redecessor.
The relatively robust economic growth of the mid-1990s continued until about the third year of its term in office. 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.
At the outset of his government, President Banzer launched a policy of using special police-units to physically eradicate the illegal coca of the Chapare region. The policy produced a sudden and dramatic four-year decline in Bolivia's illegal coca crop, to the point that Bolivia became a relatively small supplier of coca for cocaine. Those left unemployed by coca eradication streamed into the cities, especially El Alto, the slum-neighborhood of La Paz. The MIR of Jaime Paz Zamora remained a coalition-partner throughout the Banzer government, supporting this policy (called the Dignity Plan).
Between January 1999 and April 2000, large-scale protests erupted in Cochabamba, Bolivia's third largest city, in response to the privatization of water resources by foreign companies and a subsequent doubling of water prices.
On 6 August 2001, Banzer resigned from office after being diagnosed with cancer. He died less than a year later. Vice President Jorge Fernando Quiroga Ramírez completed the final year of his term.
In the June 2002 national elections, former President Gonzalo Sánchez de Lozada (MNR) placed first with 22.5% of the vote, followed by coca-advocate and native peasant-leader Evo Morales (Movement Toward Socialism, MAS) with 20.9%. Morales edged out populist candidate Manfred Reyes Villa of the New Republican Force (NFR) by just 700 votes nationwide, earning a spot in the
