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Bolivia's defeat by Paraguay in the Chaco War (1932–1936) marked a turning point in the modern history of Bolivia. Significant loss of life and territory discredited the traditional ruling classes, while service in the army produced stirrings of political awareness among the indigenous people. Much of the contested Gran Chaco region was surrendered to Paraguay. In return, Bolivia was given access to the Paraguay River where Puerto Busch was founded, and, with this, free access to the Atlantic Ocean through international waters was possible.
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