre or Free Bolivia Movement) and the UCS (Unidad Civica Solidaridad or Civic Solidarity Unit). Many reforms took place, including the Capitalization Program, which let investors acquire 50 percent ownership and management control in public enterprises. People opposed to these changes instigated frequent social disturbances until 1996. In the 1997 elections, General Hugo Banzer Suarez (ADN) again formed a coalition with the MIR, UCS, and CONDEPA (Conciencia de Patria or Patriotic Conscience) parties, and the Congress selected him as president. On August 6, 1997, he took office. Significant to the big picture is the fact that in the 176 years of its independence Bolivia had 189 governments.

Some facts about the poverty level of Bolivia are necessary to help understand the reforms in the educational system and to appreciate the country's current problems. According to the U.S. Department of State, the per capita income was officially in US$1,100 in 1997. In spite of an apparent large increase in income in 1999, the average purchasing power parity was estimated at $3,000 per capita, making Bolivia the poorest country in South America. The external debt was $5.7 billion, and 70 percent of the population lived below the poverty line and suffered from malnutrition. But this data shows only a part of the picture; the fact that the average income in Bolivia is the lowest of the continent is, of course, important, but the inequalities among Bolivians themselves are far worse. While 10 percent of the population receives 40 percent of the total national income of Bolivia, 40 percent of the population is in poverty, totaling only 10 percent of the same national income.

After the tin crash and the 1985 peak of inflation, unemployment rose to 20 percent in 1987; by 1999 it was estimated at 11.4 percent along with widespread underemployment. The rapid growth of the population, fostered by improved health, has made it difficult to increase the percentage of literacy. In 2000, the birth rate was 31.86 per 1000 versus a death rate of 8.36 per 1000. Infant mortality decreased by more than half, from 124.4 per thousand in 1989, to approximately 60.44 per 1000 in 2000. Life expectancy figures improved from 52 years in 1989 to an estimated 61.19 years in 2000 for males, and from 56 years to an estimated 66.34 years for females, though this life expectancy remains comparatively low. The overall population is young; 39.11 percent of the population is under 14-years-old (1,624,404 males and 1,564,057 females), 56.42 percent is between 15 and 64, and 4.47 percent is 65-years-old or above (164,473 males and 199,849 females). The literacy rate, rose from 75 percent in the mid-1980s, to 79.4 percent in 1998, with a large gap between genders: 90.5 percent for males against 76.0 percent for females. These literacy figures compare well to the ones given by the State of the World's Children data for 1995: 91 percent and 76 percent, respectively, for males and females.

The number of ethnic groups and languages complicates the picture of educational reform in Bolivia. The majority of the population is Amerindian. There are approximately 30 percent Quechua, 25 percent Aymara, nearly 30 smaller Amerindian subgroups, 30 percent mestizos, and 5 to 15 percent whites. These groups represent nine major linguistic groups with many subdivisions. As a rule very few Amerindians intermarry, and not all speak Spanish. Other factors that impact schooling are the distance from home to the nearest facility, and the lack of infrastructure and security. Inadequate means of transportation and communication still slow progress in Bolivia. Only 2,872 kilometers of the 52,216 kilometers of roads were paved in 1995, including 27 kilometers of expressways. However, recent community participation programs are accelerating the very slow process of modernization. In 1999 alone, for example, these efforts resulted in 791 kilometers of improved farm-to-market roads and 693 new hectares of land under irrigation. In 1999, 13 of the 32 official airports were paved; there were, in addition, some 1096 unofficial unpaved airstrips.

The first television set appeared in Bolivia in 1969. The 1999 State of the World's Children listed 672 radio sets per thousand people for the year 1995, and 115 television sets per thousand. In 1997 there were 5.25 million radio accesses, 900,000 televisions, 6 daily newspapers, and 400,000 telephones. The number of Internet providers rose from 5 in 1999 to 31 at the onset of 2001. At that time the country also had 7 cybercafés, 22 computer companies, 6 main television stations, 6 main radio stations, 7 daily newspapers, and 4 periodicals and weekly papers. Telephones had multiplied, and there were 10 telecommunication providers. The advance of technology constitutes a significant improvement for the prospect of education.

Constitutional & Legal Foundations

The present constitution of Bolivia dates back to 1967 but was revised in 1994. There are three branches to the government: executive, legislative, and judicial. The executive branch is the president and vice-president, both elected for five years, and the cabinet, appointed by the president. Traditionally strong, the executive branch tends to initiate the legislation and, by doing so, it limits the power of Congress to debating and approving the laws. The last elections took place in 1997; the next ones are scheduled for June 2002. The National Congress is composed of two chambers, the Senate with 27 senators and the chamber of deputies with 130 seats. Both chambers are elected by popular vote for five years. The Supreme Court heads the judicial branch of five levels, which include a lower court and a departmental court. Though very corrupt in the past, the courts have been reformed by the present government. The National Congress appoints judges for 10 years. A recent governmental reform distributes a significant part of the national revenues to municipalities, which has allowed considerable improvements to take place in the traditionally neglected countryside. Another significant reform gives less power to the central government in the choice of officials and more to the nine departments' local governments. Each town elects its mayor and council. Every five years, general elections obligate all citizens of voting age to vote.

The Education Reform Law (Law 1565) of 1994 provides for free education, extends the primary school requirement and, above all, recognizes popular public participation in the planning of intercultural and bilingual education. Together, these three laws, among others, have proven to have made a positive impact on education in Bolivia.

In pre-colonial times, the great Inca Empire granted only the indigenous nobles and upper classes an education. The transmission of the Incan culture and social structure was thus assured. Inca monarchs lived in polygamy and usually left very large families of 100 or even 200 children. There were two types of nobility. The first were the male descendants of royal blood. Their privileges included the education they received, the way they dressed, and the language they spoke. They lived at court, belonged to counsels, had access to great offices and the priesthood, and commanded armies.

A second type of nobility, the Curacas, were chiefs of colonized nations. They were allowed to rule over their subjects but had to leave their descendants to be educated by the Incas as proof of their loyalty and as guarantee of their good will. The Incan schools taught the children of noblemen and of Curacas the dialect, religion, astronomy, agriculture, science, quipus (knotted threads that served as a means of communicating ideas and arithmetic), laws, government, geography, and history of the Empire. Students also listened to the chronicles compiled by the amautas (wisemen) and by the haravecs (poets). When the Spanish arrived in 1525, they deliberately ignored the Amerindians education and dramatically cut the transmission of tradition. The Amerindians' plight was then ignored until 1993 when President Gonzalo Sanchez de Lozada recognized the many native languages of Bolivia, in an act that changed a policy that had kept Indians uneducated. Together with world efforts to improve education in third world countries, this 1993 act helped trigger the attempt at a national education reform. However, the implementation of this act requires a better infrastructure, and the resolution of problems is slow.

Educational System—Overview

Generally speaking, education in Bolivia is divided into three cycles—four if one counts the optional prescholar or preprimary years. There are 5 years of elementary education in the primary cycle for 6- to 10-year-olds; 3 years of intermediate education in the middle schools for 11- to 13-year-olds; and 4 years of secondary education for 14- to 17-year-olds. The four years of secondary school are themselves divided into two cycles lasting two years each. The first cycle is a common core, while the second allows for some degree of specialization, either in the humanities or in a variety of technical fields. A movement exists to integrate both intermediate and secondary levels of education into one single cycle of eight years.

Prior to the reforms of the 1980s, the educational system operated with a six-year primary cycle followed by four years of intermediate schools and two years of secondary school with the baccalaureate degree as the terminal exam. The country passed a law that claims an official 8 years of compulsory schooling between the ages of 7 and 14. Unfortunately, this law is not regularly enforced. A 1991 study of the Cochabamba rural area showed that between the ages of 6 and 14 only 52.5 percent of males and 50.3 percent of females attended school exclusively. In other words, nearly half of the children worked. Nationwide, 83.4 percent of males and 70.4 percent of females attend school; also, 16.6 percent of males and 29.6 percent of females are not accounted for either in schools or at work. Additionally, 18.8 percent of males and 17.2 percent of females combine school with herding, and 12.1 percent of males and 2.9 percent of females combine school with agriculture.

A further cycle, higher education for 18- to 24-year-olds comprises different specialized schools, institutes below degree level, and universities. At the university level there are two avenues: the pregrado (undergraduate level) offers the Superior Technician and License degrees; the postgraduate programs deliver doctorados (doctorate degrees).

There are now both public and private institutions at all levels of education. At the intermediate level, the private sector represented approximately 25 percent of the national enrollments and 35 percent of the secondary levels in the early 1990s. Teacher training programs provide educators with opportunities to advance and develop skills in the classroom. One of the first of many institutions and associations created and called upon to implement the reform was the Reform Institute at the Ministry of Education, Culture, and Sports.

Preprimary & Primary Education

Before 1900, tutors (generally from the clergy) educated the sons of white elite families. The Indians were taught only enough to convert them to Catholicism. At that date only 17 percent of the adult population was literate. But, in the early 1900s, a teaching mission from Belgium laid the foundation for the Bolivian rural primary school, and in 1931 Elizardo Pérez founded a large nuclear school, teaching grades five to eight. Subsequently, this central school became the model for education in the rural Andes. By the 1952 Revolution, in spite of this effort, less than one third of adults were literate. By the mid-1980s when the overall adult literacy stood at 75 percent, 350 centers for adult literacy programs, with approximately 2,000 teachers, were established. These programs however were set up mainly in La Paz. The last "Education For All" (EFA) survey compiled by international agencies headed by UNESCO reports substantial improvements in the literacy rate by genders. For 1997 it quotes 78.4 percent for female adults and 91.6 percent for male adults, but the rates also show the pervasive gender gap.

The most recent statistics available reveal the results of efforts to equalize the standards between females and males. For example, the gross enrollment ratio for preprimary education shows that the percentages for girls rose from 30.2 percent to 36.6 percent and for boys from 30.3 percent to 36.2 percent during the 10-year period from 1989 to 1999, an improvement slightly higher for females. As for the actual enrollment in primary school, the results are far more spectacular; the numbers rose from 57,855 for females to 85,085; and from 64,728 for males to 90,986. Although this rise was encouraging, the increase seems to be due largely to an increase in population, and the survival rate to fifth grade actually declined from 60.5 percent to 47.1 percent in 1998. Despite the small net gain in actual numbers who make it to fifth grade, not many children make it through the supposedly compulsory period. In fact, although there were 87,180 girls of the age to start primary education in 1990, only 38,390 or 44 percent actually registered. By 1999, out of 109,360 girls, 52,800 enrolled, or 48.2 percent. As for boys, out of a total of 88,500 in 1990, some 44,885 (50.7 percent) enrolled in primary education. By 1999, out of 113,660 boys of the entry age, more than half (51.9 percent) or 58,989 enrolled. Although the percentages from 1990 to 1999 have changed very little, there has been a considerable gain in the actual number of students attending school. Clearly, the increase is doing little more than keeping up with the increased population.

In the mid-1980s, approximately 60 percent of the 59,000 Bolivian teachers were teaching in urban schools, and the educational expenditures had plunged to less than 40 percent of the total expenditure of 1980. The portion of the gross domestic product (GDP) represented by education dropped from 3 percent to less than 2 percent because of the economic crisis. The latest numbers recorded by the EFA show a steady improvement in educational investment from 1989 to 1999. The public current expenditure in primary education as a percentage of the GNP went from 1.615 percent in 1990 to 2.265 percent in 1999. (Numbers peak in 1993, 1996, and 1997, which should translate into improved statistics in the future.) The public current expenditure in primary education per pupil, as a percentage of the GNP per capita, went from 10.08 percent to 11.96 percent—though it represents a decline from the peak years between 1992 and 1997. As in other levels of education, the reform movement made its way into initial and primary education, but many problems persist.

