3 19th century

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 – 1883), 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.

4 20th 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- 1935) 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.

The Nationalist Revolutionary Movement (MNR) emerged as a broadly based party. Denied its victory in the 1951 presidential elections, the MNR lead the successful 1952 revolution. Under President Víctor 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. It also committed many serious violations of human rights.

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, a former member of the junta elected President in 1966, led to a succession of weak governments. A coup was led by the military, only to see a countercoup led by leftist Juan José Torres . Alarmed by public disorder, 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 Banzer's presidency, but demands for greater political freedom undercut his support. His call for elections in 1978 plunged Bolivia into turmoil once again.

Elections in 1978, 1979, and 1980 were inconclusive and marked by fraud. There were coups, counter-coups, and caretaker governments. In 1980, Gen. Luis García 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, 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--22 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.

In the 1985 elections, the Nationalist Democratic Action Party (ADN) of Gen. Banzer won a plurality of the popular vote, followed by former President Paz Estenssoro's MNR and former Vice President Jaime Paz Zamora's Movement of the Revolutionary Left (MIR). But in the congressional run-off, the MIR sided with MNR, and Paz Estenssoro was chosen for a fourth term 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, his 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.

Although the MNR list headed by Gonzalo Sánchez de Lozada finished first in the 1989 elections, no candidate received a majority of popular votes and so in accordance with the constitution, a congressional vote determined who would be president. The Patriotic Accord (AP) coalition between Gen. Banzer's ADN and Jaime Paz Zamora's MIR, the second- and third-place finishers, respectively, won out. Paz Zamora assumed the presidency, and the MIR took half the ministries. Banzer's center-right ADN took control of the National Political Council (CONAP) and the other ministries.

Paz Zamora was a moderate, center-left President whose political pragmatism in office outweighed his Marxist origins. Having seen the destructive hyperinflation of the Siles Zuazo administration, he continued the neoliberal economic reforms begun by Paz Estenssoro, codifying some of them. Paz Zamora took a fairly hard line against domestic terrorism, personally ordering the December 1990 attack on terrorists of the Néstor Paz Zamora Committee (CNPZ--named after his brother who died in the 1970 Teoponte insurgency) and authorizing the early 1992 crackdown against the Tupac Katari Guerrilla Army (EGTK).

Paz Zamora's regime was less decisive against narcotics trafficking. The government broke up a number of trafficking networks but issued a 1991 surrender decree giving lenient sentences to the biggest narcotics kingpins. Also, his administration was extremely reluctant to pursue coca eradication, a whose leaves are consumed in vast quantities by much of the country's highland indigenous population. It did not agree to an updated extradition treaty with the US, although two traffickers have been extradited to the U.S. since 1992. Beginning in early 1994, the Bolivian Congress investigated Paz Zamora's personal ties to accused major trafficker Isaac Chavarria , who subsequently died in prison while awaiting trial. MIR deputy chief Oscar Eidwas was jailed in connection with similar ties in 1994; he was found guilty and sentenced to 4 years in prison in November 1996. Technically still under investigation, Paz Zamora became an active presidential candidate in 1996.

The 1993 elections continued the tradition of open, honest elections and peaceful democratic transitions of power. The MNR defeated the ADN/MIR coalition by a 34% to 20% margin, and the MNR's Sánchez de Lozada was selected as president by an MNR/MBL/UCS coalition in the Congress.

Sánchez de Lozada pursued an aggressive economic and social reform agenda. He relied heavily on successful entrepreneurs-turned-politicians like himself and on fellow veterans of the Paz Estenssoro administration (during which Sanchez de Lozada was planning minister). The most dramatic change undertaken by the Sanchez de Lozada government was the capitalization program, under which investors acquired 50% ownership and management control of public enterprises, such as the state oil corporation, telecommunications system, electric utilities, and others. The reforms and economic restructuring were strongly opposed by certain segments of society, which instigated frequent social disturbances, particularly in La Paz and the Chapare coca-growing region, from 1994 through 1996.

In the 1997 elections, Gen. Hugo Banzer, leader of the ADN, 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 hold a majority of seats in the Bolivian Congress. The Congress elected him as president and he was inaugurated on August 6, 1997.

5 21st century

Between January and April 2000, a series of anti-privatization protests took place in Cochabamba, because of the privatization of the municipal water supply. The Bolivian government declared martial law, arresting protest leaders and shutting down radio stations, but after continued disturbances and civic pressure, the government finally rolled back the privatization on April 10.

In the 2002 elections, Sánchez de Lozada ran again, and narrowly beat the cocalero and indigenist leader Evo Morales of the Movement Toward Socialism (MAS) party. The election was not without controversy. Several days before Bolivians went to the voting booths, the U.S. ambassador, Manuel Rocha, warned the Bolivian electorate that if they voted for Morales the US would cut off foreign aid and close its markets to the country. Morales nonetheless received nearly 21% of the vote, putting him only a couple points behind Sánchez de Lozada.

A 4-year economic recession, tight fiscal situation, and longstanding ethnic tensions created in February 2003 a police revolt that nearly toppled the government of President Sanchez de Lozada; several days of unrest left more than 30 persons dead. The government stayed in power but remained unpopular. Standard & Poors downgraded the debt of Bolivia.

An increasingly divisive conflict has been the Bolivian Gas War, a dispute over the exploitation of Bolivia's large natural gas reserves in the south of the country. Strikes and blockades erupted in September, with seven deaths and several dozen injuries in confrontations with the armed forces. The protesters have been demanding the resignation of Sánchez de Lozada.

Update: Sánchez de Lozada resigned under pressure from protesters and his vice-president took over (2003).

6 Reference

Much of the material in this article comes from the CIA World Factbook 2000 and the 2003 U.S. Department of State website.

7 External link

• U.S. State Department Background Note: Bolivia

South American history Bolivia

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