History of Bolivia (1920–1964) facts for kids

Bolivia faced a tough time after losing the Chaco War (1932–1936) to Paraguay. This war was a huge turning point in modern history of Bolivia. Many lives were lost, and Bolivia gave up a big part of the Gran Chaco region to Paraguay. However, Bolivia did get access to the Paraguay River at Puerto Busch, which meant it could reach the Atlantic Ocean through international waters. In 1936, the government took over Standard Oil's operations in Bolivia and created its own oil company, Yacimientos Petroliferos Fiscales Bolivianos (YPFB). After the Chaco War, until the 1952 Bolivian National Revolution, new ideas and groups caused a lot of political change in Bolivia.

During World War II and the Korean War, there was a high demand for Bolivian tin and prices were good. Even when the quality of the tin ore dropped, the United States built a special factory to process it and kept buying tin from Bolivia. But after the mines were taken over by the government and the Korean War ended, tin prices fell. The U.S. no longer needed tin for the war effort. Also, when the mines became state-owned, many foreign engineers and managers left, leaving the mines without enough skilled workers.

Bolivia's Political Changes (1920-1936)

Quick facts for kids Republic of Bolivia Spanish: República de Bolivia
1920–1936
Flag Coat of arms
Bolivian territorial losses between 1867 and 1938
Government	Presidential republic
President
• 1920-1925	Bautista Saavedra
• 1925-1926	Felipe Segundo Guzmán
• 1926-1930	Hernando Siles Reyes
Vice President
• 1920-1936	List
History
• 1920 Bolivian coup d'état	12 July 1920
• Established	13 July 1920
• Chaco War begins	9 September 1932
• Chaco War ends	12 June 1935
• Disestablished	17 May 1936
Preceded by Succeeded by Bolivia Bolivia
Today part of	Bolivia Paraguay

The Liberal Party had ruled Bolivia for a long time, bringing a period of stability. But this ended in 1920 when the Republicans took over the presidency without violence. A Bolivian writer, Fernando Díez de Medina, said that "Twenty years of privilege for one group ends, and ten years of privilege for another begins."

The Republican Party soon split into two groups. One was led by Bautista Saavedra with his Republican Socialist Party. The other was led by Daniel Salamanca, who started the Genuine Republican Party. Saavedra, who was President from 1920 to 1925, had the support of people in the cities. Salamanca was more traditional. Some smaller political parties, influenced by socialist or Marxist ideas, also appeared.

Economic Challenges and Foreign Loans

During the Republican rule, Bolivia's economy changed a lot. Prices for tin started to drop in the 1920s. After reaching their highest point in 1929, tin production fell sharply. This was because the Great Depression almost destroyed the international tin market. Also, the amount of tin in the ore was decreasing, and no new money was being invested in the mines.

As the economy slowed down, Republican presidents borrowed money from other countries. Presidents Saavedra (1920–25) and Hernando Siles Reyes (1926–30) borrowed a lot from the United States. They used this money for big development projects. Many Bolivian nationalists were against these loans because the terms were very good for the lenders. One loan, called the Nicolaus loan, made people angry. It gave the United States control over Bolivia's tax collections in exchange for a private bank loan of US$33 million.

Social Unrest and Worker Rights

At first, the Republican Party's rule didn't seem to bring big political changes. However, the 1920s were a time of political shifts. Bolivia faced growing social problems. President Saavedra made it legal for workers to strike and introduced government help in worker disputes. In 1922, he caused a general strike by banning night taxis. The taxi workers won, and services restarted. The railroad workers' union was also recognized. But other worker protests, like a miners' strike in Uncia in 1923, were put down harshly.

The unrest became even more violent after many workers lost their jobs during the Great Depression. Indian farmers continued to rebel in the countryside. They had been disarmed and their leaders executed after helping to overthrow the Conservative Party in 1899. Now, for the first time, some educated people supported the Indians. Tristan Marof, a key figure, saw the ancient Inca society as a successful form of socialism. He believed it could be a model to solve rural problems. As Indian uprisings continued, President Siles Reyes promised to help them. He even organized a "National Crusade in Favor of Indians."

However, the social laws passed by the Republican governments were weak. Neither Saavedra nor Siles Reyes wanted to challenge the rosca, which were the powerful political representatives of the tin mining owners. Siles Reyes's four years of inconsistent rule and broken promises frustrated workers and students. In 1930, he was overthrown when he tried to get around the constitution. He resigned so he could run for president again, which was not allowed.

