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Bolivia has a presidential system of government. Along with other Latin
American countries, Bolivia embarked upon the dual processes of political and economic liberalization in the early
1980s. The current democratization process began after 18 years of military-based authoritarian rule and two brief
civilian governments. Since 1985 Bolivia has held four general elections that can be considered open, free and
competitive. In 1997, the former military leader ousted in 1978 regained power via the ballot box.
Bolivia has enjoyed four peaceful transitions of power since 1985, and military leaders have continued to support
civilian control of the military. The popular participation law, promulgated in 1994, ushered in an unusual process
of decentralization that garnered positive international attention. One unique feature is the granting of legal
status to grassroots organizations to encourage their participation in, and oversight of, municipal government.
Economic and Social Indicators
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Population:
GNP:
Per Capita GNP:
Growth Rate:
Illiteracy Rate:
:
Life Expectancy:
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8 million
$7.4 billion
$950
figures unavailable
10%-males
24%-females
59-males
63-females |
The World Bank. World Development Report. Oxford Union Press,1999
Bolivia's political challenges have included balancing the role and powers of the executive and legislature, maintaining
civil liberties while utilizing strong measures to fight drug trafficking, and responding to the needs and demands
of various social groups in a society where much of the population still lives below the poverty line. Economic
and social reforms at times have resulted in strong public protest by labor unions and other civil society organizations.
Free-market economic reforms adopted in 1985 and supported by the IMF and the World Bank were targeted at reducing
Bolivia's exorbitant inflation rate (it reached 24,000 percent in 1985). The reforms rapidly stabilized the economy,
as inflation fell to 66 percent in 1986 and just 9 percent in 1994. Moreover, the stabilization was achieved without
a severe recession; since 1987 the economy has been growing slowly at less than 1 percent. Unfortunately, the reforms
have failed to reactivate growth through higher levels of investment and trade. In addition, expenditure on education
and welfare has declined and income inequality has increased.
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