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Bolivia

2007 Schools Wikipedia Selection. Related subjects: Central & South American
Countries; Countries

   SOS Children works in Bolivia. For more information see SOS Children in
   Bolivia
                   República de Bolivia
   Republic of Bolivia

   Flag of Bolivia Coat of arms of Bolivia
   Flag            Coat of arms
   Motto: Spanish: ¡Morir antes que esclavos vivir!
   (English: "To die rather than to live as slaves!")
   Anthem: Bolivianos, el hado propicio
   Location of Bolivia
          Capital        La Paz, Sucre
                         16°29′S 68°8′W
       Largest city      Santa Cruz
    Official languages   Spanish, Aymara, Quechua
   Government            Republic
    - President          Evo Morales
       Independence
    - From Spain         August 6, 1825
                           Area
    - Total              1,098,581 km² ( 28th)
                         424,163 sq mi
    - Water (%)          1.29%
                        Population
    - July 2005 estimate 9,182,000 ( 84th)
    - 2001 census        8,280,184
    - Density            8.4/km² ( 210th)
                         21.8/sq mi
        GDP ( PPP)       2005 estimate
    - Total              $25.684 billion ( 101st)
    - Per capita         $2,817 ( 125th)
        HDI  (2003)      0.687 (medium) ( 113th)
         Currency        Boliviano ( BOB)
         Time zone       — ( UTC-4)
       Internet TLD      .bo
       Calling code      +591

   Bolivia, officially the Republic of Bolivia (Spanish: República de
   Bolivia, IPA [re'puβlika ðe bo'liβi̯a], Quechua: Bolivia, Aymara:
   Bolivia), named after Simón Bolívar, is a landlocked country in central
   South America. It is bordered by Brazil on the north and east, Paraguay
   and Argentina on the south, and Chile and Peru on the west.

History

Colonial period

   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.A steady stream of enslaved natives
   served as labor force. As Spanish royal authority weakened during the
   Napoleonic wars, sentiment against colonial rule grew..

The Republic and economic instability (1809)

   Independence was proclaimed in 1809, but 16 years of struggle followed
   before the establishment of the republic, named for Simón Bolívar, on
   August 6, 1825 (see Bolivian War of Independence).

   In 1836, Bolivia, under the rule of Marshal Andres de Santa Cruz,
   invaded Peru to reinstall the deposed president, General Luis Orbegoso.
   Peru and Bolivia formed the Peru-Bolivian Confederation, with de Santa
   Cruz as the Supreme Protector. Following tensions between the
   Confederation and Chile, war was declared by Chile on Dec. 28th, 1836.
   Argentina, Chile's ally, declared war on the Confederation on May 9th,
   1837. The Peruvian-Bolivian forces achieved several major victories;
   the defeat of the Argentinian expedition, and the defeat of the first
   Chilean expedition, on the fields of Paucarpata, near the city of
   Arequipa. On the same field the Paucarpata Treaty was signed with the
   unconditional surrender of the Chilean and Peruvian rebel army. The
   treaty assured the Chilean withdrawal from Peru-Bolivia, the return of
   captured Confederate ships, normalized economic relations, and the
   payment of Peruvian debt to Chile by the Confederation. Public outrage
   over the treaty forced the government to reject it. The Chileans
   organized a second expeditionary force, and attacked the Peru-Bolivian
   confederation, defeating the Confederation on the fields of Yungay
   using the same arms and equipment Santa Cruz had allowed them to
   retain. After this defeat, Santa Cruz fled to Ecuador, and the
   Peruvian-Bolivian Confederation was dissolved.

   Following the independence of Peru, General Gamarra, the Peruvian
   president, invaded Bolivia in an attempt to reunify the two countries,
   under the Peruvian flag. The Peruvian army was decisively defeated at
   the Battle of Ingaví on November 20, 1841, where General Gamarra
   himself was killed. The Bolivian army under General José Ballivián then
   mounted a counter-offensive managing to capture the Peruvian port of
   Arica. Later, both sides signed a peace in 1842 putting a final end to
   the war.

   Due to a period of political and economic instability in the early to
   middle 19th century, Bolivia's weakness was demonstrated during the War
   of the Pacific (1879–83), during which it lost its access to the sea,
   and the adjoining rich nitrate fields, together with the port of
   Antofagasta, to Chile. Since independence, Bolivia has lost over half
   of its territory to neighboring countries due to wars. Bolivia also
   lost the state of Acre (known for its production of rubber) when Brazil
   persuaded the state of Acre to secede from Bolivia in 1903 (see the
   Treaty of Petrópolis).

