USAID/OTI Bolivia Field Report
July 2005
Program Description
The USAID Office of Transition Initiatives (OTI) Bolivia program promotes peaceful participation in El Alto and other marginalized communities and increases access to balanced information on issues of national importance. OTI also expands economic opportunity by supporting short-term, community-based activities in distressed areas, such as El Alto and the altiplano, which are designed to increase self-reliance. Issues affecting youth and indigenous groups are cross-cutting themes in all of OTI/Bolivia's work. In response to Bolivia's ongoing political crisis, OTI is working closely with the transitional government to meet critical needs and help the country prepare for elections. OTI's implementing partner is Casals & Associates. The budget in fiscal year 2004 was $6.3 million and in fiscal year 2005 is $5.5 million.
Country Situation
Following nationwide protests in June, which led to the resignation of President Carlos Mesa, a calmer July has allowed interim President Eduardo Rodriguez and the Congress to move forward on several key political initiatives. Congress agreed that Presidential and Vice-Presidential elections as well as elections for legislators and prefects will be held on December 4. July 2006 was set as the date for Constituent Assembly delegate elections and a referendum on autonomy. While agreement exists on the timeline, the likely controversial questions of how to frame the autonomy referendum and formulas for electing Assembly delegates remain on the agenda for the next session of Congress.
While President Rodriguez' first full month proceeded smoothly, the naming of interim prefects for each of Bolivia's nine departments did provoke some conflict. He announced the selection of nine neutral officials that would serve their terms "on the margins of the electoral process," avoiding any action that might favor one party's candidate over another's in advance of December's elections. However, these selections immediately incited protests from social groups in five of the nine departments. All of the protests subsided within a few days, suggesting a level of "protest fatigue" among the populace.
Following the announcements of the electoral timetable, political and social leaders began alliance building and inter-party discussions as they prepared to launch their election campaigns. Prominent political figures, including Samuel Doria Medina, Jorge "Tuto" Quiroga and Evo Morales, announced their Presidential candidacies by month's end. Meanwhile, the recently formed Frente Amplio, a group of six mayors from important Bolivian cities including Sucre, La Paz and Cochabamba, announced the presidential candidacy of its Potosí representative, Mayor René Joaquino Cabrera who had been expected to join the ticket of MAS leader Morales.
In a demonstration of the continuing national sensitivity to the hydrocarbons issue, President Rodriguez shuffled his cabinet, replacing Finance Minister Luis Carlos Jemio with Waldo Gutiérrez, a longtime public servant who had served under Jemio as Vice Minister of the Treasury. During a trip to the U.S., Jemio suggested that the transition government was considering the postponement of the migration of shared-risk petroleum contracts between private enterprises and the Government of Bolivia (GoB) which would not only violate the terms of the hydrocarbons law, but would likely lead to fresh blockades and protests as well.
The GoB entered into negotiations with three of the largest petroleum firms in Bolivia, Repsol YPF, British Gas and France-based Total, to discuss the firms' concerns over the country's new hydrocarbons law. According to the firms, the negotiations represent a final opportunity for the GoB to avoid international arbitration. Meanwhile, high-level officials from Bolivia's state hydrocarbons company attended a meeting in Peru to discuss Bolivia's participation in an "energy ring" with countries in the Southern Andes. After the civil unrest in June, there was speculation that Bolivia would be left out of this economic alliance.
Economic news – A historic half-day seminar held in El Alto brought together business, political and social interests from Santa Cruz and El Alto to discuss "A United Agenda: Employment Generation." All involved considered the seminar a positive first step towards initiating a constructive dialogue between business interests and social leaders regarding economic development on what have been perceived as traditionally conflicting agendas. The El Alto Chamber of Commerce facilitated the event, at which unlikely bedfellows FEJUVE President Abel Mamani, and private business leader Branco Marincovic, spoke and actively participated. All sides agreed to follow up with future dialogue and possible employment generation accords.
The National Superintendent of Banks announced that the Bolivian economy grew at a rate of four percent during the first six months of 2005. Despite being below the 4.6 percent rate of growth that had been projected by the government, the four percent growth is surprisingly robust considering the high incidence of transit blockades that have repeatedly stifled interdepartmental and cross-border commercial activity since January.