In 1998 the Bolivian Center for Educational Research and Implementation (CEBIAE) published its findings and came up with an integral proposal for educational innovation at the Preschooler and Primary levels (PIIEN) in the Bolivian Andes, a region lagging behind the rest of the nation. This alternative project—to be implemented in the nuclei of La Paz, Oruro, and Potosi—is based on the cumulative experience of participating primary school educators. A remarkable project, it has one main objective: the improvement of the quality of learning. The project aims to improve the quality of teaching, to democratize the management of education, to improve the local curriculum by making it truly intercultural, to promote the development of educational research, to construct learning networks between teachers in the many establishments of the nuclei, and to construct educational projects in the various educational units and in each nucleus of every unit. Other aims are to increase autonomy, personal initiative, and responsibility and to make good use of whatever qualities individuals demonstrate. The project promotes participation at all levels among students, teachers, and parents from different communities. Their participation helps develop the curriculum, make decisions on methodology, raise the levels of citizenship and intercultural awareness, increase communication, improve research, and democratically manage the school and ultimately the nucleus itself, all within the reform framework. The project tries to respond to teachers' needs and to local necessities; it brings the community together, but above all, it implements measures to allow teachers to educate themselves to become better teachers.

In order to carry out the functions of the project, four different types of networks are organized: between same grade teachers, between cycles, within the educational unit, and with the educational nuclei. This project went through a period of increased awareness starting in 1998, then through the recreation and constructive phase in 1999-2000. In 2000-2001 the consolidation phase was under way.

Enrollments are still higher in urban areas than rural areas, but the gap between them has seriously diminished, despite the fact that the urban count reflects many once-rural students who migrated to the cities to obtain an education. Night classes, more frequent in urban areas, have helped improve literacy and education at all levels, especially with older students. A 1989-1992 study done by the Secretary of Education showed that the number of students in intermediate education was still very low; less than 50 percent of the students of the appropriate age group were enrolled. As expected, an apparent discrepancy existed between cities and rural areas. In cities, close to 70 percent of students within the corresponding age range were enrolled in intermediate education, as opposed to around 25 percent in rural areas.

The number of students enrolling at both intermediate and secondary levels seems to be directly affected by such factors as the age of students, the size of the family, the language spoken at home, and the migration patterns. Significant, too, are the family expenses and the level of education of both parents, especially the level of the mother's education as it influences the education of female students. A higher family income correlates with a higher enrollment of males, while the use of Spanish at home and the educational level of the head of the household correlate with the enrollment of females. Being a recent migrant has a negative influence on the enrollment of both genders.

One fact is clearly noticeable: the more educated the parents are, the more Spanish is spoken at home; the more Spanish is spoken, the more income the family has and the less the adult family members trust the public educational system and the more they rely on private education. The weakness of public education, and the consequent public distrust of it, explains the need for reform in public education and the increase in the creation of many private schools starting in 1989. They provide a welcome alternative to public education, although they exist primarily in urban areas. The ETARE study of 1992 shows that the private sector serves 19.5 percent of the total students in urban areas but only 0.038 percent of the total students in rural areas. Parents increasingly demand quality education, which explains the large migration of students towards cities, even at the intermediate stage of education. Parents believe that their children' chances of obtaining financial aid at the university level is directly related to how well they do at the intermediate and secondary levels. According to data published by UDAPSO, based on information gathered by ETARE, in 1992, 10,167 or 37.8 percent of the rural enrollment migrated to an urban area to study at the intermediate level; these migrants represented 12.1 percent of the urban enrollment.

In another area of particular importance, sexual education is known to have a positive impact on fertility rates when female students attend school between the ages of 8 and 12 but, in 1992, more than half of the females (54 percent) in Bolivian urban areas and almost all the females (95 percent) in rural areas failed to complete the intermediate cycle during which they would have gained the necessary knowledge to make informed reproductive choices. Without the results of the latest study, it is difficult to do justice to Bolivia's progress in intermediate education, but there are reasons to believe that the situation has improved in the last decade. Gender parity was recently achieved in urban private schools at the intermediate level.

Secondary Education

The real lack of public educational infrastructure and the policy of Paz Estenssoro encouraged private educational investment in Bolivia. Since 1989, about 380 new private schools were created and attendance rose. Students who complete secondary school successfully earn the title of bachiller when they pass the exit bachillerato exam. This exam, along with a health certificate, is a requirement to enter the university, which also administers its own entrance examination.

To really understand the progress that education is making, it helps to look back to mid-November 1989 when education was in real distress. Less than 50 percent of the population spoke Spanish as their first language, though it was the only language used in education. Approximately 90 percent of the children attended primary school but often for a year or less, and the literacy rate was low in many rural areas. Eighty thousand state teachers, supported by the COB (Central Obrera Boliviana or Bolivian Workers Center), went on strike demanding a $100 special bonus to supplement their low $45 monthly wage. Paz Zamora, following the customary strategy, imposed a state of siege, banning strikes, public meetings, and demonstrations for 90 days. He imprisoned 850 union members, banished 150 of them to internal exile and, in order to bring the strike to an end, offered teachers a 17 percent pay increase on top of a negotiated annual spring bonus. At the same time, Zamora planned to sell off 100 of the 157 state-owned companies and use the $500 million revenue for health, education, and public works.

Furthermore, student enrollment in secondary schools in the 1970s and 1980s grew twice as fast as the increases in population for the age group, making all numbers more dismal. Only 33 percent of first graders completed the fifth grade, 20 percent started secondary education, 5 percent started postsecondary education, and only 1 percent graduated from universities. At all levels, dropout rates were much higher for rural students and higher still for girls. In the 1980s secondary education was still beyond the reach of most Bolivians; as a result only 35 percent of the total population in the appropriate age group attended, and numbers showed a large disparity between male and female enrollment rates. By 1996, 40 percent of males and 34 percent of females, regardless of age, enrolled in secondary schools. According to the 1989-1992 study done by the Secretary of Education, less than a third of the students of the appropriate age group were enrolled in secondary education.

The numbers at this level showed a terrible discrepancy between cities and rural areas. In cities, close to 65 percent of the age group were enrolled in secondary education, as opposed to only 11 percent in rural areas. According to the 1999 "State of the World's Children" study, 60 percent reached grade five. The ETARE study of 1992 also showed that in urban areas, 33.2 percent of the male students who started in the first year in 1980 reached the twelfth year in 1992, versus only 2.2 percent in rural areas. (Comparable figures for females were 29.4 percent for urban females and 1.1 percent for rural females.) In spite of all the evidence showing that a minimum of five to eight years of education is needed to bring noticeable results in agricultural production, 71 percent of rural students didn't reach the lower mark of five years of schooling. This study also showed that private schools enrolled 27.5 percent in urban areas, versus only 0.049 percent in rural areas.

It must be pointed out that the data was skewed since a variety of schools, which are technically private, were at this point integrated into the public sector and were counted as such. These schools included those operated by institutions, religious groups, or by ONGs. Many of these schools are suburban, serving the poor population; these schools are a strange mix. They receive public funding and, while their fees are the same as public establishments, they remain private as far as their operation and structure are concerned. They are, however, allowed to add lab and computer fees when appropriate. They also operate under different rules—they can dismiss teachers; supplement the state salary, plus give additional benefits; and are far more autonomous in respect to their curriculum. Thus, they can attract and keep better teachers and are in higher demand than ordinary public establishments.

Higher Education

The traditional history of Bolivian higher education starts with the foundation of the Royal and Pontifical University of San Francisco Xavier UMSFX, in La Plata (Sucre), in March 1624. In Colonial times and under Spanish rule, Saint Thomas Aquinas's Summa Theologica influenced education. As a result, higher education awarded degrees in theology and law only. Forensics was later added in 1776 in the Caroline Academy. In 1830 the Bolivian University of San Andrés UMSA, was started in La Paz as a college. Shortly after, in 1832, the Bolivian University of San Simón UMSS (Universidad Mayor de San Simón) was also started in Cochabamba. Medicine was added in 1863.

Several universities were established in the late 1800s. In 1880, the University of St Thomas Aquinas was created. The name of the latter, like most of the universities, underwent many changes. In 1911, it was known as the University Gabriel René Moreno; in 1938, the Autonomous University of Santa Cruz; and then back again to Gabriel René Moreno (UAGRM). In 1892 the University of St. Augustine was created. (In 1893 it became the University of Oruro, in 1937 the Bolivian Technical University, and it is now the Technical University of Oruro or UTO). In 1892 the University of Potosi was founded; it is now the Bolivian University of Tomás Frías (UATF).

In 1946 the Bolivian University of Juan Misael Saracho (UAJMS) opened. In 1966 the Catholic University of Bolivia (UCB) was started in La Paz. In 1967 another public university, the Bolivian University of General José Ballivián, also called the Beni Technical University (UTB), was established. The twentieth century National University (UNSXX) was founded in La Paz in 1984. The Amazonian University of Pando (UAP) opened in 1994; also in 1994, the Military School of Engineering (EMI) was founded.

After 1985, Paz Estenssoro's policies fostered the growth of private universities as a means of increasing new programs and reversing declining standards in public universities that had been brought on by open admissions. Universities grew so rapidly that the overall system of higher education consists of 48 universities in 2001. Thirty-five private universities were built after 1989, the date when the Ministry of Education demanded that universities be made accountable and apply a test of academic efficiency. The universities and faculty saw this demand as an intrusion on their prior autonomy. They believed the government was strangling them, and the students viewed this measure as elitist leading to a slow privatization of universities. No one was happy.

Public universities are increasingly inefficient; they only cater to a small percentage of Bolivian students at the rate of 30,000 new students a year and produce mediocre professionals without modern working skills. Private universities are able to compete by generally providing computer labs and better technology than traditional universities. They also try to address the needs of the country in more practical ways. One way is through the proliferation of some 639 higher technical institutes and 22 teacher training institutes.

Only universities can award degrees. Apart from the Licenciatura, giving the title of Licenciado, which corresponds roughly to the Bachelor's degree in sciences or arts and takes four or five years to complete, the advanced degrees of the Maestria and the Doctorado are awarded. They correspond roughly to the Masters and Ph.D. degrees, the latter carrying the title of Doctor. Other titles awarded include University Intermediate technicians (a two-year program), University Superior technicians (a three-year program) and Bachelor (a four-year program).

Ten universities are public and autonomous, running a total of 244 academic programs, distributed under 6 different knowledge areas: economics and judicial, social and humanities, natural sciences and biology, health sciences, engineering techniques, and agricultural. The 33 private universities run 221 academic programs, a good many in the same areas of knowledge as public universities.

The growth of private universities between 1990 and 1998 (the last year when the data were available) was remarkable. The enrollment in private universities alone, in the course of their short lives, went up from around 2,000 female students and slightly more than 2,000 male students to approximately 14,341 and 17,812, respectively. Despite the fact that females lag in pre-university education and in university admissions, women have recently outperformed men in completing their studies. In 1998, some 5,606 new male students registered, as did 4,046 females. Whereas the number of women in education went unnoticed in most statistics before 1996, in 1998, approximately 669 men and 759 women exited the university as Egresados and 347 males received the title against 411 females.

