PROFILE
OFFICIAL NAME:
Republic of Bolivia
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: 2.74%.
Ethnic groups: 62% indigenous (primarily Aymara,
Quechua, Guarani), 38% European and mixed.
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--57.5.
Work force (2.9 million): Nonagricultural
employment--1.26 million; services,
including government--70%; industry and
commerce--30%.
Government
Type: Republic.
Independence: August 6, 1825.
Constitution: 1967; revised 1994.
Branches: Executive--president and
cabinet. Legislative--bicameral Congress.
Judicial--five levels of jurisdiction,
headed by Supreme Court.
Subdivisions: Nine departments.
Major political parties: Movement Toward
Socialism (MAS), Social Democratic Power (PODEMOS),
Nationalist Revolutionary Movement (MNR),
National Unity (UN).
Suffrage: Universal adult, obligatory.
Economy (2005)
GDP: $8.5 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%), 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 2.7% (2005).
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 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 run-off, 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 himself.
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),
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 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,
2005, 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
Aima was elected to the presidency by 54% of the
voters. Morales, an indigenous cocalero, vowed
to nationalize hydrocarbons and alleviate
poverty and discrimination towards indigenous
persons. During his campaign, Morales promised
to exert more government control over natural
gas reserves and to re-examine the current coca
eradication programs. Morales was 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.
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 striking improvements in
their facilities and services.
Principal Government Officials
President--Evo MORALES Aima
Vice President--Alvaro GARCIA Linera
Minister of Foreign Affairs--David CHOQUEHUANCA
Ambassador to the United States--vacant
Ambassador to the Organization of American
States--Maria TAMAYO
Ambassador to the United Nations--Erwin ORTIZ
Gandarillas
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 $8.5 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 on-going
U.S.-Andean FTA negotiations with Peru, Colombia
and Ecuador, but the Morales administration has
not announced its official position.
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 Monetray 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 probably will do the same, although
it has yet to clarify its overall foreign
policy. 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 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 explicitly recognized
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, with well-organized coca
growers unions blocking roads, harassing police
eradicators, and occasionally using lethal
violence to protest the policy. In response,
government security forces have used lethal
force to respond to the protests, raising
occasional human rights concerns. 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
Ambassador--David
Greenlee
Deputy Chief of Mission--David Robinson
Management Counselor--Kimberly DeBlauw
Political/Economic/Commercial Officer--Todd
Chapman
Director, Narcotics Affairs--William Francisco
Public Affairs Officer--Thomas Genton
Consular Chief--Julie Grant
Defense Attaché--Col. William Rushing
Commander, U.S. Military Group--Col. Daniel
Barreto
Director, USAID Mission--Michael Yates
DEA Country Attaché--Alex Romero
Peace Corps Director--Javier Garza
U.S. Embassy
Avenida Arce #2780
La Paz, Bolivia
(tel. 591-2-2168000)
U.S. Consular Agency in Santa Cruz
(tel. 591-3 -330725)
U.S. Consular Agency in Cochabamba
(tel. 591-4-4256714).