President Evo Morales began his second five-year term in 2010. A new cabinet was established and the first regional election was held since the new constitution came into effect. The Morales government continued to promote nationalization，deepen the industrialization process，and develop lithium resources. The economic growth rate in 2010 was slightly higher than that in 2009. The major economic indicators were improved，but the government deficit increased significantly. Both the poverty and unemployment rates decreased and there was an improvement of social equality. Bolivia boosted its relations with Chile，Peru，Ecuador，Argentina，South Korea，Iran，and China and became the third country in South America to formally recognize Palestine.