USAID/OTI Bolivia Field Report
July 2004
Program Description
Following widespread protests in October 2003 that forced the resignation of Bolivian President Gonzalo Sánchez de Lozada, former Vice-President Carlos Mesa assumed the presidency. Since then, President Mesa has been attempting to respond to demands by large sectors of the population and especially members of a number of indigenous and opposition social movements. The first promised action was the July 18 referendum on the export of natural gas, which is to be followed by a revision of Bolivia's hydrocarbons law. Mesa has also promised to convene a constituent assembly to revise Bolivia's constitution in mid-2005. However, despite progress on these promises, tensions remain very high as social movements still frequently opt to take their demands to the streets.
OTI/Bolivia’s program seeks to:
- Promote peaceful participation in El Alto and other marginalized communities; and,
- Increase peaceful dialogue on issues of national importance.
The major program focus areas are:
- Government communications: support to non-partisan communications initiatives to reach Bolivia's diverse population.
- Civic education: use of radio and other media for programs that emphasize key aspects of the current situation involving people in and around El Alto.
- Economic opportunity: short-term community-based activities in distressed communities, e.g., El Alto and the altiplano, designed to increase self-reliance and reduce dependence on government institutions.
- Peaceful dialogue: support of efforts to facilitate better social linkages and a national dialogue on strategic political issues.
- Focus on youth: involve youth as a cross-cutting element in all projects wherever feasible. Over half the population of El Alto and the surrounding area is less than 20 years of age and a large proportion of the demonstrators who challenged armed security forces in La Paz were youth.
OTI's implementing partner is Casals & Assoc. and the FY 2004 budget is about $6.5 million.
Country Situation
The July 18 gas referendum defined the country's political landscape during the month and marked an important benchmark for Bolivia. Despite predictions of violence, blockades, and boycotts, over 60 percent of Bolivia's voters turned out to vote in favor of President Mesa's proposals to reform the country's hydrocarbon policies and industry. The "yes" vote on this highly controversial and long-simmering issue means that Bolivia will export gas, while increasing taxation on companies operating in the country. Most observers believe the referendum greatly strengthened President Mesa, while weakening the sectors that opposed the exercise. A poll conducted by Apoyo, Opinion and Mercado for the newspaper La Razon at the end of July indicated that more than 50 percent of Bolivians are satisfied with the results of the referendum. In addition, the image of the Mesa government has improved from 50 percent in June to 60 percent in July. Mesa's personal popularity rating is currently at 68 percent.
Despite the overwhelming vote in favor of the five complex referendum questions, the debate on the country's hydrocarbon policy is far from over. Mesa is expected to meet significant resistance when he presents his reform proposal to Congress in early August. While alliances shift regularly, parties are using the opportunity for media attention to bolster their own declining support bases. One of the wildcards in this situation is Evo Morales, head of the Movimiento al Socialismo (MAS) party and coca movement, who supported Mesa during the referendum. Morales is now opposing the Mesa government, most likely as a response to accusations within his own party that he had drifted too far to the center. However, given Mesa's popularity many observers believe that parties recognize that their own survival may depend on supporting his proposal. Mesa's proposal would raise taxes on companies operating in Bolivia and change future contractual terms, without radically altering the current conditions under which foreign companies operate.
The altiplano and the Yungas, one of the coca growing centers, are still areas of frequent conflict (the October 2003 protests centered heavily in the altiplano city, El Alto). Citizen assaults on municipal officials and offices continue to occur, sparked by alleged corruption and frustration with the lack of delivery of public services. One example is the city of Viacha, which is now divided among factions supporting its seven different lieutenant mayors. There are 15 rural communities in the throes of leadership crises and another 26 with funds frozen for different types of internal mismanagement problems. (El Diario, July 25, 2004).
During the last days of July, President Mesa used his constitutional prerogative to make recess nominations for vacancies in the judicial branch, which Congress had been unable to fill for ten years. Mesa appointed six judges to the Supreme Court, nine district judges, and several to the independent Consejo de Judicatura, which oversees judges' performance. These nominations were welcomed widely, as the judicial system had been handicapped by operating with too few or interim members. In addition, the appointments were made with names that had been vetted with civil society or independent consultants, and are considered to be qualified professionals. Congress, despite some muted protest, is likely to approve Mesa's nominees.
