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$Page 1: jameswilkiepublicationlinks.orgjameswilkiepublicationlinks.org/pub/The_bolivian... · 2018-04-11 · (;oñ- fEN'IS 1(kno\\'l( dqr,',eDts List ol S\!nbols 'l'he lmp¡.1 of L,H¿t(,I$
T}tE BOLI\ I,,1NU,S, AII)

NEVOLUTION ANI)srNCI.t 1952

TheBolivian Revolution

and U.S. Aid since rgf L

T,.INANCIALCO1\-TEXl' OF

B ACKC ITO LT N D ANDPOLITICAL DECISIONS

BY JANIES W. WIT,KIEUni--e¡sit¡! of Calforúa, Ias Ang.lr.s

AIfENIC'A\ (]EN'f I]NcALrroRNral r'o §

r969

This book is dedicated toRrcH.urn W. wr (¡F

long time conlpanion in stuclyand trarel throughout tÍetico,

CentruL America, and South America

(;oñ- fEN'IS

1(kno\\'l( dqr,',eDts

List ol S\!nbols

'l'he lmp¡.1 of L,H¿t(,I

Eco¡or¡ic G.,!vth, 1950-1966

l'oliti.al Asp.cts of ¡l(ono,¡ic ProL¡len¡s

U. S. Aid to Boli\i.!

Ihe N¡hr.e ol alentr¡1 Co\ ern,eDt l.rpdt(liture

Thc P¡ttem .,l (l.ntful ai^'.r¡mc¡t P,,li(,y

Pcr Capila Ar.l\ sis ot Erpcrrdrture od Econonic tlros th

t)rohl.rns of ale¡tr¡l (lo\ ernn.:nt ¿n(lLrSA¡D lr)li.\ i¡l Bolivi.'D Dcv.lopnr.¡t

l¡rpliutioD: f,)r PI.ttr,,,,,¡

Biblic,graphru Essry

Bibliofiraph\

xiii

6

¡l

S

l1

I9

2i

2Í:J

,1t

4i

u8t

105

LIST OF 1'ABI,ES, GRAPIIS, AND APPENDICES

TARLE

I Cost ofLiviDq iD L.r Paz.Ind.x Numbe.s ¿.dIt¿tc of Ch¡¡ge, 1931'1966Estimated C(xs Do¡ncstic Product. 1950 1966Functional An¿lvsis of USAID Progr¿ms, r912-1966S}¿re ofTotalUSAID Aclu¿l ErpeDditure Devoted k)Support ofBolir iür Centr¿l Coviinrmijt Budget, 1957-l96tjSh¡r. ol tsolivi¿D (le¡tr¡l GovemmentReveDue Cortributed b¡, LTSAID, 1957 trm6Pcr (lent of Actu¡l Cen tra I Co! c rnmentFr¡r.r,Jiturol,r T!p"ol Ernphd\r\ lUJo llh6Projected aÍd Aciu¿l rixpcnditure inalurreDt ¡nd D.fllt(,d Currer¡.y, l93I-19616¡lsinnates of Population, Sde.t.d Yc!rs, 1t125-1966Estnr¿tcs of Per Capita

^ctualExp.nditure, Selected Yenrs, I9,11 I966Estimates ol Gross Dorn.stic ProductPer C¿pita, Scl.cted Ye¿rs, 1950 1966Tin s Sh¡re in Doilar Ialrrc of'l otal lixports. 1950'l96rullealTin Prn.e lndex 1930 1966Indexes of\blume and Rc¡l E¿miDgs ofTin ExPorts, 1930,1966

t0

17

t0

12

l3

2l

26

JO

3l

2335

2

3.1

¡J

I

II

t2t3

(;¡Arrr

1 An¡ual Percrrrt¡ge lncrease irr Cost c)l Livirg,L¿ Paz lgi:ll-1966

2 Pcr (lcnt ofActu¿lC.¡l.al GovernmentExpe¡diturc b} Tvpe ofEnph¡sis, 1930 1966

3 Pcr Cent ofAclI¡l Erperditure in Nfilit¿$,Co¡n¡nunicati(,rs/l'ublic worls. andEdtlcátn»/Ircas¿nt,{ff¿irs. 1930 r966

.1 Indexes ofTin Export, 1S30 1966; Actual P.r (lent of EcoDo¡ric ErpeDditure

bv Bolivi¡ ¡nd \Icxico.l930-1966

ACKNOWLEDG\f EN'T'S

H¡rs¡ran.H roR c¿rried out in 1966 196? with gr¿nts

puided b\ \-n'e'Prcsi,icnr r\lli,,d B. Carrett's of6(r'ol R¡:v:¿r,h ¿¡dtlrc D.\.k,pmdrt lrurd of Thc Oh¡) St¡te Uni\ersitv. I¡\cstigain»i itiL¿ P¡z lr¡s gre¿tl] rided bv thc lloliviarr (iomptrcllo Coieral's Oificc¡Dd the tr.S. Aqclc\ lor Innr¡¡tion¿l Dc\clop,¡cnt (USAID/Boli\ ia).

P¡rtnrrl¡r th¿nks ¡( (h¡. ro Nóstor SLin,r ((¿p¿bL: colnpileroft,SAID/Boli\ i¡ s )1¡r1r Ii oxo,tit: nn¿ Prc{on litutitti.sl Ior his h.lP ui u¡dersi¡¡dnrq nol\i¡'s ccon(,nk, derelop¡re¡,1 .ln(l to Jrtrnr l' \leerrnan ft;rrssist¡rce with LrS\lD r(:cords. I¡ §'¡shi¡gt(¡n. D¡r \lavcr .r¡dEñn, J. L¿(hm¿n of tlie USLID Ini)n¡¿tn»i s)sterns T¡sk }i)r.eIti.ilitrt({l rese¿rcli nr thi'!cd¡rr¡l ltccorcls (le¡rtc., Srrill¿nd, \1¡r\]¿n.1.

't\\oscLol¡.sprolidcdrer!hr]pl,,le.lito.i¿rltrn.l.onceptual.riticis¡\vhi.h L¡s \¿sth inTrorcd the orjgi¡,dl \o.k. John D. Sths¡ra (tiniversitv ofChil(') dr.\v ,ru»i his erpe¡ie¡,ce i¡, tsolilia k) vrite ¡ long andcarcfulll.onsidered ¿n¡hsis oflhis shld). ¡nd Lvle (1. Brxvn lBarlort ni\e¡sitt) offcr.d his Ltsu¡l i¡r(isivii.riticis¡ oflogic in Pr.s(Jrt¡tur'

'lh¡rks ¡t drrc t<¡ ltich¡rcl \\i. t't1li,h ¿nd Alb.rt L. Ilich¡e]s li¡rc¡iticis! of ¡¡ .¡rlier re¡sion of ihis stl¡d\. lhese protcssors oi tLeStakr LrDi\e¡sity ol \cs York gererouslv o{Tr:rd comments nr Búflitlo,\l¡«tr 12. 196¡J, rt tlre (io li'itr1.. on llritic¿l P¡rtrs ¡nd the Setrcl,{i)r 1¡,rtih¡iio¡rl Sl¡bilitv ¡r'l\'e¡,liclh (lcDtrul L¡ti! A¡¡..i.¡, vh.rerhi. § uil '.'.,,e,,.,11' ¡r,*,r,r",1

P«ip¡rtlik,r ¡nd process;tg oi d¡ta Nds h¡¡,.11e.t in p¡rt Lv Edn¡ \1

\\'ilkir (Liltjl Arnern,¡n (icnt(l, UCLA), who collal)orated ilt all ph¿*sof compltirig this ni\estig¡ln)n. Wáldo W. WilIic ¿¡d lixth) tl.rrcusprcpared tlie graphs; OIair. I'iro¡e t-"-ped lhc m¿DuscriPt.

(]r¿lil,,d. is ecknoivledged lo Joh¡nDcs \\'i]I¡ert for ¿ ¿Dging rU(iL^ Cr¡nt oi For(i Foundati{)n lunds to relis. aDd prep¡re this! olume 10r p,,bli.,¡tion.

Pac$c Pr isutes. califutliu

]NTRoDUCTION

lN 1961, \,hen \'íctor P¿z EsteDssoro !'¿s overt}ro§r). ttic tsoliria¡r\nncd forces -sh¡ttcred ihc ¿pparent srabilirv of regDlar presklent¿l.lectioDs \\üicli had bce¡ est¡l¡lished b\' rhc \atn»r¡l Revohrti¡»¡¡rv\ru\ -n,,,r \tN R. B, t-r- ih, p,F5r,hntr.it ótn.¡ s:b ri ".l,, g., r Jg,i,,ir lq{,. ^\n ,.,rlrr- n ,,,"r,, r, l, ,t-J l,or, I ta,,, l,n,rs ,,, ,,,,.,,,,,;..,, ,,i,i'1nl .J tl¡ fr.,¡U.It . t,-ng.. i! ,,rti,.r l¡.,qF/r t9,rO ,,n,1 t,);lDuri¡g ihe 22 rcars l)ehvcen lglf) and tlte \lNR's vicron, in l9;2. tlI,r,..,d¡ Lr\¡¡¡,i ¡. lb\.^,.d,,,.n..ti,nq,..,p.,. i,\,\", \lp,,,drr H .

