During the first term in office of Gonzalo Sánchez de Lozada (1993 - 1997), the law regarding people’s participation was enacted, an important means of strengthening the economic—administrative decentralization process of the country. Through this law, state monies were directly transferred to the communities.  The amounts of these funds depended on the population of the respective community.  Since then, the communities make their own budget, and their own plans for public investments, especially in the areas of health and education.  So also, during this period of government, the biggest national enterprises were privatized through the so-called capitalization process. Other reforms were also enacted, such as that of the pension system, the finance system, and the formation of regulatory authorities – so called “superintendencias” - for the privatized sectors.

In 1997, Hugo Bánzer Suárez won the elections.  In August 2001, he resigned because of serious health problems, whereupon the then Vice President Jorge Quiroga Ramírez took over the presidentship.  He ruled till August 2002.

On 6 August 2002, Gonzalo Sánchez de Lozada took up the office of President for the second time.  He had won the elections in June that year, and formed a political alliance that ensured a majority in Congress. However, right from the beginning, his government had to confront a number of economic and social difficulties.  On the 17th of October 2003, Sánchez de Lozada, after several weeks in power, decided to resign from the National Congress.  This followed weeks of continuous street blockades and protests from the population. The demonstrators demanded more intense involvement of society in political decisions and protested against the export of natural gas from a Chilean port.  According to  the constitution, after the resignation of Sánchez de Lozadas, the Vice President Carlos Mesa Gisbert became the President of the Republic.
Even though President Mesa Gisbert had strong support among the people according to surveys, being an independent, he did not have the necessary support in Parliament.  His government had to confront a number of political and social difficulties, both in the east and the west of the country.  During his 19 months in office, the demands of the various social groups peaked. The concerns were especially the sale of natural gas reserves, the new hydrocarbon law that the National Congress had enacted, and the suggestion of carrying out decentralization through the application of regional autonomy.
After massive protests by Bolivian citizens, who blockaded the country, on the ninth of June 2005, President Carlos Mesa as well as the Presidents of the Senate and the House of Representatives resigned. According to the Constitution, one of the two last-named should have taken over the Presidency of the country. Then, the National Congress elected the President of the Supreme Court, Dr. Eduardo Rodríguez Veltzé, as the President of the Republic.
Dr. Rodríguez Veltzé now leads a caretaker government up to the fresh elections scheduled for 4 December 2005.

A country of environment-consciousness

Bolivia aims to protect its biodiversity and at the same time, to drive its economic development forward. There are various institutions whose task it is to protect the natural resources and support the sustainable development of the native communities. There are national and international foundations at work in this area in Bolivia.

Bolivia is one of the leading countries in the world with regard to certified hectares (1 million) for the usage of timber resources, which guarantees sustained treatment of the forest.

Forestry

The tropical forests of Bolivia, with an area of 53 million hectares, occupy 50% of the country’s area. This area corresponds to 100% of the tropical forests in South America. Thanks to its privileged location by the Amazon, Bolivia has the largest area of tropical forest in the world (1 million hectares with certification by the FSC and CIMAR-SMARWOOD), which guarantees the sustainable usage of the forest resources of the country.

The forests in Bolivia are not catalogued as conifers, but as high-grade timber of tropical forests. There exist more than 200 of these types, among them, Cumaru/Almendrillo, Jatoba/Paquio, Cambará, cedars, mahogany and many others, which make the forest sector attractive. Indigenous and rural communities are gradually being integrated in the system of certified forests, which will increase the area of certified forest.

More recent studies have confirmed that Bolivia has a stock of more than 317 million m³ of wood in the form of raw materials in its forest area, and it is estimated that the present production capacity of the Bolivian forest will be 20 million m³. These numbers explain the quantum of wood reserves which far exceed the current production capacities in this sector, with a total of 700 serious companies. The Bolivian wood industry is one of the most dynamic in the country. In 2002, it contributed 3% of the GNP (220 million dollars) and created about 90,000 jobs.

The export products from the woodworking industry are competitive because of the quality of the high-grade wood used and the skilful craftsmanship. The main export products are flooring, doors, windows, chairs, cornices, furniture parts (modern style furniture, furniture kits), garden furniture as well as hand-made items.

The certified tropical forests in Bolivia are also opening up excellent opportunities for businesses that preserve the bio-diversity and ecological equilibrium and for participation in the market for CO2- emissions.

The forests also offer investment options for products not made of wood, like Brazil nuts, heart of the palm, exotic fruit and cocoa as well as for products related to naturopathy.