Students enroll in universities by an academic test of basic skills acquired in secondary education, together with a psychotechnical diagnostic, or a course for people who have not taken or passed the above test. Some students receive special admission, which is entrance granted to experienced professionals who finished high school, officers of the armed forces or the police, or students with foreign titles recognized through international agreements. In 1930 all universities became autonomous in academic and economic matters. In 1971 the universities were closed for restructuring to respond to economic and social necessities. The National Council of Higher Education of the Bolivian University was created, and all universities came under the umbrella of the University of Bolivia. In 1975 a law requiring departmentalization brought greater efficiency, reducing duplication and redistributing professors and units of research and service within the departments. For the first time, each university matched its courses with the national needs; its aim was to develop graduates who would participate in the nation's growth. To this end universities felt that training must be humanistic, scientific, and technological and that there must be collaboration among institutions to find common solutions to national problems.

Administration, Finance, & Educational Research

The ten universities that are public and autonomous are grouped in the National Coordination Organization, the Executive Committee of the Bolivian University (CEUB). Both the Catholic University and the Military School of Engineering are also affiliated with the CEUB. Altogether, they educate about 70 percent of the total university enrollees. As the private universities grew after 1985, they also formed their own group in 1992, the National Association of Private Universities (ANUP). This group functions under the auspices of the Ministry of Education, Culture, and Sports.

Ever since the beginning of the reform, the main concerns in the foreground of the Ministry's work show the ambition of its programs. Efforts include the improvement of standards through the accreditation of teachers; the subsequent combating of illiteracy; the integration of indigenous people through the creation of bilingual programs of education; the social participation by parents, teachers, and students in decision-making; and the integration of women to the educational system.

Another achievement is a teaching accreditation program for former students who had not graduated from UMSS. Launched in 1997, it consisted of refresher courses, updating of practices, workshops, and interdisciplinary and professional seminars lasting six months. Nearly 1,185 students registered for the program, 218 of these in the School of Humanities and Sciences of Education. These back-to-school teachers were organized in sub-modules.

Developed in 1994 as a result of the Reform Project Andes (PROEIB), the bilingual and intercultural educational training for countries in the Andes, the program directed a refreshers' sub-module in bilingual intercultural education. The first aim was to improve the quality of teachers, especially in the rural areas. The second aim was to improve the learning standards of the lower levels through better teaching. The third and ultimate aim remained the integration of indigenous people in education.

This training program is remarkable in many ways. Experience and evaluation are shared among five countries so that the program develops a true sense of collaborative work through interdisciplinary projects, workshops, material, and teachers in the organization. The countries are Colombia, Chile, Ecuador, Peru, and Bolivia. They share common challenges due to the need to integrate the languages of their indigenous populations into the educational systems. In some special PROEIB programs, more than five countries are involved. PROEIB and other educational projects in the five countries receive wide support from international organizations, including UNESCO, OREALC (Regional Education Office for Latin America and the Caribbean), and UNICEF. They work with the help of Germany, the United States, Denmark, Mexico, France, Belgium, Spain, Guatemala, Panama, Brazil, England, Holland, Nicaragua, Argentina, and Canada, among other nations.

PROEIB is a Bolivian-based organization located at the University Mayor of San Simón in Cochabamba. Its headquarters are in the School of Humanities & Sciences of Education. The network the association created integrates 19 universities and 20 indigenous organizations in the different countries involved, together with the Ministries of Education of the five participating countries. Each of the other four countries has chosen one of its universities to serveas the focal point, or the PROEIB link institution, for the rest of the country's participating institutions. These universities are strategically placed to deal with indigenous matters, either because of their location or because of the special programs they offer. They are the University of the Amazon in Florencia, Colombia; the Institute of Indigenous Studies in the University of La Frontera in Temuco, Chile; The Cotopaxi Academic program in the Salesian Polytechnic University of Latacunga in Ecuador; and the Investigation Center of Applied Linguistics in the University Mayor de San Marcos in Lima.

The five countries organize workshops and accreditation programs, and they created a new Master's in Bilingual Intercultural Education (EIB) to efficiently help jumpstart their programs. The first group started with 50 students belonging to 9 different indigenous tribes native to the 5 countries. Students go through a strict selection program to enter this highly competitive EIB program. Investigators try to answer the questions that arise in the course of EIB programs to enrich the present vision and transform the programs as needed; they develop specific projects and study problems. The promotion of investigation is stimulated by competitions. An international jury evaluates the projects and awards three research grants valued between US$4,000 and US$8,000 depending on the project itself. The winners present their results in various workshops, thus enriching the program, and PROEIB publishes each study.

There is now a Regional Documentation Center in Cochabamba with a library specialized in EIB. It holds more than 8,000 books focusing on indigenous problems from the point of view of culture, language, and education. PROEIB wants to multiply the number of Regional Documentation Centers; several published titles are already available.

The creation of the Network of Bilingual Intercultural Education of countries in the Andes to encourage education among rural indigenous peoples helps to execute the actions promoted by the program. Within the whole program, the Beni Technical University of the Mariscal José Ballivián is in charge of the teaching and learning of Amazonian indigenous languages. This particular program started in the Beni region in 1994 with 60 students. In 1997, it already had 250 students, and 87 teachers from the teacher training programs defended their theses. By 1998, about 120 new students entered the program. These new teachers will have a strong impact in years to come.

Regardless of whether university students want to be teachers, nurses, veterinarians, economists, or agronomists, all students are required from the fourth semester on to take native languages and cultures; the hope is that this requirement will better prepare graduating students to work in the Beni region. They will have the option to learn the Trinitario language but also any of the 17 other languages of the region. Grants are available for indigenous students. These efforts represent a complete reversal of former politics in favor of the conservation of the very same languages that historically had been regularly ignored throughout the Bolivian educational system.

One of the latest indigenous events backed by the Education Ministry was the historical gathering in November 2000 of at least 200 Guaranies Capitanes from the 23 Guarani settlements in the city of Monteagudo-Chuquisaca. The aim was to integrate the indigenous educational demands with the municipal management of the region. This meeting validated the Guaranies' organization and recognized the importance of their demands. It marked the beginning of the Guaranies' participation in the future of their children's education through their involvement in the management and through the sharing of responsibility in local educational programs (PREMU).

To answer some of the shortcomings of the public school programs, the Redes Educativas Urbanas en Marcha (Urban Educational Network on the Go) was created as a means to diffuse information to the PEN (Nucleus Educational Projects) to improve infrastructures and teaching. Each network covered 8 or 12 educational units and around 6,000 or 7,000 school children. As of September 2000, some 33 network workshops had taken place in La Paz. In 2001, these networks will be organized and put to work, including 370 public schools responding directly to the seat of the government.

International conferences and workshops in the different programs established in the five countries (Bolivia, Colombia, Chile, Ecuador, and Peru) are organized regularly for feedback. Teachers share their experiences and exchange ideas with others. Bolivia has also participated in several important international conferences that helped create the climate to stimulate changes. Among these was the March 1990 World Conference on Education in Jomtiem, Thailand, a conference that helped foster the 1994 reform; conference participants pledged to combat illiteracy, to promote primary education, and to provide basic education for all. Another important conference was the Childhood World Summit in New York. Also, conferences like the Cairo, Egypt, 1994 Conference on Population and Development; the 1995 Conference on Social Development in Copenhagen, Denmark; and the Beijing, China, Conference on Women positively reinforced Bolivia's commitment to "Education for All."

In view of this worldwide concern for literacy, the 1993 Bolivian Law recognizing indigenous languages and the 1994 Education Reform Law didn't come a moment too soon. Other world conferences like the one in Amman, Jordan, in June 1996, certainly helped Bolivia keep track of progress and renew its commitment and accountability. The Dakar, Senegal, 2000 Education For All (EFA) Forum must have had the same consolidating effect.

After these reform laws were passed, the first major change was a shift of priority by the Bolivian government. The educational investment budget jumped from 9 million Bolivianos in 1994 to 143 million in 1999. As of 2000, about 71.5 percent of schools participated in the educational reform, and it is expected to be 100 percent by 2002. There are now 1,324 qualified pedagogical specialists helping teachers in their classes. By 1999, about 83 percent of primary teachers received pedagogical training, and the retention rate in schools increased 30 percent from 1997 to 1999. By the year 2000, precisely 13,069 out of 14,000 schools received sports equipment, and 13,695 schools received class libraries and teaching materials; however, the distribution of teaching materials remained a problem in many educational units.

Bolivia has approximately 758 pedagogical recourse centers open in the country, and they all received furniture, audiovisual equipment, libraries, and other materials. Altogether, in the year 2000, US$265,000 worth of teaching materials was distributed to Institutos Normales Superiores (training institutes); US$14,664,000 worth of material was distributed by the Education Reform, as well as a total of 2,879,963 kilos of sports and teaching materials. Thirteen thousand PTA-type organized school groups, called juntas escolares, already participate in a quality control program for children's education.

It is impossible to speak of education in Bolivia without going into the external help that Bolivia received, and still receives, from a variety of foreign states. This help, apart from debt relief help, always seems to come earmarked for education in one form or another. Even when it does not seem to be directly related to any schooling, it educates communities about health problems, the eradication of drugs, the substitution of crops, or environmental issues. The aid may fund a university research project, improve economics or agriculture, or teach development and management, but ultimately foreign help programs educate people, laying a foundation for a transition towards self-reliance.

Contributions from international donors have averaged US$500 million annually throughout the past decade; nevertheless, one must also credit Bolivia for taking an active role in its future. It was the first country of the hemisphere to create a Ministry of Sustainable Development, which collaborates economically with international aid programs. A leader in such help programs is USAID, which has helped bring issues to the front and has devised and promoted programs to remedy problems. This organization works in close collaboration with the Government of Bolivia (GOB). It has been very influential, not only in helping many of the poorest indigenous people through a variety of programs, and developing and expanding social marketing projects, but also in revamping the justice sector itself. Recently it has worked in association with other donors to avoid duplication or overlapping of programs and to become more efficient. In 1997 other donors included the Official Development Assistance (ODA), which contributed US$163 million; Japan, $65 million; the Netherlands, $59.8 million; Germany, $47.5 million; and Sweden $20.1 million. Since 1997, donations have almost doubled, probably due to the trust Bolivia gained with its positive results. By 1998, some 26 countries and international organizations at the Paris Consultative Group (PCG) committed about $940 million, representing a 45 percent increase in donations in only one year; of this, 44 percent was in the form of grants to support Bolivia's socio-economic reforms and investments program. The recognition of the success of these efforts is, in part, due to the development of indicators to measure progress. This constant feedback and self-evaluation process have helped the right recommendations go forward and have raised the confidence of other countries in the effectiveness of their investments.

In the Bolivian fiscal year 2000, USAID contributed $75.9 million to continue eradication of illicit coca, to strengthen the social base of democracy and governance, to help increase income and opportunities for the poor, to improve production technology and the health of many Bolivians, and to reduce the degradation of forest, water, and bio-diversity resources. All of these efforts showed dramatic results; goals have been met or will be met by 2003. For example, it is estimated that in the period 1996-2002, about 19 Bolivian municipalities will have been assisted. The USAID plan will be completed with the participation of at least 60 percent nongovernmental organizations (ONGs). In the period 1994-2002, coparticipation funds (the 20 percent share of national revenue distributed to municipalities on a per-capita basis) will have been raised from 0 to 65 percent.

The number of clients involved in loans from micro-finance institutions is expected to increase 200 percent between 1997 and 2002. In 1999 and 2000, two thousand rural families per year benefited from production, marketing services, and technical assistance, which represents a massive educational achievement in the limited areas that have been targeted. Production units receiving technology services are expected to rise from 1,430 in 1994 or 1995 to 9,200 in 2002. The number of production units receiving marketing services will rise from 230 to 5,290 during the same period, and the number of households with access to credit will also rise from 130,877 to 320,000. The number of communities that will have seen infrastructure constraints resolved will also rise from 130 to 870.

