In , a new constitution changed the country's official name to "Plurinational State of Bolivia" in recognition of the multi-ethnic nature of the country and the enhanced position of Bolivia's indigenous peoples under the new constitution. The region now known as Bolivia had been occupied for over 2, years when the Aymara arrived. However, present-day Aymara associate themselves with the ancient civilization of the Tiwanaku Empire which had its capital at Tiwanaku , in Western Bolivia. The capital city of Tiwanaku dates from as early as BC when it was a small, agriculturally based village.

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The community grew to urban proportions between AD and AD , becoming an important regional power in the southern Andes. According to early estimates, [ when? Around AD , Tiwanaku went from being a locally dominant force to a predatory state. Tiwanaku expanded its reaches into the Yungas and brought its culture and way of life to many other cultures in Peru, Bolivia, and Chile. Tiwanaku was not a violent culture in many respects. In order to expand its reach, Tiwanaku exercised great political astuteness, creating colonies, fostering trade agreements which made the other cultures rather dependent , and instituting state cults.

The empire continued to grow with no end in sight. William H. Isbell states "Tiahuanaco underwent a dramatic transformation between AD and that established new monumental standards for civic architecture and greatly increased the resident population. Archaeologists note a dramatic adoption of Tiwanaku ceramics into the cultures which became part of the Tiwanaku empire. Tiwanaku's power was further solidified through the trade it implemented among the cities within its empire.

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Tiwanaku's elites gained their status through the surplus food they controlled, collected from outlying regions and then redistributed to the general populace. Further, this elite's control of llama herds became a powerful control mechanism as llamas were essential for carrying goods between the civic centre and the periphery. These herds also came to symbolize class distinctions between the commoners and the elites. Through this control and manipulation of surplus resources, the elite's power continued to grow until about AD At this time a dramatic shift in climate occurred, [20] causing a significant drop in precipitation in the Titicaca Basin, believed by archaeologists to have been on the scale of a major drought.

As the rainfall decreased, many of the cities farther away from Lake Titicaca began to tender fewer foodstuffs to the elites. As the surplus of food decreased, and thus the amount available to underpin their power, the control of the elites began to falter. The capital city became the last place viable for food production due to the resiliency of the raised field method of agriculture. Tiwanaku disappeared around AD because food production, the main source of the elites' power, dried up.

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The area remained uninhabited for centuries thereafter. Between and , the Inca empire expanded from its capital at Cusco , Peru. It gained control over much of what is now Andean Bolivia and extended its control into the fringes of the Amazon basin. The Spanish conquest of the Inca empire began in , and was mostly completed by The territory now called Bolivia was known as Charcas, and was under the authority of the Viceroy of Lima.

By the late 16th century, Bolivian silver was an important source of revenue for the Spanish Empire. The struggle for independence started in the city of Sucre on 25 May and the Chuquisaca Revolution Chuquisaca was then the name of the city is known as the first cry of Freedom in Latin America. That revolution was followed by the La Paz revolution on 16 July The La Paz revolution marked a complete split with the Spanish government, while the Chuquisaca Revolution established a local independent junta in the name of the Spanish King deposed by Napoleon Bonaparte.

Both revolutions were short-lived and defeated by the Spanish authorities in the Viceroyalty of the Rio de La Plata, but the following year the Spanish American wars of independence raged across the continent. Bolivia was captured and recaptured many times during the war by the royalists and patriots. Buenos Aires sent three military campaigns, all of which were defeated, and eventually limited itself to protecting the national borders at Salta. After 16 years of war the Republic was proclaimed on 6 August Following tension between the Confederation and Chile, Chile declared war on 28 December Argentina separately declared war on the Confederation on 9 May The Peruvian-Bolivian forces achieved several major victories during the War of the Confederation : the defeat of the Argentine expedition and the defeat of the first Chilean expedition on the fields of Paucarpata near the city of Arequipa.

The Chilean army and its Peruvian rebel allies surrendered unconditionally and signed the Paucarpata Treaty. The treaty stipulated that Chile would withdraw from Peru-Bolivia, Chile would return captured Confederate ships, economic relations would be normalized, and the Confederation would pay Peruvian debt to Chile. However, the Chilean government and public rejected the peace treaty. Chile organized a second attack on the Confederation and defeated it in the Battle of Yungay. After this defeat, Santa Cruz resigned and went to exile in Ecuador and then Paris, and the Peruvian-Bolivian Confederation was dissolved.