   An increase in the world price of silver brought Bolivia a measure of
   relative prosperity and political stability in the late 1800s. During
   the early part of the 20th century, tin replaced silver as the
   country's most important source of wealth. A succession of governments
   controlled by the economic and social elite followed laissez-faire
   capitalist policies through the first thirty years of the 20th century.

   Living conditions of the native people, who constituted most of the
   population, remained deplorable. Forced to work under primitive
   conditions in the mines and in nearly feudal status on large estates,
   they were denied access to education, economic opportunity, or
   political participation. Bolivia's defeat by Paraguay in the Chaco War
   (1932–35) marked a turning point.

Rise of the Nationalist Revolutionary Movement (1951)

   The Nationalist Revolutionary Movement (MNR) emerged as a broadly based
   party. Denied their victory in the 1951 presidential elections, the MNR
   led the successful 1952 revolution. Under President Víctor Paz
   Estenssoro, the MNR , having strong popular pressure, introduced
   Universal Suffrage into his political platform, and carried out a
   sweeping land reform promoting rural education and nationalization of
   the country's largest tin mines.

   Twelve years of tumultuous rule left the MNR divided. In 1964, a
   military junta overthrew President Paz Estenssoro at the outset of his
   third term. The 1969 death of President René Barrientos Ortuño, a
   former member of the junta elected President in 1966, led to a
   succession of weak governments. Alarmed by public disorder and the
   rising Popular Assembly, the military, the MNR, and others installed
   Col. (later General) Hugo Banzer Suárez as President in 1971. Banzer
   ruled with MNR support from 1971 to 1974. Then, impatient with schisms
   in the coalition, he replaced civilians with members of the armed
   forces and suspended political activities. The economy grew
   impressively during most of Banzer's presidency, but human rights
   violations and eventual fiscal crises undercut his support. He was
   forced to call elections in 1978, and Bolivia again entered a period of
   political turmoil.

Military governments: García Meza and Siles Zuazo (1978)

   Elections in 1979 and 1981 were inconclusive and marked by fraud. There
   were coups, counter-coups, and caretaker governments. In 1980, Gen.
   Luis García Meza Tejada carried out a ruthless and violent coup that
   did not have popular support. He pacified the people by promising to
   remain in power only for one year. (At the end of the year, he staged a
   televised rally to claim popular support and announced, "Bueno, me
   quedo," or, "All right; I'll stay [in office]." He was deposed shortly
   thereafter.) His government was notorious for human rights abuses,
   narcotics trafficking, and economic mismanagement; during his
   presidency the inflation that would later cripple the Bolivian economy
   could already be felt. Later convicted in absentia for crimes including
   murder, García Meza was extradited from Brazil and began serving a
   30-year sentence in 1995.

   After a military rebellion forced out García 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,
   twenty-two years after the end of his first term of office (1956-60),
   Hernán 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.

Sánchez de Lozada and Banzer: Liberalizing the economy (1993)

   Sánchez de Lozada pursued an aggressive economic and social reform
   agenda. The most dramatic change undertaken by the Sánchez de Lozada
   government was the "capitalization" program, under which investors,
   typically foreign, acquired 50% ownership and management control of
   public enterprises, such as the state oil corporation,
   telecommunications system, airlines, railroads, and electric utilities
   in return for agreed upon capital investments. The reforms and economic
   restructuring were strongly opposed by certain segments of society,
   which instigated frequent and sometimes violent protests, particularly
   in La Paz and the Chapare coca-growing region, from 1994 through 1996.
   The Sánchez de Lozada government pursued a policy of offering monetary
   compensation for voluntary eradication of illegal coca by its growers
   in the Chapare region. The policy produced little net reduction in
   coca, and in the mid-1990s Bolivia accounted for about one-third of the
   world's coca going into cocaine.

   During this time, the umbrella labor organization of Bolivia, the
   Central Obrera Boliviana (COB), became increasingly unable to
   effectively challenge government policy. A teachers' strike in 1995 was
   defeated because the COB could not marshall the support of many of its
   members, including construction and factory workers. The state also
   used selective martial law to keep the disruptions caused by the
   teachers to a minimum. The teachers were led by Trotskyists, and were
   considered to be the most militant union in the COB. Their downfall was
   a major blow to the COB. The COB also became mired in internal
   corruption and infighting in 1996.

