Disputes - international:
continues to press Chile and Peru to restore the Atacama corridor
ceded to Chile in 1884; Chile demands water rights to Bolivia's Rio
Lauca and Silala Spring
Illicit drugs:
world's third-largest cultivator of coca (after Colombia and Peru)
with an estimated 24,400 hectares under cultivation in June 2002, a
23% increase from June 2001; intermediate coca products and cocaine
exported to or through Colombia, Brazil, Argentina, and Chile to the
US and other international drug markets; eradication and alternative
crop programs under the SANCHEZ DE LOZADA administration have been
unable to keep pace with farmers' attempts to increase cultivation
after significant reductions in 1998 and 1999; money-laundering
activity related to narcotics trade, especially along the borders
with Brazil and Paraguay