Background: Bolivia named after independence fighter Simon BOLIVAR broke away from Spanish rule in 1825; much of its subsequent history has consisted of a series of nearly 200 coups and counter-coups. Comparatively democratic civilian rule was established in the 1980s but leaders have faced difficult problems of deep-seated poverty social unrest and drug production. Current goals include attracting foreign investment strengthening the educational system continuing the privatization program and waging an anti-corruption campaign.
Natural hazards: cold thin air of high plateau is obstacle to efficient fuel combustion as well as to physical activity by those unaccustomed to it from birth; flooding in the northeast (March-April)
Geography Note: landlocked; shares control of Lago Titicaca world's highest navigable lake (elevation 3,805 m) with Peru
Environment Current issues: the clearing of land for agricultural purposes and the international demand for tropical timber are contributing to deforestation; soil erosion from overgrazing and poor cultivation methods (including slash-and-burn agriculture); desertification; loss of biodiversity; industrial pollution of water supplies used for drinking and irrigation
Legislative branch: bicameral National Congress or Congreso Nacional consists of Chamber of Senators or Camara de Senadores (27 seats; members are directly elected by popular vote to serve five-year terms) and Chamber of Deputies or Camara de Diputados (130 seats; members are directly elected by popular vote to serve five-year terms)
Judicial branch: Supreme Court (Corte Suprema) judges appointed for 10-year terms by National Congress
Political parties and leaders: Alternative of Democratic Socialism or ASD [Jerjes JUSTINIANO]; April 9 Revolutionary Vanguard or VR-9 [Carlos SERRATE]; Bolivian Communist Party or PCB [Marcos DOMIC]; Bolivian Renovating Alliance or ARBOL [Marcelo FERNANDEZ Hugo VILLEGAS]; Bolivian Socialist Falange or FSB [leader NA]; Christian Democrat or PDC [Benjamin MIGUEL]; Civic Solidarity Union or UCS [Johnny FERNANDEZ]; Conscience of the Fatherland or CONDEPA [Remedios LOZA Alvarado]; Free Bolivia Movement or MBL [Antonio ARANIBAR]; Front of Katarista Unity or FULKA [Genaro FLORES]; Front of National Salvation or FSN [Manual MORALES Davila]; Katarismo National Unity or KND [Filepe KITTELSON]; Movement of the Revolutionary Left or MIR [Oscar EID]; Movement Towards Socialism-Popular Instrument for Solidarity with the People or MAS-IPSP [leader Evo MORALES]; Nationalist Democratic Action or ADN [Enrique TORO]; Nationalist Katarista Movement or MKN [Fernando UNTOJA]; Nationalist Revolutionary Movement or MNR [Gonzalo SANCHEZ DE LOZADA]; New Republican Force or NFR [Manfred REYES VILLA]; New Youth Force [Alfonso SAAVEDRA Bruno]; Patriotic Axis of Convergence or EJE-P [Ramiro BARRANECHEA]; Popular Patriotic Movement or MPP [Julio MANTILLA]; Revolutionary Front of the Left or FRI [Oscar ZAMORA]; Socialist Party One or PS-1 [leader NA]; Solidarity and Democracy or SYD [leader NA]; Tupac Katari Revolutionary Liberation Movement or MRTK-L [Victor Hugo CARDENAS Conde]; United Left or IU [Marcos DOMIC]; Unity and Progress Movement or MUP [Ivo KULJIS]
International organization participation: CAN ECLAC FAO G-11 G-77 IADB IAEA IBRD ICAO ICRM IDA IFAD IFC IFRCS ILO IMF IMO Intelsat Interpol IOC IOM ITU LAES LAIA Mercosur (associate) MONUC NAM OAS OPANAL OPCW PCA RG UN UNCTAD UNESCO UNIDO UNMIK UNTAET UPU WCL WFTU WHO WIPO WMO WToO WTrO
Flag description: three equal horizontal bands of red (top) yellow and green with the coat of arms centered on the yellow band; similar to the flag of Ghana which has a large black five-pointed star centered in the yellow band
Economy overview: Bolivia long one of the poorest and least developed Latin American countries has made considerable progress toward the development of a market-oriented economy. Successes under President SANCHEZ DE LOZADA (1993-1997) included the signing of a free trade agreement with Mexico and the Southern Cone Common Market (Mercosur) as well as the privatization of the state airline telephone company railroad electric power company and oil company. His successor Hugo BANZER Suarez has tried to further improve the country's investment climate with an anticorruption campaign. Growth slowed in 1999 in part due to tight government budget policies which limited needed appropriations for anti-poverty programs and the fallout from the Asian financial crisis. Growth should rebound to perhaps 4% in 2000 given reasonably favorable world commodity prices.
Exports: $1.1 billion (f.o.b. 1999 est.) Commodities: soybeans natural gas zinc gold wood Partners: UK 16% US 12% Peru 11% Argentina 10% Colombia 7% (1998)
Imports: $1.6 billion (c.i.f. 1999 est.) Commodities: capital goods raw materials and semi-manufactures chemicals petroleum food Partners: US 32% Japan 24% Brazil 12% Argentina 12% Chile 7% Peru 4% Germany 3% (1998)
Disputes international: has wanted a sovereign corridor to the South Pacific Ocean since the Atacama area was lost to Chile in 1884; dispute with Chile over Rio Lauca water rights
Illicit drugs: world's third-largest cultivator of coca (after Peru and Colombia) with an estimated 21,800 hectares under cultivation in 1999 a 45% decrease in overall cultivation of coca from 1998 levels; intermediate coca products and cocaine exported to or through Colombia Brazil Argentina and Chile to the US and other international drug markets; alternative crop program aims to reduce illicit coca cultivation