Bolivian Economic Crisis essays

Bolivian Economic Crisis essays Bolivia, as we know it today, is one of the poorest nations of the world, but it is not located in Africa or Indonesia, it is in the middle of South America. Bolivia was, in Colonial times, one of the richest nations in the World. So how can this wealthy nation have fallen so hard in such a short period of time? It might be hard to explain and even harder to understand. Many factors influenced the roller coaster ride that this nation took and some of those factors are still pushing the economy down. However, if we pay more attention to the process of decadence that this nation lived, we may even come to the conclusion that this country was destined to be poor (Bolivian Gov. pg 1). Colonial exploitation, wars, and revolutions were just the beginning of the problems that were followed by adverse atmospheric conditions, geographical disadvantages, and the crumbling of the silver and tin market prices, which led to uncontrollable migration and international debt. Among the possible solutions to restore the nations economy, we find some macro economic reforms that require the capitalization of the state-owned enterprises, the stabilization of the economy by remonitisation, and the international help of entities like the World Bank, the Inter American Bank of Development and US Aid (Bolivian Gov. pg 1). At the beginning of the 17th century, Bolivia was the greatest producer of silver and gold in the world, and the opulence of the country improved Spains economy. According to Norman Galls report (pg 4), it is estimated that 43,000 tons of gold and silver were shipped to Europe by the Spanish conquistadors. In a 1730 census conducted by the Spanish government, the city of Potosi reported an estimated population of 120,000 at a time when London had an estimated population of 200,000. But forced labor and the consumption of food and materials created an extensive trade system that supported operations at Potosi. However, f...