Despite its abundance of natural resources, Bolivia is the least developed country in South America. In 1995, the gross national product amounted to US$ 800 per inhabitant. Bolivia, which is rich in tin, gold, lead, zinc, copper, tungsten, antimony and silver ore, has always had economic problems. In the Spanish period, all of the profit earned from silver mining in Potosi went to Europe, where it was used to finance the extravagant lifestyle of the aristocracy.

Only a few Bolivian tin barons profited from the two-year tin boom in the 19th century; most of the average people were left empty-handed. The most influential tin baron and one of the richest men in the country was Simon I. Patiño, who held the reins of the economic as well as the political power in the country until 1952. Today, travellers can still get an impression of this period by visiting the museum in Cochabamba.
 

Further resources like crude oil and natural gas were discovered in the frontier area between Bolivia and Paraguay. The incredible increase in the production of Bolivian natural gas in the 1980s led to the development of a strong export market in Argentina, one of Bolivia's neighbouring countries. Furthermore, Bolivia plans to expand its exports to Chile and Brazil.

Not only corn, beans, fruits and potatoes but also coffee and bananas are cultivated in the main agricultural areas around Lake Titicaca and in the valleys of the eastern Bolivian highlands. Moreover, a large part of the agricultural acreage is used for the illegal cultivation of coca plants. Official destruction campaigns as well as federal aid programs aimed at the reduction of coca growing by promoting the cultivation of other crops remained largely unsuccessful. In the lowlands, mainly sugar cane, rice, coffee, corn, soy, cotton and other fiber plants are cultivated for export. 41% of the population work in this sector; however, they earn a mere 16% of the gross domestic product.

Sheep, cattle, pigs, llamas and alpacas are kept in the highlands. So, the people there can produce enough milk, meat and wool to meet their own needs. The wool of the vicuña is particularly valuable; the inhabitants of the remote mountain villages earn their living by selling it. In recent times, cattle farming has been prevalent in the lowlands. Industries in Bolivia include crude oil refining as well as food, textile, wood, paper, and chemical production. The most important industrial sites in the country are La Paz, Oruro and Cochabamba.

Railway tracks link the mines to Chile and Argentina. The rail network has a total length of 3,700 km, which is rather short compared to the 43,687 km in Germany. The sparse road network covers a total length of 41,000 km; only 4% of the roads are paved. Therefore, large areas in the eastern part of the country can only be reached by plane. Bolivia has two major international airports, El Alto (La Paz) and Viru-Viru (Santa Cruz).