|History of Bolivia|
This article is part of a series
|1982 to present|
The region that is now known as Bolivia has been constantly occupied for over 2000 years, when the Aymara arrived in the region, eventually settling in Western Bolivia, Southern Peru and Northern Chile. Present-day Aymara associate themselves with an advanced civilization situated at Tiwanaku, in Western Bolivia. The capital city of Tiwanaku dates as early as 1500 BC as a small agriculturally-based village. The community grew to urban proportions between AD 600 and AD 800, becoming an important regional power in the southern Andes. According to early estimates, at its maximum extent, the city covered approximately 6.5 square kilometers, and had between 15,000 - 30,000 inhabitants. However, satellite imaging was used recently to map the extent of "flooded-raised field" agriculture (Aymara language: suka kollus) across the three primary valleys of Tiwanaku, arriving at population-carrying capacity estimates of anywhere between 285,000 and 1,482,000 people.
Around AD 400, Tiwanaku went from being a locally dominant force to a predatory state. Tiwanaku expanded its reaches into the Yungas and brought its culture and way of life to many other cultures in Peru, Bolivia, and Chile. However, Tiwanaku was not a violent culture in many aspects. In order to expand its reach Tiwanaku became very political creating colonies, trade agreements (which made the other cultures rather dependant), and state cults.
The empire continued to grow with no end in sight. William H. Isbell states that "Tiahuanaco underwent a dramatic transformation between AD 600 and 700 that established new monumental standards for civic architecture and greatly increased the resident population."  Tiwanaku continued to absorb cultures rather than eradicate them. Archaeologists have seen a dramatic adoption of Tiwanaku ceramics in the cultures who became part of the Tiwanaku empire. Tiwanaku gained its power through the trade it implemented between all of the cities within its empire. The elites gained their status by the surplus of food they gained from all of the regions and then by having the ability to redistribute the food among all the people. This is where the control of llama herds became very significant to Tiwanaku. The llama herds were essential for carrying goods back and forth between the center and the periphery as well as symbolizing the distance between the commoners and the elites. Their power continued to grow in this manner of a surplus of resources until about AD 950. At this time a dramatic shift in climate occurred.
At this point in time there was a significant drop in precipitation for the Titicaca Basin. Some archaeologists even venture to say that a great drought occurred. As the rain became less and less many of the cities further away from Lake Titicaca began to produce less crops to give to the elites. As the surplus of food ran out for the elites their power began to fall. The capital city became the last place of production, due to the resiliency of the raised fields, but in the end even the intelligent design of the fields was no match for the weather. Tiwanaku disappeared around AD 1000 because food production, their main source of power, dried up. The land was not inhabited for many years after that.
Between 1438 and 1527, the Incan empire, on a mass expansion, acquired much of what is now western Bolivia. The Incans wouldn't maintain control of the region for long however, as the rapidly expanding Inca Empire was internally weak, nonetheless the Incas left the greatest mark on the Bolivian culture. In 1430, the Inca civilization swept across the western part of Bolivia. During this time, the Incas’ expansion increased under the rule of their ninth emperor, Pachacuti Inca Yupanqui, whose reign lasted from 1438 to 1471. Pachacuti Yupanqui was succeeded by his son, Topa Inca Yupanqui whose reign also increased the Incan territory and lasted from 1471 to 1493. During the fifteenth century the Incas conquered the region of Lake Titicaca, the last of the Aymaran people and the last of the Native Bolivians. Thus, western Bolivia became a part of the Inca territory.
Since the Incas had conquered the remaining parts of the Bolivian Altiplano, the native peoples experienced a breakthrough in what achievements. Like other cultures, the Inca spread their religion and language, Quechua, to their newly conquered territories. The Incas made an exception to the peoples living near Lake Titicaca; they were allowed to continue speaking Aymara. The Bolivians were introduced to a number of farming techniques, such as, terracing and the quipu system of keeping record with knotted strings (knotted strings of various lengths and colors were used for recording numerical information). The Incas were master builders and they constructed an elaborate system of roads, irrigation, and terraced mountain slopes.