Also encouraging is the fact that in 2001 some 100,000 children per year receive free school meals programs, helping reduce considerably the dropout rates and the grade repetition rate, especially for girls. This program, directed at the poorest primary students in rural areas, complements World Bank programs. In 1999 both the World Bank (WB) and the Inter-American Development Bank (IDB) initiated large health projects to improve infant and maternal health. The aim was to reduce infant mortality, which was 75 deaths per 1000 live births in 1994, to 52 in 2000 and 47 in 2002. Likewise, they aim to reduce maternal mortality, which was 390 per 1000 live births in 1994, to 220 in 2000 and 194 in 2002, by increasing the percentage of births attended by a trained provider and by reducing malnutrition.

Private universities are recognized by article 190 of the state Constitution and the Educational Reform Law number 1565 of July 7, 1994. A general director of university and postgraduate education, helped by a secretary office, manages them. The areas of knowledge taught in private universities all come under the following headings: humanities, healthcare, economy and finance, sciences and technology, arts and architecture, and social sciences. The educational research published in 1997 by Charles N. Myers and Miguel Urquiola analyzed the educational system as a market in which the state, the private sector, and some ONGs (especially the Catholic Church) compete to provide services. They based their analysis on works done by the National Statistics Institute (INE) in 1990 and 1992, work by the Technical Support Team of the Educational Reform (ETARE), and work by the Ministry of Education's Secretary for Human development. The strength of Urquiola and Myers' research resides in the fact that it links the levels of education completed with the improvement rates of agriculture, fertility, and child health, as well as with the industrial production and labor market.

Nonformal Education

Distance learning is still a very new concept in Bolivia; however, the possibilities the method offers are being studied. Bolivia has been looking at the long established models of distance education like that offered by the United Kingdom's Open University, which started in 1969, and like the National Technological University in the States. But for practical reasons, Bolivia is more interested in Spanish language-based programs such as Venezuelan's Open University, Universidad Nacional Abierta, in place since 1977, and the Mexican Virtual University of Monterrey, among others. Although Bolivia can see and appreciate some of the advantages of distance learning and seems to be eager to adopt a proactive approach to distance learning, the cost of computer technology proves to be a problem for the widespread adoption of such programs and methodology for the near future.

Teaching Profession

According to the Education for All (EFA) study, the number of primary school teachers having the required academic qualifications went from 63.7 percent in 1990 to 67.0 percent in 1999 for females, and from 59 percent to 60 percent for males during the same period. The percentage of school teachers who were certified to teach according to national standards decreased very slightly between 1990 and 1999, remaining almost stagnant at 74.7 percent for females in 1990 and 73.8 percent in 1999; the same was true for males during the same periods at 68.6 percent and 67.5 percent, respectively. Considering the growth in the number of actual classes, this increase seems a fairly good result.

The pupil-teacher ratio in primary schools moved slowly upward from 1995 to 1999 and stood at 23.3:1 in 1999. From 1990 to 1998, the number of teachers within private universities went up from 393 to 2,519 men and from 131 to 984 women; this increase is very important to the future of education as is the soaring enrollment in teacher training programs.

The Educational Reform Law of 1994 states that, as a minimum, teachers must hold the Licenciatura to be eligible to teach in private universities. Further training must be provided for teachers of 40 hours per semester.

Summary

Overall, Bolivia is showing an increase in total enrollments and a general improved parity between males and females, especially in urban private schools at the secondary level. Moreover there has been a beneficial increase in the private schools sector. An increased demand for quality education on the part of parents has meant a large migration of students towards cities. The citizens of Bolivia seem to be increasing their awareness of the importance of education, which, in turn, is beginning to produce higher quality labor skills in Bolivia.

Further, the government of Bolivia seems to have developed and fostered surprisingly clear and ambitious strategic educational objectives in the last decade. The long term effects of its multiple programs and of private programs on education overall, and in particular those applied to the indigenous population, remain to be seen. In the early years of the new millennium, Bolivia will depend on foreign funds for most new programs fostered by its reform. A large number of associations have been created with the ultimate goal of Bolivia's reaching self-reliance so that the negative impact that decreased foreign funding would have on the Bolivian education will hopefully be softened. The future of education in Bolivia seems to be heading in the right direction.

Bibliography

Baker, Colin, and Sylvia Prys Jones. Encyclopedia of Bilingualism and Bilingual Education. Multilingual Matters, 1998.

Myers, Charles N., and Miguel Urquiola. La Educación Intermedia y Media en Bolivia: Un análisis desde la perspectiva de la demanda. La Paz: UDAPSO, 1997.

PROEIB Andes Bulletins. Boletines, 1997-2001.

Propuesta Integral de Innovación Educativa en Nucleuss-PIIEN. La Paz: CEBIAE (Centro Boliviano de Investigación y Acción Educativas), 1998.

The State of the World's Children. UNESCO, 1999.

World Education Report. Oxford: UNESCO Publishing, 1995.

—Danielle Raquidel

Bolivia

Compiled from the September 2006 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of Bolivia

PROFILE

PEOPLE

HISTORY AND POLITICAL CONDITIONS

ECONOMY

FOREIGN RELATIONS

U.S.-BOLIVIAN RELATIONS

TRAVEL

PROFILE

Geography

Area: 1.1 million sq. km. (425,000 sq. mi.); about the size of Texas and California combined.

Cities: Capital—La Paz (administrative—pop. 800,385 in 2004); Sucre (constitutional—292,080). Other major cities—Santa Cruz (1,486,115), Cochabamba (587,220), El Alto (858,716).

Terrain: High plateau (altiplano), temperate and semitropical valleys, and the tropical lowlands.

Climate: Varies with altitude—from humid and tropical to semiarid and cold.

People

Nationality: Noun and adjective—Bolivian(s).

Population: (2004) 8,973,281 (estimated); (2005) 9,219,149 (projected).

Annual population growth rate: 1.45%.

Religions: Predominantly Roman Catholic; minority Protestant.

Languages: Spanish (official); Quechua, Aymara, Guarani.

Education: Years compulsory—ages 7-14. Literacy—85.5%. Health: (2000) Infant mortality rate—51.77.

Work force: (2.9 million) Nonagri-cultural employment—1.26 million; services, including government—70%; industry and commerce—30%.

Ethnic groups: 62% indigenous (primarily Aymara, Quechua, Guarani), 38% European and mixed.

Government

Type: Republic.

Independence: August 6, 1825.

Constitution: 1967; revised 1994.

Government branches: Executive—president and cabinet. Legislative—bicameral Congress. Judicial—five levels of jurisdiction, headed by Supreme Court.

Political subdivisions: Nine departments.

Political parties: Movement Toward Socialism (MAS), Social Democratic Power (PODEMOS), Nationalist Revolutionary Movement (MNR), National Unity (UN)

Suffrage: Universal adult, obligatory.

Economy (2005)

GDP: $9.657 billion.

Annual growth rate: 4%.

Per capita income: $940.

Natural resources: Hydrocarbons (natural gas, petroleum); mining (zinc, tungsten, antimony, silver, lead, gold, and iron).

Agriculture: (14.5% of GDP) Major products—Soybeans, cotton, potatoes, corn, sugarcane, rice, wheat, coffee, beef, barley, and quinine. Arable land—27%.

Industry: Types—Mineral and hydrocarbon extraction, manufacturing, commerce, textiles, food processing, chemicals, plastics, mineral smelting, and petroleum refining.

Trade: Exports—$2.7 billion (2005). Major export products—natural gas, tin, zinc, coffee, silver, tungsten, wood, gold, jewelry, soybeans, and byproducts. Major export markets—U.S. (15%), Brazil (33%), Colombia (6%), U.K. (2%), Argentina (9.6%), and Peru (4.7%). Imports—$2.4 billion. Major products—machinery and transportation equipment, consumer products, construction and mining equipment. Major suppliers—U.S. (14.9%), Argentina (16.4%), Brazil (23%), Chile (6.6%), Peru (6.3%).

PEOPLE

Bolivia’s ethnic distribution is estimated to be 56%-70% indigenous people, and 30%-42% European and mixed. The largest of the approximately three-dozen indigenous groups are the Quechua (2.5 million), Aymara (2 million), Chiquitano (180,000), and Guarani (125,000). There are small German, former Yugoslav, Asian, Middle Eastern, and other minorities, many of whose members descend from families that have lived in Bolivia for several generations. 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 10 per square kilometer (25 per sq. mi.) in the central highlands. The annual population growth rate is about 1.45% (2006).

La Paz is at the highest elevation of the world’s capital cities—3,600 meters (11,800 ft.) above sea level. The adjacent city of El Alto, at 4,200 meters above sea level, is one of the fastest-growing in the hemisphere. Santa Cruz, the commercial and industrial hub of the eastern lowlands, also is experiencing rapid population and economic growth.

The great majority of Bolivians are Roman Catholic (the official religion), although Protestant denominations are expanding strongly. Many indigenous communities interweave pre-Columbian and Christian symbols in their religious practices.

About half of the people speak Spanish as their first language. Approximately 90% of the children attend primary school but often for a year or less. The literacy rate is low in many rural areas.

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 Iskanwaya. The country abounds in other sites that are difficult to reach and have seen little archaeological exploration.

The Spanish brought their own tradition of religious art which, in the hands of local indigenous 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 Perez de Holguin, 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.

Bolivian artists of stature in the 20th century include, among others, Guzman de Rojas, Arturo Borda, Maria Luisa Pacheco, and Marina Nunez del Prado. Bolivia has 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.

HISTORY AND POLITICAL CONDITIONS

The Andean region probably has been inhabited for some 20,000 years. Beginning about the 2nd century B.C., the Tiwanakan culture developed at the southern end of Lake Titicaca. This culture, centered around and named for the great city of Tiwanaku, developed advanced architectural and agricultural techniques before it disappeared around 1200 A.D., probably because of extended drought. Roughly contemporaneous with the Tiwanakan culture, the Moxos in the eastern lowlands and the Mollos north of present-day La Paz also developed advanced agricultural societies that had dissipated by the 13th century of our era. In about 1450, the Quechua-speaking Incas entered the area of modern highland Bolivia and added it to their empire. They controlled the area until the Spanish conquest in 1525.

During most of the Spanish colonial period, this territory was called “Upper Peru” or “Charcas” 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). Bolivian silver mines produced much of the Spanish empire’s wealth, and Potosi, site of the famed Cerro Rico—”Rich Mountain”—was, for many years, the largest city in the Western Hemisphere. As Spanish royal authority weakened during the Napoleonic wars, sentiment against colonial rule grew. Independence was proclaimed in 1809, but 16 years of struggle followed before the establishment of the republic, named for Simon Bolivar, on August 6, 1825.

Independence did not bring stability. For nearly 60 years, coups and shortlived constitutions dominated Bolivian politics. Bolivia’s weakness was demonstrated during the War of the Pacific (1879-83), when it lost its seacoast and the adjoining rich nitrate fields to Chile.

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 20th century, tin replaced silver as the country’s most important source of wealth. A succession of governments controlled by the economic and social elites followed laissez-faire capitalist policies through the first third of the century.

Living conditions of the indigenous peoples, 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. Great loss of life and territory discredited the traditional ruling classes, while service in the army produced stirrings of political awareness among the indigenous people. From the end of the Chaco War until the 1952 revolution, the emergence of contending ideologies and the demands of new groups convulsed Bolivian politics.

Revolution and Turmoil

The Nationalist Revolutionary Movement (MNR) emerged as a broadly based party. Denied its victory in the

1951 presidential elections, the MNR led the successful 1952 revolution. Under President Victor Paz Estenssoro, the MNR introduced universal adult suffrage, carried out a sweeping land reform, promoted rural education, and nationalized 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 Rene Barrientos, a former member of the junta elected President in 1966, led to a succession of weak governments. Alarmed by public disorder, the military, the MNR, and others installed Col. (later General) Hugo Banzer Suarez 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.

