Us Foreign Aid To Bolivia: What's The Status?

Bolivia is the poorest country in South America and has received generous amounts of foreign aid from the US and other countries. In 2021, the US provided $440,000 to support Bolivia's response to natural disasters, and $495,000 in humanitarian assistance to support Venezuelans fleeing to Bolivia. In 2004, the US designated more than $150 million for assistance to Bolivia. The US has also provided economic assistance to Bolivia in the past, including funding for drug control and coca eradication.

US foreign aid to Bolivia in 2021

Bolivia, as the poorest country in South America, has received generous amounts of foreign aid from the US and other countries. In 2021, the US government continued to provide development assistance to Bolivia through USAID, which has been present in the country since the 1960s. While the exact amount of aid provided in 2021 is unclear, USAID typically provides about $85 million annually in development assistance to Bolivia. This aid is channelled through bilateral agreements with the Bolivian government and unilateral agreements with other organizations.

USAID's programs in Bolivia focus on several key areas, including strengthening democratic institutions, providing economic opportunities for disadvantaged populations, improving family health, promoting sustainable use of natural resources, providing alternatives to illicit coca cultivation, and enhancing food security. These programs aim to support Bolivia's National Development Plan and address issues such as poverty and social exclusion of historically disadvantaged populations, particularly in peri-urban and rural areas.

In addition to USAID, other US agencies have also provided economic assistance to Bolivia in the past. For example, the Drug Enforcement Administration, the Department of Defense, and the Inter-American Foundation have all contributed to aid efforts in the country.

The relationship between the US and Bolivia has been strained at times, particularly under the presidency of Evo Morales, who was publicly critical of US policies. Morales expelled the US ambassador, Philip Goldberg, and the Drug Enforcement Administration (DEA) from Bolivia in 2008. He also expelled the USAID program in 2013, accusing it of political interference. Despite these tensions, the US has continued to provide development assistance to Bolivia, recognizing the importance of supporting the Bolivian people.

In recent years, there have been efforts to improve relations between the two countries. In 2020, the US provided $700,000 in humanitarian assistance to Bolivia to support the influx of Venezuelans, and an additional $130,000 for COVID-19 response activities. Additionally, the US and Bolivia agreed to mutually recognize each other's distinctive alcoholic beverages, such as Tennessee whiskey and Bolivia's national spirit, singani, to increase their commercial viability in both countries.

US-Bolivia relations

History of US-Bolivia Relations

Bolivia–US relations were established in 1837 with the first ambassadorial visit from the US to the Peru–Bolivian Confederation. The Confederation dissolved in 1839, and bilateral relations did not occur until 1848 when the US recognized Bolivia as a sovereign state. The US established diplomatic relations with Bolivia in 1849 following its independence from Spain.

In 1951, the socialist and nationalist Movimiento Nacionalista Revolucionario (MNR) took power in an uprising against a right-wing military regime. The US has been critical of Bolivia's left-wing governments, and relations have been tense under the presidency of Evo Morales. Morales has been publicly critical of US policies and has accused the US of aiding coup attempts in Venezuela, Bolivia, and Ecuador. In 2013, Morales's plane was denied passage over Europe on its return journey from Russia, due to unsubstantiated rumors that US whistleblower Edward Snowden was on board. Morales accused the US of pressuring European countries to prevent his passage home and threatened to close the US Embassy in La Paz.

US Foreign Aid to Bolivia

Despite the strained relationship, the US has continued to provide foreign aid to Bolivia. In 2004, the US designated more than $150 million for assistance to Bolivia. The US State Department notes that the US Government channels its development assistance to Bolivia through USAID, which has been providing assistance to Bolivia since the 1960s. USAID/Bolivia provides about $85 million annually in development assistance through bilateral agreements with the Bolivian Government and unilateral agreements with other organizations.

The US is also an important trade partner for Bolivia, with about $1 billion in bilateral goods trade in 2022. US exports to Bolivia include mineral oils/fuels, plastic materials, food preparations, halogenated olefins, heavy machinery, automobiles, and pharmaceuticals. US imports from Bolivia include raw tin, mineral ores, cereals, nuts, and tungsten. US foreign direct investment in Bolivia is about $430 million, mainly in the oil and gas and manufacturing sectors.

In Fiscal Year 2021, the US provided $440,000 to support Bolivia’s response to natural disasters, including wildfires in the Amazonian region. The US also provided $495,000 in humanitarian assistance through international organizations in Fiscal Year 2021 to support the influx of Venezuelans fleeing political and economic turmoil.

US aid to Bolivia in the 1980s

The growth of Bolivia's narcotics industry dominated US-Bolivia relations in the 1980s. Drug enforcement programs in Bolivia began in the mid-1970s and gained momentum in the early 1980s. The US was concerned about military officers' increasing involvement in cocaine trafficking, which led to a breakdown in relations and the expulsion of the US ambassador, Marvin Weisman, in June 1980.

