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Updated January 28, 2021


Bolivia: An Overview


Bolivia is a landlocked South American nation of 11.7
million people (see Figure 1). From2006 to 2018, Bolivia
became  more stable and prosperous under President Evo
Morales, its first indigenous president. Bolivia also
experienced backsliding in measurements of governance. In
November2019,   Morales resigned after an electionmarred
by irregularities and sustained protests. Luis Arce,
Morales's formerfmance  minister, tookoffice a yearlater,
after winning 55% of the vote in October 2020elections in
which his Movement  Toward Socialism(MAS)  also
maintained a legislative majority. President Arcefaces
many  challenges, including how to address the Coronavirus
Disease 2019(COVID-19)   pandemic and howto  manage
relations with the United States.

Background
Chronic instability, poverty, corruption, and deep ethnic
and regionalcleavages have stymied Bolivia's
development. Bolivia won independence fromSpain in
1825, experiencing frequent military coups and periods of
authoritarian rule for much of its history. The country
reestablished democratic civilian rule in 1982.

Bolivia's population is amongthe most ethnically diverse in
South America. In the 2012 census, some 41% of the
population self-identified as indigenous (Quechua or
Aymara). The rest of the population is of European, mixed
European  and indigenous, or African descent. Bolivian
indigenous peoples benefitted fromthe National Revolution
of 1952, which led to land reformand expanded suffrage.
Nevertheless, they remained underrepresented in the
political systempriorto Morales's government and
disproportionally affected by poverty and inequality.

Cultivation of the cocaleafremains a contentious is suein
Bolivia and in Bolivian-U.S. relations. Many of Bolivia's
indigenous communities consider the coca leaf s acred and
use it for traditional, licit purposes (the leaf also is used to
make cocaine). Oppositionto years ofU.S.-backed forced
coca eradication policies led to the ris e of coca growers'
trade unions and a related politicalparty, the Movement
Toward  Socialism(MAS). In 2005, years ofprotest against
leaders perceived to have governed on behalf of the elite led
to the election of Morales, president of the coca growers'
union and a self-identified person of Aymara descent.

Political   Conditions
Morales and the MAS  transformed Bolivia. Morales
decriminalized coca cultivation outside of traditional zones
where it had been legal, increased state control over the
economy,  used natural gas revenue to expand social
programs, and enacted a new constitution (2009) favoring
the rights and autonomy of indigenous peoples. Previously
underrepresented groups increased their representation at all


levels of government. In foreign policy, Morales aligned
Bolivia with Hugo Chavez of Venezuela in taking a hostile
stancetowardthe  United States. In 2008, he expelled the
U.S. Ambassador  for allegedly fomenting opposition to his
government, charges the State Department said were false.

Figure I. Bolivia at a Glance


Sources: CRS Graphics, International Monetary Fund (IMF), Central
Intelligen ce Agen cy (CIA), Instituto Nacional de Estadisticas (IN E),
Trade Data Monitor(TDM).
Under Morales, Bolivia ranked partly free in Freedom
House's annual Freedom in the Worldreports, scoring
lowest on is sues related to due process and judicial
independence. The government launched judicial
proceedings against opposition politicians, dismis sed
hundreds ofjudges, and restricted freedomof the pres s.
Concerns increased after the Constitutional Tribunal ended
constitutionallimits on reelection in 2017, essentially
overruling a 2016 referendumin which voters rejected
allowing Morales to run for a fourth term. In November
2019, Morales resigned and went into exile amid
nationwide protests against a disputed October first-round
election in which he had claimed victory.

Many  Bolivians criticized the authoritarianismofthe
interim government that took over after Morales's
resignation. Led by Jeanine Aiez, formerly a conservative
senator, the interimgovernment rolled backMAS policies,
used violence to suppress protesters, and prosecuted former
MAS   officials. Aiez suspendedcommunity-based coca
control and adopted a drug policy aimed at achieving a
drug free Bolivia. The interim government struggledto
address COVID-19,  and a corruptionscandalprompted the
health minister to resign.

2020  Elections and  Prospects for Arce's Presidency
The October 2020 elections proved to be a referendumon
the legacy of Morales andtheMAS. In contrast to the chaos
of the 2019 elections, a new Supreme Electoral Tribunal
administered a process that international election observers
deemed  generally free and fair. Contrary to pollsters'


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