Western Bolivia was not the only territory to be conquered by the Inca. Andean Ecuador, Peru, northern Chile, and northwestern Argentina made up an empire that stretched 2,000 miles in South America. The Inca enforced rules on the peoples living on the Bolivian Altiplano, but ruled as a welfare state; food, clothing, and shelter was provided for the needy and elderly. Like other Incans, Bolivians were expected to work for a number of days every year. If a person was unable to accomplish the designated number of days, they were punishable by death.
The Incan empire, before western contact, was thriving; everyone received the items that they needed. The Inca had a sort of caste system within the empire: the Inca ruling class, the priests, and the ayllus (the basic political and social units of Inca life). The Incas had an imperial colonization policy that intended to ensure the loyalty of the people to the empire by uprooting conquered people and whole communities and resettling them in safe territories that were friendly and loyal to the empire.
Francisco Pizarro, Diego de Almagro, and Hernando de Luque led the Spanish discovery and conquest of the Inca Empire. They first sailed south in 1524 along the Pacific coast from Panama to confirm the existence of a legendary land of gold called "Biru" (later altered to Peru).
Because the rapidly expanding Inca Empire was internally weak, the conquest was remarkably easy. After the Inca Huayna Capac died in 1527, his sons Huascar and Atahualpa fought over the succession. Although Atahualpa defeated his brother, he had not yet consolidated his power when the Spaniards arrived in 1532, and he seriously misjudged their strength. Atahualpa did not attempt to defeat Pizarro when he arrived on the coast in 1532 because the Incan ruler was convinced that those who commanded the mountains also controlled the coast. When Pizarro formed alliances with Indians who resented Inca rule, Atahualpa did not modify the Inca ceremonial approach to warfare, which included launching attacks by the light of the full moon. Atahualpa’s refusal to accept the permanent Spanish presence and to convert led to the bloody Battle of Cajamarca on November 16, 1532. Pizarro executed Atahualpa's 12 man honor guard and took the Inca captive at the so-called ransom room. One year later, the Inca capital of Cuzco fell and was refounded as a new Spanish settlement in 1534.
Despite Pizarro's quick victory, Indian rebellions soon began and continued periodically throughout the colonial period. In 1537, Manco Inca, whom the Spanish had established as a puppet emperor, rebelled against the new rulers and restored a "neoInca" state. This state continued to challenge Spanish authority even after the Spanish suppressed the revolt and beheaded Túpac Amaru in the public square of Cuzco in 1572. Later revolts in the Bolivian highlands were usually organized by the elders of the community and remained local in nature, except for the great rebellion of Túpac Amaru II in the 18th century.
During the first two decades of Spanish rule, the settlement of the Bolivian highlands — now known as Upper (Alto) Peru or Charcas — was delayed by a civil war between the forces of Pizarro and those of Almagro. The two conquistadors had divided the Incan territory, with the north under the control of Pizarro and the south under that of Almagro. But fighting broke out in 1537 when Almagro seized Cuzco after suppressing the Manco Inca rebellion. Pizarro defeated and executed Almagro in 1538 but was himself assassinated three years later by former supporters of Almagro. Pizarro's brother Gonzalo assumed control of Upper Peru but soon became embroiled in a rebellion against the Spanish crown. Only with the execution of Gonzalo Pizarro in 1548 did Spain succeed in reasserting its authority; later that year, colonial authorities established the city of La Paz, which soon became an important commercial and trans-shipment center.
Indian resistance delayed the conquest and settlement of the Bolivian lowlands. The Spanish established Santa Cruz de la Sierra in 1561, but the Gran Chaco, the colonial name for the arid Chaco region, remained a violent frontier throughout colonial rule. In the Chaco, the Indians, mostly Chiriguano, carried out unrelenting attacks against colonial settlements and remained independent of direct Spanish control.
During most of the Spanish colonial period, this territory was called "Upper Peru" or "Charcas" and was under the authority of the Viceroy of Lima. Local government came from the Real Audiencia of Charcas located in Chuquisaca or La Plata (modern Sucre). Bolivian silver mines produced much of the Spanish empire's wealth, and Potosí, site of the famed Cerro Rico — "Rich Mountain" — was, for many years, the largest city in the Western Hemisphere.
