USAID/OTI Bolivia Field Report
August 2004
Program Description
The OTI/Bolivia program seeks to promote peaceful participation in El Alto and other marginalized communities and increase access to balanced information on issues of national importance. The program focuses on:
- Peaceful dialogue and civic education: through the mass media, theatre, discussion groups for youth, and other forums, providing balanced information and opportunities for dialogue on issues of national concern and civic education training.
- Economic opportunity: supporting short-term community-based activities in distressed areas, such as El Alto and the altiplano, designed to increase self-reliance and reduce dependence on government institutions.
Issues affecting youth and indigenous groups are cross-cutting themes in all of OTI/Bolivia's work. OTI's implementing partner is Casals and Associates and the FY 2004 budget is about $7 million.
Country Situation
The Politics of the Hydrocarbon Law – The July referendum on the much debated hydrocarbon policy bolstered President Mesa's personal popularity and encouraged him to adopt a more forceful governing style. However, it did not clarify or build consensus on the new hydrocarbons law. Negotiations on the law have been complicated by public disputes between the executive and legislature branches of government, as well as internal differences of opinion within political party caucuses. Observers have speculated that political parties are using the hydrocarbons debate to reestablish themselves as powerful and credible actors, after having been discredited following the October 2003 protests that led to President Gonzalo Sánchez de Lozada's resignation. While the issue evolves daily, the two most hotly disputed topics are on taxes and ownership rights over the land from which the hydrocarbons are extracted. The business sector has kept a very low public profile in the discussions on the law, reflecting awareness of the popular resentment toward foreign investment in the hyrdrocarbons area.
- Mesa’s Strategy – Mesa has thus far been unsuccessful in convincing Congress to approve the "law to execute and comply with the referendum," known as the short law. The government asserted that while Congress moves through the lengthy process of negotiating the details of a broader legislative package, the short law will allow Bolivia to earn $9 million in revenue per month from increased taxation on hydrocarbon companies. The short law also allows Mesa to legislate specifics of the law by decree. Mesa initially told Congress he would veto any legislation from Congress until it approved the short law, but has since backed down from that position and is negotiating with the legislators.
- Political Parties – For the Movement Towards Socialism (MAS) and New Republican Front (NFR), as well as some factions of the other parties who support nationalization of the companies, the short law is unacceptable. Other Members of Congress have objected to the piecemeal process under which the legislation is being debated.
- The People – While recent public opinion polls indicate that most Bolivians are primarily concerned about corruption and income, hydrocarbons nationalization remains an effective rallying point for disaffected groups. For example, on August 24 the largest public transport union organized a strike against gasoline prices, which attracted the support of La Paz's two most confrontational groups, the Bolivian Central Workers Union and the Fejuve (neighborhood association) of El Alto. In a similar protest the following week, these groups and MAS demanded hydrocarbons nationalization and a full investigation into the October 2003 events.
Election of Congressional Leaders – Leaders of the Movement of the Revolutionary Left (MIR) and Nationalist Revolutionary Movement (MNR) were re-elected in the upper and lower houses, respectively. MAS was given one Vice-Presidency and a prominent position on the Committee for Economic Development (the committee with primary jurisdiction over hydrocarbons issues). This party configuration is similar to the last Congress and is unlikely to significantly affect policy orientation or legislative-executive dynamics.
USAID/OTI Highlights
A. Narrative Summary
In August, OTI slowed its pace of grant approval to concentrate on strategic planning and ongoing program monitoring. The primary focus has been on developing a comprehensive strategy for providing the electorate and candidates with information on the municipal elections process. Current and upcoming grants will help citizen groups reach neglected altiplano municipalities, where the populations are highly suspicious of their elected representatives but lack the information and analytical skills to make informed decisions at the polls. In addition to working through a variety of grassroots organizations to educate the electorate, OTI is supporting efforts by the government and NGOs to educate potential candidates on elected officials' responsibilities
The December municipal elections will be a departure from past ones, since a new law allows any group or organization (under certain conditions) to put forward candidates. However, while the law allows indigenous groups and others the opportunity to participate, many of them lack electoral experience. Responding quickly to this challenge and the electoral timetable, OTI/Bolivia approved four grants in late July to provide technical assistance on registration requirements to groups who may run candidates. Three of these grants support organizations in the altiplano and another provides funding assistance to all citizen and indigenous groups in the country's nine departments.
OTI is also evaluating its economic opportunity portfolio in El Alto to determine which areas require additional resources. In order to address the lack of jobs, the program has begun supporting economic growth through small-scale, high impact projects. Currently, four grants have been funded to provide professional skills training, six grants for job creation/income generation, four grants for developing information on economic opportunities, and four grants for strengthening key business associations. While most of these grants are still in progress, initial reviews indicate that they are beginning to generate economic opportunity and development. For example, OTI-funded projects have placed hundreds of youth in nascent industries, helped 22 companies borrow the start-up capital to implement municipal contracts, and aided hundreds of unlicensed micro-enterprises in obtaining legal status.
