Bolivia

In October 2005, the International Republican Institute (IRI) launched a civic education program to help the country prepare for a series of elections that began in December 2005 and ended in July 2006. Following the July 2006 constituent assembly elections, IRI supported citizens’ efforts to participate in the legislative process and in the drafting of a new constitution through Citizen Advisory Boards.

IRI’s current programs focus on improving governance in resource-rich but disenfranchised communities and creating economic growth so people see democracy’s tangible benefits.

Strengthening Good Governance at the Local Level

The perception that foreign oil and mining companies have exploited landlocked Bolivia is a driving force in the country’s politics. Local environmental and civic groups contend the mines harm local water supplies, destroy agriculture and that companies don’t pay taxes or royalties. Part of the problem is, despite desperate social needs, much of the revenue coming from natural resources is siphoned off by corrupt officials and communities are not realizing the benefits. In other cases, leaders cannot decide what to do with the cash influx and the money sits idle in bank accounts, benefiting no one.

To help address this problem, the International Republican Institute (IRI) initiated a program to improve local governance in resource-rich but disenfranchised communities by increasing efficiency and transparency in the policy-making process and integrating members of mining cooperatives, the Mining Chamber, local tourism associations, the craftsmen’s association, local universities, departmental labor associations and the civic committees in a transparent dialogue. In Oruro and Potosi, IRI’s trainings and workshops are helping citizens address concerns through open debate and political participation, rather than road blockades, demonstrations and violence.

As a result of IRI’s work, local governments, civil society and extractive industries are currently working on a common agenda with transparency and mutual accountability as their building blocks. Neighboring communities are also working together to address common problems and youth are taking an active role in identifying and solving community problems.

Promoting Entrepreneurial Spirit among Indigenous Communities

Since September 2006, IRI has been stimulating entrepreneurial skills among disenfranchised groups especially youth, women and indigenous communities. This initiative implemented in La Paz, El Alto and Santa Cruz, helps these groups take full advantage of the market economy and generate wealth at the bottom of the pyramid. Providing a more equitable distribution of wealth will gradually generate employment, eliminate the disparities in society and create an environment for democracy to consolidate.

Participants of the IRI program attend courses on entrepreneurship, creation of business networks and corporate social responsibility. They are also able to share best practices with other Bolivian entrepreneurs as well as entrepreneurs and financial experts from other countries.
As a result of the trainings, the trainees have created the Association of Entrepreneurs of Bolivia to develop a network and develop strategies to access the national and U.S. markets. Moreover, the Bolivian Chamber of Commerce, an active partner of the program, has made available a line of credit for the trainees and the necessary information to establish businesses in Bolivia.

Although a process of democratic consolidation was begun in the 1980s, Bolivia’s turbulent history continues to make its mark on politics. In October 2003, President Gonzalo Sanchez de Lozada resigned 14 months after taking office. Ethnic conflicts, coupled with plans for a tax hike and the nationalization of natural gas, led to deadly riots in 2003. Vice President Carlos Mesa assumed office and restored order. After a brief time, however, demonstrations quickly resumed, particularly in La Paz and El Alto and President Mesa was forced to resign in June 2005. Eduardo Rodriguez, the Supreme Court president, assumed office in a constitutional transfer of power and called for early elections within six months (December 18, 2005).

In December 2005, Movement Toward Socialism (MAS) leader Evo Morales won the presidency with a historic 54.3 percent of the vote - the widest margin of any leader since the restoration of civilian rule in 1982. Morales promised to alter the country's traditional political class structure and empower the nation's poor majority by nationalizing the energy sector, re-examining the current coca eradication programs and vowing to decriminalize coca growing. Morales was also highly critical of the "neo-liberal" economic policies that have been implemented in Bolivia over the past two decades.

On May 1, 2006, Morales fulfilled one of his campaign promises by announcing his intent to re-nationalize Bolivian hydrocarbon assets. Foreign energy companies were given 180 days to sign new contracts giving the Bolivian government a majority ownership and as much as 82 percent of revenues.

Acting on another campaign promise, Morales established a Constituent Assembly to begin the process of writing a new constitution aimed at giving more power to the indigenous majority. The process, however, has faced numerous challenges and the body continues to become more polarized. Both the opposition coalition and the ruling MAS party have spent more time disputing the rules and voting procedures of the assembly rather than debating the new charter.

As a result of the lack of progress, civil unrest continues to grow and has led to protests throughout Bolivia. In addition, the calls for autonomy in the eastern and southern parts of the country have further polarized society and increased the tensions between the regional and central governments.

Bolivia still has a long way to go. In light of the social unrest and subsequent democratic crisis, enhancing capacity so that institutions are more transparent, efficient and accessible; promoting the implementation of a law that addresses greater access to information; and building local government capacity are all necessary for a transparent and effective democracy.

Political Overview

Chief of State: President Juan Evo Morales, Movement Toward Socialism

Type of Government: republic

Suffrage: universal and compulsory, age 18

Elections Calendar

Program Overview

Focus of Program: good governance in resource-rich but disenfranchised communities and creating economic growth to strengthen democracy

Funding Source: National Endowment for Democracy and the U.S. Department of State