The longevity of Spain's empire in South America can be explained partly by the successful administration of the colonies. Spain was at first primarily interested in controlling the independent-minded conquerors, but its main goal soon became maintaining the flow of revenue to the crown and collecting the tribute of goods and labor from the Indian population. To this end, Spain soon created an elaborate bureaucracy in the New World in which various institutions served as watchdogs over each other and local officials had considerable autonomy.
Upper Peru, at first a part of the Viceroyalty of Peru, joined the new Viceroyalty of the Río de la Plata (whose capital was Buenos Aires) when it was created in 1776. The viceroy was aided by the audiencia (council), which was simultaneously the highest court of appeal in the jurisdiction and, in the absence of the viceroy, also had administrative and executive powers. The wealth of Upper Peru and its remoteness from Lima convinced the authorities in Lima to create an audiencia in the city of Chuquisaca (present-day Sucre) in 1558. Chuquisaca had become particularly important as Potosí's administrative and agricultural supply center. The jurisdiction of the audiencia, known as Charcas, initially covered a radius of 100 leagues (1,796 km²) around Chuquisaca, but it soon included Santa Cruz and territory belonging to present-day Paraguay and, until 1568, also the entire district of Cuzco. The president of the audiencia had judicial authority as well as administrative and executive powers in the region, but only in routine matters; more important decisions were made in Lima. This situation led to a competitive attitude and the reputation of Upper Peru for assertiveness, a condition reinforced by the economic importance of the region.
Spain exercised its control of smaller administrative units in the colonies through royal officials, such as the corregidor, who represented the king in the municipal governments that were elected by their citizens. By the early 17th century, there were four corregidores in Upper Peru.
In the late 18th century, Spain undertook an administrative reform to increase revenues of the crown and eliminate a number of abuses. It created an intendancy system, giving extensive powers to highly qualified officials who were directly responsible to the king. In 1784, Spain established four intendancy districts in Upper Peru, covering the present-day departments of La Paz, Cochabamba, Potosí, and Chuquisaca.
At first, the Spanish crown controlled the local governments indirectly, but in time slowly centralized procedures. At first, Viceroy Francisco de Toledo, Count of Oropesa confirmed the rights of local nobles and guaranteed them local autonomy. But the crown eventually came to employ Spanish officials, corregidores de indios, to collect tribute and taxes from the Indians. Corregidores de indios also imported goods and forced the Indians to buy them, a widely abused practice that proved to be an enormous source of wealth for these officials but caused much resentment among the Indian population.
With the first settlers in Upper Peru came the secular and regular clergy to begin the conversion of the Indians to Christianity. In 1552, the first bishopric in Upper Peru was established in La Plata; in 1605 La Paz and Santa Cruz also became bishoprics. In 1623, the Jesuits established the Royal and Pontifical Higher University of San Francisco Xavier of Chuquisaca, Upper Peru's first university.
Indian reaction to colonial rule and conversion to Christianity varied. Many Indians adapted to Spanish ways by breaking with their traditions and actively attempting to enter the market economy. They also used the courts to protect their interests, especially against new tribute assessments. Others, however, clung to their customs as much as possible, and some rebelled against the white rulers. Local, mostly uncoordinated, rebellions occurred throughout colonial rule. More than 100 revolts occurred in the 18th century alone in Bolivia and Peru.
Although the official Inca religion disappeared rapidly, the Indians continued their local worship under the protection of local Indian rulers. But as Christianity influenced the Indians, a new folk-Catholicism developed, incorporating symbols of the indigenous religion. Whereas early Indian rebellions were anti-Christian, the revolts at the end of the 16th century were based in messianic Christian symbolism that was Roman Catholic and anti-Spanish. The church was tolerant of local Indian religions. For example, in 1582 the bishop of La Plata permitted the Indians to build a sanctuary for the dark Virgen de Copacabana on the shores of Lake Titicaca (Copacabana has been a traditional Aymara religious center ever since).
