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Congression I Resedrch
info   ing I  legi I tive I tate ii 'o 191


Updated October 21, 2024


Bolivia: Country Overview and U.S. Relations


Bolivia is a landlocked country of about 12.3 million people
in the Andean region of South America. Bolivia's political
system has been marked by instability for much of the
country's history. Political turbulence and polarization have
continued under current President Luis Arce, elected in
October 2020 after the resignation of populist President Evo
Morales (2006-2019). Ahead of a presidential election to be
held by October 2025, Arce and Morales are competing to
represent the Movement Toward  Socialism (MAS) party
against a weak political opposition. Although rich in natural
resources, including natural gas and lithium, Bolivia is
experiencing an economic downturn, which has spurred
popular discontent. Some Members of Congress have
expressed concerns about the Bolivian government's
increasing ties with China, Russia, and Iran, among other
challenges in U.S.-Bolivia relations.


                 Bolivia at a Glance
  Capitals: La Paz (administrative capital), Sucre (constitutional
  capital)
  Area: 424,164 square miles
  Population: 12.3 million (2024 est.)
  Gross Domestic  Product (GDP): $46.47 billion (2023)
  Per Capita GDP: $4,831 (2023)
  Key Trading Partners: Brazil (15.7%), China (15.6%),
  Argentina (9.3%) (2023, total trade)
  Notes/Sources: GDP in current prices; International
  Monetary Fund and Trade Data Monitor.

ackground
Chronic political instability, poverty, and deep ethnic and
regional divides have stymied Bolivia's development.
Bolivia declared independence from Spain in 1825 and has
experienced multiple military coups and periods of
authoritarian rule. The country reestablished democratic
civilian rule in 1982 after a period of military dictatorships
that started in 1964. Bolivia's population is among the most
ethnically diverse in South America, with large highland
Indigenous (Quechua and Aymara)  populations.

During three presidential terms from 2006 to 2019, former
President Morales, Bolivia's first Indigenous president,
enacted far-reaching reforms, geared largely toward
assisting and expanding political representation for poor
and Indigenous populations. Morales increased state control
over the economy, used growing natural gas revenue to
expand social programs, and enacted a new constitution
(2009) protecting the rights of Indigenous peoples. His
government  also pursued judicial proceedings against its
political opponents, dismissed hundreds of judges, and


restricted press freedom, which drew concerns from the
U.S. government, among  others.

Current Political Context
President Luis Arce, also of Morales's MAS party, took
office in November 2020 after winning 55% of the vote in
the first round of an October 2020 presidential election that
observers assessed as generally free and fair. Arce is an
economist who worked  in Bolivia's central bank prior to
serving as finance minister under former President Morales.

Arce's election followed a period of political turmoil in
Bolivia, which began when Morales resigned in the face of
large-scale public protests following allegations of fraud in
the October 2019 election. Three officials in line to succeed
Morales resigned, and opposition Senator Jeanine Aifiez
declared herself the interim president in November 2019. A
report by experts from the Inter-American Commission on
Human  Rights asserted that grave violations of human
rights occurred under Afiez, including two massacres in
2019. Tensions between MAS  supporters and the interim
government  subsided somewhat following Arce's election.

Arce  Administration,  Ongoing   Tensions,  and
Recent  Protests
After taking office in November 2020, President Arce
pledged to rebuild the country in unity. Division within
the MAS  party and economic stagnation have hindered his
efforts, and his popularity has declined. One of Arce's
central goals has been to restore economic growth, with a
focus on lithium extraction (see Economic Context,
below). Arce has faced criticism, including from the U.S.
State Department, which in 2024 voiced concerns about
anti-democratic actions and the politicization of the legal
system. In 2021, Bolivian authorities arrested former
interim President Afiez and ministers who served in her
administration. Afiez was convicted of orchestrating a coup
against Morales in 2019 and sentenced to 10 years in
prison.

The MAS   party has become divided between arcistas and
evistas, the supporters of Arce and Morales, respectively.
Both men  have expressed their intention to run under the
MAS   banner in the 2025 Bolivian presidential election. In
December  2023, the Bolivian constitutional court ruled that
Morales cannot run for reelection in 2025, overruling
precedent set by a prior court decision to allow Morales to
run for a fourth term in 2019. In June 2024, a general
serving as the head of the armed forces orchestrated what
the Arce government portrayed as a failed coup attempt.
The incident involved an attempted forced entry into
Bolivia's government palace by soldiers. Morales has
accused Arce of staging a self-coup to boost his low
public approval rating (22% as of September 2024).

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