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Bolivia's defeat by
Paraguay Paraguay (; ), officially the Republic of Paraguay ( es, República del Paraguay, links=no; gn, Tavakuairetã Paraguái, links=si), is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to th ...
in the
Chaco War The Chaco War ( es, link=no, Guerra del Chaco, gn, Cháko Ñorairõhistory of Bolivia After the fall of Tiwanaku Empire, the many Aymara Lake Titicaca was conquered by the Inca Empire. Prior to the Spanish conquest, the Andean province of Qullasuyu was a part of the Inca empire, while the northern and eastern lowlands were inhabi ...
. Great loss of life and territory discredited the traditional ruling classes, while service in the army produced stirrings of political awareness among the indigenous people. A large portion of the contested
Gran Chaco The Gran Chaco or Dry Chaco is a sparsely populated, hot and semiarid lowland natural region of the Río de la Plata basin, divided among eastern Bolivia, western Paraguay, northern Argentina, and a portion of the Brazilian states of Mato Gro ...
region was surrendered to Paraguay. In return Bolivia was given access to the
Paraguay River The Paraguay River (Río Paraguay in Spanish, Rio Paraguai in Portuguese, Ysyry Paraguái in Guarani) is a major river in south-central South America, running through Brazil, Bolivia, Paraguay and Argentina. It flows about from its headwaters in ...
where
Puerto Busch Puerto Busch is a Bolivian locality in the province of Germán Busch, Santa Cruz Department, on the Paraguay River, in southeastern Bolivia. It is named in honor of General Germán Busch, who fought in the Chaco War. The area, actually a corrid ...
was founded and, with this, free access to the Atlantic Ocean through international waters was possible. In 1936
Standard Oil Standard Oil Company, Inc., was an American oil production, transportation, refining, and marketing company that operated from 1870 to 1911. At its height, Standard Oil was the largest petroleum company in the world, and its success made its co-f ...
's Bolivian operations were nationalized and the state-owned firm ''
Yacimientos Petroliferos Fiscales Bolivianos Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) is a Bolivian state-owned enterprise dedicated to the exploration, exploitation, refining, industrialization, distribution and commercialization of Petroleum, oil, natural gas and derived pr ...
'' (YPFB) was created. From the end of the Chaco War until the 1952
Bolivian National Revolution The Bolivian Revolution of 1952 (), also known as the Revolution of '52, was a series of political demonstrations led by the Revolutionary Nationalist Movement (RNM, MNR), which, in alliance with liberals and communists, sought to overthrow the ...
, the emergence of contending ideologies and the demands of new groups convulsed Bolivian politics. During World War II and the
Korean War , date = {{Ubl, 25 June 1950 – 27 July 1953 (''de facto'')({{Age in years, months, weeks and days, month1=6, day1=25, year1=1950, month2=7, day2=27, year2=1953), 25 June 1950 – present (''de jure'')({{Age in years, months, weeks a ...
Bolivian tin had enjoyed high demand and prices. Even as the quality of the ores fell, the U.S. built a smelter able to handle low grade Bolivian ores and continued to buy Bolivian tin. Following the nationalization of the mines, with the Korean War over, tin prices fell and the U.S. no longer needed tin to support a war effort. Additionally, when the mines were nationalized, the foreign mining engineers and managers left the country, leaving the mines with a lack of skilled replacement.


The Republican Party and the Great Depression

, conventional_long_name = Republic of Bolivia , common_name = Bolivia , iso3166code = omit , era = , status = , status_text = , empire = , government_type =
Presidential republic A presidential system, or single executive system, is a form of government in which a head of government, typically with the title of president, leads an executive branch that is separate from the legislative branch in systems that use separation ...
, event_start = , date_start = 13 July , year_start = 1920 , event_end = , date_end = 17 May , year_end = 1936 , year_exile_start = , year_exile_end = , event1 =
Chaco War The Chaco War ( es, link=no, Guerra del Chaco, gn, Cháko Ñorairõ1920 Bolivian coup d'état , date_pre = 12 July 1920 , event_post = , date_post = , p1 = Republic of Bolivia (1899–1920)Bolivia , flag_p1 = Bandera_de_Bolivia_(Estado).svg , image_p1 = , p2 = , flag_p2 = , p3 = , flag_p3 = , p4 = , flag_p4 = , p5 = , flag_p5 = , s1 = #Prelude to the National Revolution, 1935–52Bolivia , flag_s1 = Bandera_de_Bolivia_(Estado).svg , image_s1 = , s2 = , flag_s2 = , s3 = , flag_s3 = , s4 = , flag_s4 = , s5 = , flag_s5 = , image_flag = Bandera_de_Bolivia_(Estado).svg , flag_alt = , image_flag2 = , flag_alt2 = , flag = Flag of Bolivia , flag2 = , flag_type = , flag2_type = , image_coat = Bolivia1888.png , coa_size = , coat_alt = , symbol_type = , symbol_type_article = , image_map = Map_Bolivia_territorial_loss-en.svg , image_map_alt = , image_map_caption = Bolivian territorial losses between 1867 and 1938 , image_map2 = , image_map2_alt = , image_map2_caption = , capital = , capital_exile = , national_motto = , national_anthem = , common_languages = , religion = , demonym = , currency = , leader1 =
Bautista Saavedra Bautista Saavedra Mallea (30 August 1870 in Sorata – 1 May 1939) was a Bolivian lawyer and politician who served as the 29th president of Bolivia from 1921 to 1925. Prior to that, he was part of a governing junta from 1920 to 1921. As le ...
, leader2 = Felipe Segundo Guzmán , leader3 =
Hernando Siles Reyes Hernando Siles Reyes (5 August 1882 – 23 November 1942) was a Bolivian politician who served as the 31st president of Bolivia from 1926 to 1930. The founder of the Nationalist Party, he soon gravitated toward the Saavedrista faction of th ...
, leader4 =
Carlos Blanco Galindo Carlos Blanco Galindo (12 March 1882 – 2 October 1943) was a Bolivian general who served as the 32nd president of Bolivia on a de facto interim basis from 1930 to 1931. Carlos Blanco was born in Cochabamba, Bolivia. A career military officer ...
, leader5 =
Daniel Salamanca Urey Daniel Domingo Salamanca Urey (8 July 1869 – 17 July 1935) was a Bolivian politician who served as the 33rd president of Bolivia from 1931 to 1934 until he was overthrown in a ''coup d'état'' on November 27, 1934, during the country's ...
, leader6 =
José Luis Tejada Sorzano José Luis Tejada Sorzano (12 January 1882 – 4 October 1938) was a Bolivian lawyer, economist, and politician who served as the 34th president of Bolivia from 1934 to 1936. The last president to be a member of the Liberal Party, Tejada Sor ...
, year_leader1 = 1920-1925 , year_leader2 = 1925-1926 , year_leader3 = 1926-1930 , year_leader4 = 1930-1931 , year_leader5 = 1931-1934 , year_leader6 = 1934-1936 , title_leader = President , representative1 = , representative2 = , representative3 = , representative4 = , representative5 = , year_representative1 = , year_representative2 = , year_representative3 = , year_representative4 = , year_representative5 = , title_representative = , deputy1 = , deputy2 = , deputy3 = , deputy4 = , year_deputy1 = , year_deputy2 = , year_deputy3 = , year_deputy4 = , title_deputy = , legislature = , house1 = , type_house1 = , house2 = , type_house2 = , stat_year1 = , stat_area1 = , stat_pop1 = , stat_year2 = , stat_area2 = , stat_pop2 = , stat_year3 = , stat_area3 = , stat_pop3 = , stat_year4 = , stat_area4 = , stat_pop4 = , stat_year5 = , stat_area5 = , stat_pop5 = , today =
Bolivia , image_flag = Bandera de Bolivia (Estado).svg , flag_alt = Horizontal tricolor (red, yellow, and green from top to bottom) with the coat of arms of Bolivia in the center , flag_alt2 = 7 × 7 square p ...

