Overview
For the past several decades, Bolivia has progressed
significantly on political and economic fronts. However,
recurring social instability arises around issues such
as the government’s tight fiscal dilemma, coca
cultivation and its fractious social effect, and longstanding
ethnic tensions and significant poverty.
In 2003, widespread social unrest erupted around several
issues, including a proposed plan to export natural
gas, a recently discovered resource. The unrest left
nearly 60 people dead and forced the resignation of
President Gonzalo Sanchez de Lozada. His vice-president,
Carlos Diego Mesa, assumed the presidency and has attempted
to bring stability and democratic process back to Bolivia.
A recent (July 2004) referendum on Bolivia’s gas
has helped President Mesa gain some legitimacy.
Although the referendum passed with overwhelming support
for Mesa, who remains popular with a 70 percent approval
rating, the interpretation of the referendum’s
outcome into policy and practical steps remains to be
seen. Additionally, the upcoming Constituent Assembly
and municipal elections will also be important for President
Mesa to navigate.
Bolivia is one of the few landlocked nations in South
America and one of the poorest countries in the Western
Hemisphere.
Ongoing issues that Bolivia faces include:
- Fifty-eight percent of the population lives in poverty,
almost one in four in extreme poverty, which is concentrated
in rural areas;
- Bolivia has the second highest of infant, child
and maternal mortality rate in the hemisphere; and
- The illegal cultivation of coca leaf brings attendant
social and political problems.
The USAID Program – USAID is
spending about $95 million in 2004 to increase economic
opportunities in business/agricultural development and
trade, especially in rural areas; increase the efficiency
and transparency of government and courts at all levels;
improve access to health services; improve natural resource
management; and promote social and economic development
in coca growing areas in order to reduce the dependence
on the coca economy.
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