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USAID/OTI Bolivia Field Report
March 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. OTI's implementing partner is Casals and Associates. The budget in FY 2004 was $6.3 million, and in FY 2005 is $5.5 million
Country Situation
During March, Bolivia's political crisis reached a critical stage as blockades intensified, key legislation languished in Congress, and President Mesa turned in a letter of resignation to Congress. Mesa's resignation, which came on the first Sunday of the month, took the country by surprise. During his resignation speech, the president expressed frustration with the destructive intransigence of his opponents, singling out Evo Morales of the party Movement towards Socialism (MAS), and Abel Mamani of the leftist, El Alto-based community association Fejuve. He also said that continued demonstrations and blockades were "strangling the country."
The Bolivian Congress quickly rejected Mesa's resignation by a near-unanimous vote, a decision that initially appeared to give the president a stronger mandate to pass his more business-friendly version of a new law on hydrocarbons, and to enforce a mano justa, or hand of justice, on blockade protestors for "criminal activity." With the notable exception of MAS, members of Congress then signed an agreement to come to terms quickly on four key issues: 1) the hydrocarbons law; 2) the election of prefects; 3) a referendum on autonomy; and 4) the convocation of a Constituent Assembly to rewrite the constitution. Mesa also received a boost from the thousands of counter demonstrators that marched in La Paz in show of support. Within days, the House of Deputies passed a version of the hydrocarbons law, and Congress entered into behind-the-scenes discussions with the Mesa administration to negotiate conditions for him to stay in office through the end of his term.
But Mesa's apparent mandate and the spirit of political collaboration quickly evaporated. With political parties in Congress aggressively opposing the president, the economy further weakened due to blocked transit routes, and the judiciary's refusal to recognize the blockades as criminal acts. Mesa proposed early presidential and legislative elections, which was interpreted by many as a sign of his imminent resignation. Mesa said that general elections represented the only exit from Bolivia's political impasse and the only way to avoid widespread bloodshed and prevent the country's decent into "collective suicide." The proposal was rejected by Congress but seemed to spur debate within the legislative on several of the key issues agreed to earlier with Mesa.
Shortly thereafter roadblocks raised by protestors on major transit routes between La Paz, Oruro, Sucre, Cochabamba and Santa Cruz, were gradually removed as the negative impact on the economy was widely felt and the government made concerted efforts to negotiate protestors' demands. The unspoken political ceasefire and arrival of Easter holidays prompted a nationwide calm that prevailed through the end of the month. However, the problems at the root of the crisis remain unresolved and demonstrations are likely to re-emerge at any time.
Meanwhile, the final details of the most contentious issue currently facing the country, the law on hydrocarbons, remained in flux during the final days of March. The Senate continued to debate provisions of the "compromise" version of the law that passed in the lower house during mid-March. The most controversial provision of the draft bill will define the complicated formula of taxes and royalties that businesses will be charged for extracting and exporting hydrocarbons from Bolivia. The compromise bill is considered by the petroleum industry to be more tolerable than a version posited by MAS leader Morales and other socialist groups, but still investor "unfriendly" relative to an earlier version proposed by President Mesa. Mesa's version would have charged petroleum companies 18% in royalties and a maximum of 32% in taxes on their earnings. The version proposed by the opposition and supported by a consortium of socialist groups headed by Morales would, in addition to government taxes, charge royalties as high as 50%.
Ironically, President Mesa continues to have the support of the majority of the population. A research-firm poll conducted between March 9 and 15 found Mesa's support had increased from the end of February 52% to 61% by mid-March - there is also general recognition that there are few alternatives for president until Mesa completes office in August 2007. The same poll found that Evo Morales' support by mid-March had fallen from an end of January high of 31% to 21%.
