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Updated November 6, 2019
Bolivia: An Overview
Bolivia is a landlocked South American nation of 11.2
Figure 1. Bolivia at a Glance
million people (see Figure 1). Since 2006, the country has
become more stable and prosperous under populist
President Evo Morales, its first indigenous president.
Governance standards have weakened, however, especially
those involving accountability, transparency, and separation
of powers. Relations with the United States have been
strained, particularly since Morales expelled the U.S.
ambassador in 2008. Morales’s latest reelection, in an
October 2019 vote marred by irregularities, is facing an
audit and domestic protests.
Background
Chronic instability, poverty, corruption, regional conflicts,
and deep ethnic and regional cleavages have stymied
Sources: CRS Graphics, International Monetary Fund (IMF), Central
Bolivia’s development. Bolivia won independence from
Intelligence Agency (CIA), Instituto Nacional de Estadísticas (INE),
Spain in 1825 but experienced frequent military coups and
Global Trade Atlas (GTA).
periods of authoritarian rule for much of its history. The
country reestablished democratic civilian rule in 1982.
Political Conditions
Since 2006, President Morales and the MAS, which has had
The lack of sovereign access to the ocean is a source of
two-thirds majorities in both legislative chambers, have
lingering resentment in Bolivia. After the War of the Pacific
transformed Bolivia. Morales has decriminalized coca
with Chile (1879-1883), Bolivia lost its territory along the
cultivation outside of traditional zones where it was always
Pacific coast and has had to ship its exports through
legal, increased state control over the economy, used
Peruvian or Chilean ports. Bolivia has rights of access to
natural gas revenue to expand social programs, and enacted
the Peruvian port of Ilo but no longer has tariff-free access
a new constitution (2009) favoring indigenous peoples’
to the Chilean port of Arica. Bolivia lost access to the
rights and autonomy. Previously underrepresented groups,
Atlantic Ocean by way of the Paraguay River and
including the indigenous and women, have increased their
surrounding territory because of the Chaco War with
representation at all levels of government. Indigenous
Paraguay (1932-1935). Bolivia and Paraguay are currently
people now comprise more than 50% of the Bolivian
revisiting Bolivia’s access to the Atlantic Ocean.
Congress; there is also gender parity in that body.
Bolivia’s population is among the most ethnically diverse in
Critics assert that democracy remains weak. Bolivia has
South America. In the 2012 census, some 41% of the
remained “partly free” in Freedom House’s annual
population self-identified as indigenous (Quechua or
Freedom in the World reports, scoring lowest on issues
Aymara). The rest of the population is comprised of people
related to due process and judicial independence. The
of mixed white and indigenous descent, white, and African
Morales government has launched judicial proceedings
descent. Bolivian indigenous peoples benefitted from the
against many opposition politicians and dismissed hundreds
National Revolution of 1952, which led to land reform and
of judges. It also has restricted freedom of the press.
expanded suffrage. Nevertheless, they remained
underrepresented in the political system prior to Morales’s
On the foreign policy front, Morales aligned his country
government and affected by poverty and inequality.
with Hugo Chávez of Venezuela vis-à-vis the United States
while continuing to cooperate with Europe and neighboring
Many of Bolivia’s indigenous communities consider the
countries. In 2006, Bolivia joined Chávez’s Bolivarian
coca leaf (also used to make cocaine) sacred and use it for
Alliance for the Americas. Bolivia, along with Cuba and
traditional and licit purposes. Opposition to U.S.-backed
Nicaragua, is one of the few countries in the region that
forced coca eradication policies led to the rise of coca
remains loyal to Chávez’s successor, Nicolás Maduro.
growers’ trade unions and a related political party, the
Morales has voted against Organization of American States
Movement Toward Socialism (MAS). In 2005, years of
(OAS) resolutions condemning the situation in Venezuela.
protest against leaders perceived to have governed on
behalf of the elite led to the election of Morales, the
2019 Election
president of the coca growers’ union and a self-identified
Concerns about democracy have increased as Morales has
person of Aymara descent.
sought to remain in office (he was reelected in 2009 and
2014). In 2017, Bolivia’s Constitutional Tribunal removed
constitutional limits on reelection. The decision overruled a
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Bolivia: An Overview
2016 referendum in which voters rejected a constitutional
Morales expelled the U.S. ambassador in 2008. Morales
change to allow Morales to serve another term.
accused the ambassador of fomenting opposition to his
government, a charge the State Department rejected.