   In the 1997 elections, Gen. Hugo Banzer, leader of the ADN, former
   dictator (1971-1978), won 22% of the vote, while the MNR candidate won
   18%. Gen. Banzer formed a coalition of the ADN, MIR, UCS, and CONDEPA
   parties which held a majority of seats in the Bolivian Congress. The
   Congress elected him as president and he was inaugurated on August 6,
   1997. During the election campaign, General Banzer had promised to
   suspend the privatization of the state owned oil company, YPFB.
   Considering the weak position that Bolivia was in vis-a-vis
   international corporations, though, this seemed unlikely.

   The Banzer government basically continued the free market and
   privatization policies of its predecessor, and the relatively robust
   economic growth of the mid-1990s continued until about the third year
   of its term in office. After that, regional, global and domestic
   factors contributed to a decline in economic growth. Financial crises
   in Argentina and Brazil, lower world prices for commodity exports, and
   reduced employment in the Coca sector depressed the Bolivian economy.
   The public also perceived a significant amount of public-sector
   corruption. These factors contributed to increasing social protests
   during the second half of Banzer's term.

   At the outset of his government, President Banzer launched a policy of
   using special police units to physically eradicate the illegal coca of
   the Chapare region. The policy produced a sudden and dramatic 4-year
   decline in Bolivia's illegal coca crop, to the point that Bolivia
   became a relatively small supplier of coca for cocaine. Those left
   unemployed by coca eradication streamed into the cities, especially El
   Alto, the slum neighbour of La Paz. The MIR of Jaime Paz Zamora
   remained a coalition partner throughout the Banzer government,
   supporting this policy (called the Dignity Plan).

   On August 6, 2001, Banzer resigned from office after being diagnosed
   with cancer. He died less than a year later. Banzer's U.S.-educated
   Vice President, Jorge Fernando Quiroga Ramírez, completed the final
   year of the term. Quiroga was constitutionally prohibited from running
   for national office in 2002 but can do so in 2007.

   In the June 2002 national elections, former President Gonzalo Sánchez
   de Lozada (MNR) placed first with 22.5% of the vote, followed by coca
   advocate and native peasant leader Evo Morales ( Movement Toward
   Socialism, MAS) with 20.9%. Morales edged out populist candidate
   Manfred Reyes Villa of the New Republican Force (NFR) by just 700 votes
   nationwide, earning a spot in the congressional run-off against Sánchez
   de Lozada on August 4, 2002.

   A July agreement between the MNR and the fourth-place MIR, which had
   again been led in the election by former president Paz Zamora,
   virtually ensured the election of Sánchez de Lozada in the
   congressional run-off, and on August 6 he was sworn in for the second
   time. The MNR platform featured three overarching objectives: economic
   reactivation (and job creation), anti- corruption, and social
   inclusion.

Evo Morales, Movement toward Socialism

   The 2005 Bolivian presidential election was held on December 18, 2005.
   The two main candidates were Juan Evo Morales Ayma of the Movement
   Toward Socialism (MAS) Party, and Jorge Quiroga, leader of the
   Democratic and Social Power (PODEMOS) Party and former head of the
   Acción Democrática Nacionalista (ADN) Party.

   Morales won the election with 54 percent of the votes, an absolute
   majority unprecedented in Bolivian elections. He was sworn in on
   January 22, 2006 for a five-year term. Prior to his official
   inauguration in La Paz, he was inaugurated in a native ritual at the
   archeological site of Tiawanaku, before a crowd of thousands of native
   people and representatives of social movements from across Latin
   America. However, this ritual does not represent the views/opinions of
   most Quechua native speakers; it only represents native Aymaras. Since
   the Spanish Conquest in the early 1500's, this region of South America,
   with a majority native population, has been ruled by external forces,
   and Morales has stated that the 500 years of colonialism are now over,
   and that the era of autonomy has begun.

   His recent presidential election victory has also brought new attention
   to the U.S. drug war in South America and its heavy emphasis on coca
   crop eradication. The US-led "Plan Dignidad" (dignity plan), which
   seeks to reduce coca production to zero, is seen by many Bolivians as
   an attack on their livelihoods and way of life. Morales has said his
   government will try to interdict drugs, but he wants to preserve the
   legal market for coca leaves and promote export of legal coca products.

