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Updated May 16, 2022

Bolivia: An Overview

After experiencing instability following the ouster of
populist President Evo Morales (2005-2019), Bolivia
remains politically polarized but has begun to recover
economically under President Luis Arce. Arce, Morales'
former finance minister, took office in November 2020
after a first-round victory in October 2020 elections in
which his Movement Toward Socialism (MAS) party
maintained a legislative majority. High natural gas prices
related to the Ukraine conflict have helped Bolivia's
economy recover from the Coronavirus Disease 2019
(COVID-19) pandemic. U.S. relations with Bolivia remain
challenging, in part because of Bolivia's 2008 expulsion of
the U.S. Ambassador and U.S. law enforcement and
development agencies.
Background
Chronic instability, poverty, corruption, and deep ethnic
and regional cleavages have stymied Bolivia's
development. Bolivia won independence from Spain 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 among the 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 from the National Revolution
of 1952, which led to land reform and expanded suffrage.
Nevertheless, they remained underrepresented in the
political system prior to Morales's government and
continue to be disproportionally affected by poverty.
Cultivation of the coca leaf remains a contentious issue in
Bolivia and in Bolivian-U.S. relations. Many of Bolivia's
Indigenous communities consider the coca leaf sacred and
use it for traditional, licit purposes (the leaf also is used to
produce cocaine). Opposition to years of U.S.-backed
forced coca eradication policies led to the rise of coca
growers' trade unions and a related political party, the
MAS. In 2005, years of protest against those policies 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) protecting
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
stance toward the 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: CR5, based on the International Monetary Fund (IMF),
Central Intelligence Agency (CIA), Instituto Nacional de Estadisticas
(INE), and Trade Data Monitor (TDM).
Under Morales, the government launched judicial
proceedings against its opponents, dismissed hundreds of
judges, and restricted freedom of the press. Concerns
increased after the Constitutional Tribunal ended
constitutional limits on reelection in 2017, overruling a
2016 referendum in which voters rejected allowing Morales
to run for a fourth term.
In October 2019, allegations of fraud in vote tabulation
marred Bolivia's first-round election. The electoral agency
said Morales won a narrow first-round victory; the
opposition rejected that result. Organization of American
States (OAS) election observers found irregularities in the
process. Protesters demanded a new election, and then
Morales's resignation. After a police mutiny and an army
declaration urging him to step down, Morales resigned and
sought asylum. Three officials in line to succeed Morales
also resigned. The MAS maintains that the OAS observers
contributed to Morales's ouster.
Interim Government
Opposition Senator Jeanine Anez, formerly second vice
president of the senate, declared herself senate president
and then interim president on November 12, 2019. Anez, a
conservative, sought to erase the ethnic pluralism Bolivia
had embraced under Morales. Anez issued a decree giving
the military permission to participate in crowd-control
efforts and immunity from certain prosecutions for doing
so. A report by a Group of Independent Experts (GIEI)
from the Inter-American Commission on Human Rights
asserted that grave violations of human rights occurred
under Anez, including two massacres in November 2019.

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