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Bolivia's foreign investment dilemma

During the 1980s Bolivia experienced a deep economic recession resulting in sky-high inflation, rising unemployment levels and a depreciating currency. The government responded with strict austerity measures with the implementation of currency and tax reforms restoring foreign confidence, however, these policies resulted in further disparity within the wealth gap, leading to an uptick in social unrest.

The period 2003-2005 was characterised by political instability, racial tensions and civil commotion.