A military government ruled until March 1931. Then, Republican leader Daniel Salamanca (1931–34) was elected president. He was supported by a mix of Republican and Liberal parties. Salamanca was a respected economist before becoming president. But he couldn't stop the social unrest or fix the severe economic problems caused by the Great Depression. People from all parts of Bolivian society criticized his government. At first, he didn't want to fight Paraguay. But he eventually led Bolivia into the Chaco War, a move supported by the military and traditional groups.

The Chaco War (1932-1935)

A machine gun manned by Paraguayan soldiers during the Chaco War

The Chaco War started because Bolivia and Paraguay had a long-standing disagreement over the Gran Chaco region. This huge area was mostly undeveloped. Only small amounts of oil had been found there by Standard Oil in Bolivia and Royal Dutch Shell in Paraguay. Bolivia had always considered the Chaco its own. It became even more important to Bolivia after it lost its access to the Pacific Ocean to Chile in 1879. Bolivia hoped to build an oil pipeline across the Chaco to the Paraguay River, which would give it access to the Atlantic Ocean. Even though many countries tried to help, more and more border fights made war seem unavoidable.

President Salamanca used one of these border incidents to end diplomatic relations with Paraguay. He also increased Bolivia's military budget, even though the country had serious economic problems. Salamanca was sure that Bolivia's army, which was better equipped and trained by Germans, could win the war. Bolivia's army also had more soldiers than Paraguay's. So, in September 1932, Salamanca started the war.

The war lasted for three years. Bolivian forces lost almost every major battle. By the end of 1934, they had been pushed back 482 kilometers from their original positions deep in the Chaco. They were driven all the way to the foothills of the Andes mountains. Bad strategies, poor information, and problems getting supplies to the distant battle lines led to these losses. Also, the Bolivian soldiers had low morale. The soldiers from the highlands, who were mostly Indian, couldn't get used to the extreme heat in the low-lying Chaco. Even though the military leaders decided to end the war, Salamanca was determined to keep fighting at any cost. In 1934, when he went to the Chaco to take personal control of the war, the military leaders arrested him and forced him to resign. His vice-president, José Luis Tejada Sorzano, who wanted peace, became president (1934–36).

Salamanca's removal changed the course of the Chaco War. Paraguayan troops were stopped by new, more skilled Bolivian officers. These officers fought closer to Bolivian supply lines. On June 14, 1935, a group of neutral nations (Argentina, Brazil, Chile, Colombia, Peru, and the United States) declared a ceasefire. A final agreement was reached in 1938. Bolivia lost the Chaco region but kept its oil fields, which Paraguay had failed to reach. Both countries suffered heavy losses. Bolivia lost an estimated 65,000 people killed and 35,000 wounded or captured. This was out of a population of just under 3 million.

The terrible defeat in the Chaco War had a huge impact on Bolivia. People saw it as a major event in the 20th century. The traditional wealthy families, known as the oligarchy, were blamed for their poor leadership during the war. They couldn't handle the growing criticism. They blamed the loss on the supposed low potential of Bolivian people. They felt that an earlier negative assessment in Alcides Arguedas's famous novel Pueblo Enfermo (A Sick People) was proven right.

After the war, a group of middle-class professionals, writers, and young military officers questioned the old leaders. This group was called the Chaco Generation. They looked for new ways to solve the nation's problems. They disliked how the rosca served the tin-mining owners. They also criticized Standard Oil Co. for secretly giving oil to Paraguay through Argentina during the war. The Chaco Generation believed that social change was needed. Gustavo Navarro, who was even more radical than in the 1920s, declared the famous slogan: "land to the Indians, mines to the state." The military, which took power in 1936, tried to bring about change with public support.

Bolivia's Road to Revolution (1935–1952)

Republic of Bolivia Spanish: República de Bolivia
1936–1952
Flag Coat of arms
Location of Bolivia
Government	Presidential republic under a military dictatorship
President
• 1936-1937	David Toro
• 1937-1939	Germán Busch
• 1939-1940	Carlos Quintanilla
Vice President
• 1936-1952	List
History
• Established	17 May 1936
• Disestablished	11 April 1952
Preceded by Succeeded by Bolivia Bolivia
Today part of	Bolivia

Military Leaders Push for Change

On May 17, 1936, Colonel David Toro Ruilova (1936–37) overthrew President Tejada in a military takeover. Army officers supported this because they wanted to avoid a civilian investigation into the military's leadership during the war. Young officers, who wanted big changes in Bolivia, were the main supporters. Toro, their leader, hoped to reform the country from the top down. His plan, called "military socialism," aimed for social and economic fairness. It also sought government control over natural resources. He also wanted to create a new political system instead of the democratic one.

