Anyone who has any doubt that central planning and corruption destroys an economy should head to Bolivia. The country is a classic example of a resource-rich nation whose economic potential has been squandered by socialism.
It wasn’t always this way. Bolivia has had several periods of prosperity in its relatively brief history; in the late 1800s, for example, the price of gold began to rise dramatically against silver which was backing many currencies at the time such as the US dollar.
Bolivia’s mining industry dates back to the 16th century, and as the country was rich with gold, its economy prospered. The good times lasted until the global depression in the 1930s when Bolivia and Paraguay went to war over the Chaco, each side thinking there was oil underneath the ground.