Bolivia's Peripheral Status: A Geopolitical Analysis

why is bolivia a periphery country

Bolivia is a periphery country according to the three-level hierarchy of the world-systems theory, which categorises countries as core, semi-periphery, or periphery. Periphery countries are the least developed and still developing, with low-skill, labour-intensive economies that are dependent on core and semi-periphery countries for their income. Bolivia is a landlocked country in central South America, with a population of around 12 million. It is a developing country and the second-poorest in South America, with a high level of biodiversity. Bolivia's economy is largely based on agriculture, forestry, fishing, mining, and goods such as textiles, clothing, refined metals, and refined petroleum. The country has a rich history, once forming the centre of the ancient Tiwanaku empire and later becoming part of the Inca empire.

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Bolivia's landlocked position

Bolivia's landlocked status has hindered its economic growth. The country has to rely on neighbouring countries' ports for trade, which results in higher transport costs and is subject to monopoly pricing. Bolivia's exports are primarily raw materials and commodities, such as tin, soybeans, and sunflower seeds. The lack of direct access to the sea has been a long-standing issue, with the country fighting with Chile over sovereign access to the Pacific Ocean and territory lost in the 19th century. Bolivia has utilised Chilean ports for trade, but regaining access to the Pacific would significantly improve its bargaining position in Latin American and global trade relations.

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Bolivia's low Human Development Index (HDI) score

Bolivia is a periphery country, as defined by the sociologist Immanuel Wallerstein's world-systems theory. This theory categorises countries into three levels of hierarchy: core, semi-periphery, and periphery. Periphery countries are the least developed and still developing, with low-skill, labour-intensive economies that are dependent on core and semi-periphery countries for their income. Bolivia falls into this category due to its low Human Development Index (HDI) score.

The HDI score for Bolivia in 2021 was 0.692, a decline from 0.718 in 2020. This is significantly lower than the world average of 0.724. The HDI is a composite measure that includes life expectancy, educational attainment, and income level. It aims to assess not only incomes but also the quality of life. Bolivia's HDI score is low due to several factors, including:

  • Poor education and healthcare systems: Bolivia has struggled with providing quality education and healthcare to its citizens, which are essential components of the HDI.
  • Unstable government: Bolivia has a history of political instability, with a succession of military and civilian governments, coups, and counter-coups. This instability has hindered the country's development and impacted its HDI score.
  • Lack of technology and infrastructure: As a periphery country, Bolivia faces obstacles in accessing technology and developing infrastructure, which are crucial for economic growth and improving the HDI score.
  • Exploitation by core countries: Core countries exploit periphery nations like Bolivia for cheap labour, agricultural products, and raw materials. This dynamic prevents Bolivia from progressing and improving its HDI score.
  • Income inequality: While Bolivia has recently experienced significant economic growth, it continues to be the second-poorest country in South America. Income inequality persists, with a large proportion of the population living in poverty.
  • Geographic challenges: Bolivia is a landlocked country with diverse terrain, ranging from the Andean mountain range to the Amazon basin. This diversity presents challenges in terms of infrastructure development and accessing essential resources.

These factors contribute to Bolivia's low HDI score, reinforcing its position as a periphery country in the world-systems theory.

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Bolivia's history of coups and countercoups

Bolivia has experienced more than 190 coups and counter-coups since gaining independence from Spain in 1825. The country's first coup occurred on 18 April 1828, when an uprising by the military garrison in Chuquisaca led to the deposition of President Antonio José de Sucre. The event was orchestrated by Casimiro Olañeta and promoted by Peruvian General Agustín Gamarra. As a result, José María Pérez de Urdininea served as interim president until Sucre officially resigned on 2 August 1828.

In the following years, Bolivia experienced a series of coups and brief periods of democracy. From 1839 to 1879, various military leaders overthrew one another, with the most notable figures being Sebastián Ágreda, José Ballivián, Eusebio Guilarte, Manuel Isidoro Belzu, and Mariano Melgarejo.

