Brazil vs. Bolivia

Following more than three centuries under Portuguese rule, Brazil gained its independence in 1822, maintaining a monarchical system of government until the abolition of slavery in 1888 and the subsequent proclamation of a republic by the military in 1889. Brazilian coffee exporters politically dominated the country until populist leader Getulio VARGAS rose to power in 1930. By far the largest and most populous country in South America, Brazil underwent more than a half century of populist and military government until 1985, when the military regime peacefully ceded power to civilian rulers. Brazil continues to pursue industrial and agricultural growth and development of its interior. Having successfully weathered a period of global financial difficulty in the late 20th century, Brazil was seen as one of the world's strongest emerging markets and a contributor to global growth. The awarding of the 2014 FIFA World Cup and 2016 Summer Olympic Games, the first ever to be held in South America, was seen as symbolic of the country's rise. However, from about 2013 to 2016, Brazil was plagued by a sagging economy, high unemployment, and high inflation, only emerging from recession in 2017. Former President Dilma ROUSSEFF (2011-2016) was removed from office in 2016 by Congress for having committed impeachable acts against Brazil's budgetary laws, and her vice president, Michel TEMER, served the remainder of her second term. In October 2018, Jair BOLSONARO won the presidency with 55 percent of the vote and assumed office on 1 January 2019.

Bolivia, named after independence fighter Simon BOLIVAR, broke away from Spanish rule in 1825; much of its subsequent history has consisted of a series of coups and countercoups, with the last coup occurring in 1978. Democratic civilian rule was established in 1982, but leaders have faced difficult problems of deep-seated poverty, social unrest, and illegal drug production.

In December 2005, Bolivians elected Movement Toward Socialism leader Evo MORALES president - by the widest margin of any leader since the restoration of civilian rule in 1982 - after he ran on a promise to change the country's traditional political class and empower the nation's poor, indigenous majority. In December 2009 and October 2014, President MORALES easily won reelection. His party maintained control of the legislative branch of the government, which has allowed him to continue his process of change. In February 2016, MORALES narrowly lost a referendum to approve a constitutional amendment that would have allowed him to compete in the 2019 presidential election. However, a 2017 Supreme Court ruling stating that term limits violate human rights provided the justification for MORALES to be chosen by his party to run again in 2019. MORALES attempted to claim victory in the 20 October 2019 election, but widespread allegations of electoral fraud, rising violence, and pressure from the military ultimately forced him to flee the country. An interim government, led by President Jeanine ANEZ Chavez, prepared new elections that took place on 18 October 2020.

flooding in the northeast (March to April)

volcanism: volcanic activity in Andes Mountains on the border with Chile; historically active volcanoes in this region are Irruputuncu (5,163 m), which last erupted in 1995, and the Olca-Paruma volcanic complex (5,762 m to 5,167 m)

Brazil's rapid fertility decline since the 1960s is the main factor behind the country's slowing population growth rate, aging population, and fast-paced demographic transition. Brasilia has not taken full advantage of its large working-age population to develop its human capital and strengthen its social and economic institutions but is funding a study abroad program to bring advanced skills back to the country. The current favorable age structure will begin to shift around 2025, with the labor force shrinking and the elderly starting to compose an increasing share of the total population. Well-funded public pensions have nearly wiped out poverty among the elderly, and Bolsa Familia and other social programs have lifted tens of millions out of poverty. More than half of Brazil's population is considered middle class, but poverty and income inequality levels remain high; the Northeast, North, and Center-West, women, and black, mixed race, and indigenous populations are disproportionately affected. Disparities in opportunities foster social exclusion and contribute to Brazil's high crime rate, particularly violent crime in cities and favelas (slums).

Brazil has traditionally been a net recipient of immigrants, with its southeast being the prime destination. After the importation of African slaves was outlawed in the mid-19th century, Brazil sought Europeans (Italians, Portuguese, Spaniards, and Germans) and later Asians (Japanese) to work in agriculture, especially coffee cultivation. Recent immigrants come mainly from Argentina, Chile, and Andean countries (many are unskilled illegal migrants) or are returning Brazilian nationals. Since Brazil's economic downturn in the 1980s, emigration to the United States, Europe, and Japan has been rising but is negligible relative to Brazil's total population. The majority of these emigrants are well-educated and middle-class. Fewer Brazilian peasants are emigrating to neighboring countries to take up agricultural work.

Bolivia ranks at or near the bottom among Latin American countries in several areas of health and development, including poverty, education, fertility, malnutrition, mortality, and life expectancy. On the positive side, more children are being vaccinated and more pregnant women are getting prenatal care and having skilled health practitioners attend their births.

Bolivia's income inequality is the highest in Latin America and one of the highest in the world. Public education is of poor quality, and educational opportunities are among the most unevenly distributed in Latin America, with girls and indigenous and rural children less likely to be literate or to complete primary school. The lack of access to education and family planning services helps to sustain Bolivia's high fertility rate-approximately three children per woman. Bolivia's lack of clean water and basic sanitation, especially in rural areas, contributes to health problems.

Between 7% and 16% of Bolivia's population lives abroad (estimates vary in part because of illegal migration). Emigrants primarily seek jobs and better wages in Argentina (the principal destination), the US, and Spain. In recent years, more restrictive immigration policies in Europe and the US have increased the flow of Bolivian emigrants to neighboring countries. Fewer Bolivians migrated to Brazil in 2015 and 2016 because of its recession; increasing numbers have been going to Chile, mainly to work as miners.