Paraguay Paraguay (; ), officially the Republic of Paraguay ( es, República del Paraguay, links=no; gn, Tavakuairetã Paraguái, links=si), is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to th ...
, footnote_a = , footnote_b = , footnote_h = , footnotes = The
Liberal Party The Liberal Party is any of many political parties around the world. The meaning of ''liberal'' varies around the world, ranging from liberal conservatism on the right to social liberalism on the left. __TOC__ Active liberal parties This is a li ...
's long rule of
Bolivia , image_flag = Bandera de Bolivia (Estado).svg , flag_alt = Horizontal tricolor (red, yellow, and green from top to bottom) with the coat of arms of Bolivia in the center , flag_alt2 = 7 × 7 square p ...
, one of the most stable periods in the country's history, ended when the Republicans seized the presidency in a bloodless coup d'état in 1920. Fernando Díez de Medina, a Bolivian writer, commented on the change: "Twenty years of privilege for one group ends, and ten years of privilege for another begins." Republican Party soon split into two parties - one led by
Bautista Saavedra Bautista Saavedra Mallea (30 August 1870 in Sorata – 1 May 1939) was a Bolivian lawyer and politician who served as the 29th president of Bolivia from 1921 to 1925. Prior to that, he was part of a governing junta from 1920 to 1921. As le ...
with his Republican Socialist Party and another led by Daniel Salamanca, who established the
Genuine Republican Party The Genuine Republican Party ( es, Partido Republicano Genuino, PRG) was founded in Bolivia in 1921 by José María Escalier and Daniel Domingo Salamanca Urey following a split in the Republican Party. Genuine Republican Party was formed by a ...
. Saavedra, President between 1920 and 1925, had the support of the urban middle class, while Salamanca was more conservative. A number of minor political parties influenced by
socialist Socialism is a left-wing economic philosophy and movement encompassing a range of economic systems characterized by the dominance of social ownership of the means of production as opposed to private ownership. As a term, it describes the e ...
or
Marxist Marxism is a Left-wing politics, left-wing to Far-left politics, far-left method of socioeconomic analysis that uses a Materialism, materialist interpretation of historical development, better known as historical materialism, to understand S ...
thought also emerged.Maria Luise Wagner. "The Republican Party and the Great Depression". In Hudson & Hanratty. During the Republican rule the
Bolivian economy The economy of Bolivia is the 95th-largest economy in the world in nominal terms and the 87th-largest economy in terms of purchasing power parity. Bolivia is classified by the World Bank to be a lower middle income country. With a Human Developm ...
underwent a profound change.
Tin Tin is a chemical element with the symbol Sn (from la, stannum) and atomic number 50. Tin is a silvery-coloured metal. Tin is soft enough to be cut with little force and a bar of tin can be bent by hand with little effort. When bent, t ...
prices started to decline in the 1920s. After peaking in 1929, tin production declined dramatically as the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
nearly destroyed the international tin market. This decline was also caused by the decrease in the tin content of ore and the end of new investment in the mines in Bolivia. As economic growth slowed, Republican presidents relied on foreign loans. Saavedra (1920–25) and
Hernando Siles Reyes Hernando Siles Reyes (5 August 1882 – 23 November 1942) was a Bolivian politician who served as the 31st president of Bolivia from 1926 to 1930. The founder of the Nationalist Party, he soon gravitated toward the Saavedrista faction of th ...
(1926–30) borrowed heavily in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
to finance major development projects, despite opposition by Bolivian nationalists to the favorable terms for the lender. The so-called Nicolaus loan aroused national indignation because it gave the United States control over Bolivia's tax collections in return for a private banking loan of US$33 million. The rule of the Republican Party and its President Saavedra initially did not indicate any profound changes in Bolivian politics. The 1920s, however, was a period of political change. During the 1920s Bolivia faced growing social turmoil. Saavedra legalized the right to strike and introduced government arbitration in labour disputes. In 1922 he caused a general strike after banning night taxis. The strikers won and taxi services were resumed and railroad federation was recognized as representative of railroad workers. Labor unrest, such as the miners' strike in Uncia in 1923, was brutally suppressed. The unrest reached new heights of violence after the drastic reduction of the work force during the Great Depression. Indian peasants continued to rebel in the countryside, although they had been disarmed and their leaders had been executed after participating in the overthrow of the
Conservative Party The Conservative Party is a name used by many political parties around the world. These political parties are generally right-wing though their exact ideologies can range from center-right to far-right. Political parties called The Conservative P ...
in 1899. Now, for the first time, the Indians found support for their cause among the elite. Gustavo Navarro, who took the name
Tristan Marof Tristan (Latin/Brythonic: ''Drustanus''; cy, Trystan), also known as Tristram or Tristain and similar names, is the hero of the legend of Tristan and Iseult. In the legend, he is tasked with escorting the Irish princess Iseult to wed T ...
, was Bolivia's most important Indianist. He saw in the Inca past the first successful socialism and the model to solve rural problems. As Indian uprisings continued during the Liberal rule, Siles Reyes promised to improve their situation and organized the National Crusade in Favor of Indians. The social legislation of the Republican governments was weak, however, because neither Saavedra nor Siles Reyes wanted to challenge the ''
rosca Rosca (ring or bagel) is a Spanish and Portuguese bread dish eaten in Spain, Mexico, South America, and other areas. It is made with flour, salt, sugar, butter, yeast, water, and seasonings. It is also called ka'ake and referred to as a "Syrian ...
'' (tin mining magnates' political representatives). Siles Reyes's four years of inconsistent rule and unfulfilled promises of radical changes frustrated workers and students. In 1930 he was overthrown when he tried to bypass the
constitutional A constitution is the aggregate of fundamental principles or established precedents that constitute the legal basis of a polity, organisation or other type of entity and commonly determine how that entity is to be governed. When these princip ...
provision forbidding reelection by resigning in order to run again. A military junta ruled until March 1931, when Republican leader Daniel Salamanca (1931–34) was elected as a candidate of Republican and Liberal coalition. Although he was an esteemed economist before taking office, Salamanca was unable to suppress social unrest and to solve the severe economic problems caused by the Great Depression. Criticism of his administration mounted in all sectors of Bolivian society. Initially reluctant to enter into an armed conflict with
Paraguay Paraguay (; ), officially the Republic of Paraguay ( es, República del Paraguay, links=no; gn, Tavakuairetã Paraguái, links=si), is a landlocked country in South America. It is bordered by Argentina to the south and southwest, Brazil to th ...
, he nevertheless led Bolivia into Chaco war, a move supported by the military and traditional groups.