The late 19th and early 20th centuries were marked by political and economic instability in Bolivia, which resulted in the loss of over half of its territory to neighboring countries. During this period, the country was involved in the War of the Pacific (1879-1883) with Chile, which resulted in the loss of its Pacific coastal region.

In the 20th century, Bolivia continued to experience coups and political turmoil. In 1930, President Hernando Siles Reyes resigned due to the effects of the Great Depression and was overthrown by General Carlos Blanco Galindo a month later. The country also experienced several coups during the Chaco War (1932-1935), which resulted in a reformist class of young veterans dissatisfied with the traditional oligarchic parties.

In 1943, Bolivia entered World War II on the side of the Allies, declaring war on the Axis powers. However, political instability continued, and in 1951, a coup led by General Hugo Ballivián prevented the election of Víctor Paz Estenssoro, who had won the popular vote.

The period from 1966 to 1980 was marked by dictatorships and multiple coups, with various military officers assuming the presidency. Notable figures during this time include René Barrientos, Alfredo Ovando, Juan José Torres, and Hugo Banzer.

Bolivia transitioned to democracy in 1982, but coups and counter-coups continued. The most recent coup attempt occurred in 2024, when General Juan José Zúñiga led a failed coup against President Luis Arce.

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Bolivia's income inequality

Several factors contribute to Bolivia's income inequality, including a lack of economic opportunities, limited access to quality education, and insufficient social mobility. The country has a large informal sector, with many people working in low-paying, unstable jobs such as street vending and subsistence agriculture. Additionally, the quality of public education is poor, and educational opportunities are unevenly distributed, particularly for girls, indigenous people, and those in rural areas. This lack of access to education limits social mobility and contributes to intergenerational poverty.

The country's economic policies have also played a role in perpetuating income inequality. Bolivia has a history of economic instability, with frequent fluctuations in economic growth and periods of high inflation. Additionally, the country's tax system is regressive, with indirect taxes such as value-added taxes and excise duties making up a significant portion of government revenue. This places a higher burden on lower-income earners, who spend a larger proportion of their income on consumption.

Furthermore, Bolivia's income inequality is closely linked to its colonial history and the persistence of racial and ethnic inequalities. Indigenous people, who make up a significant portion of the population, have historically faced discrimination and exclusion, limiting their access to economic opportunities and contributing to intergenerational poverty. Additionally, regional disparities exist, with the highlands, home to a large indigenous population, lagging behind the eastern lowlands in terms of economic development and infrastructure.

Bolivia has implemented some measures to address income inequality, including progressive social policies such as cash transfer programs and the expansion of social services. However, addressing the deep-rooted structural causes of inequality will require more comprehensive and sustained efforts.

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Bolivia's poor quality of public education

Bolivia is a periphery country, which means it is a country with a low-skill, labour-intensive economy that is still developing. Bolivia's public education system is a contributing factor to its status as a periphery country.

Bolivia's public education system has been described as being in "really bad shape". This is based on the results of the last internationally comparable test that Bolivia participated in, which showed that Bolivian students scored poorly on fourth-grade language tests. However, this test was conducted before the 1994 Education Reform could have had a chance to affect results, so it is possible that the situation has improved since then.

One of the positive outcomes of the 1994 Education Reform is that children in reformed rural schools are reportedly happier and more engaged in classroom activities. This is because they are now being taught in their maternal language instead of Spanish, and teaching methods have been modernised to be more interactive and include less memorisation and punishment.

However, there is a notable trend of households in Bolivia being willing to pay for private education for their children. In 2005, 20% of the cost of public education in Bolivia was financed by households, and the cost of private education is approximately 70% higher than that of public education. This indicates that there is a perception of public education being of low quality in Bolivia.

Bolivia's status as a periphery country can be attributed to several factors, including poor education and healthcare systems. The country's Human Development Index (HDI) score, which takes into account indicators such as life expectancy, per capita income, and education, is relatively low.

Bolivia's public education system faces challenges such as low attendance rates, particularly among secondary-age children, and a lack of resources. The quality of education in Bolivia is crucial for the country's development and its ability to move beyond its status as a periphery country.

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