home
***
CD-ROM
|
disk
|
FTP
|
other
***
search
/
Countries of the World
/
COUNTRYS.BIN
/
dp
/
0043
/
00430.txt
next >
Wrap
Text File
|
1991-06-24
|
5KB
|
115 lines
$Unique_ID{COW00430}
$Pretitle{266}
$Title{Bolivia
Historical Background}
$Subtitle{}
$Author{Embassy of Bolivia, Washington DC}
$Affiliation{Embassy of Bolivia, Washington DC}
$Subject{bolivia
economic
paz
social
party
}
$Date{1990}
$Log{}
Country: Bolivia
Book: Facts on Bolivia
Author: Embassy of Bolivia, Washington DC
Affiliation: Embassy of Bolivia, Washington DC
Date: 1990
Historical Background
Bolivia's independent life began in 1825, when the Spanish royalist
forces were defeated in what was then known as Upper Peru. After the
Independence, and for about 70 years (1825-1894), Bolivia's life was
characterized by a number of unconstitutional changes of presidents and
territorial disputes.
In 1879, Bolivia and Chile engaged in the Pacific War because of a
rivalry over nitrate deposits and fertilizer resources. Bolivia lost the
Atacama Desert and Pacific coast territories, thus becoming a landlocked
country in 1880.
Following the war, and for about two decades, Bolivia lived in an era of
stability and progress supported by an increase in the prices of silver in the
international market. By the end of the 19th century tin replaced silver as a
major export and became the Treasury's major tax source.
Tin mine owners, in alliance with land holders, formed new social groups
and were represented by the Liberal Party.
The main exponents of that period were the Tin Barons -- Patino, Aramayo,
and Hochschild -- who became strong political and economic forces.
As a consequence of the economic depression in the United States, in the
late 1920s and 1930s, Bolivian mines were closed. A rising unemployment rate
and social unrest led to the birth of political parties with leftist ideas
seeking social changes.
Bolivia and Paraguay engaged in a dispute over the Gran Chaco region. The
war raged openly from 1932 to 1936, but the peace treaty was not signed until
1938. Through a peace conference arranged by the United States and several
South American countries, Paraguay received 70,000 square miles of the
disputed territory and Bolivia 30,000 square miles.
The Chaco defeat accentuated political and social unrest. The people
became more aware of the acute social problems and that corrective measures
could be taken. An emerging power -- the middle class -- challenged the
traditional leadership.
In the early 1940s, the Movimiento Nacionalista Revolucionario, MNR,
emerged as a strong political party that in 1952 inspired a revolution that
brought structural reforms. The administration of Victor Paz Estenssoro
nationalized the largest tin mines, instituted the Agrarian Reform, and
implemented universal suffrage, which allowed the incorporation of the
marginal sectors to the economic and social development of the country. In
transforming Bolivia's economic and social infrastructure, Paz Estenssoro
initiated the democratic process. Furthermore, he began the country's
educational and administrative reform.
After Paz Estenssoro's interrupted third term mandate ending in 1964, a
series of military regimes governed the country through 1982, with a brief
relief between 1979-1980.
In 1982, and in the midst of a national economic crisis, democracy was
restored in Bolivia with the coalition government of the Unidad Democratica y
Popular, UDP, led by Hernan Siles Zuazo accompanied by Jaime Paz Zamora, of
the MIR Party, as vice president.
The economic situation during the Siles Zuazo's tenure deteriorated so
badly that he was forced to shorten his mandate to one year, and called for
general election.
In a runoff in Congress in 1985, Victor Paz Estenssoro was elected
President of Bolivia.
His fourth term was characterized by the implementation of a decree
(# 21060) which virtually stopped hyperinflation (25,000 per cent), and
introduced a market economy system.
In new general elections in 1989, Jaime Paz Zamora, in a runoff in
Congress, was elected to the presidency of Bolivia backed by his party, MIR,
and the National Democratic Action Party, ADN, led by General Hugo Banzer.
Paz Zamora took office promising to follow the same economic policies
initiated in 1985 by Paz Estenssoro, but complementing them with the much
needed social policies and health and education programs for the benefit of
low income people and striving for economic growth with stabilization.
A main point of President Paz Zamora's program is to:
1. implement an alternative development strategy to eradicate the
coca-cocaine economy.
2. explore bilateral import-export incentives and seek foreign
investments in Bolivia.
3. reaffirm the long-awaited North-South dialogue for the mutual social
and economic benefit of the Americas, including the adoption of the specific
agreements, to consolidate development and the democratic process in Latin
America.