The Chaco War (1932-1935)

The
Chaco War The Chaco War ( es, link=no, Guerra del Chaco, gn, Cháko ÑorairõGran Chaco The Gran Chaco or Dry Chaco is a sparsely populated, hot and semiarid lowland natural region of the Río de la Plata basin, divided among eastern Bolivia, western Paraguay, northern Argentina, and a portion of the Brazilian states of Mato Gro ...
region. This vast area was largely undeveloped except for some minor oil discoveries by
Standard Oil Standard Oil Company, Inc., was an American oil production, transportation, refining, and marketing company that operated from 1870 to 1911. At its height, Standard Oil was the largest petroleum company in the world, and its success made its co-f ...
in Bolivia and by
Royal Dutch Shell Shell plc is a British multinational oil and gas company headquartered in London, England. Shell is a public limited company with a primary listing on the London Stock Exchange (LSE) and secondary listings on Euronext Amsterdam and the New Yo ...
in Paraguay. The Chaco, which Bolivia traditionally regarded as its province, became more significant to Bolivia after it lost its Pacific coastline to Chile in 1879. Bolivia hoped to gain access to the Atlantic Ocean with an oil pipeline across the Chaco to the
Paraguay River The Paraguay River (Río Paraguay in Spanish, Rio Paraguai in Portuguese, Ysyry Paraguái in Guarani) is a major river in south-central South America, running through Brazil, Bolivia, Paraguay and Argentina. It flows about from its headwaters in ...
. Despite mediation attempts by various countries, the increased number of border incidents led the military high commands of Bolivia and Paraguay to prepare for the inevitability of war.Maria Luise Wagner. "The Chaco War". In Hudson & Hanratty. President Salamanca used one of the border incidents to break diplomatic relations with Paraguay and to increase Bolivia's military budget, even though the country had severe economic problems. Convinced that Bolivia's better-equipped, German-trained troops, which outnumbered the Paraguayan army, could win the war, Salamanca went to war in September 1932. The war raged for the next three years. The Bolivians suffered defeat in all major battles, and by the end of 1934 they had been driven back 482 kilometers from their original positions deep in the Chaco to the foothills of the
Andes The Andes, Andes Mountains or Andean Mountains (; ) are the longest continental mountain range in the world, forming a continuous highland along the western edge of South America. The range is long, wide (widest between 18°S – 20°S ...
. Serious strategic errors, poor intelligence, and logistical problems in reaching the distant battle-lines contributed to the losses. In addition, the morale of the Bolivian troops was low, and the highland Indian troops could not adapt to the extreme climate in the low-lying Chaco. Despite the high command's decision to end the war, Salamanca was determined to continue at all costs. In 1934, when he traveled to the Chaco to take personal command over the war, Salamanca was arrested by the high command and forced to resign. His vice-president,
José Luis Tejada Sorzano José Luis Tejada Sorzano (12 January 1882 – 4 October 1938) was a Bolivian lawyer, economist, and politician who served as the 34th president of Bolivia from 1934 to 1936. The last president to be a member of the Liberal Party, Tejada Sor ...
, who was known to favor peace, was installed as president (1934–36). Salamanca's overthrow proved a turning-point in the Chaco War. The Paraguayan troops were stopped by new, more capable Bolivian officers, who fought closer to Bolivian supply lines. On June 14, 1935 a commission of neutral nations (Argentina, Brazil, Chile, Colombia, Peru and the United States) declared an armistice; a definite settlement was finally reached in 1938. Bolivia lost the Chaco but retained the petroleum fields, which Paraguay had failed to reach. Both countries suffered heavy losses in the war. Bolivia lost an estimated 65,000 people killed and 35,000 wounded or captured out of a population of just under 3 million. The humiliating disaster of the Chaco War had a profound impact in Bolivia, which saw the conflict as a watershed event in the history of the 20th century. The traditional
oligarchy Oligarchy (; ) is a conceptual form of power structure in which power rests with a small number of people. These people may or may not be distinguished by one or several characteristics, such as nobility, fame, wealth, education, or corporate, r ...
was discredited because of its inept civilian and military leadership in the war. Unable to deal with growing criticism, its members blamed the loss of the war on the low potential of the Bolivians and saw the earlier pessimistic assessment in
Alcides Arguedas Alcides Arguedas Díaz (July 15, 1879 in La Paz – May 6, 1946 in Chulumani) was a Bolivian writer and historian. His literary work, which had a profound influence on the Bolivian social thought in the first half of the twentieth century, ...
's famous novel '' Pueblo Enfermo'' (''A Sick People'') confirmed. After the war, a group of middle-class professionals, writers, and young officers questioned the traditional leadership. This group, which came to be known as the Chaco Generation, searched for new ways to deal with the nation's problems. It resented the service of the ''rosca'' on behalf of the tin-mining entrepreneurs and criticized Standard Oil Co., which had delivered oil to Paraguay clandestinely through Argentine intermediaries during the war. The Chaco Generation was convinced of the need for social change. Gustavo Navarro, now more radical than during the 1920s, proclaimed the famous slogan "land to the Indians, mines to the state". The military, which came to power in 1936, tried to bring about change with popular support.