Elections in 1978, 1979, and 1980 were inconclusive and marked by fraud. There were coups, counter-coups, and caretaker governments.

In 1980, Gen. Luis Garcia Meza carried out a ruthless and violent coup. His government was notorious for human rights abuses, narcotics trafficking, and economic mismanagement. Later convicted in absentia for crimes, including murder, Garcia Meza was extradited from Brazil and began serving a 30-year sentence in 1995.

After a military rebellion forced out Garcia Meza in 1981, three other military governments in 14 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—22 years after the end of his first term of office (1956-60)—Hernan Siles Zuazo again became President. Severe social tension, exacerbated by economic mismanagement and weak leadership, forced him to call early elections and relinquish power a year before the end of his constitutional term.

Return to Democracy

In the 1985 elections, the Nationalist Democratic Action Party (ADN) of Gen. Banzer won a plurality of the popular vote (33%), followed by former President Paz Estenssoro’s MNR (30%) and former Vice President Jaime Paz Zamora’s Movement of the Revolutionary Left (MIR, at 10%). But in the congressional runoff, the MIR sided with MNR, and Paz Estenssoro was chosen for the fourth time as president. When he took office in 1985, he faced a staggering economic crisis. Economic output and exports had been declining for several years. Hyperinflation had reached an annual rate of 24,000%. Social unrest, chronic strikes, and unchecked drug trafficking were widespread.

In 4 years, Paz Estenssoro’s administration achieved economic and social stability. The military stayed out of politics, and all major political parties publicly and institutionally committed themselves to democracy. Human rights violations, which badly tainted some governments earlier in the decade, were not a problem. However, Paz Estenssoro’s remarkable accomplishments were not won without sacrifice. The collapse of tin prices in October 1985, coming just as the government was moving to reassert its control of the mismanaged state mining enterprise, forced the government to lay off over 20,000 miners. The highly successful shock treatment that restored Bolivia’s financial system also led to some unrest and temporary social dislocation.

MNR candidate Gonzalo Sanchez de Lozada finished first in the 1989 elections (23%), though, as usual, no candidate received a majority of popular votes so Congress determined who would be president. The Patriotic Accord (AP) between Gen. Banzer’s ADN and Jaime Paz Zamora’s MIR, the second-and third-place finishers (at 22.7% and 19.6%, respectively), led to Paz Zamora’s assuming the presidency.

Paz Zamora was a moderate, center-left president whose political pragmatism in office outweighed his Marxist origins. He continued the neoliberal economic reforms begun by Paz Estenssoro. Paz Zamora also took a fairly hard line against domestic terrorism, a 1990 attack on terrorists of the Nestor Paz Zamora Committee and authorizing the 1992 crackdown on the Tupac Katari Guerrilla Army (EGTK).

The 1993 elections continued the tradition of open, honest elections and peaceful democratic transitions of power. The MNR defeated the ruling coalition, and Gonzalo “Goni” Sanchez de Lozada was named president by a coalition in Congress.

Sanchez de Lozada pursued an aggressive economic and social reform agenda, relying heavily on successful entrepreneurs-turned-politicians like him. The most dramatic program—“capitalization”, a form of privatization under which investors acquired 50% ownership and management control of the state oil corporation, telecommunications system, airlines, railroads, and electric utilities, with moneys directed to the pension system instead of the Treasury—was strongly opposed by certain segments of society, with frequent and sometimes violent protests from 1994 through 1996. In the 1997 elections, Gen. Hugo Banzer, leader of the ADN, beat the MNR candidate. 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 regional, global and domestic factors contributed to a decline in economic growth. Job creation remained limited throughout this period, and public perception of corruption was high. Both factors contributed to increasing social protests during the second half of Banzer’s term.

Banzer instructed 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. In 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 Quiroga, completed the final year of the term.

In the 2002 national elections, former President Sanchez de Lozada (MNR) again placed first with 22.5% of the vote, this time followed by illegal-coca agitator Evo Morales (Movement Toward Socialism, MAS) with 20.9%. The MNR platform featured three overarching objectives: economic reactivation (and job creation), anticorruption, and social inclusion.

A four-year economic recession, tight fiscal situation, and longstanding tensions between the military and police led to the February 12-13, 2003 violence that left more than 30 people dead and nearly toppled Sanchez de Lozada’s government. The government stayed in power but was unpopular.

Trouble began again in September 2003 when a group of tourists became trapped in the town of Sorata. After days of unfruitful negotiations, Bolivian security forces launched a rescue operation, but on the way out, were ambushed by armed peasants and a number of persons were killed on both sides. The incident ignited passions throughout the highlands and united a loose coalition of protestors to pressure the Government into halting the proposed project to export liquefied natural gas, most likely through Chile. Anti-Chile sentiment and memories of three major cycles of non-renewable commodity exports (silver through the 19th century, guano and rubber later in that century and tin in the 20th century) touched a nerve with many citizens. Events slowly built as La Paz became trapped by the protesters’ blockades. Violent confrontations ensued, and most of the approximately 60 deaths occurred when security forces tried to bring supplies into the besieged city.

In the end, many ordinary citizens pressured Sanchez de Lozada to resign on October 17, 2003 to prevent further bloodshed.

After a vote in Congress, Vice President Carlos Mesa Gisbert assumed office and restored order. Mesa appointed a non-political cabinet and promised to revise the constitution through a constituent assembly, revise the hydrocarbons law, and hold a binding referendum on the country’s natural gas deposits. The referendum took place on July 18, 2004, and Bolivians voted overwhelmingly in favor of development of the nation’s hydrocarbons resources. But the referendum did not end social unrest. Large-scale protests led to Congress approving a confiscatory hydrocarbons law on May 17, 2005. After a brief pause, however, demonstrations resumed, particularly in La Paz and El Alto. President Mesa offered his resignation June 6, and Eduardo Rodriguez, the president of the Supreme Court, assumed office in a constitutional transfer of power. Rodriguez announced that he was a transitional president, and called for early elections within six months.

Current Administration

On December 18, 2005, MAS candidate Evo Morales Ayma was elected to the presidency by 54% of the voters. Morales, a leader of coca growers and of indigenous descent, vowed to nationalize hydrocarbons and alleviate poverty and discrimination towards indigenous persons. Morales was and remains highly critical of the “neo-liberal” economic policies that have been implemented in Bolivia over the past several decades. On January 22, 2006, Morales and his Vice-president, Alvaro García Linera, were inaugurated into office. Since his inauguration, President Morales has moved to fulfill his campaign promises to decriminalize coca cultivation and to nationalize the country’s natural gas industry.

These policies have pleased his supporters within Bolivia, but have complicated Bolivia’s relations with some of its neighboring countries, foreign investors, and members of the international community. He also secured passage of legislation convoking a special election for delegates to a constituent assembly to draft a new constitution. The MAS performed relatively well in those elections, capturing 137 of 255 seats.

The assembly convened on August 6 and will deliberate for no less than 6 months and no more than one year. In a concurrent referendum, the four wealthy eastern provinces of Bolivia voted in favor of increasing regional autonomy, while the other five provinces opposed the measure. The issue of regional autonomy will be taken up in the constituent assembly.

Government Organization

The 1967 constitution, revised 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. In August 2006, Bolivia will revisit its constitutional organization in the first “Constituent Assembly” since 1938, with many interested groups calling for sweeping constitutional change.

For the first time in history, Bolivians chose their departmental prefects (similar to governors) by popular vote on December 18, 2005; the prefects were then formally appointed by the President. Bolivia’s nine departments received greater autonomy under the Administrative Decentralization law of 1995, although the lowland departments especially Santa Cruz and Tarija are seeking increased autonomy. Bolivian cities and towns are governed by directly elected mayors and councils. Municipal elections were held in December 2004, with councils elected to 5-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 improvements in their facilities and services.

Principal Government Officials

Last Updated: 1/24/2007

President: Juan Evo MORALES Ayma

Vice Pres.: Alvaro GARCIA Linera

Min. of Defense: Walker SAN MIGUEL Rodriguez

Min. of Economic Development: Celinda SOSA Luna

Min. of Education: Victor CACERES Rodriguez

Min. of Finance: Luis Alberto ARCE Catacora

Min. of Foreign Relations & Worship: David CHOQUEHUANCA Cespedes

Min. of Government: Alfredo RADA Velez

Min. of Health & Sports: Nila HEREDIA Miranda

Min. of Hydrocarbons: Carlos VILLEGAS Quiroga

Min. of Labor: Walter Juvenal DELGADILLO

Min. of Mining & Metals: Jose Guillermo DALENCE

Min. of Planning & Development: Gabriel LOZA Telleria

Min. of the Presidency: Juan Ramon QUINTANA Taborga

Min. of Rural Development and Agriculture: Susana RIVERO Guzman

Min. of Services & Public Works: Jerjes MERCADO Suarez

Min. Without Portfolio for Justice: Celima TORRICO Rojas

Min. Without Portfolio for Water: Abel MAMANI Marca

Presidential Del. for Political Affairs:

Presidential Del. for Public Transparency and Integrity:

Pres., Central Bank:

Ambassador to the US: Gustavo GUZMAN Saldana

Permanent Representative to the UN, New York:

Bolivia maintains an embassy in the United States at 3014 Massachusetts Ave., NW, Washington, DC 20008 (tel. 202-483-4410); consulates in Los Angeles, San Francisco, Miami, New Orleans, and New York; and honorary consulates in Atlanta, Chicago, Cincinnati, Houston, Mobile, Seattle, St. Louis, and San Juan.

ECONOMY

Bolivia’s 2005 gross domestic product (GDP) totaled $9.657 billion. Economic growth was estimated at about 4% for 2005, and inflation was estimated at about 4.9%.

In 1985, the Government of Bolivia implemented a far-reaching program of macroeconomic stabilization and structural reform aimed at maintaining price stability, creating conditions for sustained growth, and alleviating poverty. The most important change involved the “capitalization” (privatization) of numerous public sector enterprises. Parallel legislative reforms locked in place market-oriented policies that encouraged private investment. Foreign investors are accorded national treatment, and foreign ownership of companies is virtually unrestricted in Bolivia. Post-capitalization foreign direct investment (FDI) inflows have dwindled, as investors need markets for current resources and more political stability before investing more funds in Bolivia.

In 1996, the Bolivian state oil corporation (YPFB) facilitated the construction of a gas pipeline to Brazil to sell natural gas through 2019. Bolivia has the second-largest natural gas reserves in South America. Its current domestic use and exports to Brazil account for just a small portion of its potential production.

In April 2000, violent protests over plans to privatize the water utility in the city of Cochabamba led to nationwide disturbances. The government eventually cancelled the contract without compensation to the investors, returning the utility to public control. International shareholders’ outstanding claims were finally resolved in January 2006, when the Government of Bolivia agreed to purchase 80% of the shares in Aguas del Tunari, the joint venture company originally selected to manage the Cochabamba water concession.

Bolivian exports were around $2.7 billion for 2005, from a low of $652 million in 1991. Imports were $2.4 billion in 2005. Bolivian tariffs are a uniformly low 10%, with capital equipment incurring tariffs of only 5%. Bolivia’s trade surplus could be $300 million for 2005.

