Bolivia: A Place To Avoid?

Bolivia is a country with a rich history and culture, but it has also faced many challenges, including poverty, political instability, and corruption. It is the poorest nation in South America, with almost 40% of its population living in extreme poverty. The country has experienced economic crises and stagnation, with a lack of human development hindering progress. Political instability, racial tensions, and violent protests have also impacted Bolivia, particularly around the discovery of natural gas reserves and the government's plans to export them. Additionally, issues such as insufficient education, lack of clean water and sanitation, and low productivity in rural areas contribute to the country's struggles. On the other hand, Bolivia has taken steps to address these challenges, and its natural gas exports have contributed to strong economic growth. However, there are still concerns about corruption, civil unrest, and crime, which can impact the safety of travellers.

Political instability and violent protests

Bolivia has a long history of political instability and violent protests. Since gaining independence in 1825, the country has seen more than 150 changes of leadership. From 1839 to 1879, Bolivia was characterised by a chaotic political situation and a declining economy. During this period, the country relied primarily on taxes paid by Indians as its main source of income. While some leaders during this time attempted to reform the country, most were inept and corrupt rulers. This period was marked by frequent coups and violent power struggles.

In more recent times, Bolivia has continued to experience political instability and violent protests. In 2019, the country was plunged into a state of political crisis following accusations of election fraud during the presidential election. Long-time president Evo Morales, who had already been in power for three terms, was accused of ignoring the results of a 2016 referendum that banned him from running for president again. Despite the referendum result, Morales ran for a fourth term in 2019, sparking widespread protests and allegations of election fraud. The situation escalated into violent clashes between pro- and anti-government protesters, resulting in deaths and injuries on both sides. Morales eventually resigned and fled the country, but the political instability and violent protests have continued.

In 2020, Luis Arce of Morales' party, the left-wing Movement for Socialism (MAS), was elected as president. However, the election was marred by accusations of fraud and protests from citizens who opposed MAS' return to power. In 2021, municipal elections were held, but they failed to bring political stability to the country. MAS candidates, selected by Morales, faced opposition from within their own party, and the election results indicated a further decline in support for MAS in several large cities.

The ongoing political instability and violent protests in Bolivia have been fuelled by a range of factors, including economic crises, corruption scandals, and a lack of transparency in political and electoral processes. The country's first indigenous president, Evo Morales, has been accused of moving in an increasingly authoritarian direction, tightening his control over the judiciary and the opposition media. The opposition, meanwhile, has been ineffective in providing a compelling alternative vision for the country's future.

The political instability and violent protests in Bolivia have had significant impacts on the country and its people. They have disrupted daily life, led to food and fuel shortages, and resulted in deaths, injuries, and arrests. The ongoing crisis has also damaged Bolivia's democratic institutions and weakened the rule of law.

Poor infrastructure and underdevelopment

Bolivia is the poorest nation in South America, with almost 40% of its population living in extreme poverty. The country is plagued by inequality and inadequate development, and its lack of human development hinders its economic, social, and political progress.

One of the main reasons for Bolivia's underdevelopment is its poor infrastructure, especially in rural areas. There is a lack of basic infrastructure, such as water management systems and roads, which inhibits transportation and increases costs for farmers, making it difficult for them to sell their produce and lift themselves out of poverty.

The lack of access to clean water and sanitation is a significant issue, particularly in rural communities. Many people in these areas are forced to drink contaminated water, putting them at risk of waterborne diseases such as diarrhoea, which is a leading cause of death among children under five.

Insufficient education is another factor contributing to Bolivia's underdevelopment. Public school education, especially in rural areas, is of extremely poor quality, with a lack of trained teachers. Private education, on the other hand, is too expensive for most families. This creates a cycle where poor families stay poor while wealthy families progress, as education is key to escaping poverty.

Low productivity in rural areas, which are home to over 80% of Bolivia's poor, is also a consequence of the lack of infrastructure. Small-scale farming, which dominates the rural economy, suffers from a lack of modern techniques and frequent water shortages, resulting in low-quality products and low incomes.

To address these issues, the Bolivian government has implemented various programs to alleviate poverty and developed a Country Partnership Framework for 2023-2026, in collaboration with the World Bank Group. The framework focuses on sectors such as transport, rural development, agriculture, urban resilience, energy, and water. For example, the World Bank is supporting the improvement of water resource management in 15 basins and 256 municipalities and the Resilient Water Management for Household and Community Irrigation Project, which aims to enhance the capacity of 30,000 rural families to address climate change impacts and increase productivity through improved irrigation. Additionally, the Santa Cruz Road Corridor Connection Project aims to complete a highway connecting Bolivia and Brazil and improve connectivity and access to services.

