[2] The most recent uninterrupted period of democratic rule began in 1982 as Bolivia developed a unitary political system, with nine departments, divided into 22 provinces and 314 municipalities.
By the 2002 election, two other populist parties emerged to take their place, Manfred Reyes Villa’s Nueva Fuerza Republicana (NFR) and Evo Morales' Movement for Socialism (MAS).
One of the parties that had traditionally held power since the beginning of Bolivian democracy, it had close ties with the country's business elite and had cracked down on coca production in the 90s, hoping to improve relations with the United States.
These campaign consultants, combined with Sánchez de Lozada's American background (he grew up in America, and attended the University of Chicago) fostered distrust among the Bolivian people, many of whom blamed the US for damaging the coca industry.
The Movement for Socialism (MAS) was an upstart populist party, led by former coca farmer and union leader Evo Morales.
[6] The party ultimately beat expectations, coming in second place and setting Morales up as the opposition leader to Sánchez de Lozada.
The New Republican Force (NRF) was the other traditional political party running in the election, nominating former mayor of Cochabamba Manfred Reyes Villa.
[7] Reyes Villa came in a close 3rd, winning about 700 votes fewer than Morales, and formed a governing coalition with Sánchez de Lozada.
Zamora's earlier term was relatively successful, but his actions left him vulnerable to attacks similar to those aimed at Sánchez de Lozada—accusations that he hurt coca farmers, and wasn't doing enough for the poor.
[9] The Pachakuti Indigenous Movement, led by Felipe Quispe, was an indigenist and populist left-wing party, running directly against the neoliberal centrism promoted by Sánchez de Lozada and Zamora.
Its platform is similar to that of Morales and his MAS, although more extreme, condemning any cooperation with United States anti-coca programs and economic reforms.
[2] The strong nationalist and populist surge was partly a backlash against the pro-globalization and neoliberal reforms enacted by Sánchez de Lozada during his earlier term as president, as well as his American background and education.
He was seen as overly sympathetic to American and other foreign interests, a perception reinforced when the US ambassador asked Bolivians not to vote for the populist Morales shortly before the election.
"[16] After a two-month period of negotiations and coalition making, Sánchez de Lozada was officially elected president by Congress on 4 August with 84 of the 127 valid Congressional votes.
More than 70 percent of the population had not supported Sánchez de Lozada in the electoral vote, and Congress had elected him president through a series of party negotiations.