1,098,581 sq km (424,164 sq mi)
(2007 est.): 9,525,000
La Paz (administrative) and Sucre (judicial)
President Evo Morales Ayma

Pres. Evo Morales forged ahead in 2007 with his bold attempt to restructure Bolivia on terms more favourable to its impoverished Indian majority. He scored some successes, significantly boosting the government’s share of revenue from natural gas and mineral resources. The constituent assembly drafting a new constitution made little progress, however, and tension increased between the Indian-dominated western highlands and the resource-rich eastern lowlands. The rivalry between the regions was further aggravated by a proposal to transfer the political capital back to Sucre (the sole capital until 1899), sparking massive protests in La Paz.

As South America’s first Indian president, Morales was determined to lock in the political gains represented by his 2005 election. His followers in the assembly pushed for the recognition of Indian nations with extensive political rights and control over resources. Morales’s opponents said that such conditions could lead to the breakup of the country and sought priority for regional governments to reinforce the power of non-Indian elites. Agreement proved difficult, and the assembly’s yearlong mandate, scheduled to expire in August, was renewed for four months with the possibility of further extensions.

Repercussions from the 2006 nationalization of the gas industry dominated the economic scene. In May, after tense negotiations, Brazil’s state-owned petroleum company agreed to sell back two oil refineries it had bought from Bolivia in 1999. Brazil was Bolivia’s major gas customer, and the refinery dispute highlighted Bolivia’s role in the wider struggle between the United States, Brazil, and Venezuela for regional influence. Venezuelan Pres. Hugo Chávez provided aid pledges of $800 million for the year. The Morales government pushed ahead with other nationalization plans, opening negotiations with the Italian majority owners of the telephone system and signaling a similar move with the electrical utility. It also moved to capitalize on world metals by raising its share of mineral royalties.

Despite the tension in several sectors, high commodity prices and the absence of crippling foreign-debt payments allowed Bolivia to register a measure of economic growth. Morales’s Zero Malnutrition program, which aimed to wipe out a scourge affecting 40% of the population, was praised by the UN’s special rapporteur on the right to food. The personal popularity of Morales remained strong, although he was criticized for doling out aid from Chávez as personal favours to allies. Cocalero, a documentary film about Morales’s life, was favourably received outside Bolivia and added lustre to his image.

Protests mounted in Bolivia after world football (soccer) officials banned international matches in stadiums more than 2,500 m (8,200 ft) above sea level, citing possible threats to players’ health. The Bolivian campaign included well-publicized trips by Morales to play football on alpine fields, and the ban was eventually modified to allow matches to be played at the stadium in La Paz (about 3,600 m [11,800 ft]). Meanwhile, scientists warned that global warming was steadily reducing the size of Andean glaciers, endangering water supplies for about two million Bolivians and threatening the existence of the Chacaltaya alpine resort, which boasted the highest ski run on Earth, at 5,300 m (17,400 ft).

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