Population : 9.02 million (2003)

Ethnic Structure : Bolivia has a mixed population: Quechua - 30%, Aymara- 25%, Mestizos- 25% and European origin - 20%

Capital : La Paz (administrative capital), Sucre (constitutional capital and seat of judiciary),

Main cities: Santa Cruz (commercial capital), La Paz, El Alto, Cochabamba

Religion : Predominantly Catholic ; there is however a mix with traditional indigenous practices

Official languages : Spanish, Quechua, Aymara

Climate : Tropical below around 1,500 metres (Santa Cruz); cool above 3,500 metres (La Paz)

Local time : GMT minus 4 hours; IST minus 9 ½ hours

National Day : August 6 ( Independence Day)

Constitutional Structure : Constitution provides for a federal Republic with nine provinces. There is an executive President and one Vice President. Separate Bicameral Congress (27- member Senate, 130-member Congress) and Judicial Branch (Supreme Court and lower courts).

Government Head of State / President : H.E. Mr. Evo Morales. The Minister of External Relations and Worship is H.E. Mr. David Choquehuanca.

Main Political Parties : Movimiento al Socialismo (MAS), PODEMOS, Movimiento Nacionalista Revolucionario (MNR), Movimiento de la Izquierda Revolucionaria (MIR),

Membership of International Organisations : UN & some of its specialised agencies, NAM, G-77, WTO, Andean Community, Rio Group, Associate Member of MERCOSUR, OAS, ALADI, etc

Major natural resources : Tin, lead, zinc, bismuth, natural gas (second largest in Latin America), petroleum , iron ore .

Major crops : Sugarcane, cotton, soybean, rice, potato, maize, wheat and coffee. In addition, widespread cultivation of coca leaves

Literacy Rate : 87.1% (2002)

Life Expectancy : 62.5 years (2002)

GDP : US$ 8.2 billion (2004)

GDP per capita : US $ 914 (2004). 64% of the population living in poverty.

GDP Growth rate : 4.09 % (2005 p), 3.83% (2004), 2.5% (2003)

Contribution to GDP : Agriculture – 15%, Industry – 33.2%, Services 51.9%

Currency: 1 US$ = Bolivianos 8.04 (2004)

Inflation : 4.91 % (2005), 4.92% (2004), 3.94% (2003)

Foreign Reserves : US$ 1.61 billion (incl. Gold, 2004)

External Debt : US$ 4.95 billion (2004)

Foreign Trade : Exports - US$ 2.81 bn (2005) Imports - US$ 2.34 bn (2005)

Main trading partners : Brazil, Colombia, USA, Switzerland, Chile, Argentina

Principal exports : Zinc, Soyabean, Natural Gas, Gold, Tin

Indo-Bolivia trade : Indian exports- US$ 11.72 million (2005), US$ 10.83 mn (2004)

Indian imports- US$ 0.86 million (2005), US$ 0.32 mn (2004)

Main Indian exports : Motorcycles, pharmaceuticals, tyres & tubes, iron & steel products.

Main Indian imports : Natural borates, sheep leather (tanned), precious or semi-precious stones, wool etc.

INDIA – BOLIVIA BILATERAL RELATIONS

Interactions between India and Bolivia in the past have been very minimal. There is no Indian Embassy in Bolivia. This Mission in Lima is concurrently accredited to Bolivia. There are Honorary Consul Generals in La Paz and Santa Cruz. Bolivia has no diplomatic mission in India. However, the new government of Evo Morales is showing great interest in expanding political and commercial ties with India including the opening up of an Embassy in India.

Morales had been wanting to visit India before he took office. That time he was visiting Europe, China and South Africa. The letter of felicitations from our Rashtrapatiji to Morales included an invitation to visit India . Recently, in one of his statements Morales had said that “since we are also called Indians, India may help us”.

There have been no major bilateral visits from India to Bolivia. MOS(C&I) had met with Bolivian Vice President in May 2000 on the margins of the Mercosur Economic Summit in Rio de Janeiro. In October 1998, Textile Secretary attended the 57th Plenary meeting of the International Cotton Advisory Committee (ICAC) in Santa Cruz. From the Bolivian side, in July 2003, Education Minister of Bolivia attended the conference on “Dialogue among civilizations – Quest for new perspectives” in New Delhi, organised by MHRD and UNESCO. The Bolivian Vice Minister for Health participated in the Indo-LAC health summit in Delhi in September 2002.

India and Bolivia agreed to start Bilateral Foreign Office Level Consultations and an agreement to this effect was signed in November 2001 in La Paz. The first round of consultations was held in August 2006. Earlier, in 1997, a cultural agreement was also signed. Bilateral trade is at a nascent stage and it represents less than 0.25% of total Bolivian trade. However Indian exports have increased considerably over the last few years. Bilateral trade figures for the last few years are given below:

Principal Indian exports are motorcycles, pharmaceuticals, tyres & tubes, Iron & Steel products, etc. while principal Indian imports are tin, natural borates, sheep leather (tanned), precious or semi-precious stones, wool etc.