Toro tried to get public support with new social laws. He even appointed a print worker as Bolivia's first labor secretary. He also took over Standard Oil's properties without paying them back. He called for a special meeting to create a new constitution. This meeting would include traditional parties, new reform groups, and labor unions.

Toro couldn't get lasting public support. Some more radical officers didn't like that he was hesitant to challenge the rosca. They supported a takeover by Colonel Germán Busch Becerra (1937–39) in 1937. A new constitution was created in 1938. It said that the common good was more important than private property. It also supported government involvement in social and economic matters. The new constitution also made Indian communities legal and included a labor code. In 1939, Busch challenged the mine owners for the first time. He issued a rule to stop mining companies from taking money out of the country. However, none of his policies gained strong public or military support. They completely angered the traditional, conservative groups.

Even though the Toro and Busch governments were weak, their policies had a big impact on Bolivia. Their reform ideas raised hopes among the middle class. But when these ideas weren't put into action, they helped the left-wing groups grow. The constitutional meeting gave new political groups a national platform for the first time. It also allowed them to form alliances. The military socialist governments also made conservative groups join forces to stop the growth of left-wing ideas.

New Political Groups Emerge

After a few months under General Carlos Quintanilla (1939–40), General Enrique Peñaranda Castillo (1940–43) was elected president in 1940. Peñaranda was supported by the traditional parties: the Liberals and the two Republican groups. They had formed an alliance called concordancia to stop further reforms.

However, the movement for reform couldn't be stopped. Several new groups gained control of the Congress during Peñaranda's time as president. These groups had very different ideas, but they all agreed that the current situation needed to change. They included the Trotskyist Revolutionary Workers Party (Partido Obrero Revolucionario, POR), which had formed in 1934. There was also the Bolivian Socialist Falange (Falange Socialista Boliviana, FSB), founded in 1937 and based on the Spanish Falange. The Leftist Revolutionary Party (Partido de Izquierda Revolucionaria, PIR) was started in 1940 by a group of radical Marxist organizations.

The Rise of the MNR

The most important group opposing the concordancia was the Nationalist Revolutionary Movement (Movimiento Nacionalista Revolucionario, MNR). This was the first party in Bolivian history with widespread support. Its members included thinkers, office workers, and blue-collar workers. It was founded in 1941 by a small group of educated people from the middle and upper classes. They came from different political backgrounds but were united by their unhappiness with the way things were. Among its leaders were Víctor Paz Estenssoro, an economics professor, and Hernán Siles Zuazo, the son of former President Siles Reyes. The party's plan included taking control of all of Bolivia's natural resources and making big social changes.

As the leader of the opposition in Congress, the MNR criticized Peñaranda's close ties with the United States. They were especially critical of his agreement to pay Standard Oil for its nationalized properties. MNR members of Congress also started an investigation into the Catavi Massacre. This was when government troops attacked striking miners and their families at one of the Patiño mines in Catavi in 1942. The MNR's influence with the miners grew when Paz Estenssoro led the questioning of government ministers in Congress.

The MNR had connections with reform-minded military officers. These officers were part of a secret military group called the Fatherland's Cause (Razón de Patria, Radepa). Radepa was founded in 1934 by Bolivian prisoners of war in Paraguay. It wanted public support, backed military involvement in politics, and hoped to prevent too much foreign control over Bolivia's natural resources.

In December 1943, the Radepa-MNR alliance overthrew the Peñaranda government. Major Gualberto Villarroel López (1943–46) became president. Three MNR members, including Paz Estenssoro, joined his cabinet. However, the MNR ministers resigned when the United States refused to recognize the new government. The U.S. repeated its claim that the MNR had ties to Nazi Germany. The ministers returned to their positions in 1944 after the party won a majority in the election and the United States recognized the government.

Villarroel's government aimed to continue the reforms started by Toro and Busch. Paz Estenssoro, who was the finance minister, hoped to gain public support. He created a budget that focused on social spending rather than economic development. But the salary increase for miners didn't lead to their consistent support for the government. It only strengthened the ties between the MNR and the miners.

The Villarroel government also tried to get the support of the campesinos (farmers) for the first time. In 1945, it created the National Indigenous Congress. This was to discuss problems in the countryside and improve the lives of farmers. However, most of the social laws, like ending the requirement for campesinos to work for their landlords, were never actually put into effect.

