Bolivian political situation was relatively stable in 2012. The President Morales and the ruling party MSA still accounted for a majority of seats in Parliament. But conflicts between the judiciary and the executive nearly led to ruling crisis. In terms of policy, Morales further deepened the reform of nationalization and implemented a new macro-prudential policy in order to propel Bolivianization. In 2012, economic growth was slightly lower than in 2011, while major economic indicators were improved and the public revenue increased. Morales continued to expand social welfare programs and reduce income inequality. The US-Bolivian relationship was still of great tension. Bolivia had close cooperation with Brazil and Argentina in natural gas trade, but there were conflicts and contradictions. At the same time, it strengthened cooperation with Brazil, Colombia and the United States in the fight against drugs. The Sino-Bolivian relations have advanced steadily while Chile-Bolivian relations remained tense. Bolivia managed to seek recognition of the international community and called for the institutional reform of some international organizations. <<