Jindal Steel & Power Ltd recently won the Mutun iron ore & steel project worth US$ 2.3 bn in Bolivia. This is the biggest project ever awarded to an Indian company in Latin America.

The Government of Bolivia has also accepted a credit line offer of the Government of India which will bring in project and exports from India in IT, Railways, agriculture, helicopters, vehicles etc.

Due to historical and geographical reasons, Bolivia has not been a key player in regional politics although recent discovery of large reserves of natural gas in Bolivia is rekindling international interest in the country. Bolivia has been supportive of various Indian candidatures to international organisations. Bolivia was one of the few countries which had agreed to cosponsor the G-4 resolution in an expanded UNSC.

The vast reserves of natural gas in Bolivia have led to projects for the export of this gas to other countries. GAIL(India) Ltd had expressed its interest in this sector. It would be an opening to get Indian companies in both upstream and downstream operations including areas like gas liquefaction, pipeline construction, gas based electricity generation, etc. Possibilities include evaluating the viability of transporting Bolivian natural gas to India.

In May 2003, Minister of Economic Development of Bolivia, Jorge Torres, sought an appointment with Ambassador in Lima and requested Indian companies to invest in areas like textiles, leather, logging, etc in order to take advantage of the preferential tariff given by the US to Bolivia through the ATPDEA Act. Bolivian authorities have also expressed their interest in having Indian companies enter Bolivia in the IT sector.

In the field of bilateral cooperation, despite a high tax imposed by the Bolivian Government on international air tickets, ITEC scholars going to India have been increasing. For the first time, an ICCR-sponsored Bharatnatyam dance group performed in Santa Cruz in August 2003.

The Indian community in Bolivia is very small. Around 50 Indians, mainly from Punjab, are living in Bolivia engaged in retail trade, transportation, agriculture etc.

Lately, the political situation in Bolivia has been very volatile with six presidents in the last five years. Largely, a result of the resurgence in the political expressions of the majority indigenous populations who have been subjected to years of neglect and suppressions.

Various civilizations had emerged around Lake Titicaca from 600 AD. The Aymara colonies appeared after 1200 A.D. The Incas incorporated the Aymaras into their empire in the 13th century. Spain invaded the Inca Empire in 1530 and conquered Alto Peru (Upper Peru), the present day Bolivia which in 1539 was brought under the Lima vice-regal authorities. In 1776, it was transferred to the jurisdiction of the new vice-royalty at Buenos Aires (Argentina). The struggle for independence from Spain started from the beginning of 19th century with independence being achieved in 1825. With Simon Bolivar's approval the new country was named after him and Marshal Antonio Jose de Sucre became the first President of the independent nation.

Bolivia's post independence history was marked by instability and insurrections. In 1879, Bolivia and Peru were involved in the `Pacific War' with Chile that resulted in the loss of its Pacific coastline in 1884 in the case of Bolivia. Bolivia has since wanted a sovereign corridor to the South Pacific Ocean.

The disastrous Chaco war (which began over the exploration of oil at the foothills of Andes) with Paraguay during 1932-35 resulted in further loss of territory and shattered Bolivia's economy and morale. The 1952 popular revolution resulted, inter alia, in the virtual destruction of the army. Headed by Victor Paz Estensorro, the revolutionary Government introduced sweeping reforms. Again, during the period 1964-82, the political scene was dominated by the military. Democratic Governments have ruled Bolivia since 1982.

In 2000 and 2001, Bolivia was rocked by social unrest, partly related to the forced eradication of coca cultivation, and economic crisis. In August 2001, President Hugo Banzer stepped down on health reasons, leaving his Vice President Jorge Quiroga as President till the end of the term in August 2002. In elections in July 2002, former President Gonzalo Sanchez de Lozada narrowly defeated indigenous leader Evo Morales and formed a coalition Government. These elections also saw a sharp rise in representation of the indigenous community in Bolivia’s parliament. However, social unrest, fuelled by economic discontent and protests against the possible use of Chilean ports for exports of Bolivian natural gas to the US, erupted in February 2003 and again in October 2003, finally forcing the resignation and exile of the President. Vice President Carlos Mesa was sworn-in as the new President. He also resigned in June 2005 following weeks of protests, roadblocks and shut down in various parts of Bolivia including La Paz and El Alto. Hernando Vaca Diez and Mario Cossio, the two Chamber Presidents in line for succession to the presidency, resigned their options. The President of the Supreme Court, Eduardo Rodriguez Veltzé, was sworn-in for the transition period with a mandate to call for elections as soon as possible. The elections were held in December 2005 and Evo Morales won the presidential elections with an unprecedented 53.7% of the votes vs. 28.2% for the runner-up Tuto Quiroga.

