Bolivia has been governed by democratically elected governments since 1982, when a long string of military coups came to an end. Presidents Hernán Siles Zuazo (1982–85) and Víctor Paz Estenssoro (1985–89) began a tradition of ceding power peacefully which has continued, although two presidents have stepped down in the face of popular protests: Gonzalo Sánchez de Lozada in 2003 and Carlos Mesa in 2005.

The current president is Evo Morales, the first indigenous Bolivian to serve as head of state.

The constitution, drafted in 2006-07 and approved in 2009, provides for balanced executive, legislative, judicial, and electoral powers, as well as several levels of autonomy. The traditionally strong executive branch tends to overshadow the Congress, whose role is generally limited to debating and approving legislation initiated by the executive.

The judiciary, consisting of the Supreme Court and departmental and lower courts, has long been riddled with corruption and inefficiency. Through revisions to the constitution in 1994, and subsequent laws, the government has initiated potentially far-reaching reforms in the judicial system and processes.

Bolivia’s nine departments received greater autonomy under the Administrative Decentralization law of 1995. Departmental autonomy further increased with the first popular elections for departmental governors (prefectos) on 18 December 2005, after long protests by the pro-autonomy department of Santa Cruz.

Bolivian cities and towns are governed by directly elected mayors and councils. Municipal elections were held on 5 December 2004, with councils elected to five-year terms. The Popular Participation Law of April 1994, which distributes a significant portion of national revenues to municipalities for discretionary use, has enabled previously neglected communities to make striking improvements in their facilities and services.

The departments of Tarija, Beni, Pando and Santa Cruz are sometimes known as the “half moon” because of the crescent shape of the departments when looked at together in the east of the country. They also have in common conservative politics and rich fossil fuel deposits.