Inequality and poverty

Bolivia is the poorest nation in South America, with almost 40% of Bolivians living in extreme poverty. The country is plagued with inequality and inadequate development, and poverty affects the majority of the population. While Bolivia is rich in natural resources, it suffers from a lack of human development, which hinders its economic, social, and political progress.

One of the main factors contributing to Bolivia's poverty and inequality is its history of political instability. In the 1980s, the country experienced a deep economic recession, with inflation, unemployment, and stagnation. This was exacerbated by the collapse of the tin market, the devaluation of the currency, and soaring inflation. While austerity measures helped restore some economic confidence, they also widened inequality. Additionally, the shutdown of coca growing, a prime source of income for the poor, further exacerbated inequality.

Bolivia has also struggled with insufficient education, particularly in rural areas. The quality of public school education is extremely poor, and private education is too expensive for most families. This creates a cycle where poor families stay poor while wealthy families progress. Without access to quality education, it is difficult for individuals to escape poverty.

Another issue is the lack of clean water and sanitation in rural areas. Many people in these regions are forced to drink contaminated water, putting them at significant risk of disease and illness. Diarrhea, for example, is a common and serious consequence of drinking contaminated water and is responsible for a significant portion of deaths among Bolivian children under five.

Low productivity in rural areas is also a contributing factor to Bolivia's poverty and inequality. More than 80% of Bolivia's rural population lives below the poverty line, and this is largely due to the low productivity of small-scale farming. Water shortages and the lack of mass production techniques further hinder progress in these areas. Additionally, the lack of basic infrastructure, such as water management systems and roads, makes transportation expensive and inhibits farmers' profits.

While Bolivia has made some progress in reducing poverty and inequality, it continues to face structural challenges. High public debt, declining natural gas production, and limited international reserves have constrained the government's ability to boost economic growth. Additionally, the country is vulnerable to climate-related disasters, such as droughts and El Niño events.

Corruption

Bolivia has been called the poorest nation in South America, with the majority of its population living below the poverty line. The country is plagued by inequality and inadequate development, and its human development index ranks 104th out of 174 countries. One of the main reasons for Bolivia's poor development is the widespread corruption that has existed since the country gained independence from Spain in 1825.

The complexity of Bolivian tax laws and the inefficiency of the customs service also create opportunities for corruption. More than one-third of respondents in a survey reported paying bribes to customs officers in the previous year. Companies doing business in Bolivia face significant challenges due to corruption, especially when dealing with the justice system, public services, land administration, and natural resource extraction sectors.

The country's dependence on the extractives industry, particularly natural gas, has led to numerous scandals involving nepotism, kickbacks, and other forms of corruption. The nationalization of hydrocarbon resources in 2009 increased opportunities for corruption, as the government gained control over both operation and regulation in this sector. Scandals involving the state-owned oil and gas company, YPFB, have further fueled perceptions of widespread corruption.

Drug trafficking is another area where corruption is prevalent in Bolivia. The narcotics police and secret police have been involved in cocaine trafficking since the late 1950s, and drug traffickers have often been treated as respectable businessmen by government officials. Many police officers have ties to organized crime and are appointed to senior positions due to their political connections.

Despite the existence of anti-corruption laws and institutions, enforcement is weak and inconsistent. While some efforts have been made to improve transparency and reduce corruption, Bolivia continues to perform below global and regional averages in governance areas, including corruption.

Crime and scams

Bolivia has one of the lowest crime rates in South America, but petty crime, like pickpocketing and theft, is common, so it is important to be aware of your surroundings at all times, especially in locations popular with visitors: La Paz, Santa Cruz, Cochabamba, Copacabana, and Oruro. Violent crime is also a concern, with express kidnappings, where criminals target foreigners, take them hostage, and force them to withdraw money from ATMs, being a particular issue in certain areas of La Paz. Thefts at ATMs are also becoming more common, and often result in assaults, so it is best to avoid withdrawing cash at night or in secluded locations.

Scams are also prevalent in Bolivia, with the "fake policeman" scam being one of the most well-known. In this scam, an accomplice will approach the intended victim as a fellow tourist, and they will then be approached by an individual claiming to be an undercover policeman. The "policeman" will ask to see the victim's passport, and the accomplice will comply. The pair will then make off with the victim's passport and any other valuables. There are several variations of this scam, including searching the victim and stealing their valuables, forcing them to withdraw money, or taking them to a fake police station in a taxi and robbing them there.

Another common scam is the "spilled substance" scam, where a stranger will spill something on you, and another person will offer to help you clean it up, while also stealing your valuables. The "false tourist" scam is also prevalent, where a friendly "tourist" will approach you and try to befriend you, possibly suggesting you go to a friend's home, where you will likely be kidnapped and robbed.

It is important to note that counterfeit banknotes are often circulated in Bolivia, so it is advised to only exchange money at reputable places. Additionally, tour operators may not always have your safety as a priority, so it is important to research before booking any tours.

Frequently asked questions