\\rith the f¡ll ol rhe \lNlt sonrr obseN{--rs thought th¿t instihrrio.,li-/,rruI ,,r rh,. ll"\,,l tror, , ih. \1"\ir,n §r\1, h.rJ 1,.,L ths.rrr,rlhou, r, r,n¡. § h,,,^.¡rl,r"$ t,,/ f ,ut.*, Ll,;,*.,n1,i,,g to^\-r J itxiLl^,1\ñl rh,. H, !oluti,,n l,\ "l ,, ,.,tine l,d.1r,^1r,,,,,",,i .,,,t..o,",¡ri,,,,()ther vnwers t@k lhe posittun th¿t instih,tionaliz¿rion of ,¡ ";ro"e-nrent. i¡..urtms to ¿ politic¡l 'paúv," w¿s nnpossible ürd the col]apscofthe \¡NR s¡s iDe!ir¡ble.

Iláth..tlxú sp.u,l¡te irr polftic¡l ternN on the rncl.nrgofrhe \tNB,srjse and liill, rvc s,qgest thar one l(x)k ¿r econ(n¡ic ¿spe¡ts 01 Bolivirndc\elopmi,t duñig the hst third of Lr ccnrr¡¡,. in o;der to t¿lc nito..., u ¡,,r th^ t,Íp., Jr,{ J¡,d t.,r¡.. \ t, r,.h 1,.,\,. ,th,J.,, .1 1(,trri,..l ¡ ri,IU'hile polilicrl shrdies are import¿nt, rlie Enán(i¡l simclure which¡it.rlcts with .tnd is gc¡er¡ted bv politjcs is especi¿Ir siqDincant fbrI,rtn,-\ of f,,li,i..,l .,rrl)\;.. \lrh,,uql. Bulr\,",, puti,r, .,i .! lr,,n ld.1,,, r, ,,,\".rr8.,,,.,1 t\ Hnh,,, l \t, \:,r,.J-r, . ñd ,,,,.r..1 ,,,,j -,,,r,"r,u.¿spects of drvelopm.nt }uve bce¡ traced in pn,x,ernrq works b!.Hx 1,..,,1 \\. l.'¡, ', .u,d .,, ,, l',r\ZñrJ,,Jr.r.r.n,.r,c'r¡ ,lrr.rt .U,.,trsis offi¡¿ ciat rnrcture ard statc pot;cv iras úeer tacting.

All¡lvzing Bolivia's lirr¿Dci¡l attairs. ,u" ..,, "o""-nc¿,,¡t¡ then¡p¡ct ofinRation in tsolivia aft.r 1930 ¡dd its rel¿tior to the Rcvolutionthat}cgur iD 1952. 11 s. interyrt¡tion of.conomic f¡rosth und.r theUNR, espc.i¡ilv ¡s nrfl¡,eDced hv thc tr.S. Ag.nc\ f¡r I¡t.m¡ti(»r¿tDer elopm.nt (US,,IID) to,t.th.. § ith rh. n¿turu ofCeDtr¡l Governm.r,r"\lx ,,.lirur, ¡,u\ r.l, . ,, .,,,,r, ,l tur ,.n.j, r.i.,nJ.,,\ p,,tit,, .,. ,..tr\,r\Trr dr., ussirrq,1" n..r,L.ñ ..,Ll I.,ll.,n, i. H,,tr\rJ,, r."rtr:, r..,\-¡,ment expendihnc, we m¿\' see th.i prot,lems ot de\ ctopDe¡t wirh whichBoli!ian p.,liti.ians have Lecn conlrort.d. Be.aus. ihis sh,.lv is ürr.r--.r, J i, t,u'i.\,,1 , 't",..i[,,r, ,r,r¡,1,-.is t,,, L,, rr ¡t,r, t,,t,r,t,,,Jq"r.,n ,,,.,,r. ,. r..th,, rl,,r, u¡,,,r. ¡",1r r ,,t ,,\.,r¡,n. sr,¡ h i. d,..1,s,, ,"r,onl\ t¿n¡jeDtialh.

SiD«. rhis ¡ ¿ specialized studv ofBolivj¿n ¿ffairs. th. r.rcler shouldnot expe.t a linl dis(t,ssio¡ of lloli!ian historic¡l de!elol)n.nt ¿fier

xiii

¡D¿hsis nr¿\ *cll prove to be a serlous problon ifsxih ¡n ¿ppro¿ci, is(!ntinufll \ ithout rroder¡ti(»i.

l¡, r¡,r]y1mg Boliri¡'s lin¿¡ci¿L ¿lT¿irs, \c afu coxcemed \yiih ide¡tiIiing hidorrc¡l prlll(J¡,s ¿nd Nith ¿ssuri¡q th¡t «r¡p¿r¡lir! dat¡ li)r.lifl¿rcni hisro.(.¿l tnn.s willhc ¿v¡il¡ble. ln this light we olii,r .ritic isnrof p óq r¡r ! Ludg.iing, s hicli is b.ing spo nso.ed l)\ sont. t-hited N¿tionscxpcrts as the latiisl rndhod nr st¿t. pl¿n nrg.3 In additir»r, pos ive¡ecomnr.¡d¡rñns ¿¡e ofli'rccl li¡r thr Boli\iaD go\1,r¡r¡rit con.emi¡gthc nr¡irteun.ii ol tirne serics. §hich nnrst l)c conrrrucLt an(t nor suppl¿¡t('.1il st¿te pl¿¡¡ins is to l). work¿ble.

If tLc probl(r,,s of ¿.hj.\ir( politic¿l st,il)ilitv jI¡ tj()livi¿ ¿re to bcund.rstoo.l. it is n.(.ss:!n io c\¿nriDc fin¿nci¿l jlnr(esses ¿s onc i¡rpor-t¿nt ¡sp.ct influen.i¡q poliLic¡l a.tn¡r. II politi(]i¿ns rhemseh,es ¡rcnot lullv ¿\r¿.e 01 firi¡¡cirl l¡ctors Nhnrh ürfh,{,(c rLúr, ther. is lirtlcpossibilit\ lh¿t tLe\' .¡n .lTc(tireh n¡nipul¡h: thci. er\ironrn.nr roü(lrieve polit( ¡l staLilitv. ln anv ci§.. §irether or ¡ot Pa7 ¡n.l the :I\ ltmiglit r.h¡¡n lo poqer or s,h.lh,,r or rot th. posl 196.1 golerlimtJrts.¿n rulc i¡ th. r¡¡re of ih. Purilled Iie!1)lurio¡. the suc.essful cor..nn,nl ,, B.l,\..,$ ll J,.t,, ,,1r,.. l,--. i,'..'.',,, .fun1,,,.,k,,g.t,,,,,ut i

ofslatc ¿ctr»r .sl¿hlished in 19.15.

List f Symbolt

'1h..{, dots ( . . . ) iDdic¡te th¿t.I¿1¿ ¿rc nol ¿¿¿ildr¡¿.'thn'c .l¿sh.s ( ) indi.¡te tlr¿l th. nt¿q¡ih e is :¿/¿

,¡ ¡¿gligirle (less th¿n .0s1.

T§o d¿sh.s I I indi.¡te th¡t t|c il,rn or .¡tego¡)tloes ttot apply.

A ¡ni.us sign ( ) b.6r. ¿ figun' indicates ¡ defcir otu rl «:r c a s. i¡1 D1 u gri hll e.

AL ¡sierisk (' ) is usc(l to in.li.at. paltiaLl! estinúkijguru:s.

No¿.l

'lhc te¡,§"Ll.S. Aí.1" ¿n¿ L]S,.U/) ue uscd inteích¿ngedblg ¡trthi' stu¿! for tlisrussiü,¿ progtans ofthctt.S

^girctJ Jtt lñtcrrútit»tu| DetcloPmüt. t'ot ¿is

t,^!io» tt u úLnuLt orerheül fnctot in th.. rJl;.:t n.A

tt (iS,\tD acti.ity (an¡l Boli.i n (:ennal Cot:cr ¡¡t?ñt

progtu,ns), s« Appetu¿ir O.

