Chile vs. Bolivia

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.

severe earthquakes; active volcanism; tsunamis

volcanism: significant volcanic activity due to more than three-dozen active volcanoes along the Andes Mountains; Lascar (5,592 m), which last erupted in 2007, is the most active volcano in the northern Chilean Andes; Llaima (3,125 m) in central Chile, which last erupted in 2009, is another of the country's most active; Chaiten's 2008 eruption forced major evacuations; other notable historically active volcanoes include Cerro Hudson, Calbuco, Copahue, Guallatiri, Llullaillaco, Nevados de Chillan, Puyehue, San Pedro, and Villarrica; see note 2 under "Geography - note"

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)

note 1: the longest north-south trending country in the world, extending across 39 degrees of latitude; strategic location relative to sea lanes between the Atlantic and Pacific Oceans (Strait of Magellan, Beagle Channel, Drake Passage)

note 2: Chile is one of the countries along the Ring of Fire, a belt of active volcanoes and earthquake epicenters bordering the Pacific Ocean; up to 90% of the world's earthquakes and some 75% of the world's volcanoes occur within the Ring of Fire

note 3: the Atacama Desert - the driest desert in the world - spreads across the northern part of the country; Ojos del Salado (6,893 m) in the Atacama Desert is the highest active volcano in the world, Chile's tallest mountain, and the second highest in the Western Hemisphere and the Southern Hemisphere - its small crater lake (at 6,390 m) is the world's highest lake

Chile is in the advanced stages of demographic transition and is becoming an aging society - with fertility below replacement level, low mortality rates, and life expectancy on par with developed countries. Nevertheless, with its dependency ratio nearing its low point, Chile could benefit from its favorable age structure. It will need to keep its large working-age population productively employed, while preparing to provide for the needs of its growing proportion of elderly people, especially as women - the traditional caregivers - increasingly enter the workforce. Over the last two decades, Chile has made great strides in reducing its poverty rate, which is now lower than most Latin American countries. However, its severe income inequality ranks as the worst among members of the Organization for Economic Cooperation and Development. Unequal access to quality education perpetuates this uneven income distribution.

Chile has historically been a country of emigration but has slowly become more attractive to immigrants since transitioning to democracy in 1990 and improving its economic stability (other regional destinations have concurrently experienced deteriorating economic and political conditions). Most of Chile's small but growing foreign-born population consists of transplants from other Latin American countries, especially Peru.

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.

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports of goods and services account for approximately one-third of GDP, with commodities making up some 60% of total exports. Copper is Chile's top export and provides 20% of government revenue.

From 2003 through 2013, real growth averaged almost 5% per year, despite a slight contraction in 2009 that resulted from the global financial crisis. Growth slowed to an estimated 1.4% in 2017. A continued drop in copper prices prompted Chile to experience its third consecutive year of slow growth.

Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, effective 1 January 2004. Chile has 26 trade agreements covering 60 countries including agreements with the EU, Mercosur, China, India, South Korea, and Mexico. In May 2010, Chile signed the OECD Convention, becoming the first South American country to join the OECD. In October 2015, Chile signed the Trans-Pacific Partnership trade agreement, which was finalized as the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) and signed at a ceremony in Chile in March 2018.

The Chilean Government has generally followed a countercyclical fiscal policy, under which it accumulates surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allows deficit spending only during periods of low copper prices and growth. As of 31 October 2016, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $23.5 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn.

In 2014, then-President Michelle BACHELET introduced tax reforms aimed at delivering her campaign promise to fight inequality and to provide access to education and health care. The reforms are expected to generate additional tax revenues equal to 3% of Chile's GDP, mostly by increasing corporate tax rates to OECD averages.

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.

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)

Chile and Peru rebuff Bolivia's reactivated claim to restore the Atacama corridor, ceded to Chile in 1884, but Chile has offered instead unrestricted but not sovereign maritime access through Chile to Bolivian natural gas; Chile rejects Peru's unilateral legislation to change its latitudinal maritime boundary with Chile to an equidistance line with a southwestern axis favoring Peru; in October 2007, Peru took its maritime complaint with Chile to the ICJ; territorial claim in Antarctica (Chilean Antarctic Territory) partially overlaps Argentine and British claims; the joint boundary commission, established by Chile and Argentina in 2001, has yet to map and demarcate the delimited boundary in the inhospitable Andean Southern Ice Field (Campo de Hielo Sur)

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)