The conquest and colonial rule were traumatic experiences for the Indians. Easily susceptible to European diseases, the native population decreased rapidly. The situation worsened in the 18th century when Spain demanded higher tribute payments and increased mita obligations in an attempt to improve the mining output.
These profound economic and social changes and the breakup of native culture contributed to the increasing addiction of Indians to alcohol. Before the Spanish arrived, the Incas had consumed alcohol only during religious ceremonies. Indian use of the coca leaf also expanded, and, according to one chronicler, at the end of the 16th century "in Potosí alone, the trade in coca amounts to over half a million pesos a year, for 95,000 baskets of it are consumed."
Increasing Indian discontent with colonial rule sparked the great rebellion of Túpac Amaru II. Born to José Gabriel Condorcanqui, this educated, Spanish-speaking Native American took the name of his ancestor, Túpac Amaru. During the 1770s, he became embittered over the harsh treatment of the Indians by the corregidores de indios. In November 1780, Túpac Amaru II and his followers seized and executed a particularly cruel corregidor de indios. Although Túpac Amaru II insisted that his movement was reformist and did not seek to overthrow Spanish rule, his demands included an autonomous region. The uprising quickly became a full-scale revolt. Approximately 60,000 Indians in the Peruvian and Bolivian Andes rallied to the cause. After scoring some initial victories, including defeating a Spanish army of 1,200 men, Túpac Amaru II was captured and killed in May 1781; nonetheless, the revolt continued, primarily in Upper Peru. There, a supporter of Túpac Amaru II, the Indian chief Tomás Catari, had led an uprising in Potosí during the early months of 1780. Catari was killed by the Spaniards a month before Túpac Amaru II. Another major revolt was led by Julián Apaza, a sexton who took the names of the two rebel martyrs by calling himself Túpac Catari (also spelled Katari). He besieged La Paz for more than 100 days in 1781. In 1782, an Aymara woman, Bartolina Sisa, was executed for raising yet another revolt. Spain did not succeed in putting down all of the revolts until 1783 and then proceeded to execute thousands of Indians.
In the late 18th century, a growing discontent with Spanish rule developed among the criollos (persons of pure Spanish descent born in the New World). Criollos began to assume active roles in the economy, especially in mining and agricultural production, and thus resented the trade barriers established by the mercantalist policies of the Spanish crown. In addition, criollos were incensed that Spain reserved all higher administrative positions for peninsulares (Spanish-born persons residing in the New World).
The Enlightenment, with its emphasis on reason, questioning of authority and tradition, and individualistic tendencies, also contributed to criollo discontent. The Inquisition had not kept the writings of Niccolò Machiavelli, Voltaire, Denis Diderot, Benjamin Franklin, Thomas Paine, Jean-Jacques Rousseau, John Locke, and others out of Spanish America; their ideas were often discussed by criollos, especially those educated at the university in Chuquisaca. At first the criollos of Upper Peru were influenced by the French Revolution, but they eventually rejected it as too violent. Although Upper Peru was fundamentally loyal to Spain, the ideas of the Enlightenment and independence from Spain continued to be discussed by scattered groups of radicals.
As Spanish royal authority weakened during the Napoleonic Wars, sentiment against colonial rule grew. Bolivian historiography dates the proclamation of independence to 1809, but 16 years of struggle followed before the establishment of a republic, named for Simón Bolívar, on August 6, 1825.
The invasion of the Iberian Peninsula in 1807-08 by Napoleon's forces proved critical to the independence struggle in South America. The overthrow of the Bourbon Dynasty and the placement of Joseph Bonaparte on the Spanish throne tested the loyalty of the local elites in Upper Peru, who were suddenly confronted with several conflicting authorities. Most remained loyal to the Spanish Bourbons. Taking a wait-and-see attitude, they supported the Supreme Central Junta in Spain, a government which claimed to rule in the name of the abdicated Ferdinand VII. Some liberals eagerly welcomed the possible reforms to colonial rule promised by Joseph Bonaparte. A few officials supported the claims to a type of regency of the Spanish realms by Ferdinand's sister, Carlota, who at the moment governed from Brazil with her husband, Prince Regent John of Portugal. Finally, a small number of radical Criollos wanted independence for Upper Peru.
This conflict of authority resulted in a local power struggle in Upper Peru between 1808 and 1810, which constituted the first phase of the efforts to achieve independence. In 1808, the president of the Audiencia, Ramón García León de Pizarro, leaned towards affiliation with Carlotta. But the oidores of the Audiencia favored the Supreme Central Junta. On May 25, 1809, the oidores deposed President García León and established a junta to govern in the name of Ferdinand VII. On July 16, 1809, Pedro Domingo Murillo led another revolt by Criollos and Mestizos in La Paz and proclaimed an independent junta of Upper Peru, which would govern in the name of Ferdinand VII. By November 1809, Cochabamba, Oruro, and Potosí had joined the La Paz junta. Both revolts were put down by forces sent to La Paz by the viceroys of Peru and the Río de La Plata.
During the following seven years, Upper Peru became the battleground for forces of the United Provinces of the River Plate and royalist troops from Peru. Although the royalists repulsed three Argentine invasions, guerrillas controlled parts of the countryside, where they formed six major republiquetas, or zones of insurrection. In these zones, local patriotism would eventually develop into a full fight for independence. By 1817, Upper Peru was relatively quiet and under the control of the Viceroyalty of Peru.
After 1820, conservative Criollos supported General Pedro Antonio de Olañeta, a Charcas native, who refused to accept the restoration of the liberal Spanish Constitution of 1812. Olañeta, convinced that these measures threatened royal authority, refused to join either the liberal royalist forces or the rebel armies under the command of Bolívar and Antonio José de Sucre. Olañeta did not relinquish his command even after the Peruvian royalists included him and his forces in their capitulation agreement following their defeat in the Battle of Ayacucho in 1824. Olañeta continued a quixotic war during the following months until Sucre defeated him, and he was killed by his own men on April 1, 1825, in a battle that effectively ended Spanish rule in Upper Peru. A constitutional congress declared Bolivia an independent republic on August 6 and named the new republic in honor of Bolívar because it considered him its founder.
During the presidency of Marshal Andrés de Santa Cruz, Bolivia enjoyed the most successful period of her history with great social and economic advancement. Santa Cruz got involved in internal Peruvian political problems and succeeded in unifying Peru and Bolivia into a confederation the Peru-Bolivian Confederation. As Santa Cruz openly declared the Inca Empire as a predecessor of his state, this move was perceived as a threat to regional power balance and a menace to countries on former Inca territory. The War of the Confederation broke out and different wars against almost all its neighbors were fought during this period with sound victories against its enemies but maybe the turning point took place on the fields of Paucarpata where the Confederacion Peru-Boliviana lead by Santa Cruz forced the Chilean and Peruvian rebel armies to sign the peace treaty know as the Paucarpata Treaty which included their unconditional surrender; later this treaty was discarded by the Chilean parliament. The rebel Peruvians and the Chilean army set off to a new war against Santa Cruz, defeating the Confederation on the fields of Yungay. This was the turning point on Bolivian history after this moment for nearly 60 years, coups and short-lived constitutions dominated Bolivian politics.
Going through a vicious economical and political crisis Bolivia's military weakness was demonstrated during the War of the Pacific (1879–83), when it lost its seacoast and the adjoining rich nitrate fields to Chile. An increase in the world price of silver brought Bolivia a measure of relative prosperity and political stability in the late 1800s.
During the early part of the 20th century, tin replaced silver as the country's most important source of wealth. A succession of governmentsl applied laissez-faire policies through the first third of the century.
Living conditions of the indigenous peoples, who constitute more than half of the population, remained deplorable. Forced to work under primitive conditions in the mines and in nearly feudal status on large estates, they were denied access to education, economic opportunity, or political participation. Bolivia's defeat by Paraguay in the Chaco War (1932-1935) marked a turning point. Great loss of life and territory discredited the traditional ruling classes, while service in the army produced stirrings of political awareness among the indigenous people. A large portion of Gran Chaco was surrendered to Paraguay. In return Bolivia was given an access to the Paraguay River where later Puerto Busch was founded and with this free access to the Atlantic Ocean over international water. In 1936 the Standard Oil was nationalized and the state-owned firm Yacimientos Petroliferos Fiscales Bolivianos (YPFB) created. From the end of the Chaco War until the 1952 revolution, the emergence of contending ideologies and the demands of new groups convulsed Bolivian politics.
Standing alongside the Mexican Revolution, the Bolivian National Revolution is one of the most significant sociopolitical events to occur in Latin America during the 20th century. The Revolutionary Nationalist Movement (MNR) emerged from the ashes of the Chaco War in 1941 as a middle-class political coalition eschewing Marxism for a vague nationalist ideology better suited to Bolivia's social reality. The MNR participated in the military-civilian regime of Gualberto Villarroel (1943-46) but was deposed in 1946 by the mining oligarchy and the Partido Izquierda Revolucionario (PIR). Its members fled into exile and spent the next six years organizing. The party intiatied a brief but bloody civil war in October 1949, but was defeated and once again, exiled. The MNR emerged victorious in the 1951 elections, but the results were called fraudulent by the opposition, and its right to the presidency was denied. On 9 April 1952, the MNR led a successful revolt and set into motion the Bolivian National Revolution. Under President Víctor Paz Estenssoro and later, Hernan Siles, the MNR introduced universal adult suffrage, carried out a sweeping land reform, promoted rural education, and, in 1952, nationalized the country's largest tin mines. What is especially significant about the Revolution is that, for the first time in Republican history, the State attempted to incorporate into national life the Aymara and Quechua peasants that together constituted no less than 65 percent of the total population. Although the policies pursued by the MNR were largely corporatist and assimilationist, it marked a significant turning point in Bolivia's contested history of indigenous-state relations.
Twelve more tumultuous years of national reform left the country bitterly divided and in 1964, a military junta overthrew President Paz Estenssoro at the outset of his third term; an event that many assert brought an end to the National Revolution and marked the beginning of nearly 20 years of military rule in Bolivia. Many scholars have looked to the CIA in explaining the November 1964 coup, but an increasing number of declassified U.S. documents refute the claim. Towards the end of Paz's second term, Barrientos — a popular, Quechua-speaking General — had succeeded in co-opting the peasant unions formed in the wake of the 1953 agrarian reform, establishing the Pacto Militar-Campesino (PMC). Throughout the 1960s Barriento leveled the peasant unions against labor unrest in the mines. The 1969 death of President René Barrientos, a former member of the junta elected President in 1966, led to a succession of weak governments. A coup was led by the military, only to see a countercoup led by leftist Juan José Torres. Alarmed by public disorder, the military, the MNR, and others installed Col. (later General) Hugo Banzer Suárez as President in 1971. Banzer ruled with MNR support from 1971 to 1974. Then, impatient with schisms in the coalition, he replaced civilians with members of the armed forces and suspended political activities. The economy grew impressively during Banzer's presidency, but demands for greater political freedom undercut his support. His call for elections in 1978 plunged Bolivia into turmoil once again.
Elections in 1978, 1979, and 1980 were inconclusive and marked by fraud. There were coups, counter-coups, and caretaker governments. In 1980, Gen. Luis García Meza carried out a ruthless and violent coup. His government was notorious for human rights abuses, narcotics trafficking, and economic mismanagement. This led to a breakdown in relations with the U.S., which under both the Carter and Ronald Reagan administrations refused to recognize García's government due to its drug ties.  Later convicted in absentia for crimes, including murder, García Meza was extradited from Brazil and began serving a 30-year sentence in 1995. Garcia Meza recently published an unapologetic autobiography entitled simply, Yo Dictador.
After a military rebellion forced out García Meza in 1981, three other military governments within 14 months struggled with Bolivia's growing problems. Unrest forced the military to convoke the Congress elected in 1980 and allowed it to choose a new chief executive. In October 1982 –22 years after the end of his first term of office (1956-60)- Hernán Siles Zuazo again became President. Severe social tension, exacerbated by economic mismanagement and weak leadership, forced him to call early elections and relinquish power a year before the end of his constitutional term.