Villarroel was overthrown in 1946. He couldn't organize public support and faced opposition from conservative groups. There was also increasing political violence, including murders of government opponents. Rivalry between the MNR and the military in the ruling group also led to his downfall. In 1946, crowds of students, teachers, and workers took weapons from the arsenal. They marched to the presidential palace. They captured and shot Villarroel and hung his body from a lamppost in the main square. The army stayed in their barracks and did not intervene.

The Sexenio (1946–1952)

The six years before the 1952 National Revolution are known as the sexenio. During this time, members of the Conservative Party tried to stop the growth of left-wing groups. But they failed because they couldn't stop the economic decline or control the growing social unrest. Enrique Hertzog Garaizabal (1947–49) was elected president in 1947 after a temporary military government. He formed a government that included not only the concordancia but also the PIR. He hoped to keep the support of the Conservative Party by not raising taxes. But he also tried to gain labor support, relying on the PIR to get workers involved.

The labor unions did not cooperate with the government. The PIR lost credibility because of its alliance with the conservative groups. In 1946, workers supported the Thesis of Pulacayo. In this document, miners called for a permanent revolution and violent struggle for the working class. As the labor movement became more radical, the government used more and more force. Conflicts increased. The firing of 7,000 miners and the harsh suppression of another uprising in Catavi in 1949 made any cooperation between the government and workers impossible.

The MNR became the main opposition group. Most of its leaders, including Paz Estenssoro, were in exile in Argentina. But the party still had representatives in the Chamber of Deputies and the Senate. During the sexenio, the party, even though it was mostly middle-class, repeatedly sided with the workers. It adopted their radical ideas. The MNR also started to support the rights of Indians. Violence in the countryside increased when the promises made at the National Indigenous Congress were not kept.

The MNR tried to gain power during the sexenio but failed. Their attempt to take over in 1949 failed. Even with the support of workers and some military officers, they managed to control most major cities except La Paz. The MNR's attempt to gain power legally in 1951 also failed. In the presidential election of May 1951, Paz Estenssoro, still in exile, ran for president. Siles Zuazo ran for vice president. Both promised to nationalize industries and reform land ownership. With the support of the POR and the new Bolivian Communist Party (Partido Comunista de Bolivia, PCB), the MNR won with a clear majority. The outgoing president convinced the military to step in and stop the MNR from taking power. Mamerto Urriolagoitía Harriague (1949–51), who took over from the sick Hertzog in 1949, supported a military government led by General Hugo Ballivián Rojas (1951–52). Under Ballivián, the government made a final, unsuccessful attempt to stop the growing unrest across the country.

By 1952, Bolivia's economy had gotten even worse. The governments of the sexenio didn't want to raise taxes for the wealthy or cut social spending. This led to high inflation. The tin industry had been stuck since the Great Depression, despite short improvements during World War II. The amount of tin in the ore had gone down, and the richer veins were used up. This made tin production more expensive. At the same time, tin prices on the international market fell. A disagreement with the United States over tin prices temporarily stopped exports. This caused a drop in income that further hurt the economy. The farming sector lacked money, and food imports had increased. They reached 19% of all imports in 1950. Land was not distributed fairly. Large estates of 1,000 hectares or more held 92% of the land that could be farmed.

The social unrest caused by this economic decline grew in the weeks before the 1952 National Revolution. A hunger march through La Paz attracted people from most parts of society. The military was very discouraged. The high command unsuccessfully called for unity in the armed forces. Many officers went abroad, accused each other of trying to take over, or left their posts.

The Bolivian National Revolution (1952)

Republic of Bolivia Spanish: República de Bolivia
1952–1964
Flag Coat of arms
Location of Bolivia
Government	Dominant-party presidential republic
President
• 1952-1956	Víctor Paz Estenssoro
• 1956-1960	Hernán Siles Zuazo
• 1960-1964	Víctor Paz Estenssoro
Vice President
• 1952-1964	List
History
• National Revolution	9 April 1952
• Established	11 April 1952
• Disestablished	4 November 1964
Preceded by Succeeded by Bolivia Bolivia

By early 1952, the MNR tried again to take power by force. They planned with General Antonio Seleme, who controlled internal administration and the National Police. On April 9, the MNR started a rebellion in La Paz. They seized weapons and gave them to civilians, including many indigenous miners and farmers. Armed miners marched on La Paz and stopped troops from reaching the city. After three days of fighting, General Seleme left the government. About 600 lives were lost. The army surrendered, and Paz Estenssoro became president on April 16, 1952. The 1952 revolution influenced supporters of Chilean President Carlos Ibáñez del Campo. They saw it as a good example of national populism to follow.