Bolivia shares no border with Venezuela. The personal alliance of Venezuelan President Hugo Chavez and Morales epitomize the ties between the two countries that there was a fear the Chavez would run Bolivia by proxy. Chavez had openly supported Morales during the elections. Ties with Brazil and Argentina have become more fraternal because of the camaraderie bonds between Morales with the President Lula and President Kirchner, besides the sale of gas from Bolivia. Relations with Peru are unavoidably cordial, because Peru is the only outlet westward to the sea for Bolivia especially for its gas. Relations with Chile, have been plagued by a deadlock over Bolivia's demand for sovereign access to the Pacific Ocean. There are no diplomatic relations between the two countries. However, recently the two countries have agreed to discuss all the pending issues. Morales has been also looking up to Cuba as model, which appears paradoxical, given Morales’ claims to strengthen democracy in Bolivia. Morales had visited Spain, France and the Netherlands and also China and South Africa before he took office in January 2006.

The free Coca growing protagonist in Morales, made the US to be openly against Morales in the elections in 2002 where Morales came second. Now with Morales as President the relations are uncertain. There are however, reports of meetings have been taking place between Morales and the American Ambassador and a telephone call made by President Bush to Morales. In the past, the US has been very influential in Bolivia. Among other things because of US aid in the eradication of Coca program and the US ATPDEA Act that gave preferential access to the US market for implementing anti-drug measures. Bolivia is a member of the UN, the IMF, the World Bank, the Inter American Development Bank (IDB), the Organization of American States, the World Trade Organization (WTO), the South American Community of Nations and the Andean Community (Comunidad Andina - CAN) and an associate member of Mercosur.

Morales has been talking of adopting Socialist policies and nationalization of public utilities like energy and water. He has also declared about changing the constitution. Contrary, however, to expectations, recently he had met with private businessmen. Their commitment to work towards job creation has mellowed Morales’ attitude towards the private sector. Some of his supporters have even called him a neoliberalist.

Earlier, in 1985, in order to revive the economy and control inflation, which was then at more than 20,000%, the Government started implementing market-oriented policies. Coupled with the move of privatization (or “capitalization” as it is referred to in Bolivia) of state-owned enterprises since 1995, these policies met with significant success by taming inflation to less than 4% in 2003. However, much of this low inflation is also due to the continuing economic crisis, which has been compounded by a social unrest since 2000, triggered off by the devaluation of the Brazilian currency in early 1999. After years of export stagnation, exports grew sharply in 2003 to US$ 1.57 bn, helped by the ATPDEA trade preferences given by the US. Foreign Direct Investment was very high mainly due to the investment in the hydrocarbon sectors till 2002, but political crisis in 2003 led to a sharp fall.

Over the last few years, large deposits of natural gas have been found in Bolivia (second largest reserves of natural gas in Latin America), leading to renewed interest in Bolivia by international investors. At present, most of Bolivia’s gas exports are to Brazil and Argentina, but given the size of the reserves, Bolivia was keen to export this gas to the US market through the Pacific coast but anger against using a port of estranged neighbour Chile led to violence in October 2003 and the subsequent fall of the Government. Despite its mineral and hydrocarbon wealth, Bolivia continues to be one of the poorest countries in South America in per capita terms. Ambitious economic reactivation plans have been launched by successive Presidents, mostly based on funds from the debt write offs in exchange for development (HIPC initiative) and other international funding. The latest plan involves greater royalties on hydrocarbons, other increased taxes and lower Government expenditure.

Most business activity and commerce is concentrated in the few large cities, primarily in the commercial capital Santa Cruz. Many interior parts of the country are cut off due to poor transport and communications as well as rugged terrain. The country has extreme income distribution inequalities with an elite of European descent controlling the economy.

Bolivia is a significant trading nation with total trade amounting to 40% of its GDP. In 2005, total external trade was US$ 5.15 billion with exports at US $ 2.81 bn and imports at US$ 2.34 bn. Its largest trading partner is the USA. Other trading partners include Brazil, Peru, Chile, Argentina, Ecuador, Colombia, Sweden and Belgium. Its main exports are soyabean, tin, natural gas, zinc, silver and gold. Bolivia imports a variety of finished and semi-finished products, capital goods, etc.

In October 2002, trade preferences to Andean countries, including Bolivia, under the US ATPDEA Act was renewed and enlarged. This has given greater access for Bolivian goods to the US market as compensation for implementing anti-drug policies till December 2006, and Bolivia is keen to attract investment in the sectors of hydrocarbon, mining, leather, textiles, etc.