'IHII tsOLIVIANT' S, AID

REVOLUTION ANDsrNCE 1952

been givdt n,urh gieater freedom in e*¿blishi.g thejr ow¡ programs ol .!|.,,d,rL,e rnd hJ\e (on lLentl\ b", n h* ,,¡.¡-r,rit,te to rht'nünn,t ,,,o,p*ñt,,,urd['Jrr,'r'th¡t rh. 1,,.,]..1'n t.tu.,d c,t,u,rtd,Jñur-.\.r,=t itHr rxpn,sent circunxt¿¡n,es, dris mav prore xn)re ol. disadv¡nt¿gc ttr¡x a.lv¡nt¿gc.int¡ x ,,nnJn ob,,-t-,¡ rT g^\'mm¡¡r'\ ftJnninq,ñ, {l-\pt,.t,n,1, .. r,,Inf ¡tr e (oordn'.rriun.Je

In order to develop pl¿nnnrg in Bolivia. post"INR governmcntsrIro,,l\ .,,,,11. rFh shiri.d rot,rñe,Jn, budg,.tn,gLeL ,n,ngin I96;\\orh.,l,rppndilur.i..ho$rl,\ l,rnctronrt,,n(rJrhÉr th.nt,\ ;inrsrñ dn,lb\ fun¡tion §.ithin on¡istry), but in 1966 dccentr¿lizcd ;gencies wer.incorpor¡tcd i¡rto the s¡me financitrl statemcDt las in rhe Unitcd StatcsbeqinDin¡{ iD lisc¿l verr i969).,0 Thus, thougl apparent prog.ess h¿sl",I m.,d. rn.l-,,,\Lr it ot.,,f th, p,rbtr, ..,r,,,,.,,,,,1 ...¡,.pruL'lerns r.n,uin. Fir.r. itihis,nrcl{rariñi, ot 6n1n,."\ m,..,¡\ lhat rh.executive is still un¿lre to co¡trol aubnomous a¡lencies t¡ecause theyretai¡ power of projecti(»s and audjr ol accounts, as in Ntexico, theDstatcplanDnrg remains liflited. Also, ifprogram budgets exclrrcte traditioral analysis ofexpenditure b! ministrv then no co;parison oftsoliv-kn proj, (l.d and r, ru.,l c)\pe'rdit,rr. p or r,, Jrd ltiér t96i.jgbt sitlbF f,,\siblc. I nlc- ¡ s¿rcrn úr d-\i..d to \cfJrarc C"nrr.rl r:o\"m.me¡t expendihrres from.those of deccnt¡alizei agencies, a bre¡k inBolrr u'. trm. rrics drta un qo\cmm.r,rdl poli"y mc rrrsraro phnrrrngm¿) lluI hr,'ori,¿l r¡1.r.,ñ(é jn .o,,rrart. \4F\r.u .,c."*i"tt, ¡.^*1,1"d run, rron^t,n,trr, "nJ p,,srnr.,rio,,,,,,1",;,,,.t,;;a..1i,,;,:b traditional an¿lysis ofexpenditurc br minjsrries in order to maint¡inl,,.ron..,l .. A. t^, In\es(,gJt,ón ot tñ,,g-,ang. J.\ctop,,,"nt§ $hrl,auo¡Dg ne$ a nr\ §es.

Th. rékt run oi ."ntr.rl tio\ cmmprt .\pi nditur.. major Llcc.rr ¡¡tr/cJ¿(enc\ ourL\. Jnd,,,n(ril,u uD. ot t 5\lD roCro,, Domc,ri. prod,rct¿re oftered in Appendix B. tt is necessary to note that these rel¿tionsare only rough appro\imatios oi compar;bitity for vears n¡ which d¡t¿,,r ¿\ ¡itar¡tc, r958 I e6s,.{r \\'e h"\. r,;r d.Juci.a li, r.",^r..¡,,1r",,r,¡m,,ng lhe

'hree \..r,,rs prim¿rlt\ 1".¿,,\c I\AtD (oml rr.;rron\ "r.rpporlcd in h*rt .""'",i,¿ u"1,i,,,, roporr, arc t,ar.rl nn cat"nJrr

)cars Cc,,tr.l Cu\.r,mcnt i\p"nJi(r,réj ha!e ¿tso\\ Jmounr.d ro¿L,,,ur 8 ro l0 ppr,1 nt ot GDP. ilajór JFc"ntrdlizpd ,,utLv ,tñ, mininq.oil. ¡nd rarlw,t!s nn'r r",h,d 'rn,,.rl5f,r(.nr in r,tdrr,,n ro LDpin lq;8 Lut hJ. J",.lin",j'r",d,t\ ,j,,., twir"topcr...,,rint+ib Tt,i.rJl. ur .lknú. m 'lc\ s.n." in liql,l ur p,/ E,r"n..oro. I)ñtict ot Fn(ou rJeIre r hc r.lum ol pr r\ al- , l"rprj.. s hi,.h fl.d Boli\ r.r Jt] "r Iq-Jjl'S^lD. rol. ,n rpl^rin', lu LDI h¿s Jlqdvs t,""n ,¡r,dc, b pcr ,.,,,r.¡id tu(1Lvl, re6a qoulLl Jppcar (o 1,. n,, pr,./prio,, ,t rhc dJrn ¿r.Jdjusted lor Boli! ir'\ c¡1.,,d,r \ c,r.

l8


and U.S. Aid since r9;z

FINANCIdLcoNl'Ext oF

ND A\DDECISIONS

tsAC(CROUPOLITICAL

BY JANfES \\', \\'If,KIEItlitetsihl .f ColiJi¡"io, l..s AnHr¡.!

LATINL\I\,EnSf rtr Ot.

A\fERICA\ f'E N'f E H(i:\ L¡r'onNr i, r,os

^N(;¡iL¡"s

r96§

This bL¡ok is d.eclicated to

Rrc{Aru W. $tLKrE

long-tíme compatúon in stüd1J

an¿ trTael throughout Merico,Centrul Ameúca, and South Ame¡icu

CON'I'E\TS

A.knoNlcdqen,er¡is

List 01 Srnbols

The l¡np¡ct of Infltrtn,r

Eco¡o¡¡i. Crorvth,1950 I 966

Politi.al Aspe.ts of E(o'n,¡i. ProLler¡s

ti. S. Aid lo Bolir ia

'llie N"ature of (lcntral flover¡ment ¡ilprndihlre

The l'áttenr of(lcrl.trl (lo!lrninent Policv

l'er C¿pit¿ Ar¿l\sis of FlpeDditu¡ e ¿nd E(Dno¡ni., Cro\rih

I'robl.¡ns of Ce¡tr¡l G,,vern,,.nr ¿¡dUSAII) Poli.y iD ltoli\ iru, D(atlopúdrt

Implic¿lions for l'l¡nDniq

Bibliogr¿pltic Ess¡)

Bibliography

Nokrs

xiii

\!ii

3

tj

I

E

t1

l9

21

2a

3¡l

.1t

1t-

18

EI

r05

I,IST O! :t'ABI,ES. CRAPHS, AND AI'PENDI(JES

Ta¡LE

I (losi olLi'hg in La P¿z,Indcx Nu¡rlxirs,ndR¡te of Ch¿n{rc, t93l-1966

2 Estnnal.d Cross Doñestic Product,1950-19663 Functional Analrsis ofLTSAID l']rogr¡ms, l91t-1966I Shnre olTotal LTSAID Actu¿l ExPenditure Devoted to

Support ol Bolivi:rn Centr¿l Cov.mment Bud¡]et,1957 l96ti5 Shaft'ofBoln i¡D Centr¡l (;o\1nme¡t

lle! enuc Q)ntribute.I by t: S AlD, t 957 t9666 P.r Clent of Achla l Centr¿l Co! ern enl

ExpcDditure b), Ivpe of E¡rPhasis, I9ll0 l96tj7 Púj.ct.d ¡nd Ach¡¡l ilxpen.litur. iD

Current ¿Dd Defltted Currenc), l93t 1966

I Estnnates of Populatjon. Selected Years, 1925 1966

9 Estnn¡tcs ol l'er C¿Pit¿ rlctualE\pe,,drtrrr.. Selc.r. J IerB,l9Jl 1966

l0 E\tinr.,tcs o[ G«^s Dú¡"c\tic Prud',(tP.r C¡pit¡, Sdccted Years, 1950 l96tj

II Th's Sh¡re in Dollar Yalue oflbt¿l Erports, 1950-t96ti

l2 Real Tin Pricc hidex, 1930 1966

l3 lndexes of \hhme ¿rd Rcal Eamings ofTin Edports, t930-19616

l {n,',JlPFr.Fnr"E, 1 ,.r, -5/ r, ( ^.r of Li\ ini-

La t'a?. 1931 19662 Per Cent ofAclu¡l CeDtr¿l Gov.rn,ne¡t

Expenditure by Tvpe olEmPhasis, l9ll0 1966

i] Per (icnt ol Actu¡l E\ptrditure h NIilitary',Communic¡tionlPubli. $rorks, ¿ndEducation/Pe¿sant Afi airs, 1930 I966