   On May 1, 2006, Morales announced his intent to re-nationalize Bolivian
   hydrocarbon assets. While stating that the nationalization initiative
   would not be an expropriation, Morales sent Bolivian troops to occupy
   56 gas installations simultaneously. Troops were also sent to the 2
   Petrobras-owned refineries in Bolivia, which provide over 90% of
   Bolivia's refining capacity. A deadline of 180 days was announced, by
   which all foreign energy firms were required to sign new contracts
   giving Bolivia majority ownership and as much as 82% of revenues (the
   latter for the largest natural gas fields). That deadline has since
   passed, and all such firms have signed contracts. Reports from the
   Bolivian government and the companies involved are contradictory as to
   plans for future investment. By far the biggest customer for Bolivian
   hydrocarbons has been Brazil, which imports fully 2/3rds of Bolivia's
   natural gas via pipelines operated by the huge semi-private Petrobras
   (PBR). Since gas can only be exported from landlocked Bolivia via PBR's
   large (and expensive) pipelines, the supplier and customer are strongly
   linked. How the nationalization will unfold is quite uncertain, as PBR
   has announced plans to produce sufficient natural gas by 2011 to
   replace that now supplied by Bolivia. Bolivia's position is
   strengthened by the knowledge that hydrocarbon reserves are more highly
   valued than at the time of previous nationalizations as well as the
   pledged support of Hugo Chavez of Venezuela.

Politics

   La Paz is the political capital of Bolivia.
   Enlarge
   La Paz is the political capital of Bolivia.

   The 1967 constitution, amended in 1994, provides for balanced
   executive, legislative, and judicial powers. The traditionally strong
   executive, however, tends to overshadow the Congress, whose role is
   generally limited to debating and approving legislation initiated by
   the executive. The judiciary, consisting of the Supreme Court and
   departmental and lower courts, has long been riddled with corruption
   and inefficiency. Through revisions to the constitution in 1994, and
   subsequent laws, the government has initiated potentially far-reaching
   reforms in the judicial system and processes.

   Bolivia's nine departments received greater autonomy under the
   Administrative Decentralization law of 1995. Departmental autonomy
   further increased with the first popular elections for departmental
   governors (prefectos) on 18 December 2005, after long protests by
   pro-autonomy-leader department of Santa Cruz. Bolivian cities and towns
   are governed by directly elected mayors and councils. Municipal
   elections were held on 5 December 2004, with councils elected to
   five-year terms. The Popular Participation Law of April 1994, which
   distributes a significant portion of national revenues to
   municipalities for discretionary use, has enabled previously neglected
   communities to make striking improvements in their facilities and
   services.

   The president is elected to a five-year term by popular vote. Elected
   president Gonzalo Sánchez de Lozada resigned in October 2003, and was
   substituted by vice-president Carlos Mesa. Mesa was in turn replaced by
   chief justice of the Supreme Court Eduardo Rodríguez in June 2005. Six
   months later, on December 18, 2005, the Socialist native leader, Evo
   Morales, was elected president.

   Legislative Branch: The Congreso Nacional ( National Congress) has two
   chambers. The Cámara de Diputados ( Chamber of Deputies) has 130
   members elected to five-year terms, 70 of them in single-member
   districts (circunscripciones) and 60 by proportional representation.
   The Cámara de Senadores ( Chamber of Senators) has 27 members (three
   per department), elected to five-year terms.

   Bolivia has had more coups d'etat than any other country, with
   approximately 60 coups in its history.

Administrative divisions

   Bolivia is divided into nine departments, or in Spanish departamentos:
     * Chuquisaca (Sucre)
     * Cochabamba ( Cochabamba)
     * Beni ( Trinidad)
     * La Paz (La Paz)
     * Oruro ( Oruro)
     * Pando ( Cobija)
     * Potosí ( Potosí)
     * Santa Cruz ( Santa Cruz de la Sierra)
     * Tarija ( Tarija)

   Additionally, each department is further divided into provinces, or
   provincias, cantons, or cantones, and municipalities, or
   municipalidades, which handle local affairs.

Geography

   Map of Bolivia from the CIA World Factbook
   Map of Bolivia from the CIA World Factbook

   At 424,135 mi² (1,098,580 km² ), Bolivia is the world's 28th-largest
   country (after Ethiopia). It is comparable in size to Mauritania, and
   is half again as large as the US state of Texas.