Between July 1980 and November 1981, US-Bolivian relations were suspended, with the US refusing to recognise the Bolivian government due to its ties with the drug trade. In November 1981, Edwin Corr was appointed as the new ambassador, and relations began to improve. In 1983, President Siles Zuazo promised to eradicate 4,000 hectares of coca over three years in exchange for a $14.2 million aid package from the US. With US funding and training, an elite antinarcotics force, the Rural Area Police Patrol Unit (UMOPAR), was established.

However, the Bolivian government was unable to effectively combat the drug trade due to opposition from social groups, the cultural significance of traditional coca use, and the lack of comprehensive drug laws. As a result, coca cultivation and cocaine trafficking increased between 1982 and 1985. In May 1985, the Bolivian government approved a decree calling for extensive drug enforcement programs, but the US perceived these efforts as insufficient.

Under the Paz Estenssoro government (1985-1989), relations with the US improved significantly due to sincere efforts to address the drug trade. As a result, aid for economic reforms increased significantly, with Bolivia receiving the highest amount of US aid in South America in 1989. However, drug trafficking remained a significant obstacle to harmonious relations.

The US supported Bolivia's negotiations with international banks for debt reduction and provided substantial increases in aid for drug assistance and development programs. US aid to Bolivia totalled $65 million in 1987 and increased to $90 million in 1988. The US also initiated several Agency for International Development (AID) programs, targeting rural development, health, education, and privatisation of state enterprises.

Despite Bolivia's efforts in the drug war, the US Congress was reluctant to certify the country's compliance with the Foreign Assistance Act. In 1988, Bolivia passed a controversial antinarcotics law, and relations improved with the arrival of Ambassador Robert S. Gelbard in October 1988. However, controversies surrounding the actions of the Rural Area Police Patrol Unit (UMOPAR) and the presence of US Drug Enforcement Administration (DEA) agents in Bolivia strained relations once again.

US aid to Bolivia in the 2000s

The United States has a long history of providing foreign aid to Bolivia, including through the United States Agency for International Development (USAID). Since 1964, USAID has spent nearly $2 billion in close collaboration with the Government of Bolivia on various initiatives, including education, health, agriculture, food security, alternative development, economic development, and environmental programs.

In 2004, the United States designated more than $150 million for assistance to Bolivia. USAID's budget for FY'11 was $26.7 million, with a focus on advancing economic development, health services, and biodiversity conservation.

However, the relationship between the two countries has been strained at times, particularly during the presidency of Evo Morales. In 2008, Morales expelled the U.S. ambassador, Philip S. Goldberg, accusing him of conspiring against democracy and seeking the division of Bolivia. Morales also expelled the Drug Enforcement Administration (DEA) from the country, ending a 35-year history of DEA activity in Bolivia.

In May 2013, Morales expelled USAID from the country, citing it as a "protest" against U.S. Secretary of State John Kerry's reference to Latin America as Washington's "backyard." This decision marked the end of USAID programs in Bolivia, including initiatives to increase access to healthcare, conserve biodiversity, and promote economic growth. Despite these challenges, the United States maintains its commitment to supporting the Bolivian people in areas such as human rights, entrepreneurship, and cultural and educational initiatives.

US aid to Bolivia for coca eradication

The United States has a history of providing foreign aid to Bolivia, including for coca eradication. In 2004, the US designated over $150 million for assistance to Bolivia. While the specific breakdown of this aid is not publicly available, it likely includes a range of economic, development, and security initiatives.

Bolivia is a significant producer of coca, the raw ingredient for cocaine. Coca eradication has been a contentious issue in the country, with US involvement in eradication efforts sparking criticism from some quarters. In 2008, Bolivian President Evo Morales, an outspoken critic of US imperialism, expelled US Drug Enforcement Administration (DEA) agents from the country, claiming they were plotting against his socialist revolution.

However, in 2011, Bolivia accepted a $250,000 offer from the US for satellite monitoring of manual coca eradication. This aid was provided in the context of Bolivia's struggle to combat drug trafficking and reduce coca cultivation. The deal was presented as a compromise, with Morales ruling out the return of DEA agents but acknowledging the need for support in tackling drug gangs.

The US has also promoted a policy of crop substitution in Bolivia, encouraging farmers to replace coca cultivation with crops such as coffee, bananas, and pineapples. These alternative development programs have had mixed results, with some farmers embracing the alternatives while others continue to favour coca due to its high price and ease of transport.

In addition to coca eradication, US aid to Bolivia has also focused on other areas such as disaster relief and supporting vulnerable communities. For example, in 2021, the US provided $440,000 to support Bolivia's response to natural disasters, including wildfires in the Amazonian region.

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