US—Ambassador Robert S. GELBARD; Embassy at Banco Popular del Peru
Building, corner of Calles Mercado y Colon, La Paz (mailing address is
P. O. Box 425, La Paz, or APO Miami 34032); telephone [591] (2)
350251 or 350120
_#_Flag: three equal horizontal bands of red (top), yellow, and green with the coat of arms centered on the yellow band; similar to the flag of Ghana, which has a large black five-pointed star centered in the yellow band
_*Economy #_Overview: The Bolivian economy steadily deteriorated between 1980 and 1985 as La Paz financed growing budget deficits by expanding the money supply and inflation spiraled—peaking at 11,700%. An austere orthodox economic program adopted by newly elected President Paz Estenssoro in 1985, however, succeeded in reducing inflation to between 10% and 20% annually since 1987, eventually restarting economic growth. President Paz Zamora has retained the economic policies of the previous government, keeping inflation down and continuing the moderate growth begun under his predecessor. Nevertheless, Bolivia continues to be one of the poorest countries in Latin America, and it remains vulnerable to price fluctuations for its limited exports—agricultural products, minerals, and natural gas. Moreover, for many farmers, who constitute half of the country's work force, the main cash crop is coca, which is sold for cocaine processing.
_#_GDP: $4.85 billion, per capita $690; real growth rate 2.7% (1990)
_#_Inflation rate (consumer prices): 18% (1990)
_#_Unemployment rate: 21.5% (1990 est.)
_#_Budget: revenues $2.5 billion; expenditures $2.8 billion, including capital expenditures of $850 million (1990 est.)
_#_Exports: $927 million (f.o.b., 1990);
commodities—metals 45%, natural gas 30%, other 25% (coffee, soybeans, sugar, cotton, timber);
partners—US 15%, Argentina