miércoles, 8 de diciembre de 2010

BOLIVIA: BACKGROUND NOTES

Reference ID Created Released Classification Origin
07LAPAZ383 2007-02-13 10:10 2010-12-03 21:09 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy La Paz
VZCZCXYZ0003 PP RUEHWEB  DE RUEHLP #0383/01 0441051 ZNR UUUUU ZZH P 131051Z FEB 07 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC PRIORITY 2445 INFO RUEHAC/AMEMBASSY ASUNCION 6523 RUEHBO/AMEMBASSY BOGOTA 3847 RUEHBR/AMEMBASSY BRASILIA 7732 RUEHBU/AMEMBASSY BUENOS AIRES 4977 RUEHCV/AMEMBASSY CARACAS 2216 RUEHPE/AMEMBASSY LIMA 2312 RUEHMN/AMEMBASSY MONTEVIDEO 4397 RUEHQT/AMEMBASSY QUITO 4859 RUEHSG/AMEMBASSY SANTIAGO 9447 RUEHUB/USINT HAVANA 0137 RHEHNSC/NSC WASHINGTON DC RHMFIUU/HQ USSOUTHCOM MIAMI FL RUMIAAA/USCINCSO MIAMI FL
UNCLAS LA PAZ 000383   SIPDIS   SENSITIVE  SIPDIS   E.O. 12958: N/A  TAGS: PGOV PREL ECON BL SUBJECT: CODEL NELSON SCENESETTER    -----------  SUMMARY  -----------   1. (SBU) Embassy La Paz warmly welcomes CODEL Nelson to Bolivia  February 21. Shortly after indigenous coca leader Evo Morales'  one-year anniversary as president, Bolivians find themselves again  facing the social unrest that has plagued their country since 2003,  but which had subsided after Morales took office. The fourth  president in as many years, Morales rose to power promising a  "revolution" that would deliver a more inclusive society, a new  constitution, nationalization of natural resources, and land reform.  Morales has delivered on some of his promises, but is facing  increasing difficulties governing Bolivia, which he himself has  exacerbated this year by condoning and even encouraging street  protests against those who oppose him. While we support Morales'  stated goal of social inclusion, serious questions exist about his  commitment to democracy and to the rule of law--our top priorities  here-- particularly given his demonstrated impatience with  compromise. Cuban and Venezuelan advice, interference, and  assistance are an additional area of concern.   2. (SBU) Summary continued: Although Bolivia's macro-economic  outlook remains strong in the short term, Morales' nationalization  of hydrocarbons and the February 9 move against non-U.S. interests  in the mining sector will threaten new investment. Trade should be  key to Bolivia's future, and Congress' extension of ATPDEA benefits  was well-received here. The GOB has shown little real interest in a  long-term trade agreement. On counter-narcotics, the Morales  government's mixed results on counter-narcotics reflect its confused  strategy -- encouragement of coca cultivation (and thus, more  cocaine) coupled with increased interdiction efforts. Your visit  provides an opportunity to encourage Morales to follow a democratic  path and to respect U.S. mining interests; to take counter-narcotics  issues more seriously and to become a true partner in fighting the  flow of illegal drugs; and to take advantage of free trade and other  opportunities, including the Millennium Challenge Account (MCA).  End summary.   ----------------------------  BOLIVIA: BACKGROUND NOTES  ----------------------------   3. (SBU) Landlocked Bolivia is the highest and most isolated of the  Latin American republics. Once over 780,000 square miles, Bolivia  lost large chunks of its land to Chile and Paraguay, leaving it with  some 424,000 square miles, roughly three times the size of Nevada.  Aymara indigenous groups dominate La Paz and the highlands; the  Quechuas populate the cities of Sucre and Cochabamba and surrounding  areas. The rich lowlands, known as the "half-moon" states, tend to  be less influenced by indigenous cultures. The government  recognizes 38 different indigenous groups and over 60 percent of  Bolivians identify themselves as indigenous, making Bolivia the most  indigenous country in Latin America. Bolivia is a country of  contrast, with a small prosperous minority of its population  immersed in modern business and technology and the overwhelming poor  majority still mired in poverty and living relatively unchanged by  progress.   4. (SBU) Rapidly urbanizing Bolivia is the second poorest country in  Latin America, with poverty afflicting two-thirds of its population.  In 2005, its GDP was approximately USD 8.5 billion. Agriculture  accounts for roughly 14.5 percent of Bolivia's GDP, and soybeans  grown in eastern Bolivia are the major cash crop. Extraction of  minerals and hydrocarbons make up an estimated 10 percent of GDP,  with manufacturing accounting for another 12 percent. Lack of  economic opportunities has fueled mass migration to Argentina,  Brazil, Spain, and the United States, as well as rural-to-urban and  western-to-eastern migration within the country.   --------------  SOCIAL UNREST  --------------   5. (SBU) Shortly after indigenous coca leader Evo Morales' one-year  anniversary as president, Bolivians find themselves again facing the  social unrest that has plagued their country since 2003, but which  had subsided after Morales took office. The fourth president in as  many years, Morales rose to power promising a "revolution" that  would deliver a more inclusive society, a new constitution,  nationalization of natural resources, and land reform. A sharp  political strategist, Morales has delivered on some of his promises,  and has maintained high popularity rates. However, his first year  in office has brought Morales to terms with the difficulties of  governing Bolivia. He has exacerbated the challenge by condoning  street protests against those who opposed him. A cocalero ambush of  Bolivian anti-drug forces in the Chapare, a mining clash in Huanuni,  a 500,000-person strong demonstration in favor of regional autonomy  in eastern Bolivia, January riots in Cochabamba, and a February 7  protest by miners in La Paz have presented Morales with serious  challenges.   -----------------------  DEFENDING DEMOCRACY  -----------------------   6. (SBU) While we support Morales' stated goal of social inclusion,  serious questions exist about his commitment to  democracy and to the rule of law--our top priorities here--  particularly given his demonstrated impatience with democratic rules  and compromise. Bolivia convened a constitutional convention in  August 2006, which to date has failed to make any progress, largely  due to executive branch interference and Morales' opposition to  Bolivian constitutional norms and traditions. Before the convention  may begin its work, it must decide what vote will be required to  approve constitutional changes. The GOB has taken a hard-line  approach, repeatedly refusing to compromise with the opposition.  Morales has packed the Supreme Court using recess appointments,  instructed his party to pass a questionable land reform law and a  military treaty with Venezuela in a late-night senate session  November 28, and permitted violence against opposition hunger  strikers, as well as the kidnapping of an opposition prefect. Most  recently, the GOB is widely thought to have instigated the January  protests in Cochabamba aimed at sacking an opposition prefect.  (Despite GOB denials, evidence exists that the administration paid,  transported and fed armed cocaleros who were bussed to Cochabamba to  riot against an opposition-led local government). In addition to  frequent public attacks on the opposition, Morales also has targeted  Bolivia's prefects (governors), eastern Bolivia (because it seeks  regional autonomy), the judiciary, and the press.   ----------------------------------------  ONE PLACE WHERE WE'RE NOT BIG BROTHER  ----------------------------------------   7. (SBU) In addition to internal pressures, Cuban and Venezuelan  advice, interference, and assistance continue to be a serious  concern. Cuban doctors and newly-inaugurated hospitals bring  medical care to isolated communities. Venezuela has agreed to  purchase Bolivian soy, has provided micro credit financing to small  businesses, has donated tractors to Bolivian farmers, and has funded  community radio stations to broadcast the GOB's messages. Most  recently, the Venezuelan government has agreed to buy essentially  all of Bolivia's tainted beef, otherwise quarantined by an outbreak  of hoof-and-mouth disease, as well as its industrialized coca.  These Venezuelan programs receive frequent public acclaim from  Bolivia's poor. On the other hand, middle class Bolivians resent  Venezuela's growing presence and influence, and have balked at the  Bolivian military singing the Venezuelan national anthem and  depending on Venezuelan-donated helicopters to transport their  president. Regionally, Bolivia has strengthened ties with Chile, but  has alienated Brazil and Argentina at various points over the past  year, largely because of its nationalistic but incoherent  hydrocarbons policy.   -----------------------------------------  NATIONALIZATION OF RESOURCES AND TRADE  -----------------------------------------   8. (SBU) Although Bolivia's macro-economic outlook remains strong in  the short term, Morales' nationalization of hydrocarbons and moves  against non-U.S. interests in the mining sector (where the bulk of  U.S. investments lie) threaten new investment. On May 1, 2006,  Morales announced GOB nationalization of the hydrocarbons sector.  Despite the presence of Bolivian troops in hydrocarbons fields, the  reality was less dramatic. Instead of a traditional  nationalization, the GOB required companies to sign new contracts  under duress and gave Bolivia's state oil company YPFB control over  the entire hydrocarbons chain. The main impact has been to halt new  investment in the sector, which Bolivia needs to meet domestic  demand and fulfill contractual obligations to Brazil and Argentina.  As a political measure, however, the "nationalization" remains  wildly popular.   