In the 1985 elections, the Nationalist Democratic Action Party (ADN) of Gen. Banzer won a plurality of the popular vote, followed by former President Paz Estenssoro's MNR and former Vice President Jaime Paz Zamora's Revolutionary Left Movement (MIR). But in the congressional run-off, the MIR sided with MNR, and Paz Estenssoro was chosen for a fourth term as President. When he took office in 1985, he faced a staggering economic crisis. Economic output and exports had been declining for several years.
Hyperinflation had reached an annual rate of 24,000%. Social unrest, chronic strikes, and unchecked drug trafficking were widespread. In 4 years, Paz Estenssoro's administration achieved economic and social stability. The military stayed out of politics, and all major political parties publicly and institutionally committed themselves to democracy. Human rights violations, which badly tainted some governments earlier in the decade, were no longer a problem. However, his remarkable accomplishments were not won without sacrifice. The collapse of tin prices in October 1985, coming just as the government was moving to reassert its control of the mismanaged state mining enterprise, forced the government to lay off over 20,000 miners.
Although the MNR list headed by Gonzalo Sánchez de Lozada finished first in the 1989 elections, no candidate received a majority of popular votes and so in accordance with the constitution, a congressional vote determined who would be president. The Patriotic Accord (AP) coalition between Gen. Banzer's ADN and Jaime Paz Zamora's MIR, the second- and third-place finishers, respectively, won out. Paz Zamora assumed the presidency, and the MIR took half the ministries. Banzer's center-right ADN took control of the National Political Council (CONAP) and the other ministries.
Paz Zamora was a moderate, center-left President whose political pragmatism in office outweighed his Marxist origins. Having seen the destructive hyperinflation of the Siles Zuazo administration, he continued the neoliberal economic reforms begun by Paz Estenssoro, codifying some of them. Paz Zamora took a fairly hard line against domestic terrorism, personally ordering the December 1990 attack on terrorists of the Néstor Paz Zamora Committee.
Paz Zamora's regime was less decisive against narcotics trafficking. The government broke up a number of trafficking networks but issued a 1991 surrender decree giving lenient sentences to the biggest narcotics kingpins. Also, his administration was extremely reluctant to pursue coca eradication. It did not agree to an updated extradition treaty with the US, although two traffickers have been extradited to the U.S. since 1992. Beginning in early 1994, the Bolivian Congress investigated Paz Zamora's personal ties to accused major trafficker Isaac Chavarria, who subsequently died in prison while awaiting trial. MIR deputy chief Oscar Eid was jailed in connection with similar ties in 1994; he was found guilty and sentenced to 4 years in prison in November 1996. Technically still under investigation, Paz Zamora became an active presidential candidate in 1996.
The 1993 elections continued the tradition of open, honest elections and peaceful democratic transitions of power. The MNR defeated the ADN/MIR coalition by a 36% to 20% margin, and the MNR's Sánchez de Lozada was selected as president by an MNR/MBL/UCS coalition in the Congress.
Sánchez de Lozada pursued an aggressive economic and social reform agenda. The most dramatic change undertaken by the Sanchez de Lozada government was the capitalization program, under which investors acquired 50% ownership and management control of public enterprises, such as the Yacimientos Petroliferos Fiscales Bolivianos (YPFB) oil-corporation, telecommunications system, electric utilities, and others. The reforms and economic restructuring were strongly opposed by certain segments of society, which instigated frequent social disturbances, particularly in La Paz and the Chapare coca-growing region, from 1994 through 1996.
In the 1997 elections, Gen. Hugo Banzer, leader of the ADN, won 22% of the vote, while the MNR candidate won 18%. Gen. Banzer formed a coalition of the ADN, MIR, UCS, and CONDEPA parties which hold a majority of seats in the Bolivian Congress. The Congress elected him as president and he was inaugurated on August 6, 1997.
