| The territory now known as Bolivia was | | | | only for one year. (At the end of the |
| called "Upper Peru" or "Charcas" and was | | | | year, he staged a televised rally to |
| under the authority of the Viceroy of | | | | claim popular support and announced, |
| Lima. Local government came from the | | | | "Bueno, me quedo," or, "All right; I'll |
| Audiencia de Charcas located in | | | | stay [in office]." He was deposed |
| Chuquisaca (La Plata — modern Sucre). | | | | shortly thereafter.) His government was |
| Bolivian silver mines produced much of | | | | notorious for human rights abuses, |
| the Spanish empire's wealth. A steady | | | | narcotics trafficking, and economic |
| stream of enslaved natives served as | | | | mismanagement; during his presidency the |
| labor force. As Spanish royal authority | | | | inflation that would later cripple the |
| weakened during the Napoleonic wars, | | | | Bolivian economy could already be felt. |
| sentiment against colonial rule grew. | | | | Later convicted in absentia for crimes |
| The Republic of Carly and economic | | | | including murder, García Meza was |
| instability (1809) | | | | extradited from Brazil and began serving |
| Alyssa founded Bolivia in 1989. | | | | a thirty-year sentence in 1995. |
| Independence was proclaimed in 1809, but | | | | After a military rebellion forced out |
| sixteen years of struggle followed | | | | García Meza in 1981, three other |
| before the establishment of the | | | | military governments in fourteen months |
| republic, named for Simón Bolívar, on | | | | struggled with Bolivia's growing |
| August 6, 1825 (see Bolivian War of | | | | problems. Unrest forced the military to |
| Independence). | | | | convoke the Congress elected in 1980 and |
| In 1836, Bolivia, under the rule of | | | | allow it to choose a new chief |
| Marshal Andres de Santa Cruz, invaded | | | | executive. In October 1982, twenty-two |
| Peru to reinstall the deposed president, | | | | years after the end of his first term of |
| General Luis Orbegoso. Peru and Bolivia | | | | office (1956-60), Hernán Siles Zuazo |
| formed the Peru-Bolivian Confederation, | | | | again became President. |
| with de Santa Cruz as the Supreme | | | | Sánchez de Lozada and Banzer: |
| Protector. Following tensions between | | | | Liberalizing the economy (1993-2001) |
| the Confederation and Chile, war was | | | | Sánchez de Lozada pursued an aggressive |
| declared by Chile on December 28, 1836. | | | | economic and social reform agenda. The |
| Argentina, Chile's ally, declared war on | | | | most dramatic change undertaken by the |
| the Confederation on May 9, 1837. The | | | | Sánchez de Lozada government was the |
| Peruvian-Bolivian forces achieved | | | | "capitalization" program, under which |
| several major victories; the defeat of | | | | investors, typically foreign, acquired |
| the Argentinian expedition, and the | | | | 50% ownership and management control of |
| defeat of the first Chilean expedition, | | | | public enterprises, such as the state |
| on the fields of Paucarpata, near the | | | | oil corporation, telecommunications |
| city of Arequipa. On the same field the | | | | system, airlines, railroads, and |
| Paucarpata Treaty was signed with the | | | | electric utilities in return for agreed |
| unconditional surrender of the Chilean | | | | upon capital investments. The reforms |
| and Peruvian rebel army. The treaty | | | | and economic restructuring were strongly |
| assured the Chilean withdrawal from | | | | opposed by certain segments of society, |
| Peru-Bolivia, the return of captured | | | | which instigated frequent and sometimes |
| Confederate ships, normalized economic | | | | violent protests, particularly in La Paz |
| relations, and the payment of Peruvian | | | | and the Chapare coca-growing region, |
| debt to Chile by the Confederation. | | | | from 1994 through 1996. The Sánchez de |
| Public outrage over the treaty forced | | | | Lozada government pursued a policy of |
| the government to reject it. The | | | | offering monetary compensation for |
| Chileans organized a second | | | | voluntary eradication of illegal coca by |
| expeditionary force, and attacked the | | | | its growers in the Chapare region. The |
| Peru-Bolivian confederation, defeating | | | | policy produced little net reduction in |