In January 2019, President Morales won the MAS primary
and began to campaign for a fourth term. Opposition
U.S. bilateral assistance to Bolivia began to decline in
candidates included former President Carlos Mesa of the
FY2007 and was cut completely by FY2013. President
Civic Community Party; Oscar Ortiz, a senator from the
Morales expelled the U.S. Agency for International
“Bolivia Says No” Party; and Chi Hyun Chung, an
Development (USAID) from the country in 2013 for
evangelical minister from the Christian Democratic Party.
allegedly conspiring with the opposition; USAID denied the
Many pollsters predicted Morales would win reelection,
charge. The State Department subsequently ended its
albeit not in the first round. They also predicted the MAS
antidrug programs in Bolivia due to a lack of adequate
would win a legislative majority.
bilateral cooperation. Although Bolivia now receives most
of its foreign aid from the European Union (EU), civil
Bolivia’s October 20, 2019, first-round election was marred
society groups in Bolivia continue to receive small amounts
by allegations of fraud in the vote tabulation. The country’s
of U.S. regional and global funds.
electoral agency maintains that Morales won a narrow first-
round victory, but opposition candidate Mesa rejected that
Since 2007, U.S. Presidents have identified Bolivia as a
result. Results indicated the MAS also retained control over
major drug-producing country that failed meet its
both legislative chambers, but it is yet unclear whether it
obligations under international counternarcotics
will have a two-thirds majority. Protests across the country
agreements. President Trump issued this year’s designation
since the election have resulted in at least two deaths, with
on August 8, 2019. The designation is due, in part, to a law
some opposition supporters calling for Morales to resign.
Bolivia enacted in 2017 to expand the amount of coca
permitted to be cultivated beyond what an EU-funded study
The Morales government has agreed to have the OAS audit
estimated was necessary to satisfy its traditional coca
the election results and to participate in a mid-December
demand.
2019 runoff election if recommended by the OAS. Critics
question whether Morales will comply with that pledge.
Coca cultivation has slightly increased since Morales
Mesa has called for a completely new election. The United
assumed office. According to the U.S. Office of National
States has joined neighboring countries in supporting the
Drug Control Policy, coca cultivation in Bolivia rose from
OAS audit and calling for the cessation of violence in
roughly 26,500 hectares in 2006 to 31,000 hectares in 2017.
Bolivia.
The State Department’s 2019 International Narcotics
Control Strategy report estimated a decline in Bolivia’s
Economic Conditions
coca cultivation and potential cocaine production from
Bolivia’s economic performance has been relatively strong
2016 to 2017. As a comparison, estimated coca cultivation
under Morales. According to the International Monetary
in Colombia rose from 157,000 hectares in 2006 to a record
Fund (IMF), economic growth averaged almost 4.5% from
209,000 hectares in 2017.
2006 to 2018. Although growth is slowing due to lower
prices for its natural gas and mineral exports, Bolivia has
Bolivia receives trade benefits as a beneficiary country of
created a sovereign wealth fund to help it weather economic
the U.S. Generalized System of Preferences (GSP), but the
downturns. The IMF forecasts 4% growth for 2019.
Trump Administration is reviewing Bolivia’s eligibility due
to concerns over worker rights issues. In 2018, two-way
Sustained growth, combined with wage increases and
trade totaled $1.1 billion, according to the U.S. Department
expanded social programs, has helped to reduce poverty
of Commerce. Bolivia’s largest U.S. exports are tin, silver
and inequality in Bolivia. According to government
bullion, tungsten, and quinoa; its primary U.S. imports are
estimates, poverty rates fell from 60% in 2006 to 34.6% in
civilian aircraft and parts, food preparations, petroleum oils,
2018. According to the U.N. Economic Commission on
insecticides, and compressors.
Latin America and the Caribbean, income inequality also
declined by 20% from 2007 to 2017. Despite this progress,
Issues for Congress
per capita income remains low by regional standards.
Congress has had limited oversight interest in Bolivia over
the past decade, as the country no longer receives bilateral
In a December 2018 report, the IMF expressed concerns
U.S. foreign assistance and is not the primary source
about Bolivia’s rising debt, declining reserves, and poor
country for U.S.-bound cocaine from South America.
investment climate. In particular, foreign investment, which
Congressional concern about Bolivia has increased over the
economists assert is needed to develop mines and gas fields,
past year, however, as President Morales has pursued a
has declined. Bolivia has received investment from China,
fourth term. S.Res. 35, approved in April 2019, expresses
however, and President Morales is seeking additional
concern over efforts to circumvent term limits in Bolivia
investment from Russia, Iran, India, and Turkey.
and calls on the government to allow electoral bodies to
“administer the October 2019 election in adherence with
U.S.-Bolivian Relations
international democratic norms.” Congress also is
U.S.-Bolivian relations have deteriorated under the Morales
monitoring Bolivia’s eligibility for GSP benefits.
administration. Although Bolivia and the United States
have not formally severed diplomatic or consular relations,
Clare Ribando Seelke, Specialist in Latin American
they have not exchanged ambassadors since President
Affairs
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Bolivia: An Overview
IF11325
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