Essay about Bolivia – Privatization or Nationalization?

3366 Words 14 Pages
Bolivia – Privatization or Nationalization?

Bolivia was once a rich and prosperous country but is now one of the poorest nations in the world. The economy of Bolivia used to be rich in agriculture and mining but now searches to find something prosperous again. Privatization of certain companies has started in the country but was expelled when mass protests began. The companies’ prices are too high and the people used their culture and history to get rid of them. The Cochabamba protests of 2000 and the Bolivian gas referendum of 2004 are a couple of examples that show the power the people of Bolivia have over their own government.

The History of Bolivia

Bolivia is a landlocked country in South America. It borders
…show more content…
Under these circumstances Paraguay some how won the war and took even more territory away from Bolivia (Figure 1). Bolivia needs some kind of political power to help save their country and the Nationalist Revolutionary Movement (MNR) emerged and took over Bolivia for a few years. They push for great prosperity and many reforms but couldn’t seem to sway the people. Many different political parties kept fighting back and forth causing the government to never gain any kind of stability. The weakness of this government would never recover and to this day is still considered very weak (World66).

The Economic History of Bolivia

Bolivia has not always been a poor nation. In fact, in began as a very prosperous agricultural community. The natives farmed these lands until a very serious drought came. Then the Spanish came in and introduced mining to the Bolivian people. Silver became a huge industry in the area. The Bolivian region became one of the wealthiest and most populated areas of South America. Although money was flowing into Bolivia, the natives still remained very poor. In fact, they never saw a dime from these silver mines because they were forced to work the mines while the newly settled Spanish reaped all of the benefits of the Bolivian silver. Soon the silver was depleted from the mines and by the end of the 18th century the country became poor again.

Then to the surprise of the country mining was back on
Open Document