On 18 November , the battle de Ingavi took place, in which the Bolivian Army defeated the Peruvian troops of Gamarra killed in the battle. The eviction of the Bolivian troops from the south of Peru would be achieved by the greater availability of material and human resources of Peru; the Bolivian Army did not have enough troops to maintain an occupation. The Treaty of Puno was signed on 7 June , ending the war. However, the climate of tension between Lima and La Paz would continue until , when the signing of a Peace and Trade Treaty became effective.

The estimated population of the main three cities in was La Paz ,, Cochabamba , and Potosi , A period of political and economic instability in the early-to-midth century weakened Bolivia. In addition, during the War of the Pacific —83 , Chile occupied vast territories rich in natural resources south west of Bolivia, including the Bolivian coast. Chile took control of today's Chuquicamata area, the adjoining rich salitre saltpeter fields, and the port of Antofagasta among other Bolivian territories.

Since independence, Bolivia has lost over half of its territory to neighboring countries. Popular myth has it that Bolivian president Mariano Melgarejo —71 traded the land for what he called "a magnificent white horse" and Acre was subsequently flooded by Brazilians, which ultimately led to confrontation and fear of war with Brazil. In the late 19th century, an increase in the world price of silver brought Bolivia relative prosperity and political stability. During the early 20th century, tin replaced silver as the country's most important source of wealth.

A succession of governments controlled by the economic and social elite followed laissez-faire capitalist policies through the first 30 years of the 20th century.

Living conditions of the native people, who constitute most of the population, remained deplorable. With work opportunities limited to primitive conditions in the mines and in large estates having nearly feudal status, they had no access to education, economic opportunity, and political participation. Bolivia's defeat by Paraguay in the Chaco War —35 , where Bolivia lost a great part of the Gran Chaco region in dispute, marked a turning-point. Denied its victory in the presidential elections, the MNR led a successful revolution in Twelve years of tumultuous rule left the MNR divided.

In , a military junta overthrew President Estenssoro at the outset of his third term. He returned to the presidency in through Elections in and were inconclusive and marked by fraud. He pacified the people by promising to remain in power only for one year. At the end of the year, he staged a televised rally to claim popular support and announced, " Bueno, me quedo ", or, "All right; I'll stay [in office].

Unrest forced the military to convoke the Congress , elected in , and allow it to choose a new chief executive. The reforms and economic restructuring were strongly opposed by certain segments of society, which instigated frequent and sometimes violent protests, particularly in La Paz and the Chapare coca -growing region, from through The indigenous population of the Andean region was not able to benefit from government reforms.

A teachers' strike in was defeated because the COB could not marshal the support of many of its members, including construction and factory workers. At the outset of his government, President Banzer launched a policy of using special police-units to eradicate physically the illegal coca of the Chapare region. The relatively robust economic growth of the mids continued until about the third year of its term in office.

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After that, regional, global and domestic factors contributed to a decline in economic growth. Financial crises in Argentina and Brazil, lower world prices for export commodities, and reduced employment in the coca sector depressed the Bolivian economy. The public also perceived a significant amount of public sector corruption. These factors contributed to increasing social protests during the second half of Banzer's term. Between January and April , large-scale protests erupted in Cochabamba , Bolivia's third largest city, in response to the privatisation of water resources by foreign companies and a subsequent doubling of water prices.

On 6 August , Banzer resigned from office after being diagnosed with cancer. He died less than a year later. The MNR platform featured three overarching objectives: economic reactivation and job creation , anti- corruption , and social inclusion. In the Bolivian gas conflict broke out. On 12 October the government imposed martial law in El Alto after 16 people were shot by the police and several dozen wounded in violent clashes. After his resignation was accepted and his vice president, Carlos Mesa , invested, he left on a commercially scheduled flight for the United States.

The country's internal situation became unfavorable for such political action on the international stage.

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After a resurgence of gas protests in , Carlos Mesa attempted to resign in January , but his offer was refused by Congress. On 22 March , after weeks of new street protests from organizations accusing Mesa of bowing to U. Evo Morales won the presidential election with The people of Sucre wanted to make Sucre the full capital of the country, including returning the executive and legislative branches to the city, but the government rejected the demand as impractical.

Three people died in the conflict and as many as were wounded.

The previous constitution did not allow a consecutive reelection of a president, but the new constitution allowed just for one reelection, starting the dispute if Evo Morales was enabled to run for a second term arguing he was elected under the last constitution. This also triggered a new general election in which Evo Morales was re-elected with His party, Movement for Socialism , also won a two-thirds majority in both houses of the National Congress.