USAID/OTI Bolivia Field Report
February 2005
Program Description
The 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. OTI's implementing partner is Casals and Associates and the FY 2004 budget was $6.3 million, and FY 2005 is $5.5 million.
Country Situation
After a tumultuous January during which widespread protests were sparked by the government's increase in diesel prices, February began with a few positive signs for the Mesa administration. Concessions made by President Mesa temporarily reduced tensions in Santa Cruz, which had used the January protests to win a nationwide referendum on regional autonomy, and in El Alto, where protesters forced the government to cancel the contract of the French water utility company, Aguas de Illimani. The Mesa government successfully ended the 10 day blockade of the main route to the Yungas, a key transport nerve between the lowland and highland regions of the country. The government did so without conceding to the demands of the strikers (primarily coca growers), which called for the removal of a roadside police checkpoints for narcotics.
The president carried out the most significant cabinet shuffle since he came to power in October 2003, replacing nine of 15 cabinet ministers, as well as dozens more vice-ministers and presidential delegates. Among those replaced were Ministers from the politically sensitive Ministries of Popular Participation, Agriculture, Indigenous Affairs and Economic Development.
A February poll showed the President's favorability rating increased five percentage points from a January low of 47 percent. The poll, which was only conducted in four major cities, showed an unusually high rating for Mesa in La Paz (78 percent), Cochabamba (75 percent) and El Alto (70 percent), while he received an expected much lower approval in Santa Cruz (18 percent). Despite high approvals in three of the four major cities, a new round of nationwide protests and blockades over unresolved political conflicts loom over Bolivia's democracy.
Hydrocarbons Law – After taking a highly criticized 10-day recess for carnival, Congress initiated double sessions to address the hydrocarbons law and the legal framework for the autonomy referendum. The tug-of-war between populists and business interests in Congress over the future of Bolivia's hydrocarbons industry shifted in favor of the former as left-leaning parties successfully inserted a new article into the draft hydrocarbons bill. The article stipulates that indigenous groups and communities must be consulted before international oil companies can conduct operations in Bolivia, seriously complicating the State's ability to facilitate the development of the hydrocarbon industry, while strengthening the hand of any political interest group desiring to "protect" the country's petroleum reserves from "exploitation." Industry analysts cited the new article as just one more in a series of disincentives to foreign investment in Bolivia over the past two years. The Congress continued its contentious debate over a key tax rate that businesses would be charged for extracting and exporting hydrocarbons from Bolivia, a consideration that is also being watched closely by industry interests.
Autonomy Issue in Santa Cruz – Santa Cruz' push for a referendum on autonomy became increasingly complicated this month as the Mesa Administration and opposed political groups disagreed over the timing and legality of a referendum in the face of competing electoral initiatives. The Civic Committee of Santa Cruz demanded that President Mesa call a referendum on autonomy by decree. Meanwhile, a block of social organizations in other departments that want to treat the question of autonomies during a Constituent Assembly has formed an alliance called the "Social Summit Pro-Constituent Assembly." This group includes Fejuve, the neighborhood association of El Alto that spearheaded the blockades in January, and groups from other departments who are concerned that the Santa Cruz demand for autonomy will dominate the nation's political agenda. Ultimately, Congress said it would reject Mesa's proposal of holding elections for prefects, delegates for the Constituent Assembly and a referendum on autonomy on the same day. The most likely scenario, contrary to the wishes of the "Social Summit," appeared to be a "two in one" electoral process in June 2005, which would postpone the election of delegates for the Constituent Assembly.
Fejuve continued to play a game of brinksmanship with both local and national government interests over a series of grievances. In addition to resentment over the perceived lack of urgency on the part of the government to prioritize the Constituent Assembly and pass a new hydrocarbons law, Fejuve called for the immediate departure of Aguas de Illimani, the French water utility that was forced to curtail future services after massive January protests over high rates and poor services. The mayors of La Paz and El Alto urged patience, noting that the company's sudden departure could result in lack of basic water services for a large part of the population. Fejuve announced plans for a general strike beginning the first week of March, while senior-level representatives of the group entered the second week of a highly publicized hunger strike, further increasing pressure on the government to respond quickly to its demands.
USAID/OTI Highlights
A. Narrative Summary
OTI approved eight new grants for $451,780 in February. OTI instituted a new procedure for the four grants that were larger than $50,000; the approval process for larger grants now includes having grantee organizations defend their proposals in front of a committee of OTI and Casals' staff that reviews, discusses and approves grants. This process ensures a thorough review and richer discussion about new initiatives, and strengthens the relationship between OTI/Bolivia staff and grantee organizations.