B. Grants Activity Summary
For the month of August, OTI/Bolivia approved nine new grants amounting to $272,477; the total number of grants approved is 92, amounting to $2.3 million.
OTI/Bolivia will continue to support a variety of Constituent Assembly activities throughout the year-long process of determining the legal framework, electing delegates, and developing agendas. In August, three grants were issued towards this end. The first supports the Coordinating Committee's efforts to produce informational materials. The other two are funding two of Bolivia's largest confederations of indigenous groups (one in the altiplano, the other in the eastern lowlands) to conduct hundreds of consultations to inform and solicit feedback from their members. The two confederations have traditionally been hostile to each other, but are interested for the first time in conducting simultaneous consultations to develop a consensus platform.
C. Indicators of Success
Economic Opportunity –Professional Skills Training and Job CreationFifty-six formerly unemployed high school drop-outs from El Alto have signed one-year contracts for work in the jewelry, carpentry, and sewing industries through a program operated by OTI/Bolivia grantee. The grantee provided intensive skills training and internship opportunities to these youths from El Alto's poorest districts. Because the training targeted sectors with skilled labor needs, the program achieved a very high course completion and job placement rate.
A new methodology for linking small and micro-enterprises recently led to 111 new contracts signed between local businesses and the municipality of El Alto. These contracts were generated at an investment fair in El Alto supported by OTI/Bolivia. Similarly, OTI/Bolivia helped fair organizers in Cochabamba systemize and publish their results nationwide so that other municipalities can learn from their experiences.
Economic Opportunity-Income GenerationSeveral dozen formerly homeless young people are now generating a total of $200 a week through selling recyclable material. An OTI/Bolivia grant provided a home for these youths and helped them develop a source of income. Since receiving the grant, the recipient signed agreements with the Chamber of Commerce, the World Food Program, and local schools and universities to purchase their recyclables.
Constituent AssemblyIn a recent speech at the closing ceremony of the Constituent Assembly simulation, President Mesa spoke about the importance of promoting dialogue and information on critical national issues, which is one of OTI/Bolivia's program objectives. The two-week-long simulation, organized by an OTI/Bolivia grantee sought to promote realistic expectations on the process of revising the constitution and clarify views on key issues. The 35 delegates who participated in the simulation represent the country's main political parties, indigenous groups, unions, and associations. The simulation was widely covered in the national media, and its conclusions are informing indigenous, rural and other marginalized communities on the constitutional revision process and its potential implications for Bolivia's political institutions and social structures.
An OTI/Bolivia grantee, based in El Alto, signed an accord with the Coordinating Committee for the Constituent Assembly (UCAC), the government body responsible for organizing the Assembly. The agreement stipulates UCAC will provide trainers for the grantee's workshops to develop accurate information on the issues surrounding the Assembly. In addition, the accord ensures that the ideas generated through the workshops will be taken into consideration at the Assembly. This partnership is an example of how OTI/Bolivia's grassroots programs have contributed to strengthening the government-citizen feedback loop, which has not functioned well in Bolivia for years.
Government Communication
The events of October 2003 demonstrated how far removed the Bolivian government was from public opinion. With OTI/Bolivia's help, the Mesa government has taken a number of steps to ensure that it receives continuous feedback from key social sectors, including civil society groups. OTI/Bolivia supported the government in its "Bolivia on its Birthday Campaign," in which the communications office of the Office of the Presidency launched a contest inviting civil society groups to offer solutions to the country's key problems. Over 240 suggested solutions for the specific problems defined by each of Bolivia's 15 Ministries came in from all over the country. The government has agreed to implement the best proposals, as determined by a group of independent experts, as an indication of its commitment to inclusive governance.
OTI/Bolivia has helped the government create linkages between some of its existing programs to leverage resources and reach a larger audience. For example, following suggestions that arose during a meeting of representatives of OTI/Bolivia and the inter-ministerial "Buy Bolivia" campaign, information on the campaign will now be included in training materials for municipal elections candidates, provided by the Ministry of Popular Participation. This will promote awareness of the new campaign and its opportunities to those who may one day play an important role in its implementation.
Next Steps/Immediate Priorities
Rising gasoline prices and the transport strike that paralyzed much of the country for a day reinforced the need for the Government to deliver on its pledge to provide Bolivians with enough natural gas for domestic consumption. OTI/Bolivia is developing a comprehensive strategy to support the conversion of vehicles from gasoline to natural gas and to educate the public, particularly in El Alto, on the natural gas issue.
During the next month, OTI/Bolivia expects to approve a number of grants related to the municipal elections. The grants will concentrate on providing information to the public, encouraging voter turn-out, and facilitating discussions between candidates and the electorate. As in most of its work, OTI's primary focus will be on indigenous populations and youth.
For further information, please contact:
In Washington, D.C: Amy Frumin, LAC Program Manager, 202-712-4231, afrumin@usaid.gov
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