Prelude to the National Revolution, 1935–52

, conventional_long_name = Republic of Bolivia , common_name = Bolivia , iso3166code = omit , era = , status = , status_text = , empire = , government_type =
Presidential republic A presidential system, or single executive system, is a form of government in which a head of government, typically with the title of president, leads an executive branch that is separate from the legislative branch in systems that use separation ...
under a
military dictatorship A military dictatorship is a dictatorship in which the military exerts complete or substantial control over political authority, and the dictator is often a high-ranked military officer. The reverse situation is to have civilian control of the m ...
, event_start = , date_start = 17 May , year_start = 1936 , event_end = , date_end = 11 April , year_end = 1952 , year_exile_start = , year_exile_end = , event1 = , date_event1 = , event2 = , date_event2 = , event3 = , date_event3 = , event4 = , date_event4 = , event5 = , date_event5 = , event6 = , date_event6 = , event_pre = , date_pre = , event_post = , date_post = , p1 = #The Republican Party and the Great DepressionBolivia , flag_p1 = Bandera_de_Bolivia_(Estado).svg , image_p1 = , p2 = , flag_p2 = , p3 = , flag_p3 = , p4 = , flag_p4 = , p5 = , flag_p5 = , s1 = #The Bolivian National Revolution, 1952Bolivia , flag_s1 = Bandera_de_Bolivia_(Estado).svg , image_s1 = , s2 = , flag_s2 = , s3 = , flag_s3 = , s4 = , flag_s4 = , s5 = , flag_s5 = , image_flag = Bandera_de_Bolivia_(Estado).svg , flag_alt = , image_flag2 = , flag_alt2 = , flag = Flag of Bolivia , flag2 = , flag_type = , flag2_type = , image_coat = Bolivia1888.png , coa_size = , coat_alt = , symbol_type = , symbol_type_article = , image_map = Bolivia_(orthographic_projection).svg , image_map_alt = , image_map_caption = Location of Bolivia , image_map2 = , image_map2_alt = , image_map2_caption = , capital = , capital_exile = , national_motto = , national_anthem = , common_languages = , religion = , demonym = , currency = , leader1 =
David Toro José David Toro Ruilova (June 24, 1898 – July 25, 1977) was a colonel in the Bolivian army and member of the High Command during the Chaco War (1932–35) who served as the de facto 35th president of Bolivia from 1936 to 1937. He was on ...
, leader2 =
Germán Busch Víctor Germán Busch Becerra (23 March 1903 – 23 August 1939) was a Bolivian military officer and statesman who served as the 36th president of Bolivia from 1937 to 1939. Prior to his presidency, he served as the Chief of the General Staff ...
, leader3 =
Carlos Quintanilla Carlos Quintanilla Quiroga (22 January 1888 – 8 June 1964) was a Bolivian general who served as the 37th president of Bolivia on a provisional basis from 1939 to 1940. Quintanilla saw action in the initial stages of the Chaco War (1932–1 ...
, leader4 =
Enrique Peñaranda Enrique Peñaranda del Castillo (15 November 1892 – 22 December 1969) was a Bolivian general who served as the 38th president of Bolivia from 1940 until his overthrow in 1943. He previously served as commander-in-chief of the country's armed ...
, leader5 =
Gualberto Villarroel Gualberto Villarroel López (15 December 1908 – 21 July 1946) was a Bolivian military officer who served as the 39th president of Bolivia from 1943 to 1946. A reformist, sometimes compared with Argentina's Juan Perón, he is nonetheless ...
, leader6 =
Néstor Guillén Néstor Guillén Olmos (28 January 1890 – 12 March 1966) was a Bolivian lawyer and politician who served as the 40th president of Bolivia on a de facto interim basis in 1946. Background and earlier career Born in La Paz, Guillén studied l ...
, leader7 = Tomás Monje , leader8 =
Enrique Hertzog José Enrique Hertzog Garaizábal (; 10 November 1897, in La Paz – 31 July 1981, in Buenos Aires) was a Bolivian politician who served as the 42nd president of Bolivia from 1947 to 1949. He resigned in 1949, and died in exile in Argentina. ...
, leader9 =
Mamerto Urriolagoitía Mamerto Urriolagoitia Harriague (; 5 December 1895 – 4 June 1974) was a Bolivian lawyer and politician who was the 43rd president of Bolivia, from 1949 to 1951. A member of the Republican Socialist Unity Party, he had previously been the 26th ...
, leader10 =
Hugo Ballivián Hugo Ballivián Rojas (7 June 1901 – 15 July 1993) was a Bolivian politician and military officer who served as the ''de facto'' 44th president of Bolivia from 1951 to 1952. A career military officer, he was Commander of the Bolivian Armed F ...
, year_leader1 = 1936-1937 , year_leader2 = 1937-1939 , year_leader3 = 1939-1940 , year_leader4 = 1940-1943 , year_leader5 = 1943-1946 , year_leader6 = 1946 , year_leader7 = 1946-1947 , year_leader8 = 1947-1949 , year_leader9 = 1949-1951 , year_leader10 = 1951-1952 , title_leader = President , representative1 = , representative2 = , representative3 = , representative4 = , representative5 = , year_representative1 = , year_representative2 = , year_representative3 = , year_representative4 = , year_representative5 = , title_representative = , deputy1 = , deputy2 = , deputy3 = , deputy4 = , year_deputy1 = , year_deputy2 = , year_deputy3 = , year_deputy4 = , title_deputy = , legislature = , house1 = , type_house1 = , house2 = , type_house2 = , stat_year1 = , stat_area1 = , stat_pop1 = , stat_year2 = , stat_area2 = , stat_pop2 = , stat_year3 = , stat_area3 = , stat_pop3 = , stat_year4 = , stat_area4 = , stat_pop4 = , stat_year5 = , stat_area5 = , stat_pop5 = , today =
Bolivia , image_flag = Bandera de Bolivia (Estado).svg , flag_alt = Horizontal tricolor (red, yellow, and green from top to bottom) with the coat of arms of Bolivia in the center , flag_alt2 = 7 × 7 square p ...
, footnote_a = , footnote_b = , footnote_h = , footnotes =