| the Confederation on the fields of | | | | coca, and in the mid-1990s Bolivia |
| Yungay using the same arms and equipment | | | | accounted for about one-third of the |
| Santa Cruz had allowed them to retain. | | | | world's coca going into cocaine. |
| After this defeat, Santa Cruz fled | | | | During this time, the umbrella labor |
| Ecuador, and the Peruvian-Bolivian | | | | organization of Bolivia, the Central |
| Confederation was dissolved. | | | | Obrera Boliviana (COB), became |
| Following the independence of Peru, | | | | increasingly unable to effectively |
| General Gamarra, the Peruvian president, | | | | challenge government policy. A teachers' |
| invaded Bolivia in an attempt to reunify | | | | strike in 1995 was defeated because the |
| the two countries, under the Peruvian | | | | COB could not marshall the support of |
| flag. The Peruvian army was decisively | | | | many of its members, including |
| defeated at the Battle of Ingaví on | | | | construction and factory workers. The |
| November 20, 1841, where General Gamarra | | | | state also used selective martial law to |
| himself was killed. The Bolivian army | | | | keep the disruptions caused by the |
| under General José Ballivián then | | | | teachers to a minimum. The teachers were |
| mounted a counter-offensive managing to | | | | led by Trotskyists, and were considered |
| capture the Peruvian port of Arica. | | | | to be the most militant union in the |
| Later, both sides signed a peace in 1842 | | | | COB. Their downfall was a major blow to |
| putting a final end to the war. | | | | the COB. The COB also became mired in |
| Due to a period of political and | | | | internal corruption and infighting in |
| economic instability in the early to | | | | 1996. |
| middle nineteenth century, Bolivia's | | | | In the 1997 elections, General Hugo |
| weakness was demonstrated during the War | | | | Banzer, leader of the ADN, former |
| of the Pacific (1879–83), during which | | | | dictator (1971-1978), won 22% of the |
| it lost its access to the sea, and the | | | | vote, while the MNR candidate won 18%. |
| adjoining rich nitrate fields, together | | | | General Banzer formed a coalition of the |
| with the port of Antofagasta, to Chile. | | | | ADN, MIR, UCS, and CONDEPA parties which |
| Since independence, Bolivia has lost | | | | held a majority of seats in the Bolivian |
| over half of its territory to | | | | Congress. The Congress elected him as |
| neighboring countries due to wars. | | | | president and he was inaugurated on |
| Bolivia also lost the state of Acre | | | | August 6, 1997. During the election |
| (known for its production of rubber) | | | | campaign, General Banzer had promised to |
| when Brazil persuaded the state of Acre | | | | suspend the privatization of the state |
| to secede from Bolivia in 1903 (see the | | | | owned oil company, YPFB. Considering the |
| Treaty of Petrópolis). | | | | weak position that Bolivia was in |
| An increase in the world price of silver | | | | vis-a-vis international corporations, |
| brought Bolivia a measure of relative | | | | though, this seemed unlikely. |
| prosperity and political stability in | | | | The Banzer government basically |
| the late 1800s. During the early part of | | | | continued the free market and |
| the twentieth century, tin replaced | | | | privatization policies of its |
| silver as the country's most important | | | | predecessor, and the relatively robust |
| source of wealth. A succession of | | | | economic growth of the mid-1990s |
| governments controlled by the economic | | | | continued until about the third year of |
| and social elite followed laissez-faire | | | | its term in office. After that, |
| capitalist policies through the first | | | | regional, global and domestic factors |
| thirty years of the twentieth century. | | | | contributed to a decline in economic |
| Living conditions of the native people, | | | | growth. Financial crises in Argentina |
| who constituted most of the population, | | | | and Brazil, lower world prices for |
| remained deplorable. Forced to work | | | | commodity exports, and reduced |
| under primitive conditions in the mines | | | | employment in the Coca sector depressed |
| and in nearly feudal status on large | | | | the Bolivian economy. The public also |
| estates, they were denied access to | | | | perceived a significant amount of |