OTI Highlights
A. Narrative Summary
OTI approved seven new grants in July, totaling $387,400, including school rehabilitation and support for government efforts to address local conflicts. OTI's slightly reduced spending in July allowed OTI to fine tune its coordination mechanisms with the new government and Casals to focus on implementation. One new grant represents an important communications initiative designed to provide the government's communications branch with the capacity to broadcast in Aymara, Quechua and Guarani. It will also promote close working relationships and information exchange between 21 correspondents working for the national government and 24 local radio and television stations in areas of highest indigenous concentration. The project will ensure a flow of information to promote tolerance in Bolivia's multi-ethnic society while helping the government improve outreach and solicit input from rural, indigenous communities.
In an effort to strengthen the understanding of democratic processes, key national issues (decentralization, departmental autonomy, nationalization of hydrocarbons) and to promote participation in the December 2005 general elections, OTI will also fund informational workshops in 112 rural municipalities (reaching up to 400 rural communities) in the Departments of Oruro and La Paz. Information will be distributed to 60,000 people and 140 youth representing five different community-based indigenous organizations will be trained on key national issues. This activity represents additional efforts to ensure that information reaches rural populations who are otherwise uninformed on key issues and are less likely to participate in elections as a result.
B. Grants Activity Summary
| Community Development and Economic Opportunity |
2 |
$ 54,000 |
64 |
$1,810,375 |
| Civic Education for Emerging Leaders |
|
|
29 |
$ 980,725 |
| Information Diffusion and Dialogue |
3 |
$ 249,400 |
72 |
$2,832,267 |
| School Reconstruction and Education |
2 |
$ 84,000 |
35 |
$ 964,767 |
| Total |
7 |
$387,400 |
200 |
$6,588,134 |
During July, OTI organized a high-profile public event for a $28,000 project designed to generate export-industry employment for unemployed women in El Alto. This low-cost private partnership has been lauded both by the municipality and the private sector as an example for El Alto's future. In collaboration with the Municipality of El Alto, OTI support provided furniture, uniforms and sewing equipment to turn two empty warehouses into production centers where 252 women with sewing experience will adorn clothes for export by América Textiles, the largest exporter in the country. The Ambassador spoke at the event, which was also attended by the Mayor of El Alto, the Minister of Labor, and the head of the El Alto Chamber of Commerce. If the pilot project is successful, OTI will replicate the project in other districts of El Alto. A synergy with USAID's integrated development program this month in El Alto also highlighted OTI's support of export-oriented economic opportunities. OTI grantee Banabeni, an association of banana producers founded with support from USAID's integrated development program, was inaugurated during the ceremony.
B. Indicators of Success
Tapping into Private Bolivian Businesses to meet Public Sector Demand – Regional "demand fairs" supported by OTI continue to reap dividends for Bolivia's micro- and small-enterprises. An anti-corruption initiative designed to promote transparency in public procurement of goods and services, the demand fairs have led to the signing of hundreds of new contracts between participating businesses and government institutions. At a fair held in the Department of Sucre, 105 new contracts were signed by small businesses, 70 percent of which are women-owned. The transactions met 100 percent of the procurement needs solicited by the municipal government. At the most recent fair, held in Santa Cruz, 60 percent of the business meetings resulted in the signing of new contracts. OTI's $168,000 grant provides for the organization of the six nationwide fairs, training of municipal officials, and technical assistance for small businesses that want to participate in the fairs' procurement processes.
New Synergies between Natural Gas-Related Activities in El Alto – In support of GoB's efforts to meet its twin goals of expanding the natural gas system in El Alto and increasing employment in the impoverished district, OTI recently funded training for 90 unemployed youths in how to conduct domestic natural gas connections in anticipation of future demand. OTI is also funding the installation of new natural gas regulators and valves in District 3 of El Alto that will expand the secondary gas networks and facilitate connections for health and educational institutions. A private company that OTI used to install the valves and regulators has agreed to provide internships to the trained youths to help provide natural gas connections to the hospitals and schools. The company will provide jobs to the best trained youths based on their performances during the internships.
Celebrating results – In recognition of the anniversary of the Dept of La Paz, many of OTI's grantees organized events to profile the impact of their projects. In El Alto, 2,500 community members participated in a civic parade to celebrate the results of an OTI-supported academic competition among schools while in La Paz, OTI grantee Strategies in International Development organized a commercial exhibition for 49 Altiplano producers associations that it helped conclude contracts with La Paz buyers.
Next Steps/Immediate Priorities
OTI will ramp up its information distribution activities as the pre-electoral season takes shape to ensure that indigenous and rural populations have the same access to information on the political process as their urban counterparts. OTI will also continue its work with the new Rodriguez government to help it with conflict resolution and preparations for the elections.
For further information, please contact:
In Washington, D.C: Amy Frumin, LAC Program Manager, 202-712-4231, afrumin@usaid.gov
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