mix compared to other South American countries ( Latin America and the Caribbean, or LAC, average hydropower capacity. The people of Bolivia, particularly the veterans, recognized the enormity of the failure of the Bolivian government and looked for radical solutions to their political and economic problems. However, eradication efforts have been hampered by the lack of a suitable replacement crop for rural communities that have cultivated coca for generations. Most agricultural workers are engaged in subsistence farmingthe dominant economic activity of the highlands region.
Bolivian Economic Crisis
Bolivia suffered from major external shocks, but the extent.
Chapter in nber book Developing Country Debt and the World Economy.
First appea red as nber working paper w2620, Bolivia s Economic Crisis, Juan.
Analysis- LA PAZ People in Bolivia appear to be waiting for ev erything to fall apart before they accept that their economy faces a crisis.
Paz Estenssoro reduced employment in the government mining corporation by 75 percent and broke the power of the tin miners union. Paraguay claimed a greater portion of the Chaco than Bolivia was willing to recognize. Bolivia's trade with neighboring countries is growing, in part because of several regional preferential trade agreements. This would put an end to financing loss-making projects or enterprises. Agricultural production in Bolivia is complicated by both the country's topography and climate. One important figure of the labor union leadership was Juan Lechin, an individual who wielded major power in Bolivia from behind the scenes. There are no precise figures on how much loss is generated by poor resource allocation but it will certainly be large numbers. In the Chaco War Bolivia suffered losses and casualties of about one hundred thousand and lost more territory to Paraguay than Paraguay had initially claimed.