Brazil is the eighth-largest economy in the world, but is recovering from a recession in 2015 and 2016 that ranks as the worst in the country's history. In 2017, Brazil`s GDP grew 1%, inflation fell to historic lows of 2.9%, and the Central Bank lowered benchmark interest rates from 13.75% in 2016 to 7%.

The economy has been negatively affected by multiple corruption scandals involving private companies and government officials, including the impeachment and conviction of Former President Dilma ROUSSEFF in August 2016. Sanctions against the firms involved - some of the largest in Brazil - have limited their business opportunities, producing a ripple effect on associated businesses and contractors but creating opportunities for foreign companies to step into what had been a closed market.

The succeeding TEMER administration has implemented a series of fiscal and structural reforms to restore credibility to government finances. Congress approved legislation in December 2016 to cap public spending. Government spending growth had pushed public debt to 73.7% of GDP at the end of 2017, up from over 50% in 2012. The government also boosted infrastructure projects, such as oil and natural gas auctions, in part to raise revenues. Other economic reforms, proposed in 2016, aim to reduce barriers to foreign investment, and to improve labor conditions. Policies to strengthen Brazil's workforce and industrial sector, such as local content requirements, have boosted employment, but at the expense of investment.

Brazil is a member of the Common Market of the South (Mercosur), a trade bloc that includes Argentina, Paraguay and Uruguay - Venezuela's membership in the organization was suspended In August 2017. After the Asian and Russian financial crises, Mercosur adopted a protectionist stance to guard against exposure to volatile foreign markets and it currently is negotiating Free Trade Agreements with the European Union and Canada.

Bolivia is a resource rich country with strong growth attributed to captive markets for natural gas exports - to Brazil and Argentina. However, the country remains one of the least developed countries in Latin America because of state-oriented policies that deter investment.

Following an economic crisis during the early 1980s, reforms in the 1990s spurred private investment, stimulated economic growth, and cut poverty rates. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans - subsequently abandoned - to export Bolivia's newly discovered natural gas reserves to large Northern Hemisphere markets. In 2005-06, the government passed hydrocarbon laws that imposed significantly higher royalties and required foreign firms then operating under risk-sharing contracts to surrender all production to the state energy company in exchange for a predetermined service fee; the laws engendered much public debate. High commodity prices between 2010 and 2014 sustained rapid growth and large trade surpluses with GDP growing 6.8% in 2013 and 5.4% in 2014. The global decline in oil prices that began in late 2014 exerted downward pressure on the price Bolivia receives for exported gas and resulted in lower GDP growth rates - 4.9% in 2015 and 4.3% in 2016 - and losses in government revenue as well as fiscal and trade deficits.

A lack of foreign investment in the key sectors of mining and hydrocarbons, along with conflict among social groups, pose challenges for the Bolivian economy. In 2015, President Evo MORALES expanded efforts to court international investment and boost Bolivia's energy production capacity. MORALES passed an investment law and promised not to nationalize additional industries in an effort to improve the investment climate. In early 2016, the Government of Bolivia approved the 2016-2020 National Economic and Social Development Plan aimed at maintaining growth of 5% and reducing poverty.

Brazil is one of the largest mobile and broadband markets in Latin America with healthy competition and pricing; 5G launched on limited basis; large fixed-line broadband market with focus on fiber; landing point for submarine cables and investment into terrestrial fiber cables to neighboring countries; Internet penetration has increased, access varies along geographic and socio-economic lines; government provides free WiFi in urban public spaces; pioneer in the region for M-commerce; major importer of integrated circuits from South Korea and China, and broadcasting equipment from China (2021)

with low national GDP and remote landlocked geography, Bolivia's telecom services are historically expensive and neglected resulting in low penetration; fixed telecom market is provided by non-profit cooperatives focused on improvement of services such as broadband and paid TV services; some operators adopted fixed-wireless technologies and fiber-optic capacity; fixed broadband services migrating from DSL to fiber remain expensive and largely unavailable in many areas; historically relied on satellite services or terrestrial links and inaugurated a new cable running via Peru to the Pacific; operator aims to increase coverage through mobile networks for voice and data access, especially to rural areas; space agency plans to boost satellite-based Internet; in 2020, communications towers in Yapacani were destroyed due to pandemic conspiracy fears; importer of broadcasting equipment from China (2021)

uncontested boundary dispute between Brazil and Uruguay over Braziliera/Brasiliera Island in the Quarai/Cuareim River leaves the tripoint with Argentina in question; smuggling of firearms and narcotics continues to be an issue along the Uruguay-Brazil border; Colombian-organized illegal narcotics and paramilitary activities penetrate Brazil's border region with Venezuela

Chile and Peru rebuff Bolivia's reactivated claim to restore the Atacama corridor, ceded to Chile in 1884, but Chile offers instead unrestricted but not sovereign maritime access through Chile for Bolivian products; contraband smuggling, human trafficking, and illegal narcotic trafficking are problems in the porous areas of its border regions with all of its neighbors (Argentina, Brazil, Chile, Paraguay, and Peru)