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According to some studies, civilisation in the Bolivian Andes is at least 21,000 years old. Two pre-Columbian cultures were of major importance: The Tiahuanaco culture that was born around lake Titicaca and dominated the region from 600 BCE to 1200 CE, and the Incas, who founded a vast empire that united most of Peru, Bolivia, Ecuador, and the northern part of Chile.
The Spanish conquest of the country was begun in 1531 by Francisco Pizarro. The conquistadors advanced rapidly, exploiting the confidence (and later the lack of unity) of the native peoples to secure a territory that was at that time known as Alto Peru. Silver mines were discovered in 1544 in the region of Potosí. The wealth generated by these mines supported the Spanish economy (and the extravagancy of her kings) for more than two centuries. However, the working conditions of the miners were terrible, and the majority of the native and African slaves died within a couple of years.
The struggle for independence against the squandering Spanish administration finally reached a peak in the character of Simón Bolivar's lieutenant, Antonio José de Sucre, during the battle of Ayacucho in 1824. The Republic of Bolivia was officially declared the following year. Bolivia's territory, extending more than two billion square kilometres, has always been desired by its neighbours. The expansionist aims of Chile gave birth to the Pacific War against Bolivia from 1879 to 1884. Chile finally won, and seized 850 km of coastline, robbing the port of Antofagasta from Bolivia and leaving the country without access to the sea. Shortly afterwards, Peru, Brazil and Argentina also began to attack their borders with Bolivia. In 1932, a border conflict with Paraguay over the oil in the Chaco Region led to another reduction of Bolivian territory. The Chaco war (1932-1935) also contributed to civil unrest within the country, leading to the creation of several reformist associations and repeated coups led by military leaders, also with reformist tendencies.
Possibly the most important development at this time was the creation of the MNR (National Revolutionary Movement). In 1951, the MNR, under the leadership of Victor Paz Estensoro, won the elections, but the new government was frustrated by yet another coup that resulted in an armed popular rebellion later known as the "April revolution" of 1952. The army lost and Paz Estensoro assumed power.
The new government displaced the class that had ruled from the heart of the state; from a tiny elite, power passed into the hands of the working middle class. The most important changes were agricultural reform ("The land belongs to those who work it") and the establishment of universal suffrage. However, although the revolution had positive aspects, it was marred by corruption. In 1964 a military coup led by general René Barrientos overthrew the MNR. From then, military regimes followed one another with monotonous regularity until the elections in 1982 and the success of the MIR (Movement of the Revolutionary Left) led by Dr Hernan Siles Zuazo. Three years later, Siles Zuazo was overthrown by Paz Estensoro, whose immediate proposal was to reduce the astronomic level of inflation (35,000%) and to implement austerity measures.
At present, Bolivia is trying to reinforce its regional links, and is participating in talks which aim to create a South American common market. Its reputation as a producer of cocaine at the beginning of the 1990s negatively affected its relations with the US. These bilateral tensions worsened a bad situation, reaching a low point in 1999 with a record figure of 20% unemployment. Although inflation has been kept under control at around 4% a year, Bolivia's history of economic instability continues to dissuade foreign investment. The major structural problem of Bolivia is the huge gap that separates this divided society, immersed in the imperialistic world of the 20th century, but with half of its population still subsisting thanks to agriculture and commerce.
A peasant movement led by MAS (the Movement Towards Socialism) has been trying to reduce the influence of multinationals that bought national industries during the government of Gonzalo Sanchez de Lozada since 1994, which creates a great social struggle.
The world economic situation also affects the country. The external debt and the raising of interest rates absorb much of the nation resources, but this does not affect all citizens. Most rich people and companies don't pay their taxes. Those who pay are the employees, peasants, workers and small businesses. These excessive taxes prevent them from developing economically.
Nevertheless, Bolivia has a lot of wealth, but the country does not know how to use it and the government does not manage it well. Bolivia's gas is exported more cheaply than any in the world, and the taxes paid by oil companies for their exploitation and selling are absurdly low. Another problem is that Bolivian producers do not control the domestic market, since there are too many imports. These factors added to the corruption of many politicians create a climate of socio-economic imbalance, external dependence, generalized despair and a divide between the government and the people, as well as increased poverty.
In the psychology of the poor, there is a complex mechanism that keeps them in poverty. Firstly, their childhood habits reveal a paternal or maternal, material or spiritual lack. They later try to compensate for this frustration and usually manage it by coalescing in groups and engaging in illegal activities that are viewed badly by society, and lead to them being discriminated against. All the different social classes actually help to maintain poverty in various ways: discrimination, ignorance, rejection. Moreover, the acute crisis the country is going through means that children and women go out to work under very poor conditions. They are badly paid, and there is neither a welfare system to help them nor a sense of social conscience among the wealthy. In general, they are only promised help during election times.
On the 18th of December 2005, Evo Morales was eleced President of Bolivia. This was an important event in the history of Bolivian democracy: for the first time a President was elected with more than 50% of the vote, and furthermore this President is indigenous, and represents a part of the population that was humiliated for more than five centuries.
More information: Unicef
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