Bolivia

The Challenges and the Changes

In December 2005, Bolivians elected Movement Toward Socialism indigenous leader Evo Morales president with 54% of the vote (Tony Blair was elected with 35% of the vote in 2005) He promised to change who runs Bolivia and to empower the nation's poor majority giving indigenous people more say. The government first acted to take more control over gas and oil which are Bolivia’s largest natural assets. President Morales’ 1 May 2006 decree, gave foreign companies six months to sign contracts giving up control of their Bolivian operations or leave the country. Just before the deadline Bolivia agreed energy deals with 10 foreign gas and oil firms. On July 16 2007 Morales announced that his government would nationalize the National Railroad Company (ENFE), which was largely privatized in 1996.

The US government is concerned about the election of Morales, in particular the US fears an increase in the export of the illegal drug cocaine (made from coca leaves) to the US. Morales, who was once a coca grower, sees growing coca as part of indigenous Andean culture and refuses to curb its production.

On July 20 th 2007 at least one million people, possibly up to two million,—marched in El Alto, Bolivia to call for national unity and to oppose proposals to move the government from La Paz, , to the southern city of Sucre. This was the country's largest demonstration in recent years, bigger than those in 2000 and 2003. Out of a total population of 9 million, this shows that many people are engaging in the democratic process in Bolivia.

Today Bolivia faces many challenges reducing poverty and hunger, improving education and health, unfair trade and discrimination towards indigenous people but has a government committed to acting on these issues and supported by other countries in the region.

Go to lesson plan What is Bolivia like?For more on this

Poverty and Hunger

Challenges

Bolivia ranks 113 out of 177 countries in the human development index.
It is the poorest country in South America with 5 ½ million people (out of 9 million) living below the national poverty line of $1.6 dollars a day (World Bank, March 2001). This only just covers the price of food leaving other basic costs like housing and health impossible to meet.
Two thirds of Bolivians are indigenous people are out of work and many of them are unable to read or write – especially those who live in the rural areas away from the big cities, where unemployment and illiteracy rates are very high.
In La Paz alone, nearly 10,000 children are living on the streets, often begging to help support their families.

Like its neighbour Brazil, extreme poverty is partly due to massive inequality between the rich and the poor. Below are some startling facts:

In Bolivia, the income of the top 10% of the population is 25 times more than the poorest 40% of the population.
Less than half of Bolivia’s population are in paid jobs.
The average income of the poorest people is 25% below the cost of basic food needs and up to 34% lower in rural areas.
Food consumption in rural areas averages 28% below the recommended 2100 calories. This results in chronic malnutrition, which affects half of under 5’s in the poorest homes.

Creating an artificial dam; Saskia Fokkink

Changes

The Bolivian Poverty Reduction Strategy agreed in 2001 set a target to reduce the percentage of Bolivians living in conditions of poverty from 63% to 41% of the population, by 2015. This was to be achieved by:

Creating more jobs for poor people so they can earn money to support themselves and their families.
Improving services like education and health so more people can learn to read and write, and suffer from fewer diseases.
To look after the environment in Bolivia.
To protect groups of people who are most at risk like children and indigenous people

Furthermore, Bolivia is one of eight pilot countries of:

Capacity 2015 – an initiative to take the MDGs to a local level, to assess whether these initiatives are getting to the poor people who need it most.

Bolivia is unlikely to get close to achieving MDG 1 in eradicating extreme poverty, see graph below. The national strategy for reducing poverty needs economic growth rates of over 5% each year but growth has only been 1.5% in recent years. Extreme poverty stayed around 37% between 1997 and 2001.

Achieving the projected figure would be a major achievement!

Education

children at school; Charlotte Morris

Changes

There are many projects happening in Bolivia to help improve education.

The ‘Integrated Child Development Project’. Aims to help children, especially the poorer children living in rural areas, to learn in a number of different ways. The activities encourage children to develop their physical and emotional skills, as well as being able to read and write. This should help them find jobs in the future to support themselves and their families.

The national campaign Education for All (EFA)
During the 1990s, Bolivian enrolment rates (enrolling children into education) improved greatly, especially in urban areas. The dropout rate from primary school reduced from 9.4% in 1997 to 5.7% in 2001.

However, like Brazil, the quality of education in Bolivia is still low, especially in mathematics and language. This is partly due to poor incentives for teachers – in particular teachers’ pay. National net primary school enrolment rates top 95 per cent, but the quality of education has room for improvement and only half of rural children complete primary school.
Changes

The Indigenous Girls’ Education project built boarding schools for more than 2,000 girls. A transportation system now delivers 1,500 rural students to classes, eliminating long, risky walks. Radio spots broadcast in rural areas also encourage parents to keep their children – especially girls – in school. (UNICEF)
For BF replace existing case study with longer attached one on gold mine child labour.

Challenges

However, like Brazil, the quality of education in Bolivia is still low, especially in mathematics and language. This is partly due to poor incentives for teachers – in particular teachers’ pay.

Health

Changes

The government has a national health campaign:

SUMI (Universal Maternal and Child Health Insurance) infant mortality rates are getting smaller due to this ‘Basic Health Insurance’ that covers pregnant women and children under five. There are also more people getting vaccinated against common illnesses.

Environmental problems

Challenges

The environment in Bolivia is threatened both by natural and man-made disasters.

Drought is a problem on the Altiplano region where most Bolivians live and when it does rain the hard, dry ground often floods.
Man-made threats include mining and the unrestricted clearance of rainforests to meet world demand for tropical timber. With fewer trees to protect the land the soil on the land disappears and land once suitable to live on and grow crops turns into desert. Forcing poor rural families to move to the cities.

Irrigation canals; Saskia Fokkink

Changes

Under the project ‘El Niňo’, 28 rural roads in Bolivia have already been improved, 27 irrigation canals have been created, and 21 special anti-flooding structures have been built to protect areas at high risk of flooding. In areas of drought, 319 small reservoirs have been created, and 179 wells have been built. Much however remains to be done.

Unfair trade and debt

Challenges

Bolivia sells natural gas at good prices to Argentina and Brazil. This industry has for many years been managed by multi-national companies who kept most of the profits for themselves.

Miners marching for better conditions; Adele Pander

Changes

Under the Morales government this is starting to change so that more of the profits stays in Bolivia. See Guardian article
In March 2006, the World Bank agreed to cancel the debt of some of the world’s poorest countries, including Bolivia’s.
The World Bank is also providing Bolivia with interest free credits to help the country tackle poverty. The credit is being used to improve health, education and water supplies, especially for those people living in rural areas.

Will Bolivia achieve any of the MDG’s by 2015
Which of the MDG’s has Bolivia got the best chance of making good progress towards?
What need to happen to make progress towards the MDG’s faster?
What will slow down progress towards the MDG’s?
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Trade
the selling of goods from one country to another

Tropical Timber
Wood from rainforest trees

Illiteracy
the inability to read or write

Economic
the production, development and management of a country's material wealth

Inequality
something being unequal

Altiplano

quote: "Bolivia is the poorest country in South America with over 5.5 million people living below the national poverty line - estimated to be $590 dollars a year, or $1.6 dollars a day"