Palegoldenrod

Today is Blog Action Day around the world and this year’s topic is poverty. As I am currently in Bolivia I thought I’d post a little about the country, some statistics and a little about the current situation.

It is difficult for me, as an outsider who has only been here for a month, to explain Bolivia and its issues relating to poverty, politics (international and internal), economics, employment etc. But hopefully I can provide a few bits and pieces that might help to shed a little light.

I wish I could change the timing of the Blog Action Day and my plans. Next week I start my volunteering at a local orphanage, which would (I expect) make for much more interesting reading than what I am about to provide. But if you return at the end of next week I will hopefully have posted something about the orphanage for you.

First, a little background info. Bolivia is landlocked in the centre of South America and is one of the poorer countries on the continent. It is the 3rd largest producer of coca in the world, after Colombia and Peru.

Last year Evo Morales was elected with a 54% majority (an unusually high figure in Bolivia) and became the first indigenous president of the country.

Evo and Coca Farming

Evo was also a coca farmer which puts him in an interesting position. Where the US had been encouraging (and financially supporting) eradication of the coca crop entirely, Evo’s view is “Coca yes, cocaine no” and so gives full support to legitimate farming of the crop. The farming of coca (for uses such as teas, medicine etc – not exclusively for cocaine production, which is illegal) supports a significant portion of the Bolivian workforce. While I don’t have a solution for the cocaine production issue, I am sure that the sudden and complete halt of coca farming in Bolivia would be disastrous.

Current Situation: Sucession of Provinces

There is a wide gap between upper and lower classes in Bolivia which also seems to be roughly the breakup between people of Spanish descent and those of indigenous descent. The provinces containing the upper classes don’t want to participate in Evo’s plan to restructure and redirect funds to support the poorer provinces. As they prefer to keep their earnings in their own provinces, they are trying to suceed and establish their own government. This has prompted violence in those areas and a long series of negotiations which are taking place on neutral territory here in Cochabamba.

Now, I don’t have an opinion here. But the issue is interesting… when some parts of the nation are incredibly wealthy and others have high levels of poverty, what can be done to help restore the balance? Should anything be done?

Stats: Wealth Distribution and Health

Bolivia has such an imbalance of prosperity internally (a minority hold the majority of the wealth) that the number of people in the lower classes and the issues facing the government relating to investment in infrastructure and social support, mean that overall Bolivia is struggling compared to most other countries.

The UN Human Development Report for this year ranks Bolivia as 117th out of 177 countries – putting it in the “medium human development” category. Lets have a look at a few statistics compared to Australia, my home country, ranked 3rd of 177.

Financials
Statistic	Australia	Bolivia
GDP Per Capita (2005) $USD	31,794	2,819
Ratio of $: richest 10% to poorest 10%	12.5	168.1
Ratio of $: richest 20% to poorest 20%	7.0	42.3
% income or consumption, richest 10%	25.4	47.2
% income or consumption, poorest 10%	2.0	0.3

The enormity of the wealth imbalance astounds me still, even though I have read these and similar statistics many times in the last month. And there are countries that are worse off in the world. Scary, no?

As expected, the effects of poverty are visible in health as well.

Health
Statistic	Australia	Bolivia
Life expectancy at birth (est., years), 2000-05	80.9	64.7
Under-five mortality rate (per 1K live births), 2005	6	65
Prob. at birth of not surviving to age 40 (% of cohort), 2000-05	2.3	15.5
Pop. using improved sanitation (%), 2004	100	46
Pop. using an improved water source (%), 2004	100	85

I have come to appreciate clean and drinkable running water, a flushing toilet and a clean bathroom so much more since having spent time in South America

Emloyment and Income as an Indicator of Improvement

The informal labour market supports a significant part of the Bolivian population, which makes it difficult to really get an idea of the emlpoyment situation of many Bolivians. As Diego Cevallos points out in his article Not Everyone Celebrates Improved Poverty Statistics:

By adding cans to the products she scavenges and sells, Guadalupe raised her average monthly earnings from 70 to 85 dollars. But she feels as hard-pressed as before and finds no reason to celebrate.

An increase in income or even a job in the informal labour market is not necessarily a good indicator of an improvement in situation or of a financial situation at all.

Current Political Situation: Further Impact on Economy

Compounding the impact of the worldwide financial crisis, Bolivia´s political issues (internal relating to sucession of some provinces, external relating to diplomatic relations with the US) are also having an effect on the economy. There are significantly less foreigners in the country, and therefore less money being pumped into the multitude of businesses in the tourism industry, as well as vendors and beggars on the street that usually rely on donations from comparatively wealthy travellers.

In addition, according to local news, some factories for US companies are considering shutting down operations operations in Bolivia and relocating to a country with a better diplomatic relationship. If this happens, it is likely that many Bolivians will be out of work, many businesses that supply these factories may lose their primary client and of course the knock on effect could be dramatic. I imagine that some existing trade or financial aid agreements with many allies of the US may be in jeopardy too.

In Australia when such a significant event occurs the government may be able to offer some support or guarantee to the employees of those companies. Here, where the government doesn’t appear to have enough money to provide well paved roads between many of its major cities, I wonder if those workers will have anything when (if?) those companies leave.

But even with employment there is something I don’t understand. Here in Cochabamba there are people on almost every block asking for money, or busking – including children who seem to be only 2 or 3 years old with no parent in sight. Yet, when I walk down the streets in the centre of town every second store has a “help wanted” sign in the window – almost all of them have been there since I arrived. I’m not sure why these jobs aren’t being filled…. maybe one of you can help me figure that one out.

Resources

Here are a few resources for you:

• Sustainable Bolivia – Non Profit – volunteering support and co-oridinator of sustainability projects in Bolivia
• Volunteer Bolivia
• Kiva – financing entrepreneurship in underdeveloped communities
• UNICEF – Poverty in Bolivia
• Global Call to Action Against Poverty – Bolivia
• WorldBank’s PovertyNet Library – Bolivia
• Freerice – expand your vocab while providing rice to those who need it

Wrap Up

Thanks for reading. I’d like to encourage you to find out more about why I posted this at the Blog Action Day site.

Next week I plan to post about my experiences volunteering at the orphanage. I hope you gained some small insight into Bolivia from this spiel. If you have anything to add or ask, please comment below.