   Bolivia is a landlocked nation; it lost its connection to the Pacific
   coast in the War of the Pacific in 1879. However, it does have access
   to the Atlantic via the Paraguay river. The west of Bolivia is situated
   in the Andes mountain range, with the highest peak, Nevado Del Sajama
   at 6,542 metres (21,463  ft) located at the department of Oruro. The
   landscape encompasses many different backgrounds, which provide a
   beautiful view in one of the most incredible natural experiences one
   can experience. The west of the country is formed by a highland
   plateau, the Altiplano. The east of the country is lowland, and covered
   by the Amazonian rainforests. Lake Titicaca is located on the border
   between Bolivia and Peru. In the west, in the department of Potosí,
   lies the Salar de Uyuni, the world's largest salt flat.

   Major cities are La Paz, Santa Cruz de la Sierra and Cochabamba.
   Salar de Uyuni, the world's largest salt flat.
   Enlarge
   Salar de Uyuni, the world's largest salt flat.

Economy

   Bolivia remains the poorest country in South America after the Guyanas,
   in part, due to high corruption levels; furthermore, critics often
   point out the imperialist role of foreign powers in the country since
   the "discovery of America". The country is rich, however, in natural
   resources, and has been called a "donkey sitting on a gold mine"
   because of this. Apart from famous mines, which were known by the Incas
   and later exploited by the Spaniards, Bolivia owns the second largest
   natural gas field of South America after Venezuela. Furthermore, El
   Mutún in the Santa Cruz department represents 70% of the world's iron
   and magnesium.

   Bolivia's 2002 gross domestic product (GDP) totaled USD $7.9 billion.
   Economic growth is about 2.5% a year and inflation is expected to be
   between 3% and 4% in 2002 (it was under 1% in 2001).

   Bolivia’s current lackluster economic situation can be linked to
   several factors from the past two decades. The first major blow to the
   Bolivian economy came with a dramatic fall in silver prices during the
   early 1980s which impacted one of Bolivia’s main sources of income and
   one of its major mining industries. The second major economic blow came
   from the end of the Cold War in the late 1980s and early 1990s as
   economic aid was withdrawn by western countries who had previously
   tried to keep a market liberal regime in power through financial
   support. The third economic blow came from the U.S. sponsored
   eradication of the Bolivian coca crop which was used in 80% of the
   worlds’ cocaine production at its peak. Along with the reduction in the
   coca crop came a huge loss of income to the Bolivian economy,
   particularly the peasant classes.

   Since 1985, the Government of Bolivia has implemented a far-reaching
   program of macroeconomic stabilization and structural reform aimed at
   maintaining price stability, creating conditions for sustained growth,
   and alleviating scarcity. A major reform of the customs service in
   recent years has significantly improved transparency in this area. The
   most important structural changes in the Bolivian economy have involved
   the capitalization of numerous public-sector enterprises.
   (Capitalization in the Bolivian context is a form of privatization
   where investors acquire a 50% share and management control of public
   enterprises by agreeing to invest directly into the enterprise over
   several years rather than paying cash to the government).

   Parallel legislative reforms have locked into place market liberal
   policies, especially in the hydrocarbon and telecommunication sectors,
   that have encouraged private investment. Foreign investors are accorded
   national treatment, and foreign ownership of companies enjoys virtually
   no restrictions in Bolivia. While the capitalization program was
   successful in vastly boosting foreign direct investment (FDI) in
   Bolivia ($1.7 billion in stock during 1996-2002), FDI flows have
   subsided in recent years as investors complete their capitalization
   contract obligations.

   In 1996, three units of the Bolivian state oil corporation (YPFB)
   involved in hydrocarbon exploration, production, and transportation
   were capitalized, facilitating the construction of a gas pipeline to
   Brazil. The government has a long-term sales agreement to sell natural
   gas to Brazil through 2019. The Brazil pipeline carried about 12
   million cubic metres (424 million cu. ft) per day in 2002. Bolivia has
   the second-largest natural gas reserves in South America, and its
   current domestic use and exports to Brazil account for just a small
   portion of its potential production. The government expects to hold a
   binding referendum in 2004 on plans to export natural gas. Widespread
   opposition to exporting gas through Chile touched off protests that led
   to the resignation of President Sánchez de Lozada in October 2003.