.1 lndex.s ofTiD Export, tg30-I96tj; Actu¡l Per Cenr ofE.ononic Exp.nditure

bv Bolivi¡ ¡rd \l.xi.o, 1930 1966

I

l0

t2

I3

2t

2628

29

99

3031

31

20

2335

.10

l\C riN( ) \V LEDC \l[] -r- TS

RDSEAT(-I ¡os (¿rrl(l out in 1966196í lvttl, gr¿n(s

¡rovided l,v |i.e-P}.snlr¡t Alllcd u. G¡rr('tt's Office 01 Rcs..rrch ¡¡¡dthe D.!elopnre¡t !'ur(l,,t Th. Ohk) Sitrte lioile.sitv. Iurcstig¿trn¡ i¡Lr P¿r \is qre¡llv .1 cd l)\ ihe Boli\ i¿¡ Cornptrollcr Ceniirxl's Olticcnfid thr U.S. 1ge¡.! 1¡r tutcflrrtlon.n D(rel1)pne!( (LTSAID/Boii!'L.Ll.Pirticul¡r t]¡¡¡ks ¿r. duc k) Néstor Sii¡z (c.lp¡Llc corrpiJi:r ol tTSAID/ll(nir,.a5 \..rrlv a1or¡r,, iL ,t¡úl |'k¡<nor Stl¡tóti! I¡r hij I¡elt) ir) u,dcFsl¡nd!rs lJoL\i¡-s e(on(»¡ic de\cloprr(!ri ¡r(l to J¿cob l'. \lecrn¿. krr.§jin¡,rfc silh lrS,\lD r.co(ls lri \\r¡shiDst.,,,. D¡!j(1 \lrle. .tDd¡lN.n, J. l.á(jh¡r¡¡, of tltr trsAID Lnl¡¡,r¡tn,, §vste,ds Iask Ir.r.cl!.i1.',',r.,\,.r.r.',,tlr.j',."r,r1t,.,,r,1.¡.r,r.ri', rl,n,l, rt..^1,,,'.t.

r.,,"r,ñ,,r,1,,..,r,1,J., ,t. ft,.,, ,.,,.,,,.,r,.1,,,r,-l,t .,'.r,;r.r,r\hich l¡rs r¡stl\ !¡p.o!r,.1th. (,riginrl\vorl Johí D. Srr¡rna (Un¡crtit) ol (ihilcl dres ,rpor his ert)crrei(. nL tsol¡'i¡ k) $ rite 1 k,ug rnd.irel¡llr co¡siden'd ¿n¡l!sis ol dris shrlr, ¡Dd Lvle (1. Bro\rn iBa\lorLIi!(.r'rti] r,liei((l his ,,\¡(rl inLi5i!{ c¡iti.is¡¡¡ ¡n l,)gi. ¡, prLip,l!i¡¡r.

Th¡¡,ls ¡rr due ro ltich¿ \\'. P.ri.h ¡nd Albert L. \fn,li¡els [¡¡.riii.js¡) of ¡¡, .rrliIr !c¡sn)r ol il,rs shrrlr 1').se poli.ssors ol thcSt¿ic t ¡ir.rrtv ol N.\! \ork ger¡.rousl\ o¡i.d (rnDnroris nL Bufiilo,\lir.h 22, I96E,,t the (i,n1er.Dce on lbllti.¡] Piriics.drl the S.irclrtirr lustiL¡tnr,¡l 5t.rbilit) rn 1$cnhc(h Crrltrr_a i.¡tnr \¡re¡r:I, $hcre1¡is w.,rk N¡s oriqinrlllv I,r.serlcd.

In |.(r¿tn,n ¿¡,J ¡ro«\sx,il r'i .ht.r s¿s ir.Lrrdltrl in ¡rrt bv Odor Nr.

\\'ilki. lLrliD A¡n.ric¡n Cert.r. t-(lL^1, ñho collibor¡te.1 iD ¡ll ph¿sesol.orrplct[g t]t;\ ,nre5ri8itn,,. \¡¿ld() \1'. \f il)r¡c ¡,,d X,nl¡ \l¡rc¡¡sprepared ihe qrephs; (llarre Piron. §pc.l the.r¿nuscript.

Cr¡tih¡.1. is ¿rlDo\rl.dged n) Jóh¡¡r,.s \\'ilberl fDr rfi,rngi¡'g ¡UCLA gr¿¡t of !i,rd l'ouid¡tion furts to rclise ¿rd prep¿rc this!,rumr lbr pr¡Uic¡tn¡r.

I \\' \\'.PociiL P ali\¿¿ cs, C alifu ¡ ¡ i

INTRODUCTION

l\ 1q6.r. §h.n Victor P¡z Hstenssoro was overthrown, the Bolit'iinArmed f'orces sh¡ttered thc ¡ppirent st¿bilill' of rcgul¡r P.esid{rntalelechns shich h¿d bol est¿blishcd l)y tlie N¿tion¿l Re\olutional"l\lov.mcnt (\lNIt). Belore th. pr.sidential offfce *'as filled legallv againin t966. t1vo nrilit¿n ¡re¡r e<tr¿ngcd powcr four times in ¡ Damer re¡r-iniscent oi the licquent ch¡Dg.s in omce betwee¡ 1930 ¿nd 1952.Durnrs lhe 22 vcars l)et\yeen 1930 ¿ d the \lNRt licton in 1952, llpr.sid.nts out 01 16 sened n¡ ar ¿ctnrg c¡ptrciir (sec -\ppcndix H).

§'ith thc f¿ll ol the \1¡"It some obseñcrs thought th¿t nrtitutionalizatnm of tlie Revohtn)n in the \le¡icú st\lc h¿d l).c¡ th$aftedlh.{ { "r. r r.,, $ ha n\, ril,,,{ l;/ I'r,,1.-"d ro r,., .rn rnt r,,n,.,r,1,1.id{,als of th. Rcvo lution b1 el n,, n,¿ting b¿d gov.rrnment ¿¡.1 co rruPt ioD.

Ottrer rie\rcrs lrx)k the position th¡t instilution¿lizati(»i of a ]¡ove-me¡,t, in contr¿st io ¡ politi.¡l pañ\','\\'rs n,,póssibl. ¡.d ihc coll¡Pscofthe LNIt v¡s ire\ ital,l..

Rather th¡n specul¿te ¡, politi!l i.nns o¡ the ¡n'¿nilrg ol the \ln-lt s

rise rnd f¿l1, rrc suggesl th¡t o¡. l(x)k ¿t e.onomic ¡spects of Bolivirl¡development durnig thc l¿st third ol ¿ century nr order to t¿le nrtoaccou,,t thr pressurcs ¡r¡d n¡rccs ivhich have nrflue¡ce.l polilical ¿dion.\\'hile politic¡] studies ¿rc import¿nt, thii ff¡¿Dcial structure úhichintcr¡ds vith ¡Dd is generated L) politi(s is.spccitrll] signiticant forpurposes o' political trnalrsis. ]\lthougb &)li!ian politic¡l ¡ctio¡ h¡sbiicn iD\¡'stigakrd Ly lbbert J. Alex¡¡,der. ¿nd socitll ¿nd economic¿spects of develop¡nqrt hav. bii.,i traci,d iD pn¡,eern,g qorks b)Richard \\'. Patch ¡¡d Conrelnrs Zond.rg,¡ slstcnr¿tic statistic¿l anah-sis offf¡¿n.i¿l str¡rctr¡r.: ¡nd st¿tc Policv h¿s l)ier l¿.king.