Bolivia’s trade with neighboring countries is growing, in part because of several regional preferential trade agreements. Bolivia is a member of the Andean Community (CAN) and enjoys nominally free trade with other member countries (Peru, Ecuador, Colombia, and Venezuela). Bolivia is also an associate member of MERCOSUR (Southern Cone Common Market). The Andean Trade Promotion and Drug Eradication Act (ATPDEA) allows numerous Bolivian products to enter the United States duty-free, including alpaca and llama products and, subject to a quota, cotton textiles. Previous Bolivian governments have expressed interest in extending ATPDEA benefits beyond their December 31, 2006 expiration date by signing a Free Trade Agreement (FTA), and Bolivia has been an observer in U.S.-Andean FTA negotiations with Peru, Colombia, and Ecuador.

In 2005, the United States exported $359 million of merchandise to Bolivia and imported $405 million. Bolivia’s major exports to the United States are tin, gold, jewelry, and wood products, with textiles playing an increasingly important role as well. Its major imports from the United States are computers, vehicles, wheat, and machinery. A Bilateral Investment Treaty (BIT) between the United States and Bolivia came into effect in 2001.

Agriculture accounts for roughly 14.5% 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 CAN market. The extraction of minerals and hydrocarbons accounts for another 10.1% of GDP and manufacturing around 12.2%.

The Government of Bolivia remains heavily dependent on foreign assistance to finance development projects. At the end of 2005, the government owed $5.2 billion to foreign creditors, with 7.5% 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 through the Paris Club mechanism. Rescheduling agreements granted by the Paris Club have allowed 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. In 1995, the U.S. reduced by 67% Bolivia’s existing debt stock.

The Bolivian Government continues to pay its debts to the multilateral development banks on time. Bolivia received a total of almost $2 billion of debt relief under the Heavily Indebted Poor Countries (HIPC) and Enhanced HIPC debt relief programs in 1998 and 2001. In December 2005, the International Monetary Fund (IMF) forgave an additional approximately $300 million of debt. Debt forgiveness of up to $1.8 billion by the World Bank is under discussion for 2006. Bolivia was one of three countries in the Western Hemisphere selected for eligibility for the Millennium Challenge Account (MCA) in 2004. Bolivia qualified again in 2005 and 2006, and presented a proposal to the MCA in December 2005.

FOREIGN RELATIONS

Bolivia traditionally has maintained normal diplomatic relations with all hemispheric states except Chile. Relations with Chile, strained since Bolivia’s defeat in the War of the Pacific (1879-83) and its loss of the coastal province of Atacama, were severed from 1962 to 1975 in a dispute over the use of the waters of the Lauca River. Relations were resumed in 1975 but broken again in 1978 over the inability of the two countries to reach an agreement that might have granted Bolivia sovereign access to the sea. They are maintained today below the ambassadorial level. In the 1960s, relations with Cuba were broken following Castro’s rise to power but resumed under the Paz Estenssoro administration in 1985.

Bolivia has pursued a foreign policy with a heavy economic component and the Morales government seems to be following in this same tradition. Bolivia has become more active in the Organization of American States (OAS), the Rio Group, and in MERCOSUR, with which it signed an association agreement in 1996. Bolivia promotes its policies on sustainable development and the empowerment of indigenous people.

Bolivia is a member of the UN and some of its specialized agencies and related programs, OAS, Andean Community, Non-Aligned Movement, International Parliamentary Union, Latin American Integration Association (ALADI), World Trade Organization; Rio Treaty, Rio Group, Amazon Pact, and an associate member of MERCOSUR. As an outgrowth of the 1994 Summit of the Americas, Bolivia hosted a hemispheric summit conference on sustainable development in December 1996.

U.S.-BOLIVIAN RELATIONS

Although President Morales has been publicly critical of U.S. policies, the United States and Bolivia have a tradition of cordial and cooperative relations. Development assistance from the United States to Bolivia dates from the 1940s, and the U.S. remains a major partner for economic development, improved health, democracy, and the environment. In 1991, the U.S. Government forgave all of the debt owed by Bolivia to the U.S. Agency for International Development ($341 million) as well as 80% (or $31 million) of the amount owed to the Department of Agriculture for food assistance. The United States also has been a strong supporter of forgiveness of Bolivia’s multilateral debt under the Heavily Indebted Poor Countries (HIPC) initiatives.

The control of illegal narcotics is a major issue in the bilateral relationship. For centuries, Bolivian coca leaf has been chewed and used in traditional rituals, but in the 1970s and 1980s the emergence of the drug trade led to a rapid expansion of coca cultivation used to make cocaine, particularly in the tropical Chapare region in the Department of Cochabamba (not a traditional coca growing area). In 1988, a new law, Law 1008, recognized only 12,000 hectares in the Yungas as sufficient to meet the licit demand of coca. Law 1008 also explicitly stated that coca grown in the Chapare was not required to meet traditional demand for chewing or for tea, and the law called for the eradication, over time, of all “excess” coca.

To accomplish that goal, successive Bolivian governments instituted programs offering cash compensation to coca farmers who eradicated voluntarily, and the government began developing and promoting suitable alternative crops for peasants to grow. Beginning in 1997, the government launched a more effective policy of physically uprooting the illegal coca plants, and Bolivia’s illegal coca production fell over the next 4 years by as much as 90%.

This “forced” eradication remains controversial, however, and well-organized coca growers unions have blocked roads, harassed police eradicators, and occasionally used lethal violence to protest the policy. In response, previous government security forces have used lethal force to respond to the protests, raising occasional human rights concerns. The Morales government has embarked on a policy of voluntary eradication and social control, the efficacy of which remains to be seen.

The United States also heavily supports parallel efforts to interdict the smuggling of coca leaves, cocaine, and precursor chemicals. The U.S. Government has, in large measure, financed the alternative development program and the police effort.

In 1996, the United States and Bolivia ratified a more effective extradition treaty that made it easier for both nations to more effectively prosecute drug traffickers and other criminals. Recent governments have supported U.S. Government counter-narcotics programs.

In addition to working closely with Bolivian Government officials to strengthen bilateral relations, the U.S. Embassy provides a wide range of services to U.S. citizens and businesses. Political and economic officers deal directly with the Bolivian Government in advancing U.S. interests, but are also available to provide information to American citizens on local economic and political conditions in the country. Commercial officers work closely with numerous U.S. companies that operate direct subsidiaries or have investments in Bolivia, providing information on Bolivian trade and industry regulations and administering several programs intended to aid U.S. companies starting or maintaining businesses in Bolivia.

The consular section of the embassy provides vital services to the estimated 13,000 American citizens resident in Bolivia. Among other services, the consular section assists Americans who wish to participate in U.S. elections while abroad and provides U.S. tax information. Some 40,000 U.S. citizens visit annually. The consular section offers passport and emergency services to these tourists as needed during their stay in Bolivia.

Principal U.S. Embassy Officials

LA PAZ (E) Address: Av. Arce #2780; APO/FPO: APO AA 34032; Phone: (591) (2) 216-8000; Fax: (591) (2) 216-8111; Workweek: Mon-Fri, 08:30–17:30; Website: www.mega-link.com/usemblapaz.

Last Updated: 1/4/2007

Other Contact Information

U.S. Department of State
2201 C Street, NW
Washington, DC 20520
Main Switchboard: 202-647-4000
(http://www.state.gov)

U.S. Department of Commerce
Trade Information Center
International Trade
Administration
1401 Constitution Avenue
Washington, DC 20230
(tel: 800-USA-TRADE, Internet:
http://www.ita.doc.gov)

American Chamber of Commerce in Bolivia
Edificio Hilda, Oficina 3
Avenida 6 de Agosto
Apartado Postal 8268
La Paz, Bolivia
Tel: (591) 2-2432573
Fax: (591) 2-2432472

TRAVEL

Consular Information Sheet : July 19, 2006

Country Description: Bolivia is a constitutional democracy and one of the least-developed countries in South America. Tourist facilities are generally adequate, but vary greatly in quality. The capital is La Paz, accessible by Bolivia’s international airport in El Alto.

Entry/Exit Requirements: A U.S. passport valid for at least six months from the date of proposed entry into Bolivia is required to enter and depart Bolivia. U.S. citizen tourists do not need a visa for a stay of one month or less (that period can be extended up to 90 days upon application to the Bolivian immigration authorities). Visitors for other purposes must obtain a visa in advance. U.S. citizens whose passports are lost or stolen in Bolivia must obtain a replacement passport and present it, together with a police report of the loss or theft, to a Bolivian government immigration office in order to obtain permission to depart. For more information on replacement passport procedures, please consult the U.S. Embassy’s Web site at http://lapaz.usembassy.gov/english/engindex.htm. An exit tax is charged when departing Bolivia by air. Travelers with Bolivian citizenship or residency pay an additional fee upon departure. While the Bolivian Government does not require travelers to purchase round-trip air tickets in order to enter the country, some airlines have required travelers to purchase round-trip tickets prior to boarding aircraft bound for Bolivia. Some tourists arriving by land report that immigration officials did not place entry stamps in their passports, causing problems at checkpoints and upon departure. Visit the Embassy of Bolivia web site at http://www.bolivia-usa.org for the most current visa information (please note that the web site is primarily in Spanish).

Bolivian consulates are located in Houston, Los Angeles, Miami, Oklahoma City, New York, San Francisco, and Seattle. For information on incountry visa procedures and requirements, please consult the Bolivian Immigration Service at http://www.migracion.gov.bo (please note that the web site is in Spanish), fax/telephone (591-2) 211-0960, street address Avenida Camacho entre Loayza y Bueno, La Paz, Bolivia.

Additional Requirements for Minors: In an effort to prevent international child abduction, the Bolivian Government has initiated procedures at entry/exit points. Minors (under 18) who are citizens or residents of Bolivia and who are traveling alone, with one parent or with a third party, must present a copy of their birth certificate and written authorization from the absent parent(s) or legal guardian, specifically granting permission to travel alone, with one parent or with a third party. When a parent is deceased, a notarized copy of the death certificate is required in lieu of the written authorization. If documents are prepared in the United States, the authorization and the birth certificate must be translated into Spanish, notarized, and authenticated by the Bolivian Embassy or a Bolivian consulate within the United States. If documents are prepared in Bolivia, only notarization by a Bolivian notary is required. Using these documents, a t ravel permit may be obtained from the Juzgado del Menor. This requirement does not apply to children who enter the country with a U.S. passport as tourists, unless they hold dual U.S./Bolivian citizenship or have been in Bolivia for more than 90 consecutive days.

Safety and Security: The countrywide emergency number for the police, including highway patrol, is 110. The corresponding number for the fire department is 119. The National Tourism Police has an office in La Paz, with plans to expand to Cochabamba and Santa Cruz, providing free assistance to tourists 24 hours a day. These services include English-speaking officials who may assist tourists in filing police reports of lost/stolen documents or other valuables. The La Paz office is located at Plaza del Stadium, Edificio Olympia, planta baja, Miraflores, telephone number 222-0516.

Protests, strikes, and other civic actions can occur at any time and disrupt transportation on a local and national level. This is particularly true before, during and after elections or other changes in government. While protest actions generally begin peacefully, they have the potential to become violent. The police have used tear gas to break up protests. In addition to rallies and street demonstrations, protesters sometimes block roads; they sometimes react with force when travelers attempt to pass through or go around roadblocks and occasionally have used the threat of explosives to press their point.

U.S. citizens should avoid roadblocks and demonstrations. Demonstrations protesting government or private company policies occur frequently, even in otherwise peaceful times. Roadblocks and demonstrations in June 2005 led to the closure of the El Alto airport in La Paz, resulting in cancellation and diversion of flights and other inconveniences to travelers. U.S. citizens planning travel to or from Bolivia should take into consideration the possibility of disruptions to air service in and out of La Paz and other airports. Americans should monitor Bolivian media reports for updates. The Embassy strongly recommends that U.S. citizens avoid areas where roadblocks or public demonstrations are occurring or planned. Political rallies should similarly be avoided in light of press reports of violence at some rallies in various parts of Bolivia.

