The G1 is GSM compatible, but there are multiple frequency's for GSM, so you'd have to be sure that the GSM frequency used in Bolivia matches ones the G1 can use. More than likely the data functions would not work with the other carrier, so you'd have to use it on wifi for data functions.

The G1 uses:

Network HSPA/WCDMA:

*
Europe: 2100 MHz
*
US:1700/2100 MHz
*
Up to 7.2 Mbps down-link (HSDPA) and 2 Mbps up-link (HSUPA) speeds

Quad-band GSM/GPRS/EDGE:

*
850/900/1800/1900 MHz

(Band frequency, HSUPA availability, and data speed are operator dependent.)

It looks like it would function as a phone, but data could vary...
You may also want to look into the developer phone, because you can get the phone pre-unlocked and not have to worry about unlocking it yourself:

http://www.gearlog.com/2008/12/google_selling_unlocked_g1_dev.php

http://www.htc.com/www/product/g1/specification.html

http://www.htc.com/assets/0/16/26/5780/1bdea4df-cdf5-455a-a782-2027b1ba3028.jpg

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