Bolivia, named after independence fighter Simon BOLIVAR, broke away from Spanish rule in 1825; much of its subsequent history has consisted of a series of nearly 200 coups and countercoups. Democratic civilian rule was established in 1982, but leaders have faced difficult problems of deep-seated poverty, social unrest, and illegal drug production. In December 2005, Bolivians elected Movement Toward Socialism leader Evo MORALES president - by the widest margin of any leader since the restoration of civilian rule in 1982 - after he ran on a promise to change the country's traditional political class and empower the nation's poor, indigenous majority. However, since taking office, his controversial strategies have exacerbated racial and economic tensions between the Amerindian populations of the Andean west and the non-indigenous communities of the eastern lowlands.
chief of state: President Juan Evo MORALES Ayma (since 22 January 2006); Vice President Alvaro GARCIA Linera (since 22 January 2006); note - the president is both chief of state and head of government
head of government: President Juan Evo MORALES Ayma (since 22 January 2006); Vice President Alvaro GARCIA Linera (since 22 January 2006)
cabinet: Cabinet appointed by the president
elections: president and vice president elected on the same ticket by popular vote for a single five-year term; election last held 18 December 2005 (next to be held in December 2009)
election results: Juan Evo MORALES Ayma elected president; percent of vote - Juan Evo MORALES Ayma 53.7%; Jorge Fernando QUIROGA Ramirez 28.6%; Samuel DORIA MEDINA Arana 7.8%; Michiaki NAGATANI Morishit 6.5%; Felipe QUISPE Huanca 2.2%; Guildo ANGULA Cabrera 0.7%
Bolivia is one of the poorest and least developed countries in Latin America. Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large northern hemisphere markets. In 2005, the government passed a controversial hydrocarbons law that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company. In early 2008, higher earnings for mining and hydrocarbons exports pushed the current account surplus to 9.4% of GDP and the government's higher tax take produced a fiscal surplus after years of large deficits. Private investment as a share of GDP, however, remains among the lowest in Latin America, and inflation remained at double-digit levels in 2008. The decline in commodity prices in late 2008, the lack of foreign investment in the mining and hydrocarbon sectors, and the suspension of trade benefits with the United States will pose challenges for the Bolivian economy in 2009.