La Paz is the administrative capital of Bolivia, and together with Sucre, the constitutional capital, they play important roles in the Bolivian Government. It’s situated in western Bolivia, in a basin surrounded by the high mountains of the Altiplano. La Paz is among the highest administrative capitals in the world, and one of the most culturally rich. It is the country’s political and economic centre. Since the Spanish colonial rule, La Paz has played a significant role in influencing other cities in Bolivia and South America. It is renowned for its Witches' Market, San Francisco Church, Jaen Street, Moon Valley, and the cable car system, Mi Teleférico.

The last national census in Bolivia was conducted in 2012, and the next one is scheduled for 2022. According to the 2012 census, La Paz had a population of 2,706,351. The city is considered to be culturally diverse, with a mix of mestizo, indigenous and white ethnic groups. According to the 2012 census, 58% of the population identified as indigenous, primarily Aymara and Quechua, while 37% identified as mestizo, and 5% as white. In terms of religious beliefs, the majority of people in La Paz identify as Roman Catholic, but there are also Protestants, traditional indigenous beliefs, and a significant number of people who identify as non-religious. Spanish, Aymara and Quechua are the most spoken languages in La Paz. La Paz is home to the highest golf course and football stadium in the world, due to its high altitude. The city's cable car system, Mi Teleférico, is the longest and highest in the world.

La Paz is governed by a mayor and municipal council, elected for five-year terms. The city is divided into administrative units called districts, and these are further divided into zones, which are the functional units of the city. The Mayor of La Paz is the head of the city government, which manages services such as education, health, sanitation, and public transportation. The Mayor's Office of La Paz is also responsible for urban development, public works, and the preservation of cultural heritage sites in the city.

La Paz plays a significant role in the Bolivian economy. It is a commercial and industrial hub, with industries including manufacturing, retail, and services playing key roles. The city is also a vital financial center, housing numerous banks and financial institutions. It is home to a large informal economy, with bustling markets such as the Witches' Market and the Rodriguez Market. In addition, tourism is a growing sector, with visitors drawn to the city's cultural heritage, unique topography and modern infrastructure such as the cable car system.

La Paz has a unique infrastructure due to its topography. The city's public transportation system includes a network of buses and minibuses, but the most notable feature is the cable car system, Mi Teleférico. This system was designed to address the city's transport needs, given its mountainous terrain. It has been widely praised and has become a tourist attraction in its own right. The city is also served by El Alto International Airport, the highest international airport in the world. Infrastructure development and improvements continue to be a priority for the city's administration.