Radical military government

On May 17, 1936 Colonel David Toro Ruilova (1936–37) overthrew President Tejada in a military coup. Because the officer corps wanted to avoid a civilian investigation of the military's wartime leadership, backing for the coup came from all ranks. The main backers were a group of younger officers who wanted to bring profound change to Bolivia. Toro, the leader of this group, hoped to reform the country from the top down. His program of "military socialism" included social and economic justice and government control over natural resources. He also planned to set up a corporate-style political system to replace the democratic system established in 1825.Maria Luise Wagner. "Radical military government". In Hudson & Hanratty. Toro attempted to get civilian support with far-reaching social legislation and nominated a print worker as the first labor secretary in Bolivia. He also
nationalized Nationalization (nationalisation in British English) is the process of transforming privately-owned assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to pri ...
the holdings of Standard Oil without compensation and called for the convening of a constitutional congress that would include the traditional parties, as well as new reformist groups and the labor movement. Toro was unable to secure a lasting popular support. A group of more radical officers resented his reluctance to challenge the ''rosca'', and they supported a coup by Colonel Germán Busch Becerra (1937–39) in 1937. A new constitution was promulgated in 1938, stressing the primacy of the common good over private property and favored government intervention in social and economic relations. It also legalized the Indian communities and included a labor code. In 1939 Busch challenged the interests of the mine owners for the first time by issuing a decree that would prevent the mining companies from removing capital from the country. None of his policies, however, resulted in significant popular and military support, and completely alienated the conservative forces. Frustrated by his inability to bring about change, Busch committed suicide in 1939. Despite the weakness of the Toro and Busch regimes, their policies had a profound impact on Bolivia. Reformist decrees raised expectations among the middle class, but when they failed to be implemented, they contributed to the growth of the left. The constitutional convention gave the new forces for the first time a nationwide platform and the possibility of forming alliances. The military socialist regimes also prompted the conservatives to join forces to stem the growth of the left.


The rise of new political groups

After a few months under the provisional presidency of General
Carlos Quintanilla Carlos Quintanilla Quiroga (22 January 1888 – 8 June 1964) was a Bolivian general who served as the 37th president of Bolivia on a provisional basis from 1939 to 1940. Quintanilla saw action in the initial stages of the Chaco War (1932–1 ...
(1939–40), the
chief of staff The title chief of staff (or head of staff) identifies the leader of a complex organization such as the armed forces, institution, or body of persons and it also may identify a principal staff officer (PSO), who is the coordinator of the supporti ...
during the Busch regime, General Enrique Peñaranda Castillo (1940–43) was elected president in the spring of 1940. Peñaranda's support came from the traditional parties, the Liberals, and the two wings of the Republicans, who had formed a '' concordancia'' to stem the growth of the movement toward further reforms.Maria Luise Wagner. "The rise of new political groups". In Hudson & Hanratty. The trend toward reform, however, could not be halted, and a number of new groups gained control of the Congress during Peñaranda's presidency. These groups, although very different in their ideological outlooks, agreed on the need to change the status quo. They included the Trotskyist Revolutionary Workers Party (''Partido Obrero Revolucionario'', POR), which had already been formed in 1934, as well as the
Bolivian Socialist Falange The Bolivian Socialist Falange ( es, Falange Socialista Boliviana) is a Bolivian political party established in 1937. It is a far-rightJohn, S (2006) ''Permanent Revolution on the Altiplano: Bolivian Trotskyism, 1928-2005'', p. 445 party drawing ...
(''Falange Socialista Boliviana'', FSB), founded in 1937 and patterned on the Spanish Falange. The Leftist Revolutionary Party (''Partido de Izquierda Revolucionaria'', PIR) was founded in 1940 by a coalition of radical Marxist groups.