U.S. citizens who find themselves in a roadblock should not attempt to “run” a roadblock, as this may aggravate the situation and lead to physical harm. Taking alternative, safe routes, or returning to where the travel started may be the safest courses of action under these circumstances. U.S. citizens embarking on road trips should monitor news reports and may contact the American Citizen Services Unit of the U.S. Embassy in La Paz at (591)(2)(216-8297 or the U.S. consular agencies in Cochabamba at (591)(4)425-6714 and/or Santa Cruz at (591) (3) 351-3477 for updates. Given that roadblocks may occur without warning and have stranded travelers for several days, travelers should take extra food and water. The U.S. Embassy also advises its employees to maintain at least one week’s supply of drinking water and canned food in case roadblocks affect supplies, as occurred in June 2005. For more information on emergency preparedness, please consult the Federal Emergency Management Authority (FEMA) Web site at http://www.fema.gov/. That Web site includes a Spanish language version.

Americans living or traveling in Bolivia are encouraged to register and update their contact information at the U.S. Embassy in La Paz and/or the U.S. consular agencies in Cochabamba and Santa Cruz, Bolivia. Registration may be done online and in advance of travel. Information on registering may be found at the Department of State’s Consular Affairs website.

In February and October 2003, approximately one hundred people died during violent demonstrations and protests in downtown La Paz and the nearby city of El Alto. These demonstrations also affected Cochabamba and other towns and villages in the Altiplano. While the protests and demonstrations subsided, many of the underlying social, political, and economic causes remain, and in March 2005, several intercity roads, including Bolivia’s major east-west highway, were closed by blockades for several weeks.

Since 2000 the resort town of Sorata, located seventy miles north of La Paz, has been cut off by blockades on three occasions, ranging from one week to one month. Visitors contemplating travel to Sorata should contact the Consular Section in La Paz prior to travel.

In the Chapare region between Santa Cruz and Cochabamba and the Yungas region northeast of La Paz violence and civil unrest, primarily associated with anti-narcotics activities, periodically create a risk for travelers to those regions.

Confrontations between area residents and government authorities over coca eradication have resulted in the use of tear gas and stronger force by government authorities to quell disturbances. Pro-coca groups have expressed anti-U.S. sentiments and may attempt to target U.S. Government or private interests. U.S. citizen visitors to the Chapare or Yungas regions are encouraged to check with the Consular Section of the U.S. Embassy prior to travel. Violence has also erupted recently between squatters unlawfully invading private land and security forces attempting to remove them.

For the latest security information, Americans traveling abroad should regularly monitor the Department’s Internet web site, where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements can be found. Up-to-date information on safety and security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or for callers outside the U.S. and Canada, a regular toll-line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Time, Monday through Friday (except U.S. federal holidays).

Crime: The U.S. Department of State currently classifies Bolivia as a medium to high crime threat country. Street crime, such as pick pocketing and theft from parked vehicles, occurs with some frequency in Bolivia. Theft of cars and car parts, particularly late-model four-wheel-drive vehicles, is common. Hijacking of vehicles has occurred, and travelers should take appropriate precautions to avoid being victimized. In November 2003, an American citizen was murdered during an attempted carjacking in Santa Cruz. Bolivian police state that there are currently eight organized criminal groups operating in the La Paz area. The techniques employed by these groups vary, but there are a few major patterns that can be identified. There have been reports of “false police”—persons using police uniforms, identification, and even buildings modified to resemble police stations—intercepting and robbing foreign tourists. Under Bolivian law, police need a warrant from the “fiscal” or prosecutor to detain a suspect. Any searches or seizures must occur at a bona fide police station in the presence of the fiscal. The warrant requirement also applies to suspected drug trafficking cases, although such searches and seizures may occur without a fiscal present. If detained, U.S. citizens should request to see the warrant and demand immediate contact with the nearest U.S. Consular Office (in La Paz, Cochabamba or Santa Cruz).

According to press reports, criminals using the “false police” method focus on foreigners in areas frequented by tourists including bus terminals and tourist markets such as Sagarnaga Street in La Paz. The perpetrators will identify a potential victim and have an accomplice typically driving a white taxi offer taxi services to the potential victim. They focus on European/American tourists who are not wearing a traditional “trekker” backpack and are traveling without a large number of bags. A few blocks after the potential victim boards the taxi another accomplice, pretending to be a recently arrived tourist, boards the taxi with the potential victim. With all the accomplices then in place, the “false police” stop the taxi, “search” the passengers, and rob the victim. As part of this scam, the false police may take the victim to a “false police” station.

A similar variation also introduces a “tourist” to the victims. This introduction can take place on a bus, taxi, train, or just walking down the street. The “tourist” will befriend the victims and might seek assistance in some manner. After a period of time, the “police” intercept the victims and the “tourist.” At this point, the “police” discover some sort of contraband (usually drugs) on the “tourist.” The entire group is then taken to the “police station.” At this point, the “police” seize the documents, credit cards, and ATM cards of the victims. The perpetrators obtain pin numbers, sometimes by threat of violence, and the scam is complete. Another technique again introduces a “tourist” to the victims. This “tourist” can be any race or gender and will probably be able to speak the language of the victims. This meeting can happen anywhere and the goal of the “tourist” is to build the trust of the victims. Once a certain level of trust is obtained, the “tourist” suggests a particular mode of transportation to a location (usually a taxi). The “taxi” picks up the victims and the “tourist” and delivers the group to a safe house in the area. At this point the victims are informed that they are now kidnapped and are forced to give up their credit cards and ATM cards with pin numbers.

Bolivian police sources state that two Austrian citizens fell victim to this scam and had their bank accounts emptied through use of their ATM card. The perpetrators then suffocated the victims and buried them in clandestine graves, where police found their bodies on April 3, 2006. During that timeframe, a Spanish citizen also purportedly fell prey to this scam, and his body was found nearby.

In most instances, the victims are released, but the murder of the victims is still a possibility. The techniques and the perpetrators are convincing. Authentic uniforms, badges, and props help persuade the victims that the situation is real and valid. All tourists visiting Bolivia should exercise extreme caution. Visitors should be suspicious of all “coincidences” that can happen on a trip. If the tourist has doubts about a situation, the tourist should immediately remove him/herself from the scene.

Thefts of bags, wallets, and backpacks are a problem throughout Bolivia, but especially in the tourist areas of downtown La Paz and the Altiplano. Most thefts involve two or three people who spot a potential victim and wait until the bag or backpack is placed on the ground, often at a restaurant, bus terminal, Internet café, etc. In other cases, the thief places a disagreeable substance on the clothes or backpack of the intended victim, and then offers to assist the victim with the removal of the substance. While the person is distracted, the thief or an accomplice grabs the bag or backpack and flees. In such a situation, the visitor should decline assistance, secure the bag/backpack, and walk briskly from the area. To steal wallets and bags, thieves may spray water on the victim’s neck, and while the person is distracted, an accomplice takes the wallet or bag. At times the thief poses as a policeman, and requests that the person accompany him to the police station, using a nearby taxi. The visitor should indicate a desire to contact the U.S. Embassy and not enter the taxi. Under no circumstances should you surrender ATM or credit cards, or release a PIN number. While most thefts do not involve violence, in some instances the victim has been physically harmed and forcibly searched for hidden valuables. Visitors should avoid being alone on the streets, especially at night and in isolated areas.

Five years ago female tourists reported being drugged and raped by a tourist guide in the city of Rurrenabaque in the Beni region. Visitors should be careful when choosing a tour operator and should not accept any type of medication or drugs from unreliable sources. The Embassy has received reports of sexual assaults against female hikers in the Yungas Valley, near the town of Coroico. Visitors to Coroico are advised to avoid hiking alone or in small groups.

Information for Victims of Crime: The loss or theft abroad of a U.S. passport should be reported immediately to the local police and the nearest U.S. Embassy or Consulate. If you are the victim of a crime while overseas, in addition to reporting to local police, please contact the nearest U.S. Embassy or Consulate for assistance. The Embassy/Consulate staff can, for example, assist you to find appropriate medical care, contact family members or friends, and explain how funds may be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

Medical Facilities and Health Information: Medical care in large cities is adequate for most purposes but of varying quality. Ambulance services are limited-to-non-existent. Medical facilities are generally not adequate to handle serious medical conditions. Pharmacies are located throughout Bolivia, and prescription and over the counter medications are widely available. Western Bolivia, dominated by the Andes and high plains (Altiplano), is largely insect-free. However, altitude sickness is a major problem. Eastern Bolivia is tropical, and visitors to that area are subject to related illnesses. In March 2005, several cases of yellow fever were reported in the Chapare region. News media periodically report outbreaks of rabies, particularly in the larger cities.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention’s hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747) or via the CDC’s Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad consult the World Health Organization’s (WHO) website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance: The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and whether it will cover emergency expenses such as a medical evacuation. Most medical evacuation flights cannot land at the airport serving La Paz due to the altitude; instead flights may need to use the international airport in Santa Cruz, Bolivia.

High-Altitude Health Risks: Official U.S. Government travelers to La Paz are provided with the following information: The altitude of La Paz ranges from 10,600 feet to over 13,000 feet (3,400 to 4,000 meters) above sea level. Much of Western Bolivia is at the same altitude or higher, including Lake Titicaca, the Salar de Uyuni, and the cities of Oruro and Potosi. The altitude alone poses a serious risk of illness, hospitalization, and even death, if you have a medical condition that affects blood circulation or breathing.

Prior to departing the U.S. for high-altitude locations (over 10,000 feet above sea level), travelers should discuss the trip with their personal physician and request information on specific recommendations concerning medication and lifestyle tips at high altitudes. Coca-leaf tea is a popular beverage and folk remedy for altitude sickness in Bolivia. Possession of this tea, which is sold in bags in most Bolivian grocery stores, is illegal in the United States.

The State Department’s Office of Medical Services does not allow official U.S. Government travelers to visit La Paz if they have any of the following:

• Sickle cell anemia or sickle cell trait: 30 percent of persons with sickle cell trait are likely to have a crisis at elevations of more than 8,000 feet.
• Heart disease: A man 45 years or older, or a woman 55 years or older, who has two of the following risk factors (hypertension, angina, diabetes, cigarette smoking, or elevated cholesterol) should have a stress EKG and a cardiological evaluation before the trip.
• Lung disease: Anyone with asthma and on maximum dosage of medication for daily maintenance, or anyone who has been hospitalized for asthma within the last year should not come to La Paz and surrounding areas.

Given potential complications from altitude sickness, pregnant women should consult their doctor before travel to La Paz and other high-altitude areas of Bolivia.

All people, even healthy and fit persons, will feel symptoms of hypoxia (lack of oxygen) upon arrival at high altitude. Most people will have increased respiration and increased heart rate. Many people will have headaches, difficulty sleeping, lack of appetite, minor gastric and intestinal upsets, and mood changes. Many travelers limit physical activity for the first 36 to 48 hours after arrival and avoid alcohol and smoking for at least one week after arrival.

For additional information, travelers should visit the World Health Organization’s website at http://www.who.int/ith/en/as well as the CDC’s travel warning on high altitude sickness at http://www.cdc.gov/travel.

Traffic Safety and Road Conditions: While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning Bolivia is provided for general reference only, and may not be totally accurate in a particular location or circumstance. U.S. citizens planning on driving in Bolivia, despite the hazards described below, should obtain an international driver’s license through their local automobile club before coming to Bolivia.

