subject: Why Bolivia Is The Poor Man Of Latin America [print this page] While much of Latin American economies are bursting at the seams, one country seems to be lagging behind in economic development. Formally known as the Plurinational State of Bolivia or Bolivia for short, this name was accepted in 2009 as a recognition of the multi-ethnic population of the country as well as high esteem for the indigenous people that have assimilated into the main populace.
Bolivia is landlocked, bordered by Brazil to the north and east, Paraguay and Argentina to the south, Chile to the southwest and Peru to the west. The country was part of the great Incan Empire until Spanish colonization changed its overall history. Before its independence in 1809, the country was called Upper Peru under the administration of the Viceroyalty of Peru. The country was named after Simon Bolivar in August 6, 1825 after a civil war through Congressional edict.
Much of the problems that hampered the development of the Bolivian economy stems from nearly 2000 years of colonial history as well as the series of wars and internal strife of its political leadership. Moves by prominent leaders, such as Tejada and the others to seek economic development resulted in economic mismanagement and hyperinflation. In addition, the illegal coca trade has created an underground economy, which despite the efforts of the Bolivian government and other foreign governments has continued in the country.
The country is also a divergent country, with two basic climactic zones that govern the weather in the country. Summer in Bolivia run through November through March and is characterized by humid weather and high rainfall. Winter runs through April to October and the weather is cold and dry. In the highland areas, winter brings in snow and sub-zero temperatures. Being a South American country, the country has a large rainforest region where the temperatures run from the humid to the hot. Another climactic phenomenon is the drying up of many rivers and aquatic areas throughout the country, which then floods up when the summer months come.
Despite being rich in natural resources, it is admittedly one of the poorest and least developed economies in the South American continent. The economy grows at a very modest 2.5% per year and inflation rises to 4% on a year on year basis. Nearly two-thirds of its populace are substinence farmers and live on the poverty line.
There is hope though for the country. With the growth of adjacent countries has allowed income to trickle into the country. The current government is now open to much progressive thought and this is what may be the best chance for the poor hombre of Latin America to rise from the shadows.