Major Reforms After the Revolution

The MNR leaders, sometimes called "reluctant revolutionaries," looked to Mexico rather than the Soviet Union for ideas. But during Paz Estenssoro's first year as president, the radical part of the party pushed the MNR leaders to act quickly. This radical group had grown stronger during the sexenio when the party embraced workers and their ideas. In July 1952, the government introduced universal suffrage. This meant everyone could vote, regardless of whether they could read or write, or how much property they owned. In the first elections after the revolution in 1956, the number of eligible voters grew from about 200,000 to nearly 1 million. The government also quickly took control of the armed forces. They removed many officers connected to past Conservative Party governments. They also greatly reduced the size and budget of the military. The government closed the Military Academy and made officers swear loyalty to the MNR.

The government then started taking over all the mines owned by the three big tin companies. First, it made the export and sale of all minerals a state monopoly. This was managed by the state-owned Mining Bank of Bolivia (Banco Minero de Bolivia, Bamin). Then, it created the Mining Corporation of Bolivia (Corporación Minera de Bolivia, Comibol). This was a semi-independent company to run the state-owned mines. On October 31, 1952, the government nationalized the three big tin companies. They left the medium-sized mines alone and promised to pay compensation. Through this process, two-thirds of Bolivia's mining industry came under Comibol's control.

A big land reform was the last important step taken by the revolutionary government. In January 1953, the government set up the Agrarian Reform Commission, with help from Mexico. They passed the Agrarian Reform Law the following August. These reforms aimed to break up large estates into minifundio, or small plots of land. These plots could be worked by individual families or small villages. The reforms also aimed to give farmers loans to buy tools, seeds, and other materials for their farms. Additionally, the reforms were meant to provide technical help to farmers. This included teaching them how to make their farms more productive. However, many of these reforms were never fully put into place. As a result, many of the new minifundio farms were eventually taken over again by wealthy landowners.

During the first years of the revolution, miners had a lot of influence within the government. This was because of their crucial role in the fighting in April 1952. Also, armed groups of miners, formed by the government to balance the military, became very powerful. Miners immediately organized the Bolivian Labor Federation (Central Obrera Boliviana, COB). This group demanded big changes and wanted to be part of the government. They also sought benefits for their members.

The MNR eventually gained the support of the campesinos (farmers). This happened when the Ministry of Peasant Affairs was created and when farmers were organized into syndicates (unions). Farmers were not only given land, but their militias also received large supplies of weapons.

The country faced severe economic problems because of the changes made by the government. High inflation, caused by increased social spending, also hurt the economy. The value of the peso dropped sharply. It went from 60 to 12,000 pesos per United States dollar between 1952 and 1956. This mainly affected the urban middle class, who then started to support the opposition. The failing economy increased disagreements within the MNR. The left wing wanted 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 (1956–60), who won the election with 84% of the vote, aid from the United States reached its highest level. In 1957, the United States paid for more than 30% of Bolivia's budget. Siles Zuazo's plan to stabilize the economy seriously damaged the alliance between the MNR and COB. The COB immediately called for a general strike. This threatened to destroy an already struggling economy. The strike was called off only after the president made passionate appeals. To calm the unrest, Zuazo decided to rebuild the armed forces. During his time in office, the military grew stronger. This was due to a new focus on professionalism and training, technical help from the United States, and an increase in the military's size and budget. Also, the military's role in controlling unrest gave it more and more influence within the MNR government.

Conflicts within the MNR increased during Paz Estenssoro's second term (1960–64). Along with the United States, the Federal Republic of Germany, and the Inter-American Development Bank, Paz Estenssoro supported the "Triangular Plan". This plan called for a reorganization of the tin-mining industry. The plan demanded an end to workers' control over Comibol operations. It also required firing workers and reducing their salaries and benefits. This was strongly opposed by the COB and Lechín's group within the MNR.

In 1964, Paz Estenssoro decided to run for president again. He accepted General René Barrientos Ortuño as his vice presidential candidate. Most opposition groups did not participate in the election. Paz Estenssoro was reelected with the support of the military and the farmers. Paz Estenssoro had come to rely more and more on the military. Their role in keeping peace had made them a powerful decision-maker in politics. But this support would prove unreliable. The military was already planning to overthrow him.