9. (SBU) With respect to the mining sector, high-level GOB officials  have given repeated assurances that the Morales administration will  respect existing U.S. mining interests. However, the GOB has  reiterated threats to nationalize the mining industry, and on  February 9 took over a smelter owned by Swiss company Glencore  (which had been sold by ex-President Gonzalo Sanchez de Lozada). We  continue to urge the GOB to respect existing mining concessions and  to limit tax and royalty hikes.   10. (SBU) Trade is the key to Bolivia's future. Congress' extension  of Andean Trade Promotion and Drug Eradication Act (ATPDEA) benefits  was well-received here, ensuring the continuity of thousands of  jobs. However, high-level GOB officials refuse to take serious  steps toward a free trade agreement, instead advocating the  extension of the unilateral trade preferences. We have explained  that "fast track" trade promotion authority expires in June, and  that the new U.S. Congress is not likely to extend it. The Morales  administration, however, continues to want something for nothing.   ---------------------  COCA CASTS SHADOW  ---------------------   11. (SBU) The Morales government's mixed results on  counter-narcotics reflect its confused strategy-encouragement of  coca cultivation coupled with increased interdiction efforts.  Despite the Embassy's attempts to focus the relationship elsewhere,  counter-narcotics is often the negative focal point of the bilateral  relationship. Given President Morales' leadership of the  Chapare-based coca federations, this is not surprising. Morales  repeatedly called for "zero cocaine, not zero coca," drawing a  distinction between illegal drugs and legal use of coca leaf, which  is also chewed or brewed as tea. It should be noted that Bolivian  coca production vastly exceeds licit demand, as the GOB tacitly  accepts, having refused to proceed with a market study funded by the  EU which would show just that.   12. (SBU) Per capita rates of illegal drug use in urban Bolivia  approach U.S. levels, confirming that Bolivia is a consumer country  and not merely a producer. Narcotics Affairs Section  (NAS)-supported demand reduction efforts focus on local and regional  partners due to central government indifference. NAS- and  DEA-supported interdiction programs have been successful under the  Morales government. Comparing 2006 to 2005, cocaine seizures were  up 23 percent. Destruction of base labs and maceration pits were up  55 and 54 percent respectively. While Bolivian CN forces have  improved coordination and efficiency, the increased seizures are due  in part to increased supply.   13. (SBU) Anecdotal evidence suggests that coca plantings have grown  dramatically since Morales' election, edging out other licit and  less-profitable crops. And just as coca planting has increased,  eradication is down. The GOB achieved its goal of eradicating 5,000  hectares in 2006, but has gotten off to a slow start in 2007. The  Morales government has been unwilling to enforce Bolivian law (or  informal agreements limiting coca cultivation), has stalled the  launch of the licit demand study required by Bolivian law, and now  is considering raising legal limits from 12,000 to 20,000 hectares  nationwide (to include the Chapare). This increase would place  Bolivia in violation of its own law and treaty obligations. In an  attempt to justify increased coca growth, the GOB has announced  plans to legalize and industrialize coca for use in products such as  toothpaste, demand for which is notional, at best.   ----------  COMMENT  ----------   14. (SBU) Your visit presents an opportunity to further our strategy  of engagement with the GOB. We have expressed serious concerns  about the Morales government's commitment to a democracy that  includes separation of powers, checks and balances, an active  political opposition and a free press. We continue to emphasize  that what Morales says matters as much as what he does in terms of  his attacks on the United States. On counter-narcotics, we have  continued to support interdiction and eradication efforts, demand  reduction programs, and capacity building, while engaging in frank  discussions about the GOB's shortcomings and redirecting our support  where it has greatest impact, i.e., to interdiction. Via USAID,  we're spending about $90 million annually to further social and  economic inclusion of Bolivia's historically marginalized indigenous  groups and to support democratic institutions and processes,  including decentralized governance. In addition, USAID encourages  economic growth for the poor through exports and trade, and also  provides assistance in the areas of health, alternative development,  and environmental protection. Your visit provides an additional  opportunity to encourage Morales to follow a democratic path and to  respect U.S. mining interests; to take counter-narcotics issues  seriously and to become a true partner in fighting the flow of  illegal drugs; and to take advantage of free trade and other  opportunities, including the Millennium Challenge Account (MCA).  End comment.

No hay comentarios: