Bolivia
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.
Former Vice-President Carlos Mesa was appointed President after his predecessor was forced out of office following weeks of strikes and street protests in October 2003. The protests were sparked by the former President's plan to export Bolivian natural gas via Chile, despite a bitter border dispute between the two countries, dating back to 1884. Bolivia has been without access to the Pacific Ocean since then, after it lost a four-year war to Chile. Bolivia and Chile severed diplomatic relations over the issue in 1978, but Chile is considering an arrangement that would allow Bolivia access to one of its Pacific ports, particularly for expanded Bolivian exports of liquefied natural gas (LNG). However, many Bolivians are opposed to using Chile's port facilities due to the sovereignty question, and many prefer a southern Peruvian port option (Ilo) instead. Mesa claimed victory in a referendum on the issue in 2004 after early results suggested that voters backed his proposals to increase gas exports and to boost state control of the industry.
Mesa pledged to address the concerns of indigenous Indians, who made up most of those demonstrating against the former government's free-market policies. One of his first acts was to create a new cabinet position, that of minister for indigenous and ethnic people, and to appoint an Indian from eastern Bolivia to the post.
On June 9, 2005, Mesa resigned in the face of heavy protests which paralyzed the cities of La Paz and El Alto for several days. Since then, a transitional and constitutional government has ruled the country and will remain in power until the new government assumes power in January, 2006.
Between 1999 and 2002, Bolivia’s real gross domestic product (GDP) growth averaged 1.8% (in marked contrast to the previous nine years, when the country boasted an averaged GDP growth rate of 4.4%). During 2002-2004, the economy expanded; real GDP is expected to increase 3.5% in 2005. While exports of minerals, natural gas and agricultural products are expected to increase in the near-term, domestic consumption is forecast to remain low due to continued political and social uncertainties.
Bolivia is one of the world's largest producers of coca, the raw material for cocaine. A crop-eradication program, though easing the flow of conditional US aid, has incensed many of Bolivia's poorest farmers for whom coca is often the only source of income.
Violence and civil unrest (primarily associated with an economic crisis, as well as anti-narcotics activities in the Chapare region between Santa Cruz and Cochabamba) periodically create a potential risk for travelers to that region. There has also been a rise in crime at tourism destinations.
Incidents of labor and social unrest are on the rise in Bolivia. Throughout 2004 and into 2005, thousands of protesters have periodically marched in La Paz and elsewhere to demand the government's resignation over its handling of an economic crisis, natural gas exports and coca eradication programs. Some protests have turned violent. In late 2004, government increases in the price of fuel sparked widespread protests, and transport strikes may affect movement in and out of the country. Keep away from demonstrations in urban areas and heed roadblocks in rural areas.
On September 6, 2005, there were clashes between supporters of two rival political parties. Such incidents can be expected during and after elections on December 4, 2005.
La Paz’s airport is located in El Alto and the roads leading from the airport to downtown are particularly vulnerable to blockades, a common form of protest. Do not attempt to pass through roadblocks.