On the economic front, there are some encouraging signs, although few Bolivians appear to be seeing any difference in their pocketbooks. For the first time in 14 years, Bolivia experienced a trade surplus in the first semester quarter of 2004. Imports were down six percent and exports grew by close to 50 percent compared to 2003. This is largely due to increased agricultural exports (such as soya and quinua) and higher prices for tin, gold, and zinc. The positive news was tempered a bit by the report that the actual number of exporters has decreased. Nevertheless, the Bolivian economy is projected to grow by four percent in 2004.
USAID/OTI Highlights
A. Narrative Summary
During July, OTI support of objective education and voter turnout on the gas referendum bore fruit, while in the latter half of the month the focus of activities shifted to municipal elections. On the referendum, OTI worked with a wide variety of civic groups (over 29 organizations) to provide support for education efforts. OTI grants supported information dissemination at popular levels in rural and urban areas through three different educational pamphlets and TV news shows and radio programs in Spanish and native languages.
To maintain program quality and consistency of message, OTI conducted training for more than 200 facilitators from 20 organizations and developed a schedule of activities to monitor the numerous workshops, informal discussions, and presentations. This approach ensured comprehensive dissemination of information in El Alto and the Department of La Paz, while complementing the numerous media-related activities supported by OTI at the national level. While OTI efforts centered on referendum projects due to high demand, during July it also continued implementing 50 grants focused on economic opportunity and other non-referendum issues.
OTI's three most recent grants support the process for educating the public on the new laws relating to the December municipal elections (ley de agrupaciones ciudadanas y pueblos indigenas). OTI had to move quickly because the law no longer requires a candidate to be a member of a political party in order to run for office and only allows for people to register until the first week of September.
B. Grant Program Activities
For the month of July, OTI/Bolivia approved 15 new grants amounting to $483,591; the total number of grants approved through July is 83, amounting to $1,961,511.
C. Program Success Indicators
Gas Referendum Projects
- As other donor assistance was very limited, OTI fulfilled a critical role in providing last minute assistance to groups interested in providing education on the referendum. OTI had 19 grants that focused directly on the referendum and also worked through 10 other partners to distribute materials. In addition, OTI support enabled other groups to reach a wide audience through the production of 600,000 copies of FAQ (frequently asked questions) and other information on the referendum and gas issue.
- Although it is difficult to draw direct links between OTI's efforts and the high voter turnout in the referendum, it is clear that the citizens of El Alto used the non-partisan information to draw their own conclusions and vote. For example, one of OTI's grantees helped provide information to 2000 university students in some of the most marginal districts in El Alto. Similarly, another grantee reached almost 8,000 people in 21 municpalities in the altiplano. In most of these areas, central government officials have not been present for years due to threats from local leaders.
Government Communication
- With OTI assistance, the government has been able to rehabilitate and equip some of its state media. One notable example is Radio Illimani, which is broadcasting again on all three frequencies after having been unable to broadcast in La Paz for years because of outdated equipment. OTI support for state media is based on the government's commitment to ensure fair and objective reporting in the future through legal reform.
- Contacts were established with the government for the production of radio and TV news shows to inform the public on the referendum. In addition, OTI supported 13 workshops for journalists that helped broaden the government's network of local media, journalists, and leaders. The widening of this network will benefit future communications activities and has already promoted more rapid conflict resolution in two rural communities and government entry into conflict areas such as Ayo Ayo and Achacachi.
Economic Opportunity in El Alto
- OTI efforts to help small businesses take advantage of municipal procurement processes has enabled 22 businesses in El Alto to sign public works contracts with the municipality.
- A volunteer association that helps artisans in El Alto has increased its sales by 90 percent since OTI helped it produce a catalogue and create new designs.
- An OTI project that provides skills training and support to adolescent mothers has succeeded in attracting the attention of the government, and the municipality of El Alto will be providing the group with land to build facilities.
Next Steps/Immediate Priorities
OTI will support the government in publicizing and providing information on the hydrocarbons law (or the draft bill, depending on the timing of the legislative debate). This will involve training for journalists on researching and reporting on the legislation and educational materials for the general public. OTI will also support the production of independent television and radio spots and shows in three languages on the content of the law. In upcoming months, OTI will continue to support education and information on and participation in the December municipal elections. In addition, OTI will be testing several pilot projects on the Constituent Assembly.
For further information, please contact:
In Washington, D.C: Amy Frumin, LAC Program Manager, 202-712-4231, afrumin@usaid.gov
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