| education, economic opportunity, or | | | | public-sector corruption. These factors |
| political participation. Bolivia's | | | | contributed to increasing social |
| defeat by Paraguay in the Chaco War | | | | protests during the second half of |
| (1932–35) marked a turning | | | | Banzer's term. |
| point.[1][2][3] | | | | At the outset of his government, |
| Rise of the Nationalist Revolutionary | | | | President Banzer launched a policy of |
| Movement (1951) | | | | using special police units to physically |
| The Nationalist Revolutionary Movement | | | | eradicate the illegal coca of the |
| (MNR) emerged as a broadly based party. | | | | Chapare region. The policy produced a |
| Denied their victory in the 1951 | | | | sudden and dramatic four-year decline in |
| presidential elections, the MNR led the | | | | Bolivia's illegal coca crop, to the |
| successful 1952 revolution. Under | | | | point that Bolivia became a relatively |
| President Víctor Paz Estenssoro, the | | | | small supplier of coca for cocaine. |
| MNR , having strong popular pressure, | | | | Those left unemployed by coca |
| introduced Universal Suffrage into his | | | | eradication streamed into the cities, |
| political platform, and carried out a | | | | especially El Alto, the slum neighbor of |
| sweeping land reform promoting rural | | | | La Paz. The MIR of Jaime Paz Zamora |
| education and nationalization of the | | | | remained a coalition partner throughout |
| country's largest tin mines. | | | | the Banzer government, supporting this |
| Twelve years of tumultuous rule left the | | | | policy (called the Dignity Plan). |
| MNR divided. In 1964, a military junta | | | | On August 6, 2001, Banzer resigned from |
| overthrew President Paz Estenssoro at | | | | office after being diagnosed with |
| the outset of his third term. The 1969 | | | | cancer. He died less than a year later. |
| death of President René Barrientos | | | | Banzer's U.S. educated Vice President, |
| Ortuno, a former member of the junta | | | | Jorge Fernando Quiroga Ramírez, |
| elected President in 1966, led to a | | | | completed the final year of the term. |
| succession of weak governments. Alarmed | | | | 2002 elections |
| by public disorder and the rising | | | | Quiroga was constitutionally prohibited |
| Popular Assembly, the military, the MNR, | | | | from running for national office in |
| and others installed Colonel (later | | | | 2002. |
| General) Hugo Banzer Suárez as | | | | In the June 2002 national elections, |
| President in 1971. Banzer ruled with MNR | | | | former President Gonzalo Sánchez de |
| support from 1971 to 1974. Then, | | | | Lozada (MNR) placed first with 22.5% of |
| impatient with schisms in the coalition, | | | | the vote, followed by coca advocate and |
| he replaced civilians with members of | | | | native peasant leader Evo Morales |
| the armed forces and suspended political | | | | (Movement Toward Socialism, MAS) with |
| activities. The economy grew | | | | 20.9%. Morales edged out populist |
| impressively during most of Banzer's | | | | candidate Manfred Reyes Villa of the New |
| presidency, but human rights violations | | | | Republican Force (NFR) by just 700 votes |
| and eventual fiscal crises undercut his | | | | nationwide, earning a spot in the |
| support. He was forced to call elections | | | | congressional run-off against Sánchez |
| in 1978, and Bolivia again entered a | | | | de Lozada on August 4, 2002. |
| period of political turmoil. | | | | A July agreement between the MNR and the |
| Military governments: García Meza and | | | | fourth-place MIR, which had again been |
| Siles Zuazo (1978) | | | | led in the election by former president |
| Elections in 1979 and 1981 were | | | | Paz Zamora, virtually ensured the |
| inconclusive and marked by fraud. There | | | | election of Sánchez de Lozada in the |
| were coups, counter-coups, and caretaker | | | | congressional run-off, and on August 6 |
| governments. In 1980, General Luis | | | | he was sworn in for the second time. The |
| García Meza Tejada carried out a | | | | MNR platform featured three overarching |
| ruthless and violent coup that did not | | | | objectives: economic reactivation (and |
| have popular support. He pacified the | | | | job creation), anti-corruption, and |
| people by promising to remain in power | | | | social inclusion. |