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President Evo Morales has announced he is suspending "indefinitely" the operations of the US Drug Enforcement Administration in Bolivia.
Mr Morales accused the agency of having encouraged anti-government protests in the country in September.
In recent months, a string of tit-for-tat expulsions of diplomats and agencies increased tensions between both countries...
Military experts in Washington...believe that Morales, with the help of his friends, Venezuelan President Hugo Chávez and Cuban dictator Fidel Castro, could destabilize the entire Andes region.
...In the 1990s, when the Andean country had become one of Latin America's biggest coca producers, the Americans experimented with a new approach to the drug war in Chapare, promising the government generous development aid in return for its agreement to eradicate the coca plantations. The aid was intended to encourage the farming of alternative products, such as pineapples, bananas, coffee and oranges...
Since then, American and European aid organizations have injected about $700 million in development aid into Chapare. But the development projects failed when it became apparent that the region's remoteness makes shipping pineapples and bananas too expensive, and that prices for the crops can't compete with coca.