The economy of Bolivia is the 95th largest economy in the world in nominal terms and the 87th economy in terms of purchasing power parity. It is clasisfied by the World Bank to be a lower middle income country. With a Human Development Index of 0,663 it is ranked 108th (medium human development).

The Bolivian economy has had a historic pattern of a single-commodity focus. From silver to tin to coca, Bolivia has enjoyed only occasional periods of economic diversification. Political instability and difficult topography have constrained efforts to modernize the agricultural sector. Similarly, relatively low population growth coupled with low life expectancy and high incidence of disease has kept the labor supply in flux and prevented industries from flourishing. Rampant inflation and corruption also have thwarted development, but the last years the fundamentals of its economy showed an impressing improvement leading the major credit rating agencies to an upgrade of Bolivian economy in 2010. The mining industry, especially the extraction of natural gas and zinc, currently dominates Bolivia’s export economy.

Coordinates: 16°42′43″S 64°39′58″W / 16.712°S 64.666°W / -16.712; -64.666 Bolivia (ⁱ/bəˈlɪviə/, Spanish: [boliˈβja]) officially known as Plurinational State of Bolivia (Spanish: Estado Plurinacional de Bolivia, Quechua: Bulivya Mamallaqta, Aymara: Wuliwya Suyu), is a landlocked country in central South America. It is bordered by Brazil to the north and east, Paraguay and Argentina to the south, Chile to the southwest, and Peru to the west.

Prior to European colonization, the Andean region of Bolivia was a part of the Inca Empire – the largest state in Pre-Columbian America. The Spanish Empire conquered the region in the 16th century. During most of the Spanish colonial period, this territory was called Upper Peru and was under the administration of the Viceroyalty of Peru, which included most of Spain's South American colonies. After declaring independence in 1809, 16 years of war followed before the establishment of the Republic, named for Simón Bolívar, on 6 August 1825. Bolivia has struggled through periods of political instability, dictatorships and economic woes.

Juan Evo Morales Ayma (born October 26, 1959), popularly known as Evo (Spanish pronunciation: [ˈeβo]), is a Bolivian politician and activist, serving as the 80th President of Bolivia, a position that he has held since 2006. He is also the leader of both the Movement for Socialism party (MAS) and the cocalero trade union. Politically a socialist, his presidency has seen a focus on implementing leftist policies in the country, introducing a new constitution, land reforms, nationalising various key industries, opposing United States and corporate involvement in the country's politics, and poverty reduction measures.

Born into a working class Aymara family in Isallawi, Orinoca Canton, Evo grew up aiding his parents as a subsistence farmer. After studying for a degree, Morales undertook national service until 1978, when he returned to the family profession of farming, moving with them to Chapare Province. He eventually settled into growing coca, the plant from which cocaine is made. His activism led him into the political arena, and he eventually became the leader of the MAS, through which he got involved in social protests like the gas conflict and the Cochabamba protests of 2000. The MAS claimed that its aims were giving more power to the country's indigenous and poor communities by means of land reforms and redistribution of gas wealth, and gradually increased its electoral support.