Economic instability and continued wars
A period of political and economic instability in the early to mid-19th century weakened Bolivia. Then in the War of the Pacific (1879–83) against Chile, it lost its access to the sea and the adjoining rich Salitre ("Chile Saltpeter") fields, together with the port of Antofagasta. Since its independence, Bolivia has lost over half of its territory to neighboring countries in wars. It also lost the state of Acre (known for its production of rubber) when Brazil persuaded the state of Acre to secede from Bolivia in 1903.
In the late 19th century, an increase in the world price of silver brought Bolivia relative prosperity and political stability. During the early 20th century, tin replaced silver as the country's most important source of wealth. A succession of governments controlled by the economic and social elite followed laissez-faire capitalist policies through the first thirty years of the 20th century.
Living conditions of the native people, who constitute most of the population, remained deplorable. With work opportunities limited to primitive conditions in the mines and in large estates having nearly feudal status, they had no access to education, economic opportunity, and political participation. Bolivia's defeat by Paraguay in the Chaco War (1932–35), where Bolivia lost a great part of the Gran Chaco region in dispute, marked a turning-point.
Independence and subsequent wars
Economic instability and continued wars
Nationalist Revolutionary Movement
Military governments: García Meza and Siles Zuazo
Sánchez de Lozada and Banzer: Liberalizing the economy
Bolivia under the Morales administration
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Last updated: June 26, 2010