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Despite the importance of its mines and its large reserves of natural gas and crude oil, Bolivia is one of the poorest nations in Latin America and still lives by a subsistence economy. A large part of the population makes its living from the illegal growing of coca, the source of cocaine; a government eradication begun in the late 1990s has depressed the economy in those areas where coca-growing was important. Coffee, cotton, soybeans, corn, sugarcane, rice, potatoes, and wheat are the other major crops; timber is also important. Industry is limited to processing (largely smelting and petroleum refining) and small-scale manufacturing. Although Bolivia has much hydroelectric potential, it is underutilized.
Bolivia's mineral wealth furnishes the bulk of its exports, although natural gas, soybeans, and jewelry are also important. Chemicals, petroleum, and consumer goods are imported. The tin industry, which is a major component of the economy, has received increasing competition from SE Asia, and as a result several tin mines have closed. The United States, Japan, the United Kingdom, and Brazil are the chief trading partners. Bolivia became an associate member of the Southern Cone Common Market in 1996.
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