USAID/OTI Highlights
A. Narrative Summary
OTI entered into a fruitful partnership with the Mesa administration to help the government strengthen its communication outreach and respond to the population's basic needs. The agreement grew out of a "working meeting" with President Mesa, which was attended by Ambassador Greenlee, USAID Director Ayalde, OTI Country Representative Katie Prudhomme, and Casals staff, to discuss new ways in which the OTI program can support the government's efforts. In addition to providing OTI with insight into the President's plan of action for 2005, the meeting validated the program's work and strategic objectives. President Mesa expressed appreciation for OTI's flexibility and fast implementation capabilities, citing the approach as a fine example for projects implemented by his own government.
To date OTI has provided 30 grants directly to government institutions. The grants work with the government to: cite progress in recent months; expand collaborative projects to provide natural gas connections to educational institutions in El Alto; rehabilitate schools in the regions; support a Ministry of Labor an anti-discrimination campaign; and support to the Ministry of Popular Participation to synthesize and disseminate information on the roles and responsibilities of prefects in a decentralized regional government. Additional ideas for future projects that will be considered in future meetings include: a nationwide campaign to build support for democratic values, participation and tolerance implemented through a government/civil society alliance; improved negotiations between stakeholders in conflictive areas; and television and radio spots on economic trends, in coordination with the Ministry of the Economy.
B. Grants Activity Summary
| Community Development |
1 |
$ 215,000 |
10 |
$ 409,547 |
| Dialogue and Civic Education |
2 |
$ 71,000 |
85 |
$3,156,014 |
| Economic Opportunity |
7 |
$ 116,800 |
32 |
$ 835,273 |
| School Reconstruction and Education |
2 |
$ 47,200 |
24 |
$ 552,708 |
| Total |
12 |
$450,000 |
163 |
$4,953,542 |
During March, OTI committed a total of $450,000 to 12 new grants. All told, OTI has programmed 163 grants totaling just under $5 million. New grants include:
- A $215,000 initiative to provide legal documentation to 25,000 disenfranchised, rural citizens
- A $16,000 pilot program to convert municipal vehicles to natural gas in El Alto
- A $56,300 grant to the Ministry of Labor for an anti-racial discrimination media campaign
- A pair of employment generation projects to El Alto business associations totaling $35,000
- Two school infrastructure improvement projects totaling $47,200
C. Indicators of Success
Building a Culture of Economic Growth – A $7,000 OTI grant to a group of 40 female producers, allowed the group to complete construction of the new processing center, which will increase its production of better quality, cleaner products for sale in regional fruit and vegetable markets. The initiative will strengthen the local job market and increase the producers' income. Several area communities have shown interest in joining the association as a result of the new center.
Positive Results from School Reconstruction Activities – During the past six months, OTI has implemented a variety of activities including the renovation and completion of classrooms, improvement of basic utilities; delivery of student desks and chairs, books, and other equipment; and equipping of new computer laboratories and video centers. Among numerous positive indicators:
- OTI has programmed 24 grants for $464,000, distributed among 9 El Alto districts and four altiplano provinces.
- A total of 26,260 students, or 10% of the student population of El Alto, have benefited directly from OTI education projects.
- OTI has improved conditions at 25 overburdened schools, or 13% of the total number of schools in El Alto, and at another 5 preschools.
- Two-thousand student desks, made in Bolivia, have been delivered to public schools with another 1,700 scheduled for delivery.
- The funding of 90 reconstructed and rehabilitated classrooms has provided nearly 7000 days of work for unemployed laborers.
Program Recognition from Key Partners – El Alto Mayor Pepe Lucho Paredes: "Iniciativas Democráticas is transparent and participatory, and has been extremely helpful to the city (of El Alto). OTI's work is helping to dispel certain preconceptions regarding the U.S. government agenda in Bolivia."
Next Steps/Immediate Priorities
In the month of April, OTI will continue to explore new avenues for responding to Bolivia's political crisis, including expansion of its support to the government for conflict mitigation and information diffusion initiatives.
For further information, please contact:
In Washington, D.C: Amy Frumin, LAC Program Manager, 202-712-4231, afrumin@usaid.gov
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