The rise of MNR

The most important opposition to the ''concordancia'' came from the
Nationalist Revolutionary Movement The Revolutionary Nationalist Movement ( es, Movimiento Nacionalista Revolucionario , MNR) is a centre-right conservative political party in Bolivia and was the leading force behind the Bolivian National Revolution from 1952 to 1964. It influenc ...
(''Movimiento Nacionalista Revolucionario'', MNR). The first party with widespread support in Bolivian history, the MNR had a membership that included intellectuals and both white-collar and
blue-collar A blue-collar worker is a working class person who performs manual labor. Blue-collar work may involve skilled or unskilled labor. The type of work may involving manufacturing, warehousing, mining, excavation, electricity generation and powe ...
workers. It was founded in 1941 by a small group of intellectual dissidents from the middle and upper classes and represented persons from a wide range of political persuasions who were united by their discontent with the status quo. Among its leaders were
Víctor Paz Estenssoro Ángel Víctor Paz Estenssoro (2 October 1907 – 7 June 2001) was a Bolivian politician who served as the 45th president of Bolivia for three nonconsecutive and four total terms from 1952 to 1956, 1960 to 1964 and 1985 to 1989. He ran for pre ...
, a professor of economics;
Hernán Siles Zuazo Hernán Siles Zuazo (21 March 1914 – 6 August 1996) was a Bolivian politician who served as the 46th president of Bolivia twice nonconsecutively from 1956 to 1960 and from 1982 to 1985. He also briefly served as interim president in April 195 ...
, the son of former President Siles Reyes; and several influential writers. The party's program included nationalization of all of Bolivia's natural resources and far-reaching social reforms. As the leader of the congressional opposition, the MNR denounced Peñaranda's close cooperation with the United States and was especially critical of his agreement to compensate Standard Oil for its nationalized holdings. The MNR members of the Congress also began an investigation of the Catavi Massacre of striking miners and their families by government troops at one of the Patiño mines in
Catavi Catavi is a tin mine in Bolivia, near the city of Llallagua in the province of Bustillos, Potosí Department. Along with the Siglo XX mine, it is part of a mining complex in the area. Apart from the Catavi-Siglo XX mining complex; it refers as ...
in 1942. MNR influence with the miners increased when Paz Estenssoro led the congressional interrogation of government ministers. The MNR had contacts with reformist military officers, who were organized in a secret military lodge named the Fatherland's Cause (''Razón de Patria'', Radepa). Radepa was founded in 1934 by Bolivian prisoners of war in Paraguay. It sought mass support, backed military intervention in politics, and hoped to prevent excessive foreign control over Bolivia's natural resources. In December 1943 the Radepa-MNR alliance overthrew the Peñaranda regime. Major Gualberto Villarroel López (1943–46) became president, and three MNR members, including Paz Estenssoro, joined his cabinet. The MNR ministers resigned, however, when the United States refused to grant its recognition, repeating its charge of ties between the MNR and Nazi Germany. The ministers returned to their posts in 1944, after the party had won a majority in the election and the United States had recognized the government. Villarroel's government emphasized continuity with the reformist regimes of Toro and Busch. Paz Estenssoro, who served as minister of finance, hoped to get popular support with a budget that emphasized social spending over economic development. But the salary increase for miners did not bring about their consistent backing of the government and only managed to strengthen the ties between the MNR and miners. The Villarroel government also tried for the first time to get the support of the '' campesinos''. In 1945 it created the
National Indigenous Congress The National Indigenous Congress (''Congreso Nacional Indígena'', CNI) is an organization of communities, nations, towns, neighbourhoods and indigenous tribes of Mexico. In its own words, the CNI is "... a space of unity, reflection and organi ...
to discuss the problems in the countryside and to improve the situation of the peasants. However, most of the social legislation, such as the abolition of the labor obligation of the ''campesinos'' to their landlords, was never put in effect. Villarroel was overthrown in 1946. He had been unable to organize popular support and faced opposition from conservative groups and increasing political terrorism that included murders of the government's opponents. Rivalry between the MNR and the military in the governing coalition also contributed to his downfall. In 1946 mobs of students, teachers, and workers seized arms from the arsenal and moved to the presidential palace. They captured and shot Villarroel and suspended his body from a lamppost in the main square, while the army remained aloof in the barracks.


The ''sexenio'', 1946–52

The six years preceding the 1952 National Revolution are known as the ''sexenio''. During this period, members of the Conservative Party tried to stem the growth of the left, but they ultimately failed, because they could not halt the economic decline and control the growing social unrest. Enrique Hertzog Garaizabal (1947–49), who was elected president in 1947 after the interim rule of a provisional junta, formed a coalition cabinet that included not only the ''concordancia'' but also the PIR. He hoped to retain the backing of the Conservative Party forces by not increasing taxes, but he tried also to gain labor support, relying on the PIR to mobilize the workers.Maria Luise Wagner. "The ''sexenio'' (1946–52)". In Hudson & Hanratty. The labor sector did not cooperate with the government and the PIR became discredited because of its alliance with the conservative forces. In 1946 the workers endorsed the Thesis of Pulacayo, in which the miners called for
permanent revolution Permanent revolution is the strategy of a revolutionary class pursuing its own interests independently and without compromise or alliance with opposing sections of society. As a term within Marxist theory, it was first coined by Karl Marx and ...
and violent armed struggle for the working class. As the labor sector became more radical, the government resorted more and more to oppression, and confrontations increased. The dismissal of 7,000 miners and the brutal suppression of yet another uprising in Catavi in 1949 made any cooperation between the government and the workers impossible. The MNR emerged as the dominant opposition group. Although most of its leaders, including Paz Estenssoro, were in
exile Exile is primarily penal expulsion from one's native country, and secondarily expatriation or prolonged absence from one's homeland under either the compulsion of circumstance or the rigors of some high purpose. Usually persons and peoples suf ...
in Argentina, the party continued to be represented in the
Chamber of Deputies The chamber of deputies is the lower house in many bicameral legislatures and the sole house in some unicameral legislatures. Description Historically, French Chamber of Deputies was the lower house of the French Parliament during the Bourbon R ...
and the
Senate A senate is a deliberative assembly, often the upper house or chamber of a bicameral legislature. The name comes from the ancient Roman Senate (Latin: ''Senatus''), so-called as an assembly of the senior (Latin: ''senex'' meaning "the el ...
. During the ''sexenio'', the party, despite its predominantly middle-class background, repeatedly took the side of the workers and adopted their radical ideology. The MNR also came to support the defense of Indian rights, as violence in the countryside increased when the promises given at the National Indigenous Congress were not fulfilled. The MNR's attempts to gain power during the ''sexenio'' were unsuccessful. Its 1949 coup attempt failed, although with the support of the workers and some military officers it succeeded in gaining control of most major cities except La Paz. The MNR's attempt to gain power by legal means in 1951 also failed. In the presidential election of May 1951, the MNR's Paz Estenssoro, who remained in exile in Argentina, ran for president and Siles Zuazo ran for vice president, both on a platform of nationalization and land reform. With the support of the POR and the newly formed
Bolivian Communist Party The Communist Party of Bolivia ( es, Partido Comunista de Bolivia) is a communist party in Bolivia. It was founded in 1950 by Raúl Ruiz González and other former members of the Revolutionary Left Party (PIR). It remained small and did not ho ...
(''Partido Comunista de Bolivia'', PCB), the MNR won with a clear plurality. The outgoing president persuaded the military to step in and prevent the MNR from taking power. Mamerto Urriolagoitia Harriague (1949–51), who succeeded the ailing Hertzog in 1949, backed a military junta under General Hugo Ballivián Rojas (1951–52). Under Ballivián, the government made a last futile attempt to suppress the growing unrest throughout the country. By 1952 the Bolivian economy had deteriorated even further. The governments of the ''sexenio'' had been reluctant to increase taxes for the upper class and to reduce social spending, resulting in high inflation. The tin industry had stagnated since the Great Depression, despite short revivals during
World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...
. Ore content had declined, and the richer veins were depleted, increasing tin production costs; at the same time, tin prices on the international market fell. A disagreement with the United States over tin prices halted exports temporarily and caused a decline in income that further hurt the economy. The agricultural sector lacked capital, and food imports had increased, reaching 19% of total imports in 1950. Land was unequally distributed - 92% of the cultivable land was held by estates of 1,000 hectares or more. The social unrest that resulted from this economic decline increased during the last weeks before the 1952 National Revolution, when a
hunger march Hunger marches are a form of protest, social protest that arose in the United Kingdom during the early 20th century. Often the marches involved groups of men and women walking from areas with high unemployment, to London where they would protest ou ...
through La Paz attracted most sectors of society. The military was severely demoralized, and the high command called unsuccessfully for unity in the armed forces; many officers assigned themselves abroad, charged each other with coup attempts, or deserted.