Between January and April 2000, a series of anti-privatization protests took place in Cochabamba against the privatization of the municipal water supply that was being pushed through on the recommendation of the World Bank and the International Monetary Fund. The Bolivian government declared martial law, killing several people, arresting protest leaders and shutting down radio stations. After continued disturbances and civic pressure, the government finally rolled back the privatization on April 10, 2000.
In 2001, Bechtel filed suit against the Bolivian government, citing damages of more for $25 million. Bechtel argues that its contract was only to administer the water system, which suffered from terrible internal corruption and poor service, and that the local government raised water prices. The continuing legal battle attracted attention from anti-globalization and anti-capitalist groups. This topic is explored in the 2003 documentary film The Corporation and on Bechtel's website. In January 2006, Bechtel and the other international partners settled the lawsuit against the Bolivian government for a reported $0.30 (thirty cents) after intense protests and a ruling on jurisdiction favorable to Bechtel by the International Centre for the Settlement of Investment Disputes.
President Hugo Banzer resigned in August 2001, due to being diagnosed with lung cancer. He was succeeded by his vice-president, Jorge Quiroga. In the 2002 elections, Sánchez de Lozada ran again, and narrowly beat NFR's Manfred Reyes Villa and the cocalero and indigenous leader Evo Morales of the Movement Toward Socialism (MAS) party, in an election claimed to have been tainted by clear signs of electoral fraud.
Several days before Bolivians went to the voting booths, the U.S. ambassador, Manuel Rocha, warned the Bolivian electorate that, if they voted for Morales, the US would cut off foreign aid and close its markets to the country. Morales nonetheless received nearly 21% of the vote, putting him only a couple points behind Sánchez de Lozada.
Strikes and blockades first erupted in September 2003, with several deaths and dozens of injuries in confrontations with the armed forces. President Sánchez de Lozada resigned under pressure from protesters, formally handing over the presidency to his vice-president, Carlos Mesa, in order to preserve the Constitutional order. He fled the country to the United States. Mesa was inaugurated and promised to address the demands of the protesting majority. In the face of mounting protests, he resigned on 7 March 2005, claiming he was unable to continue governing the country. With promises of support, he withdrew his resignation.
In May-June 2005, Mesa again tendered his resignation and in a hastily convened session of the Parliament in Sucre, Mr.Eduardo Rodríguez Veltzé - the President of the Supreme Court - became President on the night of June 9, 2005. Political agreements were reached to modify the Constitution, and allow the full renewal of Parliament, simultaneously with a Presidential Election, on December 4, 2005.
The deterioration of the political system contributed towards the rise of a loose confederation of indigenous social movements, the MAS and others parties, with the head of the MAS, Evo Morales, a former cocalero, as leader. In the elections of December 2005 Evo Morales and MAS obtained a comfortable victory reaching 54% of the electorate's votes, becoming the first Native Bolivian president in history.
On May 1, 2006, Evo Morales delivered on his promises to nationalize most of Bolivia's natural gas fields, which many indigenous Bolivians had demanded for years. Troops were sent in to occupy the gas fields and take back control from foreign companies that same day. Many were operated by Petrobras, Brazil's largest energy company, and this political development was expected to strain relations between Morales and Brazilian president Luiz Inácio Lula da Silva. On October 29, 2006, the Morales government signed agreements with eight foreign gas firms including Petrobras, to give the Bolivian national gas company a majority stake in the gas fields, bringing the nationalization to completion. 
In late August, 2007, the MAS purged the Constitutional Tribunal of magistrates that voted earlier in the year against Morales' move to fill Supreme Court vacancies while Congress was in recess. The purge dismantled the outlet for arbitration between branches of government.
On May 4, 2008, autonomy referendums were held in four eastern departments, in which they declared themselves autonomous from the central government. All four referendums passed. Evo Morales deemed this referendum illegal. Turnout was as low as 70%. 
In February 2009 a new constitution was enacted by Evo Morales. This gave Bolivians of indigenous descent more economic and political rights.
Much of the material in this article comes from the CIA World Factbook 2000 and the 2003 U.S. Department of State website. This article incorporates public domain material from websites or documents of the Library of Congress Country Studies.