^n¿lvziDg Bolivias 6¡¡¡ci¡l ¡ftirirs, $a, ar. co¡ccrúcd with the

¡np¿ct ofn,fl¿tio¡ i¡ tsoli\ ia ii.r 1930 i¡d its r(ilati(»r to the llevolutio¡th¡t beg¡n nr I952. Thus, ¡rteryret¡tion of eco¡xrDic grosth u¡d.r th.\INR, .sp.ciall\ ¿s nrflu.n..d br thc U.5. Agenc] lbr Inten¿tio¡alD.\tlop¡not (USATD) ioq.th.r lrith the n¡ture ofCentr¡l (;overtrlertcxp.Iditur.'. proridcs a cont.at for und.rstáDdinq political ¿ctirit\.ln discussnlg the D¡turc ol ¡Di] p¿ttcms nr Bolivirm Centml Goyern-niert expexditurc, we m¿) sec thl] problcms of(l§cbpmcnt {ith \\hiiihtsoliviin politi.i¿ns L¿rt b..n confroDti'd. ]le.¿ur this shrdy is intiirested n, polic) of.xp.'nditure, ernplrrsis Las heen placed upon budget'áry ¡l¿tters r¡the. th¿n upon poli.\'ol t¡x¡tn¡,, \\'hich is .liscussed liere

Sin..'this is ¡ sfeci¿lized stttlr ofBolivi¿¡ ¡fliLi.s, the re¡der shor¡ld

¡oi .xpcct a full disculsion of Bolivi¡n historic¿l d.\.L)Pne¡t ¡it.r

¿n¡l)sis ni¡\ \!.ll P¡o\! to Le ¡ s.rn)!s l,robli'm ilslLch ¿n aPPro¡ch is

.ont¡nral \riil,o,,t nú(lerdli01.In ¡n¿h,ing lloli\i¡s iin¡¡cr¡l ¡ftáirs \\. :rc (on.rirned sirh identi

fr'",g t,;st,.i",it p¡it.nis ¡.(l §ith ¡ssuri¡q tlul conrP¡'¡li\'r dat¿ for

difiere¡t hisiori.ál tnnes rvilll¡e ¡v¡il¡Llt'.In this lighi $e oflcrcriticisnrol prcgr¡m brdgetn,g, § hk h is Lenrg sPon$redl)v v)mc Urite(l \¿tn»is(aperts ¿s t]r i¡t.sl nr.thod nr st¡te Pl¿nni¡q.3 llr ¿dditn,i. Positiverecon,ncnd¿tn¡rs ¡( ofli:¡ed for thc Aoli\i¡n qovc¡nnüri .o¡.er'i¡gthe nrrli¡tcnruce ol limc scries, \'hich r¡ust be conti¡t1ed ¡rd not suP

pl¡rted il n¡tc pi¡¡Dnrq ¡s io b. NorI¿t e.

Ii th. proLlons 01 adriti! itlq plitic¿l st¿bilitv irr Boln ia ¿r' to Le

,,n.l.rshnx1, il is n.rriss¡n to e\tmi¡c turxrci¡l irro iss.s ¿s otre nrrPo.

t¡¡,r ¿spect n¡flue¡cinA Politic¡l ¡etidi. lf Politi.i¡¡s rhorselves are

not ti¡lli r*¡rc ol liru,ci¿rl l¡ctors s,|ich inlluencc rhdn. thÚc is littlepossibiiit! tlrrt ttier c¡¡i cil'ectivelr m¡n1pul¿nr th.ir ervirnrnr(rit toichn\. politj.¡l sl¡bilit!. h tn\ .¡su, \']i.thcr or ¡ot P¿r ¡n.l tlie \l\Rnright reluúr to poNer or *hcther or rot the l)ost 196-1 goven'ú.ntsc¡¡r nrlc ir tLe ¡r¡¡¡c of tlie l't¡rifiiid lterolLnn¡r." the suc..ssful qove r

i¡ent of Boli\ i¡ sill detrrrd in r larqc ,nea re uPon bu¡ki¡g thc núldolst¿te ¡ctio¡.st¡l)1islie.l i¡, I915.

List ol Sq»tl)ols

Tlrrer dots { . . . ) ndic.rl. th¡t d¿i¡ ¡re tr,,¡ ¿rd¡l¿rl,/¿lhr-e d¿slrcs (--' I iDdicalc rhrtthcnr¡Anil¡ c is;do

¡r,¡¿gl,girl. (L.ss th¡r .0;r.Tsli ¡t¡!h.s ( - - I indi.¡lc th¡t tllc iteur or c¡tr'gorY

¿otr nlt npt)ly.,\ ¡rinus sign l - ) Lefor ¡ figurc i¡diclttr ¡ ¿?jt:it ot

i ¿ect¡a§t: ni "ng1¡itu¿t]'n isterisl I " r i5 ¡¡sed t., rr,d¡!!le ¡¿¡thlltt t t¡i»ú|r¿

l,rr'

-lh. t.tüts "t'.5 ,\i.l ¿n.l tisÁl¡) u4 st¡1 iit(rchatv.aúlu inthit stud!fo Lliscussi,tt!prcEra"t\ oj the'tt S -\ltitctt t¡ Intünttiünt Detllo?¡nnt. Fot ¿is'

c,¡ss¡,,¡ r,rd L?j¿.rsc o1\'n1¿u¿ faúot the 4ltLt ne!

of LISAID aüiti¡tJ iaid lloL¡rian C..ntttl Ca1:cn¡¡r!,nt

ptortut^), s.. Appr dia O.

TH 8 T]OLI!IAN REYOI,UTION -\NDu. s. ]\tD sINCE 1952

THE IT'f PACT OF INFLdTION

THE woRr-o r,¡),BEssIoN ¡ftcr 19rg stnnuláted ¡¡¿ny countries, i¡ch¡dingBolivi¿ in 1931, to bcgiD to measure cost of living. UÍfortunately the

a.h e t of the Chaco §;¡r in 1932 cuftaited the rccording of Price levels.

but in 1936 the work ofBolivia's statistical ágency ú'¿s resumed ¿nd thesame sample ofprices for th¿t yc¿r slio\\'ed ¡ 217 Per cent incrcase whencomp¿red to pric.s of 1931, or ¡ 26 Per cent co¡,Pound ¿nnual grosthfor each of ffve ve¿rs. A constaDt\ high yearly infl¡tion there¡fter set

the stage for changcs in ffnancial po)icyrvhich rvcre to converge in Is'15.

Data used ft thc cost of living ir dcx are for L¡ Paz. l'hough d¿t¿ are

avail¿ble m rccent ve¿rs lbr dcpartr¡ent¿l c¡Pitals, the nrdex for LaPaz is the onlv one going Lack to 1931i the Bolivian Statistical Agencyhas not developtd an index for the coL,ntry ás á whole due to weighti¡rEi

problems in the s¿mple.{ Thcrefore, rve use thc index for I"t P¿z s'hich,in ary c¡se, domin¡tes the ecor¡oni. life ofthe country.

Though the cost of li!'ing showr i¡ Table r and Clraph I drrppeLlappreciably'during 1913'19.1"{, it is clearth¿t the Villarroel govemment.rihlch took oIfice in 19.1i], \{'as under great Pressure to relieve socialtensir)ns ¿ccumul¿tcd over ¿ 14'year period. Obviousl), this stress w¿s

¿ key factor in the thhking of victor P¿z Estenssoro, for protest which.llmi¡¿ted in the policies ofth€ vill¿rroel govemme¡rt ofthe mid 1940srcjected the ¡rgumc,rt that sound eco¡omic Policy decried st.ltc inter-\cntion in Dational ¿fi¿jrs. The result was an ¿ttemPt to amelioratesocial problems c¿used by inflation ¿nd co¡npounded by the afiennathof the Ch¿co war. lronic¡lly, o¡ce thc tsolivian Revoh¡tion ca,ne top,rrer - trom lei2 lñ lgb.l - il hod l,' m¿rnlJrn .r r"¡.,'l ',,i'inl .u¡d .J'rnrni,tr.rr i\. r\fcr'dilLr. s hir h frc,'ludcd lh. m"lin,¡ of c, onomrc c\p.r,Llirur. h"(.'sdn (ú c"'rp" from inR¡ti,,n

It is interesting to note th¿t the Rtvolutn»i of 1952 coincided with a

new surgc of inflatn)D beginDhg in 1950. I¡fati{)D, ofcourse, could notautom¿tic¿ll) cause a full-scale soci¡l uphe¿val, for many coufltries ntL¡th .{merica lived with ntflation ¿s a f¿ct of lif'e witho(t revolutnrnduri¡g the srmc Icars. Civen the dram¿tic r¿tes of change in the priceiDdex, however, the co¡sc(ative govemments, which sid.d tYith the''tin oligarchy' lvithout seeking to ¿llevi¿tc .iconomic causes of socialstress ni Bolili¿n socictv, inevitaLly lost support ¡mong the middlesectors, gov.nún(rt büreaucr¡ts, and worken who make up the bulkof the eco¡oniic¿l\' activesectorof the country's PoPtrlation.