Road conditions in Bolivia are hazardous. Although La Paz, Santa Cruz, and Cochabamba are connected by improved highways, the vast majority of roads in Bolivia are unpaved. Few highways have shoulders, fencing or barriers, and highway markings are minimal. Yielding for pedestrians in the cities is not the norm. For trips outside the major cities, especially in mountainous areas, a four-wheel-drive vehicle is highly recommended. Travel during the rainy season (November through March) is difficult, as most routes are potholed, and some roads and bridges are washed out. Added dangers are the absence of formal training for most drivers, poor maintenance and overloaded vehicles, lack of lights on some vehicles at night, and intoxicated or overly tired drivers, including commercial bus and truck drivers.

The majority of intercity travel in Bolivia is by bus, with varying levels of safety and service. In recent years there have been major bus crashes on the highway between La Paz and Oruro, and on the Yungas road. The old Yungas road is considered one of the most dangerous routes in the world. Taxis, vans, and buses dominate intracity transportation. From a crime perspective, public transportation is relatively safe and violent assaults are rare. However, petty theft of unattended backpacks and other personal items does occur. For reasons of safety, visitors are advised to use radio taxis whenever possible. Drivers of vehicles involved in traffic accidents are expected to remain at the scene until the arrival of local police authorities.

Any attempt to leave the scene is in violation of Bolivian law. The Embassy believes any attempt to flee the scene of an accident would place the driver and passengers at greater risk of harm than remaining at the scene until the arrival of local police.

Aviation Safety Oversight: The U.S. Federal Aviation Administration (FAA) has assessed the Government of Bolivia as being in compliance with ICAO international aviation safety standards for oversight of Bolivia’s air carrier operations. For more information, travelers may visit the FAA’s Internet web site at www.faa.gov/avr/iasa/index.cfm. There are limited flights within Bolivia and to neighboring countries. Flight delays and cancellations are common. In February and March 2006, strikes at national carrier Lloyd Aereo Boliviano led to the cancellation of both national and international flights with resultant delays and other inconveniences for travelers.

Special Circumstances: In the runup to the July 2006 Constituent Assembly elections, President Morales accused the United States military of infiltrating Bolivia with operatives disguised as “students and tourists.” As an apparent result of these comments, some U.S. citizens have reported harassment by Bolivian officials and been subjected to unwanted media attention. In one case, a local Bolivian newspaper wrongly identified an American citizen as an operative for the Central Intelligence Agency. Americans planning on traveling to Bolivia should be aware of the political atmosphere and the possibility of unwanted attention from pro-governmental groups and other Bolivian officials.

For information on in-country visa procedures and requirements, please consult the Bolivian Immigration Service at http://www.migracion.gov.bo (please note that the Web site is in Spanish), fax/telephone (591-2) 211-0960, street address Avenida Camacho entre Loayza y Bueno, La Paz, Bolivia. In emergency cases, the Immigration Service may permit temporary residency applicants to retrieve their passports from those applications.

However, under current regulations in such cases the applicant would need to commence the application anew, including paying the corresponding fees. Any U.S. documents, such as birth, marriage, divorce or death certificates, to be presented in Bolivia must first be authenticated in the U.S. at the nearest Bolivian Embassy or consulate. For information on those procedures, please consult the Department of State Office of Authentications web site, www.state.gov/m/a/auth, and the nearest Bolivian Embassy or consulate.

Marriage: Please see our information on marriage in Bolivia, available on the Embassy’s Web site at http://bolivia.usembassy.gov/english/consular/ACS.htm.

Mountain Trekking and Climbing Safety: U.S. citizens are advised to exercise extreme care when trekking or climbing in Bolivia. Since June 2002, four American citizens have died in falls while mountain climbing in Bolivia. Three of the deaths occurred on Illimani, a 6,402-meter peak located southeast of La Paz. Many popular trekking routes in the Bolivian Andes cross passes as high as 16,000 feet. Trekkers must have adequate clothing and equipment, not always available locally, and should be experienced mountain travelers. It is not prudent to trek alone. Solo trekking is the most significant factor contributing to injuries and robberies. The safest option is to join an organized group and/or use a reputable firm to provide an experienced guide and porter who can communicate in both Spanish and English. If you develop any of the following symptoms while climbing at altitude—severe headache, weakness, vomiting, shortness of breath at rest, cough, chest tightness, unsteadiness—descend to a lower altitude immediately. Trekkers and climbers are strongly encouraged to purchase adequate insurance to cover expenses in case of injury or death.

Criminal Penalties: While in a foreign country, a U.S. citizen is subject to that country’s laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses. Persons violating Bolivian laws, even unknowingly, may be expelled, arrested, or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in Bolivia are severe, and convicted offenders can expect long jail sentences and heavy fines. Engaging in sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

It often takes years to reach a decision in Bolivian legal cases, whether involving property disputes, civil, or criminal matters. Depending on the circumstances of the case, the court can order a defendant held in jail for the duration of the case. Prison conditions are primitive, and prisoners are expected to pay for food and lodging. For further information, please see the Annual Human Rights Report for Bolivia at http://www.state.gov/g/drl/rls/shrd/2005/63949.htm. Lists of local Bolivian attorneys and their specialties are available from the Consular Section of the U.S. Embassy in La Paz and the Consular Agencies in Santa Cruz and Cochabamba, and may also be found on the Website at http://bolivia.usembassy.gov/english/consular/attorney.htm.

Children’s Issues: For information on international adoption of children and international parental child abduction, see the Office of Children’s Issues website at http://travel.state.gov/familyfamily_1732.html. Pending U.S. implementation of the Hague Convention on International Adoptions, under Bolivian law U.S. citizens who are not resident in Bolivia are not permitted to adopt Bolivian children.

Registration/Embassy Location: Americans living or traveling in Bolivia are encouraged to register with the nearest U.S. Embassy or Consular Agency through the State Department’s travel registration website, and to obtain updated information on travel and security within Bolivia.

Americans without Internet access may register directly with the nearest U.S. Embassy or Consular Agencies in Cochabamba and Santa Cruz. By registering, American citizens make it easier for the Embassy or Consular Agency to contact them in case of emergency.

The U.S. Embassy is located at 2780 Avenida Arce in La Paz, between calles Cordero and Campos; telephone (591-2) 216-8297 during business hours 8:30 a.m.-5:30 p.m., or (591-2) 216-8000 for after-hours emergencies; fax (591-2) 216-8808; Internet http://bolivia.usembassy.gov/.

The U.S. Embassy in La Paz is open for American Citizen Services Monday through Thursday from 1:30PM to 5:00PM and Fridays from 08:30 to12:30 and from 2:00PM to 4:00PM, except U.S. and Bolivian holidays. Questions should be directed to the email address USCit.Services.Bolivia@gmail.com or consularlapaz@state.gov. There are two consular agencies in Bolivia, which provide limited services to American citizens, but are not authorized to issue passports. Anyone requesting service at one of the consular agencies should call ahead to verify that the service requested would be available on the day you expect to visit the agency.

The Consular Agency in Santa Cruz is located at 146 Avenida Roque Aguilera (Tercer Anillo); telephone (591-3) 351-3477, 351-3479, or 351-3480; fax (591-3) 351-3478. The U.S. Consular Agency in Santa Cruz is open to the public Mondays from 09:00 to 12:30 and from 2:00PM to 5:00PM and on Tuesday through Friday from 09:00 to 12:30, except U.S. and Bolivian holidays.

The Consular Agency in Cochabamba is located at Avenida Oquendo 654, Torres Sofer, room 601; telephone (591-4) 411-6313; fax (591-4) 425-6714. The U.S. Consular Agency in Cochabamba is open Monday through Friday from 9:00 a.m. – 12:00 noon, excluding U.S. and Bolivian holidays.

International Adoption : July 2006

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family.

Disclaimer: The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

Please Note: U.S. citizens who are also citizens of Bolivia, or who are legal residents of Bolivia, may adopt Bolivian children. American citizens interested in adopting from Bolivia should contact the Consular Section of the U.S. Embassy in La Paz via email at consularlapaz@state.gov.

Patterns of Immigration: Please review current reports online at www.travel.state.gov/family.

Adoption Authority: The governmental authority responsible for adoption matters in Bolivia is the Vice-Ministry of Gender and Generational Affairs (Viceministerio de Género y Asuntos Generacionales), which may be reached via the following contact information:

Av. 16 de Julio #1219
La Paz, Bolivia
Telephone: 591 – 2—212 4725;
591-2 –212 4727
Email: vicejunite@alamo.entelnet.bo

Eligibility Requirements for Adoptive Parents: Bolivia allows both married and single people to adopt. Prospective adoptive parents must be between 25 to 50 years of age or 15 years older than the adopted child to adopt a child in Bolivia.

Residency Requirements: U.S. citizens must be legal residents of Bolivia in order to adopt in Bolivia.

Time Frame: Bolivian adoptions can be time-consuming. Recent experience suggests that the total time required will be several months to over one year.

Adoption Agencies and Attorneys: Due to the current restrictions on intercountry adoptions in Bolivia, there are currently no licensed adoption agencies in Bolivia handling the adoption of Bolivian children by U.S. citizens. The U.S. Embassy in La Paz maintains a list of attorneys who may be able to help U.S. citizens who are legal residents of Bolivia or U.S.-Bolivian dual nationals pursuing adoptions.

Adoption Fees: The U.S. Embassy in La Paz estimates the average attorney and legal fees for an adoption in Bolivia to be between $5,000 and $7,000.

Adoption Procedures: Bolivia has two types of adoptions: national and intercountry. Prospective adoptive parents must work with the Vice-Ministry of Gender and Generational Affairs to locate a child that is eligible for adoption. Once the prospective adoptive parents are matched with a child, they must then apply to the Bolivian court that has jurisdiction over the child. A Bolivian attorney must submit the request for adoption to the Vice-Ministry of Gender and Generational Affairs along with a copy a social worker’s report of the prospective adoptive child. Once the final adoption decree has been issued, the adoption is recorded in a national registry maintained by the Vice-Ministry of Gender and Generational Affairs. At this point, at least one of the adoptive parents will need to go to the Consular Section of the U.S. Embassy in La Paz to file an I-600 petition. If approved, the petition is then returned to the Consular Section’s Immigrant Visa (IV) Unit for visa processing. Please see the International Adoption section of this book for more details and review current reports online at www.travel.state.gov/family.

Documentary Requirements: The following is a general list of documents that are required for adoption in Bolivia:

• The adoptive parents’ birth certificates;
• The adoptive parents’ marriage certificate(s), if applicable;
• Home study conducted by an approved adoption service provider;
• Physical and psychological health certificates;
• Financial and employment certifications;
• 2-3 Personal references and police clearances;
• Evidence that prospective parent(s) has participated in and completed a parenting workshop (this may be undertaken in the United States).

Each document must be authenticated in the United States.

Embassy of Bolivia in the U.S.:
3014 Massachusetts Ave., N.W.
Washington, D.C. 20008
Tel: (202) 483-4410

Bolivia also has Consulates General in Houston, Miami, New York, Oklahoma City and Seattle.

U.S. Immigration Requirements: Prospective adopting parents are strongly encouraged to consult USCIS publication M-249, The Immigration of Adopted and Prospective Adopting Children, as well as the Department of State publication, International Adoptions. Please see the International Adoption section of this book for more details and review current reports online at www.travel.state.gov/family.

U.S. Embassy in Bolivia:
American Embassy—Consular Section
Avenida Arce 2780, between calles
Cordero and Campos
La Paz, Bolivia

Additional Information: Specific questions about adoption in Bolivia may be addressed to the U.S. Embassy in La Paz. General questions regarding international adoption may be addressed to the Office of Children’s Issues, U.S. Department of State, CA/OCS/CI, SA-29, 4th Floor, 2201 C Street, NW, Washington, D.C. 20520-4818, toll-free Tel: 1-888-407-4747.