Summary

Throughout the 19th and 20th centuries, U.S. officials often viewed Bolivia as both a potential “test case” for U.S. economic foreign policy and a place where Washington’s broad visions for Latin America might be implemented relatively easily. After World War II, Washington leaders sought to show both Latin America and the nonindustrialized world that a relatively open economy could produce significant economic wealth for Bolivia’s working and middle classes, thus giving the United States a significant victory in the Cold War. Washington sought a Bolivia widely open to U.S. influence, and Bolivia often seemed an especially pliable country. In order to achieve their goals in Bolivia, U.S. leaders dispensed a large amount of economic assistance to Bolivia in the 1950s—a remarkable development in two senses. First, the U.S. government, generally loath to aid Third World nations, gave this assistance to a revolutionary regime. Second, the U.S. aid program for Bolivia proved to be a precursor to the Alliance for Progress, the massive aid program for Latin America in the 1960s that comprised the largest U.S. economic aid program in the Third World. Although U.S. leaders achieved their goal of a relatively stable, noncommunist Bolivia, the decision in the late 1950s to significantly increase U.S. military assistance to Bolivia’s relatively small military emboldened that military, which staged a coup in 1964, snuffing out democracy for nearly two decades. The country’s long history of dependency in both export markets and public- and private-sector capital investment led Washington leaders to think that dependency would translate into leverage over Bolivian policy. However, the historical record is mixed in this regard. Some Bolivian governments have accommodated U.S. demands; others have successfully resisted them.