The Bolivian National Revolution, 1952

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Dominant-party A dominant-party system, or one-party dominant system, is a political occurrence in which a single political party continuously dominates election results over running opposition groups or parties. Any ruling party staying in power for more th ...
presidential republic A presidential system, or single executive system, is a form of government in which a head of government, typically with the title of president, leads an executive branch that is separate from the legislative branch in systems that use separation ...
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Víctor Paz Estenssoro Ángel Víctor Paz Estenssoro (2 October 1907 – 7 June 2001) was a Bolivian politician who served as the 45th president of Bolivia for three nonconsecutive and four total terms from 1952 to 1956, 1960 to 1964 and 1985 to 1989. He ran for pre ...
, leader2 =
Hernán Siles Zuazo Hernán Siles Zuazo (21 March 1914 – 6 August 1996) was a Bolivian politician who served as the 46th president of Bolivia twice nonconsecutively from 1956 to 1960 and from 1982 to 1985. He also briefly served as interim president in April 195 ...
, leader3 = Víctor Paz Estenssoro , leader4 = , year_leader1 = 1952-1956 , year_leader2 = 1956-1960 , year_leader3 = 1960-1964 , year_leader4 = , title_leader = President , representative1 = , representative2 = , representative3 = , representative4 = , representative5 = , year_representative1 = , year_representative2 = , year_representative3 = , year_representative4 = , year_representative5 = , title_representative = , deputy1 = , deputy2 = , deputy3 = , deputy4 = , year_deputy1 = , year_deputy2 = , year_deputy3 = , year_deputy4 = , title_deputy = , legislature = , house1 = , type_house1 = , house2 = , type_house2 = , stat_year1 = , stat_area1 = , stat_pop1 = , stat_year2 = , stat_area2 = , stat_pop2 = , stat_year3 = , stat_area3 = , stat_pop3 = , stat_year4 = , stat_area4 = , stat_pop4 = , stat_year5 = , stat_area5 = , stat_pop5 = , today = , footnote_a = , footnote_b = , footnote_h = , footnotes = By the beginning of 1952 the MNR again tried to gain power by force, plotting with General Antonio Seleme, the junta member in control of internal administration and the
National Police National Police may refer to the national police forces of several countries: *Afghanistan: Afghan National Police *Haiti: Haitian National Police *Colombia: National Police of Colombia *Cuba: Cuban National Police *East Timor: National Police of ...
(''Policía Nacional''). On April 9, the MNR launched the rebellion in La Paz by seizing arsenals and distributing arms to civilians. This included a large number of indigenous miners and peasants. Armed miners marched on La Paz and blocked troops on their way to reinforce the city. After three days of fighting, the desertion of Seleme, and the loss of some 600 lives, the army surrendered and Paz Estenssoro assumed the presidency on April 16, 1952. The 1952 revolution influenced the supporters of Chilean President
Carlos Ibáñez del Campo General Carlos Ibáñez del Campo (; 3 November 1877 – 28 April 1960) was a Chilean Army officer and political figure. He served as President twice, first between 1927 and 1931, and then from 1952 to 1958, serving for 10 years in office. T ...
who saw it as a model of
national populism Right-wing populism, also called national populism and right-wing nationalism, is a political ideology that combines right-wing politics and populist rhetoric and themes. Its rhetoric employs anti-elitist sentiments, opposition to the Establi ...
to follow.


