hree 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

@Bolivia:Economy

Overview: With its long history of semifeudal social controls,
dependence on volatile prices for its mineral exports, and bouts of
hyperinflation, Bolivia has remained one of the poorest and 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 an inflation rate that continues to decrease - the
1994 rate of 8.5% was the lowest in ten years - 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. Related laws - one that establishes
SIRESE, the regulatory agency that will oversee the privatizations,
and another that outlines the rules for privatization in the
electricity sector - were approved later in the year.

National product: GDP - purchasing power parity - $18.3 billion (1994
est.)

National product real growth rate: 4.2% (1994 est.)

National product per capita: $2,370 (1994 est.)

Inflation rate (consumer prices): 8.5% (1994 est.)

Unemployment rate: 6.2% (1994 est.)

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

Exports: $1.1 billion (f.o.b., 1994 est.)
commodities: metals 39%, natural gas 9%, soybeans 11%, jewelry 11%,
wood 8%
partners: US 26%, Argentina 15% (1993 est.)

Imports: $1.21 billion (c.i.f., 1994 est.)
commodities: capital goods 48%, chemicals 1