Two of the new projects are part of a two-part initiative to provide natural gas connections to over 7,000 students in 10 schools, and to nearby educational and health centers, in District 3 of El Alto. An accord between the national petroleum board (YPFB) and neighborhood associations will ensure that the government finishes construction of a secondary network of gas pipelines that will facilitate gas connections at a small cost to schools or neighborhoods. Area groups agreed to provide labor, while YPFB will provide pipes and other material for the network. Working through a private engineering firm, OTI will fund the installation of a gas regulator and valve with enough capacity to serve the entire district for future connections. This project helps the government deliver on its promises but does not require relying on the government as an implementing body. The second part of the project will provide tertiary natural gas connections to be used in showers and kitchens at the participating educational and health centers.
The other six grants include:
- A $151,000 grant to an NGO that represents a confederation of indigenous groups from Eastern Bolivia, which will provide intensive political leadership training to 60 indigenous leaders;
- A $20,000 grant to a cooperative of rural grain producers that will increase its productive capacity by 150 percent, benefiting families from 220 altiplano communities;
- A $69,000 initiative to improve economic prospects for several communities in the altiplano province of Aroma by increasing the productive capacity of small farmers and training newly elected authorities on municipal economic development and management;
- A $20,000 grant to the microenterprise support unit of the prefecture of La Paz to institutionalize an annual business exposition linking small businesses from El Alto with large government contractors; and
- Two school rehabilitation grants totaling $55,000.
At a project closing ceremony on February 16, attended by the Vice Minister of Justice, heads of the La Paz departmental electoral court and USAID Director Liliana Ayalde, a Bolivian NGO provided birth certificates to several hundred previously undocumented Bolivians. With birth certificates these immigrants to El Alto will now be able to access state health, educational, and state services and participate in elections. Also, USAID Deputy Director Edward Landau attended a pair of OTI-sponsored project closings on Wednesday, Feb. 23. OTI provided about $22,000 worth of furniture to the two schools, a benefit to over 3,000 students. The events highlighted collaboration between USAID and school officials, the parent-teacher associations and the municipality that made the projects possible.
B. Grants Activity Summary
| Community Development |
1 |
$ 69,400 |
10 |
$ 194,547 |
| Dialogue and Civic Education |
1 |
$151,940 |
85 |
$3,085,014 |
| Economic Opportunity |
3 |
$ 97,800 |
32 |
$ 718,473 |
| School Reconstruction and Education |
3 |
$132,640 |
24 |
$ 505,508 |
| Total |
8 |
$451,780 |
151 |
$4,503,542 |
C. Indicators of Success
Beneficiaries in El Alto – Out of a population of 800,000, the total number of direct beneficiaries of (and participants in) OTI/Bolivia activities in El Alto and the Altiplano is 205,984. This figure includes 570 day-workers that benefited from short-term construction work, and 35,000 public school children that have benefited as a result of the program's school rehabilitation projects.
Voter Registration for Disenfranchised Women in El Alto – In Bolivia, identification cards are essential to citizenship and the exercise of economic rights. This initiative initially contemplated awarding documentation to 104 women living in El Alto. During project design, the Vice Minister for Women's Affairs decided to reduce the number of beneficiaries and award the IDs for free instead of charging a fee to ensure that the poorest women were not excluded. The campaign also included a communication component via local radio designed to reach as many women as possible with details on the documentation process. In response, hundreds of women arrived at their corresponding municipal office project and paid a small fee, allowing the program to cover the cost of identification cards for 1,000 women from eight districts in El Alto, many more than the 104 originally targeted.
Information Diffusion – OTI delivered manuals on municipal governance to the newly elected local officials and oversight committees of the Departments of Chuquisaca and Potosi. At the request of municipal associations throughout the country, OTI has reprinted these helpful manuals, which were developed prior to the municipal elections. These manuals are being distributed to newly-elected local officials who are assuming office with limited training and few educational resources
Grantee Recognition – An OTI grantee that helped more than 1,100 immigrants to El Alto procure birth certificates was recognized by the mayor of El Alto as one of the key social institutions in the community.
Next Steps/Immediate Priorities
In the month of March, OTI expects to begin a large scale initiative in partnership with the National Electoral Court to provide birth certificates to over 25,000 undocumented citizens in the altiplano.
For further information, please contact:
In Washington, D.C: Amy Frumin, LAC Program Manager, 202-712-4231, afrumin@usaid.gov
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