Radical reforms

The "reluctant revolutionaries", as the leaders of the multiclass MNR were called by some, looked more to
Mexico Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
than to the
Soviet Union The Soviet Union,. officially the Union of Soviet Socialist Republics. (USSR),. was a transcontinental country that spanned much of Eurasia from 1922 to 1991. A flagship communist state, it was nominally a federal union of fifteen national ...
for example. But during the first year of Paz Estenssoro's presidency, the radical faction in the party, which had gained strength during the ''sexenio'' when the party embraced the workers and their ideology, forced the MNR leaders to act quickly. In July 1952, the government established
universal suffrage Universal suffrage (also called universal franchise, general suffrage, and common suffrage of the common man) gives the right to vote to all adult citizens, regardless of wealth, income, gender, social status, race, ethnicity, or political stanc ...
, with neither literacy nor property requirements. In the first postrevolutionary elections in 1956 the population of eligible voters increased from approximately 200,000 to nearly 1 million. The government also moved quickly to control the
armed forces A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. It is typically authorized and maintained by a sovereign state, with its members identifiable by their distinct ...
, purging many officers associated with past Conservative Party regimes and drastically reducing the forces' size and budget. The government also closed the
Military Academy A military academy or service academy is an educational institution which prepares candidates for service in the officer corps. It normally provides education in a military environment, the exact definition depending on the country concerned. ...
(''Colegio Militar'') and required that officers take an oath to the MNR.Maria Luise Wagner. "Radical reforms". In Hudson & Hanratty. The government then began the process of nationalizing all mines of the three great tin companies. First, it made the export and sale of all minerals a state monopoly to be administered by the state-owned Mining Bank of Bolivia ('' Banco Minero de Bolivia'', Bamin). Then it set up the Mining Corporation of Bolivia ('' Corporación Minera de Bolivia'', Comibol) as a semi-autonomous enterprise to run state-owned mines. On October 31, 1952 the government nationalized the three big tin companies, leaving the medium-sized mines untouched, and promising compensation. In this process, two-thirds of Bolivia's mining industry was turned over to Comibol. A far-reaching agrarian reform was the final important step taken by the revolutionary government. In January 1953, the government established the Agrarian Reform Commission, using advisers from Mexico, and decreed the Agrarian Reform Law the following August. These reform programs were meant to include the breaking up of large estates into ''minifundio'', or small parcels of land, that could be worked by either individual families or small villages. The reforms were also meant to provide farmers with credit with which to buy tools, seed, and any other materials needed to operate their farms. Further, the reforms were intended to include technical assistance to farmers in the form of teaching them to increase the productivity of their farms. However, many of these reforms were never put into place, and as a result, many of the new ''minifundio'' farms were eventually taken over again by rich landowners. During the first years of the revolution, miners wielded extraordinary influence within the government. This influence was based on miners' decisive role in the fighting of April 1952. In addition, armed militias of miners formed by the government to counterbalance the military had become a powerful force in their own right. Miners immediately organized the Bolivian Labor Federation (''Central Obrera Boliviana'', COB), which demanded radical change as well as participation in the government and benefits for its members. MNR eventually gained the support of the ''campesinos'' when the Ministry of Peasant Affairs was created and when peasants were organized into
syndicates A syndicate is a self-organizing group of individuals, companies, corporations or entities formed to transact some specific business, to pursue or promote a shared interest. Etymology The word ''syndicate'' comes from the French word ''syndicat ...
. Peasants were not only granted land but their militias also were given large supplies of arms. The country faced severe economic problems as a result of the changes enacted by the government. High inflation, caused by increased social spending, also hurt the economy. The value of the
peso The peso is the monetary unit of several countries in the Americas, and the Philippines. Originating in the Spanish Empire, the word translates to "weight". In most countries the peso uses the Dollar sign, same sign, "$", as many currencies na ...
fell from 60 to 12,000 to the United States dollar between 1952 and 1956, affecting primarily the urban middle class, which began to support the opposition.Maria Luise Wagner. "The unfinished revolution". In Hudson & Hanratty. The bankrupt economy increased the factionalism within the MNR. Whereas the left wing demanded more government control over the economy, the right wing hoped to solve the nation's problems with aid from the United States. During the presidency of
Hernán Siles Zuazo Hernán Siles Zuazo (21 March 1914 – 6 August 1996) was a Bolivian politician who served as the 46th president of Bolivia twice nonconsecutively from 1956 to 1960 and from 1982 to 1985. He also briefly served as interim president in April 195 ...
(1956–60), who won the election with 84% of the vote, United States aid reached its highest level. In 1957 the United States subsidized more than 30% of the Bolivian budget. Siles Zuazo's stabilization plan seriously damaged the coalition of MNR and COB. The COB called immediately for a
general strike A general strike refers to a strike action in which participants cease all economic activity, such as working, to strengthen the bargaining position of a trade union or achieve a common social or political goal. They are organised by large co ...
, which threatened to destroy an already disrupted economy; the strike was called off only after impassioned appeals by the president. In an effort to quell the unrest, Zuazo decided to rebuild the armed forces. During his administration the strength of the armed forces grew as a result of a new concern for professionalism and training, technical assistance from the United States, and an increase in the size and budget of the military. In addition, the military's role in containing unrest gave it increasing influence within the MNR government. Conflicts within the MNR increased during Paz Estenssoro's second term of 1960–64. Together with the United States, the
Federal Republic of Germany Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated between ...
and the
Inter-American Development Bank The Inter-American Development Bank (IDB or IADB) is an international financial institution headquartered in Washington, D.C., United States of America, and serving as the largest source of development financing for Latin America and the Caribb ...
, Paz Estenssoro endorsed the " Triangular Plan", which called for a restructuring of the tin-mining industry. The plan demanded the end of the workers' control over Comibol operations, the firing of workers, and a reduction in their salaries and benefits; it was strongly opposed by the COB and Lechín's MNR faction. In 1964 Paz Estenssoro decided to run again for president, and accepted General
René Barrientos Ortuño René (''born again'' or ''reborn'' in French) is a common first name in French-speaking, Spanish-speaking, and German-speaking countries. It derives from the Latin name Renatus. René is the masculine form of the name (Renée being the feminine ...
as vice presidential candidate. Because most opposition groups abstained, Paz Estenssoro was reelected with the support of the military and the peasants. Paz Estenssoro had come to rely increasingly on the military, whose role as a peacekeeper had made it an arbiter in politics. But this support was to prove unreliable; the military was already planning to overthrow him.


References


Notes


Works cited

* Rex A. Hudson and Dennis M. Hanratty
Bolivia: a country study
Library of Congress The Library of Congress (LOC) is the research library that officially serves the United States Congress and is the ''de facto'' national library of the United States. It is the oldest federal cultural institution in the country. The library is ...
Federal Research Division The Federal Research Division (FRD) is the research and analysis unit of the United States Library of Congress. The Federal Research Division provides directed research and analysis on domestic and international subjects to agencies of the Unite ...
(December 1989). {{DEFAULTSORT:History of Bolivia (1920-64) History of Bolivia by period