Ifcurrent theorúürg about revolutionsby Júnci C. Davies is relevn¡r,

GuPtr IAnnüal Perceniage hcrease ir

Cost of Living. La Paz, 1cr31 1'l6ij

Dolie¿ lin€ iñdicoles .snmoto

onnuol qro{lh rc16 in th¿

b6s.d úpon compound

TûLE 2

Erinr¡t¿.1 Gr.ss Dd¡esti. f (rd(.t1950-1960

D..f¿re¿1ú tS58

t95019;II9521953195{M:i5I956

1955

r 960t gtilI9ti:I9(iJ190,11965

355.e3i8.6387.¡J:t.13 ;316.237l.ii35.1.rJ3.12.9353.73í2.1367.737ó.5396 5;l2L9112.2'167.149fr ;

6..12.1

r1 1.7

iil

3.43.1

,1.3

2.t5.66.4

5.t)6.3

tsrl,¡.¡ rL, P¡/

noDi( dlr rr,{¡oi sr¿.n¡.r 0 (¡96$) 6

Der.l(¡pnrent ot the Bi)livi¿n c.onorni har beer very unele . Ap-p.rr.rntl_v-' ¡¡¿tion¿l ecolromic lif.r w¿s ni. \'ery healthv condition during1951, ¿ vc¡r that brought a 6..1 per ce t increase jn CDP. Altbough195¿, IL. ve¡r of the Rct!)lution. fe.¡urcd .¡ decre¡se in c«)nomic¿ctivjty, not until the disastrous year of 1953 did tlic eltect ofe.onomicdechre (and lov tnl prices rliscussed belorv) hit the nattun. BeginDir¡llnr lgf Bolivia re.olercd sorDewhát trom a decrcase ¡r CIDP of Il..lper cent t¡r the pre\ io,Á \'ear, but the great iIfl{tio¡ ot l9S-I957 w¿sáccornpaDied bv ¿ contracting econo,nv vbich triped out any g¡ins. lD1957 the country rr,¡ched the ]o*est point in productility since 1950.On¡v h 1960 did the eco«rn1 recolcr, and nor uotil 196¿ s,ts the 1959output surpassed.

Li:cl¡nc oe¡r Dn,re i¡Dpo¡t¿.t during tht Ken¡¡r.tl ¡.Ininistr¿tio¡l).1.tr¡s.'ol C¡si¡,is risc n, l)o\r1:r ¿nd ri»iversi{,) lo Commr)nisr' lheL S.§xsdci,11nr¡Le(ll,)Pr.\.nt¿-\.h¡r¡g.intl¡.¡rltrlre.)f¡LeBDlirirr)

A p¡ttdl ol ¡i.reasi ng ,\¡ nc ri( ¡n cornnriünclit to tsolili¿ nrav bc s.(itm

^¡pendir \. lhis d¿li' includ.s 1i¡))ds ¡d¡ri»ist.re(l h\' lhe U.S.

{g,¡.r f¡r l,,I(,¡¡¡lni,i.rl D..c1(,¡'rx.l iNo\.ml),r l96l_ r .¡,.1 iispredeccsn» rqrn(|ies (E(('n!nri( C(!)p(r¡tnnr \dnrur¡tr.Itro¡r, 19'1¡J

i9511 \tLrturl S,rrrri§ l{e,rcr,. l95I'1953r !'orcign Opcr¿tions \dlninislratnn. 1953 l1);5; I¡k'rriüidr¡l Co{,perátion ldm¡r¡tr¡tnri, 1955-

llrrjl . ,tDd tlr D.\ clopri, nl I ¡¡¡, l'urrrl. I f)5i 1961 L

The s all te(t,nr.¡i rssist¡lce pr(Ic.t begún l)\ tlrc L.S. ifr 19.1i

*as cxpandcd l¡to ¿ ¡r¡n,rrúth ¡ss¡l¡,r1 progr¿,¡ begn,ri g oi 195'1.'lhr¡,st of U. S. obliq¿r()ns e¡rph¡sized sr¡Dis L¡,,lil the l¿t. 1950s. brtsn)Le 1963 l,)rr,s h¿ve b.(o¡¡e ¡rost import¿nt. OLlj{¡tiors oi }'ood 1().

Pe¡(e ',ndcr lLLhii. Lar {§0 re¡.h.d fe¡(s nr t95.i ,rnd l9tj3. \ ¡tli n.\!oLlig¿tions de(lininq duri¡g the pcrn'd 1958 196(l

'l'ho,rCh U. S. .o¡nnitmcnts rc¡.he¿ hiqh figur.s. Lot¿hl\' ür 1955

¡ri,l 1962 196.1. ¡¡.1Lm.1oül,l.d]y g¡\. the \lNR Lo¡¡fid.n.e, it is impo¡-tart t(, .oD\id.r tl*r ¡ 1T,t t ,)l s,x i ¡s\i\trú, c oD Boln ir¡ dA eJoprnent.ti rll of this ¿id h¿d go¡{r for (s»Úrr¡ic d.\clop(,.nt, Bolivi.r niighthavr cxperienQd acceler¿t.d econonrc growth irr spjt. of the R.vollr-tio¡s lrozen p(nic! of so.).¡l expcndjlurc. r\n nrport¿¡t share of this¡i.1. h,^vcv.r, sr¡pporlc{l r,»¡ rco¡onri( irtivit\

'1.rblc 3 s|oss ¡ liuic(,,inrl b¡e¿k¿l »ru of thc ¡.tual .'\t¡lrditu¡e .lprogr¿rns ¿(1¡rLnistere.l l)\' USAID/tJoiirir li, tecL¡i.til rssist¿nccard develop¡o»t grrnrs rnd lo.ns, ¡s \!cll ¡s.¡sh ¿nd othcr granisfi,,¡Dcedthro,i(Lscncirtio¡¡o,l(xralr!rr.¡c)u¡rd.rs¡lesofr(¡i(r,ltur¿1.onr¡noditirr il',,1)fr.l..r$' 1110,litL'lr 'i his ¡n.il!'lls b\ ttpe ol.xterditrr(.¡lso.ont.Lins dor¡t¡('ns ofsu.pltr\ c.,rnnDditres to !olu l¡l] rdn'i¿g.Dcies, gr¿nts lbr eco,rnric dr-'velop,nort. ancl d,nlar Io¡D credits frornthe sal. of conn,odities rr¡tler Pul¡ln ] ¡rv 180 lTitles Ill, ll. ¡nd l\',rrsi,..ts.l!r S(,.r.il Pr)s¡css Tnrst Fr¡¡rJs E\pon ID)port B nl Io¡nsl't.,c. Corps..L,,d ¡rilitrrr ¡ssist¡ c¡ ltr,clud.Ll iD AppcndLx A) ¿n,cxchrded fiom ]'¡Lle 3 l)e.¡usc iher ¿rc not ¡.lrnidisti red bv LrSAlD.r'z

lh. rc¡der sl,ould ron th¡t snr« 1.'S{lD has Ltevdoped a co,npli-.,.t1,(l ¡cco,intr¡¡g svst.i¡ ¡i¡d ¡ se¡ n r ól.¡teqorx r \vhjch ¡r. \ e^ diffi,r,lt n) r.ln,Lnitter ,¡d rn,(r, ¿..ourts h¡lc L,ee .oDst¿,,t1! re\is.d.US;\lD/§-ashnrq«)n ¡nd USAID/lhlivia sho\r coDflictnrg amountsobllgated and ¿ciuallv spcnt. In {1i.1. boih $rashiDgtur ¿nd Lt P¿z

.¡rh l¡¿v. se\'.ral sets of Iigures o¡ crprnditure. 'hue 3 is brsed upo»t S.\ID s l¿i,st published rc\ isio! $ irr(h coDt.iins (h. o¡h' l,ist,,í(¿llrcon\rste¡t ¿nd mcannrgl(l IurctioniL ¿r¿hsis ¡\ r,lable r3 lOblifa¿tio¡s

pr.sent.d t,l Appdrdix A ¡re t¿kqr l.om \\ashington s,,ur(ris {hicbpr.sent tlie ohlv consistent ¿nd r.vised an¿lF,s av¡il¿ble fbr total¿r(ho.iz¡tiori lr) i.ir.) ]]e.aus. se ha\e »o rerned ]e¡rl) §cries. andbecause 196l prolides ¡ ¡¿tt¡ral v¿tersh.d \r,ith th. bcginning of theA)liaú.(' lbr l\r,¡lrcss ¡'rrl tr¡nsitioD lo the \e¡cv lbr l¡l¡rn¡tioD¡lDevdopmcnt ¡s the U. S.'s org.inization respoDsil,le for forergn assist-drcc. liAurcs n, TaLl. 3 rr. pres.nted for tvo pern)ds 19,12.1961 ¡¡id1962-1966. In ord.r to pr€se¡t a co¡sulid¿ted ti((otúrt. loc¡L curre¡,cvh¡s l,eer¡ co¡r erted to doll¿rs t¡v usiDq a s1,i¡lht.d ¿\.rag. eich¡ngcr¿1. of l)olivrrdos t¡, tl¡. doll,lr fbr both pertrds. Surtc y.ariv l,calcurrqrc\ tot¿ls for rh. Ársl pern)d rv.re u¡¡\'¿ilable, an exchonge ratecrk:u1¡1<,<l br tt¡e tr.S (¡rcr¿tnrr¡s Irissi(D ius l,e.n a¿jr¡ste¡l k¡ ürcludel96t ¡Dil ¿rrrive rt avcrage valrrc.t{ The malor problcm with ligures in'lrble 3.(tle(ts n)«,nsisttnc| in fun¿ti¡,nx) aDal¡,sis br trSAlD: dol)araccou¡§ ¡Í(' presented iu t.mrs of obligntn)ns .rnd local currcnc\ ¡it¿ n¡s ofrlisb»¡se¡¡,enrs. F,rrtr¡n¡tcll. hor"er c¡. ohli),irtn»¡s ¡Dd expeDditurcs ¡re approxnn¿telv rnual. (Drtr on disburrements ol <lollar de'\.1,)pn,ort !o¡ns. trcludcd irom trSAIDs fur,(tñnil ¿Drlvsis, ¿rc¿vailrrblc ¿¡d ¿re .1assi6rd un.l.r e.oDonric erpeDditure.)'i Thoughth.se crtim¿t.s ¿pp¡renll! h¿\'e ¿ high prol,¡biljtv of reli¡Lilitv,r6 thereadcr rhould Dote (hat thc d.rt¡ ¡rr'not trecess¡rrly Ánn Lut are pre-seDtcd to rcve¡l ¿r¿r¿ls ofexpenditure.

