least developed Latin American countries. However, Bolivia has
experienced generally improving economic conditions since the PAZ
Estenssoro administration (1985-89) introduced market-oriented
policies which reduced inflation from 11,700% in 1985 to about 20%
in 1988. PAZ Estenssoro was followed as president by Jaime PAZ
Zamora (1989-93) who continued the free-market policies of his
predecessor, despite opposition from his own party and from
Bolivia's once powerful labor movement. By maintaining fiscal
discipline, PAZ Zamora helped reduce inflation to 9.3% in 1993,
while GDP grew by an annual average of 3.25% during his tenure.
Inaugurated in August 1993, President SANCHEZ DE LOZADA has vowed to
advance the market-oriented economic reforms he helped launch as PAZ
Estenssoro's planning minister. His successes so far have included
the signing of a free trade agreement with Mexico and progress on
his unique privatization plan. The main privatization bill was
passed by the Bolivian legislature in late March 1994. Since that
time, the administration has privatized the electric power
generation sector, the state airline, the state telephone company,
and the national railroad. The state mining and petroleum companies
are expected to be privatized in 1996.

GDP: purchasing power parity - $20 billion (1995 est.)

GDP real growth rate: 3.7% (1995 est.)

GDP per capita: $2,530 (1995 est.)

GDP composition by sector:
agriculture: NA%
industry: NA%
services: NA%

Inflation rate (consumer prices): 12% (1995 est.)

Labor force: 3.54 million
by occupation: agriculture NA%, services and utilities 20%,
manufacturing, mining and construction 7% (1993)

Unemployment rate: urban rate 8% (1995 est.)

Budget:
revenues: $3.75 billion
expenditures: $3.75 billion, including capital expenditures of
$556.2 million (1995 est.)

Industries: mining, smelting, petroleum, food and beverages,
tobacco, handicrafts, clothing

Industrial production growth rate: 5% (1994 est.)

Electricity:
capacity: 756,200 kW
production: 2.116 billion kWh
consumption per capita: 367 kWh (1994)

Agriculture: coffee, coca, cotton, corn, sugarcane, rice,
potatoes; timber

Illicit drugs: world's third-largest cultivator of coca (after
Peru and Colombia) with an estimated 48,600 hectares under
cultivation in 1995, a one percent increase in overall cultivation
of coca over 1994 leve