   In April 2000, Bechtel signed a contract with Hugo Banzer, the former
   president of Bolivia, to privatize the water supply in Bolivia's
   3rd-largest city, Cochabamba. The contract was officially awarded to a
   Bechtel subsidiary named Aguas del Tunari, which had been formed
   specifically for that purpose. Shortly thereafter, the company tripled
   the water rates in that city, an action which resulted in protests and
   rioting among those who could no longer afford clean water. Martial law
   was declared, and Bolivian police killed at least 6 people and injured
   over 170 protesters. Amidst Bolivia's nationwide economic collapse and
   growing national unrest over the state of the economy, the Bolivian
   government was forced to withdraw the water contract. In 2001, Bechtel
   filed suit the Bolivian government for $25 million in lost profits. The
   continuing legal battle has attracted attention from anti-globalization
   and anti-capitalist groups.

   Bolivian exports were $1.3 billion in 2002, from a low of $652 million
   in 1991. imports were $1.7 billion in 2002. Bolivian tariffs are a
   uniformly low 10%, with capital equipment charged only 5%. Bolivia's
   trade deficit was $460 million in 2002.

   Bolivia's trade with neighboring countries is growing, in part because
   of several regional preferential trade agreements it has negotiated.
   Bolivia is a member of the Andean Community and enjoys nominally free
   trade with other member countries (Peru, Ecuador, Colombia, and
   Venezuela.) Bolivia began to implement an association agreement with
   Mercosur (Southern Cone Common Market) in March 1997. The agreement
   provides for the gradual creation of a free trade area covering at
   least 80% of the trade between the parties over a 10-year period,
   though economic crises in the region have derailed progress at
   integration. The U.S. Andean Trade Preference and Drug Enforcement Act
   (ATPDEA) allows numerous Bolivian products to enter the United States
   free of duty on a unilateral basis, including alpaca and llama products
   and, subject to a quota, cotton textiles.

   The United States remains Bolivia's largest trading partner. In 2002,
   the United States exported $283 million of merchandise to Bolivia and
   imported $162 million. Bolivia's major exports to the United States are
   tin, gold, jewelry, and wood products. Its major imports from the
   United States are computers, vehicles, wheat, and machinery. A
   Bilateral Investment Treaty between the United States and Bolivia came
   into effect in 2001. Agriculture accounts for roughly 15% of Bolivia's
   GDP. The amount of land cultivated by modern farming techniques is
   increasing rapidly in the Santa Cruz area, where weather allows for two
   crops a year. Soybeans are the major cash crop, sold into the Andean
   Community market. The extraction of minerals and hydrocarbons accounts
   for another 10% of GDP and manufacturing less than 17%.

   The Government of Bolivia remains heavily dependent on foreign
   assistance to finance development projects. At the end of 2002, the
   government owed $4.5 billion to its foreign creditors, with $1.6
   billion of this amount owed to other governments and most of the
   balance owed to multilateral development banks. Most payments to other
   governments have been rescheduled on several occasions since 1987
   through the Paris Club mechanism. External creditors have been willing
   to do this because the Bolivian Government has generally achieved the
   monetary and fiscal targets set by IMF programs since 1987, though
   economic crises in recent years have undercut Bolivia's normally good
   record. Rescheduling agreements granted by the Paris Club has allowed
   the individual creditor countries to apply very soft terms to the
   rescheduled debt. As a result, some countries have forgiven substantial
   amounts of Bolivia's bilateral debt. The U.S. Government reached an
   agreement at the Paris Club meeting in December 1995 that reduced by
   67% Bolivia's existing debt stock. The Bolivian Government continues to
   pay its debts to the multilateral development banks on time. Bolivia is
   a beneficiary of the Heavily debted Poor Countries (HIPC) and Enhanced
   HIPC debt relief programs, which by agreement restricts Bolivia's
   access to new soft loans. Bolivia was one of three countries in the
   Western Hemisphere selected for eligibility for the Millennium
   Challenge Account and is participating as an observer in FTA
   negotiations.