Dürirg the 6rst pcfurd ending nr i96t, !-'.S. ¿id ú¿s distrib«tedhÉ¡vil) jD lavo! of socir.l expenditürc, with 1 6.0 pe r ceDt of to{il oú tl.rvg.nig f,,r dire(t sr'.inl mr(krs ¡nd 3l.il p.r cer,t tor hurlget¡D sDpportoJ the Bolivi¡n Centr¿l Ciover¡rnents soci{l revúldtion- Between 1962

.ind 196ti budget¡n sDppori f.ll to 91.1 per c.nt of expenditure andd1re.t soci¡l ¿ssista¡ce Éll to 10.3 per cent. Though.co omic outl¡v

-gaine.l ¡l thc crpeD* of socia) cmph.rsls, h»'evc¡. ,13.s per cpnt ol tr.S.¿iil still $pp(,rted non ..onomic fuxotntrrs.'?

As USAID Econo¡nic Advis.,r Jacoh P. Ileernsn rtoted in late 1966:

ThrougL l96il lhe nuio. el{'mert iD trsAlDt progran sas providn,g reso(r.esr,.,,^,rDolif.,'.nLl,j¡..c,r,,,d,rnir h{J..,n,.rd.,r'd,n,,\..1n¡.nr $,'hu\/,,spJ1cé r,.-d'".,', ,,,,,,,,rr,"r nr lh,.r'olu.,nd -r1rl '.r'l',.Jr.,1 rol-lo" i,¿ , ,, "l ,,

' "lur,^n,., ,d rh, u F"l J,'orLrnir¡J q^\ Fm,,,.nr .rr" $ Irl, ,r

l,r,'.,,S -n ,1d b n! ¿.n i, l,- rr,'.rn orc,rJ,lnr¡q,,,n,,¡, t,t l,¡1Sol, non strat-q\ ,n thL L SAID t¡,grim la

lhe sh¿re of the Lr.S. expcnditure (excluding progr¿,ns not ¡dn,inis-te,ed b) USAID) dcvot.d to (\r.ct budgetary support oftl'(- RolivianCental Covemñert is shown in Table 1. Direct hudg.1¡ry suPPort w¿s

l)c(u. n¡ 195; in order tD he\r Bolivi¿'s st¡bilizati.¡n progran; aDd inth¿t ve¡r it c(trrtitutc¿ 21.2 p.¡ ceot ol the U.S. rlloc¿tnnN. in 196(r this

1l

ol U. S. bLrdg(trr\' dssist¡nc., Ibr th. ¡e{t firur \.r6 tI. Iiqtrr. r¡nqe.]lroor 121) «, l!1.I pr:r ccDt fix.prrkin$¿rLr)Le¡ irr Ii¡53 ¡r¡Ll thc s|¿reof trS^1D,t,¡,.t1\ de(r.¡r{l tln,r(.¡1lcr to lx,h\(ari 1.I .t¡d;.ip¡rc¡ritol Q,utrtrl (;o!rr¡m.¡t rc\e,n,c. TIio,rgh LTSAID trxd to .h.trn,rl¡,n(is.i.ü\ s,¡ppo¡t r»i¡) v,.rt¡rl tlroqr¡¡)s p,,ltj.ú1¡rl\ e.ononri.. lhcIlolifi¡n qo\.¡,nerl usr¡¿lh rv¡s {iec to rse the ¡rior! ! ¡s it wish.d,¿n.l nr J¡! c¿s( uoliri¿" orrn rlurds sr.r. renrs.d li,r f«,sh deplo\r¡r,rt., ¡¡.,1 s;('i.¡l .lc¡D,iDds

rn a lrrqc rrrasure, ¡id n) tJoli\i¿ should not h¡\c ltecn l¿l,elcd..u¡x)mn, .Lssirt.u!c. ()f the 1i5.9 nrillt,,i (l(rL,rs disb¡¡rs..l br lh.l.\¡,,,, r1,,.ir,,..lrjñn,,1 I',ñi]-.,r,,,rhn,-phlqhl'l,"rs.F¡,o..ihlr.r¿!d ole-hálf ol ¡ll (r.rDt rnd lor! ¿s5ist¡ncc cr»isisnr.l ol ship!r¡(arts 01

¿g¡icülturrl ¿lndalÓd¡ti.s n) tsolil i¡ !¡ tr«u¡o¡¡ic¡1h. rdistrib,rtio¡ ofl¿rrd urrdcr thc lt.!(¡lutn¡! olien rcsr¡lted ¡, tr shift lronr pr,).L,.tto¡ (orniarhr:t Ly largc l¡,rtl l«¡ldtrs ni p¡.(iu(1n¡r lor s\rLsi\telre ¿,ld nrklcoDsur))ptx)D L\ y¡r¡)l 1¡ndh,nden. lhus. \vith re$rlt¡rt fo,)d slúrt¡s.sn, ihe cities. \lilh,r Iiiic¡liu\reNÑ tntrile¡cv shiprn.nts oI s,,rfli,s.i*!i.,r¡tu..tl (1', ¡r)üili{'s &) noli\ia ¡5 s¿\i g tb. ú4¡)Dt¡\ lrcr' star!¡

'l'{tsrE iSlirr ! ,,1lloln i¡n C.rt¡.¡1 (](^.nr¡rert

ln\.,,,r (i,,t l)üt.11),\ l-S.r¡D. r9it l9lri

n¡t-,,L'5NI¿)

l95i

19¡9

190 r

L96il

:tit 0

J]2.b

.113 .1

l;9 l139. J

;;1 I;:1i.8'

's li r).

h;.;470

tofr.¡

l0i.¡L8l¡Jrh;.0lt5r|1 1d

i.1.0

:19.¡l:l 9t;.;

l1.lJ

1.1'll

13

grout)ed hv tlpc o{ cmt)hrsis lsec ApPcDdi,( lul. }'ull r¡tn,¡ale for thiskind of ¿n¡hsis has tr.er pres.ntcd bv thc ¡uthor in a studv rvhichinvestiHatts poircy ur ihe \lexi.xn Rerolrrt¡oi.3s TLorrrth aaalysrs oIc\pe¡,diture nr economn lcnns is not possible becaüsc RovernmeDtalrccourting irr\ohes the ge cr¡l vice ol nr)t scFratiog (urrerl( o(tlavI;o¡n r¡pit¡, expe¡ditur.s'?s this froblem does not ¡[e.t the prcsdrtstud! \\ hich is jntercste.l i]l politic¿l ¿¡¡lt'sis of t)pes oI exp(ndihrre.

Ernnrinrtion oI )rudgets ar«l actua) erpe»¿litur.s iD Dolilr¡, ¡s inNlexico, ofi¡rs a test of idcologv. Since poliüir¡s ma\ promise allthmgs k) ¿ll people, {nd clanlt ther are lulffilrng L¡¡lpromis.s. it is lirirlulto nNesti(rt. the .xpcndilure of funds. A go\c¡nne¡l's e¡penditlrrccorlkrs to 100 p.r cedt ¿rd thl. .o¡rpor)cnts of such outl¿) ,na) he (tte'qorjz('d rt'¡anlilitivelv to de!¡onstrate the natnre ol ideohq} ¡s it iseipress.d h pr¡ctice.

