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Bolivia
>> Regional Overview >> Bolivia Overview
Previous Years' Activities
2002, 2001, 2000, 1999, 1998, 1997
Last updated: 32
THE DEVELOPMENT CHALLENGE: Bolivia has enjoyed macroeconomic stability for over 15 years and free democratic elections over the last 19 years. The Government of Bolivia (GOB) has implemented an impressive array of key policy and institutional reforms: financial market and trade liberalization; divestiture and privatization of the major state enterprises; establishment of the independence of the Central Bank; laws for popular participation and decentralization; pension reform; establishment of independent regulatory bodies and independent superintendencies; and customs reform. Nevertheless, the Bolivian economy has grown at less than three percent per annum on average during this 15-year period, or at a mere 0.5% more than population growth.
Located in the heart of the Andes, landlocked and rugged, Bolivia remains one of the most impoverished nations in the hemisphere. A large income gap between rich and poor continues to widen. The wealthiest 20% of Bolivians possess 57.5% of the country's total income while the poorest 20% have only 3.1%. Constraints such as weak institutions, limited financial services, inadequate infrastructure, low productivity in rural areas, inadequate technological development, lack of competitiveness, and a shortage of human capital continue to impede economic growth and efforts to reduce poverty.
63% of Bolivia's population live in poverty. In June 2001, the World Bank and the International Monetary Fund boards approved a GOB-submitted Poverty Reduction Strategy Paper (PRSP), opening the way for $1.5 billion in debt relief over the next 15 years under the Heavily-Indebted Poor Countries Initiative (HIPC). Bolivia's external debt totals approximately $4.5 billion, with gross domestic product totaling $7.8 billion. The poverty reduction strategy aims to alleviate poverty by promoting the efficient and transparent use of resources from the HIPC debt relief, the GOB, and all donors.
U.S. foreign policy priorities in Bolivia emphasize supporting Bolivian democracy and counter-narcotics efforts. A stable democracy is a necessary condition for continued success in combating narcotics production and trafficking. Bolivia is also a committed U.S. ally in the war on terrorism.
THE USAID PROGRAM:
FY 2002 Estimate: $84.373 million FY 2003 Request: $104.072 million The Program Data Sheets cover the five development objectives for which USAID is requesting funds. These five objectives concentrate on nurturing and institutionalizing democratic principles, providing opportunities to increase the incomes of the poor, improving the health of Bolivians, protecting the environment, and promoting alternative development. FY 2002 and FY 2003 funds will be used to continue implementation of the ongoing programs as described in the FY 2002 Congressional Budget Justification. USAID/Bolivia also intends to use FY 2002 funds to carry out certain new activities under the ongoing objectives. The specific activities to be funded by FY 2002 and FY 2003 appropriations are described in more detail in the Program Data Sheets.
ONGOING PROGRAMS FOR WHICH NO NEW FY 2002 OR FY 2003 FUNDING IS REQUESTED: None
OTHER PROGRAM ELEMENTS: In addition to the bilateral program, several centrally-managed activities are being implemented in Bolivia. Child survival activities managed by the Democracy, Conflict and Humanitarian Assistance Bureau are implemented by three U.S. private voluntary organizations (PVOs): Medical Care Development International, Save the Children, and the International Eye Foundation. All activities are carried-out in under-served rural areas of Bolivia where child health is at greatest risk. Political party training is done by the National Democratic Institute, and Partners of the Americas promotes political participation. Support from the Economic Growth, Trade and Agriculture Bureau is also provided to expand financial services in Bolivia.
OTHER DONORS: The number of donors is significant, with the participation of eight multilateral and 15 bilateral donors. Of the bilateral donors, 13 are Development Assistance Committee members. Japan and the United States are the largest bilateral donors. The donors are organized around four working groups in support of the GOB's National Poverty Strategy and according to their main areas of interest. The groups are: Sustainability of the PRSP (macroeconomic policy, HIPC initiative, and access to markets), led by the IMF and European Union; Implementation and Monitoring of the PRSP (public investment, Bolivian Comprehensive Development Framework, national dialogue, and social control), led by Holland; Institutionality (anticorruption, rule of law, and modernization of the State), led by Denmark and the United Nations Development Program (UNDP); and Participation and Social Integration, led by UNDP. USAID participates in the majority of the groups and leads the Rule of Law sub-group. In addition, Spain, the United Nations Drug Control Program, and the European Union are active members of the Alternative Development Donor Group, led by USAID.
Program Data Sheets
- 511-001 Increased Citizen Support for the Bolivian Democratic System
- 511-002 Increased Income for Bolivia's Poor with Emphasis on Targeted Communities Directly or Indirectly Assisted by USAID
- 511-003 Improved Health of the Bolivian Population
- 511-004 Forest, Water and Biodiversity Resources Managed for Sustained Economic Growth
- 511-005 Illegal and Excess Coca Eliminated from Bolivia
Country Background Information Resources
CIA Factbook
Library of CongressNational Geographic Country Maps
State Dept. Country Information
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Last Updated on: May 29, 2002 |