   In 2004 the government gave great importance to the development of port
   facilities at Puerto Busch on the Paraguay river. Further north in
   Puerto Suarez and Puerto Aguirre, which are connected to the Paraguay
   river via the canal tamengo, which passes through Brazil, mid-size
   container ships traverse. As of 2004 about half of Bolivia's exports
   leave via the Paraguay river. When Puerto Busch is finished, larger
   ocean-going ships will be able to dock in Bolivia. This will greatly
   increase Bolivia's competitiveness, in that they will have a reduced
   need for foreign ports, such as those in Peru and Chile, which adds to
   the price of exports and imports. Tobacco is produced by Bolivian
   farmers, but even more is imported to satisfy domestic demand. In 1992
   Bolivia produced over 1,000 million tons of it.

Demographics

   Cristo de la Concordia in Cochabamba.
   Enlarge
   Cristo de la Concordia in Cochabamba.

   Bolivia's ethnic distribution is estimated to be 30% Quechua-speaking
   and 25% Aymara-speaking Amerindians. The largest of the approximately
   three-dozen native groups are the Quechuas (2.5 million), Aymaras (2
   million), then Chiquitano (180,000), and Guaraní (125,000). The
   remaining 30% is Mestizo (mixed European and Amerindian), and around
   15% is classified as white.

   The white population consists mostly of criollos who consist of
   families of relatively unmixed Spanish ancestry, descend from the early
   Spanish colonists, which have formed much of the aristocracy since
   independence. Other smaller groups within the white population are
   Germans who founded the national airline Lloyd Aereo Boliviano, as well
   as Italian, American, Basque, Croatian, Russian, Polish and other
   minorities, many of whose members descend from families that have lived
   in Bolivia for several generations.

   Also noteworthy is the Afro-Bolivian community that numbers under 0.5%
   of the population, descended from African slaves that were transported
   to work in Brazil and then migrated down south to Bolivia. They are
   mostly concentrated in the Yungas region ( Nor Yungas and Sud Yungas
   provinces) in the department of La Paz, some three hours from La Paz
   city. There are also Japanese who are concentrated mostly in Santa Cruz
   de la Sierra, and Middle Easterners who became prosperous in commerce.

   Bolivia is one of the least developed countries in South America.
   Almost two-thirds of its people, many of whom are subsistence farmers,
   live in poverty. Population density ranges from less than one person
   per square kilometer in the southeastern plains to about 10 per square
   kilometer (25 per sq. mi) in the central highlands. As of 2006, the
   population is increasing about 1.45% per year.

   La Paz is the world's highest capital city at 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 strongly.
   Islam practiced by the descendants of Middle Easterners is almost
   nonexistent. There is also a small Jewish community that is almost all
   Ashkenazi in origin. More than 1% of Bolivians practice the Bahá'í
   Faith (giving Bolivia one of the largest percentages of Bahá'ís in the
   world). There are colonies of Mennonites in the department of Santa
   Cruz. Many Native communities interweave pre-Columbian and Christian
   symbols in their worship. About 80% of the people speak Spanish as
   their first language, although the Aymara and Quechua languages are
   also common. Approximately 90% of the children attend primary school
   but often for a year or less. The literacy rate is low in many rural
   areas, but according to CIA the literacy rate is 87% which is higher
   than Brazil’s literacy rate or other Middle Eastern countries. 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 Tiawanaku, Samaipata,
   Incallajta, and Iskanawaya. 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 native and mestizo builders and artisans, developed into
   a rich and distinctive style of architecture, painting, and sculpture
   known as "Mestizo Baroque". The colonial period produced not only the
   paintings of Pérez de Holguín, Flores, Bitti, and others but also the
   works of skilled but unknown stonecutters, woodcarvers, goldsmiths, and
   silversmiths. An important body of native baroque religious music of
   the colonial period was recovered in recent years and has been
   performed internationally to wide acclaim since 1994.

   Bolivian artists of stature in the 20th century include, among others,
   Guzmán de Rojas, Arturo Borda, María Luisa Pacheco, and Marina Núñez
   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.

Culture

   Bolivian culture has many Inca, Aymara and other native influences in
   religion, music and clothing. The best known fiesta is the UNESCO
   heritage "El carnaval de Oruro". Entertainment includes football, which
   is the national sport, and more correctly the foosball, played in many
   street corners by kids and adults. Zoos are a popular attraction with a
   diverse population of interesting creatures but with lack of proper
   funding.

National symbols

   The Cantuta (often spelled kantuta or qantuta) (Cantua buxifolia or
   Fuchsia buxifolia) is a flower found in the high valleys of the Yungas,
   and is considered the national flower of Bolivia.

   Retrieved from " http://en.wikipedia.org/wiki/Bolivia"
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