As Civilian Political Leader
Upon leaving office, Banzer formed the ADN party (Acción Democrática Nacionalista), a large organization that attracted most conservative groups under his leadership. Banzer ran for elections in 1979 and 1980, obtaining third place in both contests. The 1979 contest remained inconclusive because, no candidate having received the necessary 50% of the vote, Congress had to determine the president, and it could not agree on any one candidate; the 1980 election would have led to the possession of Hernán Siles, was it not for the bloody coup of July 17, 1980, which installed a reactionary (and cocaine-tainted) dictatorship led by general Luis García Meza. With the military's reputation badly damaged by the excesses of the 1980-82 dictatorship, in October 1982 the results of the 1980 elections were upheld to save the country the expense of yet another vote. Siles was sworn in and the 1980 Congress reconvened.
Banzer opposed bitterly the UDP government of Hernán Siles (1982–85), but turned more conciliatory when Víctor Paz Estenssoro was elected president (by congress, due to the virtual inattainability of the 50% necessary for direct election) in 1985. Indeed, Banzer's party claimed authorship of some of the most important neoliberal economic reforms instituted by Víctor Paz to curb galloping hyperinflation, repress the ever-troublesome labor unions, and reduce the size of the government. Banzer finished second in the 1989 elections, but supported in Congress the third-place finisher, the allegedly left-leaning Jaime Paz, who became President with ADN help, in return for Paz's promise to support him in a future election. The former dictator again finished second in 1993, this time to the MNR's Gonzalo Sánchez de Lozada. The MNRs plurality, in coalition with the small center-left Bolivia Libre party, made it possible to confirm the MNRs electoral victory. In the 1997 elections, however, Banzer finished first by a small plurality, and was able to take the presidency with the support of Paz and others in a broad rightist coalition.
Read more about this topic: Hugo Banzer
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