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Bolivia's Economy The economy of Bolivia has had a pattern through out history of a single-commodity focus. From silver to tin to coca, Bolivia has had very few points in time where they've had economic diversification. Political instability and difficult topography have constrained efforts to modernize the agricultural sector. Similarly, relatively low population growth coupled with low life expectancy has kept the labor supply in flux and prevented industries from expanding. Ridiculous inflation and corruption have devastated development. The mining industry, especially the extraction of natural gas and zinc, currently dominates Bolivia’s export economy. **Economy:** Bolivia is rich in natural resources. But its economic development has been limited for several reasons: 1. Traditional elites, when they have ruled, have sold natural resources for personal wealth without developing the economy as a whole. 2. Revolutionaries, when they have ruled, have tried to "divide the economic pie," but have lacked an understanding of genuine wealth creation, thus, like in other socialist countries there has been economic decline. 3. Persisting obstacles for economic competition include an inadequate transportation infrastructure and the nation's landlocked location. Bolivia is the second-poorest economy in South America (after Paraguay) and the 5th-poorest in Latin America in terms of GDP per capita. Its 2005, gross domestic product (GDP) totaled $8.5 billion. Economic growth was about 4 percent and inflation was at 4.9 percent (it was under 1 percent in 2001).

**Major Trading Partners** Brazil, U.S., Venezuela, Peru, Argentina, Colombia, Chile, China, Japan
 * Industries** Mining, smelting, petroleum, food and beverages, tobacco, handicrafts, clothing, forestry.

All the information on this page is from [|www.BoliviaBella.com]
 * Natural Resources** Tin, natural gas, petroleum, zinc, tungsten, antimony, silver, iron, lead, gold, timber, hydropower