S.,(ial e\per¡d¡ht¡. iD.ludes cDDtribDln)ns to n¡lcn¡,¡tn»al ¡nd foreign¡sen.ies \\«)rking i, B.,li!i.. lu,rds lor housnrg ¿nd public sellare,r id ,rllocLlti{,rs to thc trl¡nistries ot E.lLc¿ti(tri. L¡Lor ¿nd Soci¿l Sc.uñt}, ¡nd Pe¿saDt ,{Iairs. tn ll)is ¡r¡álvsjs of.'xpenditr¡re, for example. ¿lloutl¿) ¡eccssxw to r¡1ake the Nlúristry of Educutrcn fun(tio! isalaries,equiprneDl, co,¡stnrction. el..) is incl¡ided ¡s ¿n edurational erpense.s0

Ecor¡o¡ric erpenditur.r encompsses funds for rgrari¿n ft.fo¡m. putilic\Drls,.óümuDicalnrDs, ag¡i!ulh)r!. aDd ljvestoLl. coloniz¡tn»). ¿¡rl thcMn¡istries of Nlnres ¿¡d Pctroleum ¿,rd Econom). In additron. economiccxpenditurc ürclu¿es tlarsl!rs tó dccent.aLzc.l agenci{rs )ike th€ Bol¡r-i¿n Dcrelopment (lorpor¿tion, subsi.lics to iÍdust¡ a¡d co¡nmerce,rDd p¡vnrents to such progra¡ns ¡s run b) tlt( Agricul(ur¿l Se^ ice.

r\dDrinistratile e¡pe¡).lih¡r. irx.ludcs fu¡ds expended bl the Congress. judicirr¡, Pr.sideDcv. For.ign Office, Tre¿s,rry arrd Audit De-pa¡hmnts. aDd lli»isln of Co\.rn¡).Dt ind Immigr¿tnn. \{iliia\-oútla!, p¡lments on tbe pulllic d.bt.3'a,rd retirement cont.ibutioDsrrc ¡1roüped herc ¡s the] also lire !.tilities sl¡ich n¡aiDrai¡ the sl¿tefro¡n d¡v to clav rather tlur sti¡nulate soci¡l §,ell-being and ecortomicactiviry. Bolivia's subsidl to the Cl¡tholic Church h¿s contillucd,¡s.in¡dmiristr¡ti!É expcrditurc of thp Ce¡tral Co!enin(út i¡ spitc of thesocial r.\olution qhich h¡s reshnped o¿tiuntll lilc. Srnce IINR revollLtionisls did not fe(l th¡t tl). Churclr w¡s ¡ po.v.r whicl¡ threaie¡edtheir ideals of n¡ll(nr¿l inlcgr¿ti(nr, thel dnt not dr¡lleng(. its positio¡.31The Presiderrts specirl rescrwc tunds li,¡ clássified a.t¡!jt\ a¡d theElectoral (hurt are ¿lso groüped undcr ¿dministrntnm.

There .rre some special c¡ses of c^tefao¡iz¿rn,n shich dcservc .\)m-¡nent. Thr fuíd ior State Oblig¡tions origiDallv encomposcd debts andprogr¿¡ns with funds elum¿rked tor «quired pav¡rents. Benveen t936¡Dd I9&. ho§crer. this.:¡t.gon imm.dj¡t.ly rime to ..preseDt oDe of

15

iL tl'e first;rst¡rc.r nr ihe se.oDd he h¡s nD l)udgdarl rulhorilv nndh.¡(e !.ra littlr po§(r kr iDkg(.rte tl(rse ¡ukrr¡rno,,s.Lccri,u¡is i¡,(ost¡i, pl¡n)¡i¡rg. Iilsi fi,¡d\ lor e\¡mplc, ¡re cxen\)t from e\..utn.inftL(.(e t)(ci\r(r'1.(ruse ürterr.st ((,ups srsl t<, t¡ko p.oLr¡r,\ oulol tlir llolilicxl sphefu. h llolir ir d,is res¡,lted i¡ a \1r./ .unrbcrs(,¡.s!st¿,¡ ir s'hi.h srr¿l) \e¡Í1! eont¡rbrtt¡,]n k) hü¡(l.,rls .,Ili¡t).lr li¡»rt.r.lii¡e .x.:cutive's rbilit\

'n, ¡ri ei steci¡l c¿pit¡l reeiis of lúv P¿rtic,tl¿r

D.ce¡hrlized ¿ge¡cics sLrcL ts th. Ijoli\,¡¡ Derrlopn¡.nt O)rpor¿tiu¡ .(¡¡(l tl¡c tlo¡ i.,n \lir¡¡ng ai),t)orrli», 1(lO\llBOl,) ¡rt rxclrrtledf.on¡ this ¡¡alvsis 1i)r lh( s¡rne rca$trs {s qi\1ri ¿bove COUIBOL oper-!l{¿l $ith tr .l, li.it, iDstcad ol pri,drrcÚq Lli!iclor.ls lii ii(liig ¡¡¿li,¡raleco¡o¡lic di\a,rsifi.¿tü)n t1s tLc \l¡{R hrd hopccl.3'N<,t onl' s¡s l¿rx

rÓ e,,r¡. 1)r¡¡ ,r¡¡iDl: lost t,, lh. go\ en,non nfier , tprópri¡tiDD of tlielarqe lnr ü¡trs i,, 19ó1, btrt thc (ir¡tr¡l Go!ern¡¡q,t h¿.Ito .ontributes,,bsidi.s h) thL, ¡nincs oút of it! o\rn ¡i.o¡¡.,.35 O¡h sni.e 196,1 hast O\llú, )l rJ-',r,,,f",.,r, ",rh.,,1. fi, rr.r-

$iih de(¡rnlr¡lizeil n{erx ies .1lrd tfl¡rt li¡¡ds exchrdcd Iro¡¡ ¡¡alvsis,3?Iirnits on this nrdv ¡re clo¡rlr ánncLl rt esi.rllislriirg the rn3lipulát.ible.ln1r,,lc ol (1.¡tr¡l Co\¡rn¡¡.nt ¿(l¡i§ iD \yhich thc pul)1ic ar¡d pri\¿t.s..tors r¡,st opcrate.l3 T|cmgl the CeDtrnl (;l\c¡rnr.nt, of co(rse,is ¡oi solsl\ rcspo¡siLlc for tsoli'i¿n devctopmelts, it does sct a toDeá¡d ¡t¡iosphetu' 1n vhi.h ution¡i de!(.bp¡rcots ¡re l,rscd.

lItcrcstnrqlv, nr the p¡st.1lú'.hn.f c\ec¡¡tive oftsolivia,likc tlie (hiefol "t.r(. i! Sprir, Lj¿s uot «,ntrolL,d direlll_r the !r^Ji'r ¿ge cii\ i¡^1,1\eCiu econornic dcvelopment becrLLse of decortraliz¡tion ol economic¡ciivit\'. Thus, though x,,portrrlt «onr¿?tt. pol¡(! h¡s l¡e¡¡ e¡rludedfrom politics. so too has the ex.rcutnc's po\!er to resolve nltio¡¿1 probl.rñi l)e.n grertl\ lilnde¡1. »'}i)¿'o¡¡ one }ü¡r.l sulh ¡ú¡Dg.nre¡h,¡¿vbe hcalth\ in prcventing tl'c de\elopnrcnt of ¿ monolithic st¡tc. or theothcr h!¡(l the (tr¡nnrp,rts of the Ifissio, n) Spain of the l¡leni¡ti,»¡¿lRank lb. Reconstn¡.ti(xr and D¡:velop,neni are quitc applicable toBoli\i¿ ln ¡roin¡l¡ that ¿¡itonomrtr¡s ageícics shor¡ld citl¡e, be brouÉhtdirectl) u¡¿cr thc crnitrol of the govemmeut iD reg¿rd to {in¿nccs (n¡the s¡úe §¡jv that a pri!ale conrp¿nv is ¿ccoüDt¡blc to rts shareholdem)or rei.tegr¡t.-d ú¡to the golem rent, the Ifissio¡ f¡ur¡d (hat while there¡r¡I well bc soDre c¡ses wbere r mcasure ol autor¡om\' is derir¿ble. thecay. for r.i¡tegr¿tion is ¡ rtro¡g oDe. I¡ sum, thev h¡ve s ritten th¿twhile th. c¿r,1or ¿utonolnv rests on a umberof¡rgume ts, ndudingfe\rrr c,)mpfi..{tioDs in promottr,g worth} 't¿ll or ti:tting r,l conkacti,thc ¡rsúer to such problens:

shonld be an ir¡rcvcd srsteib \rith, the centr¡l ad¡)lnistr¡tior. !rt lhe (rc¡-tion of¿geDcies lvjth mo,e Ile\iblc tulcs. -\utonotr,ous ¡geD.ics h¡vr. tvPi.all!,

t7

TIIE I'OI,I\'I.\NU.S, AID

REYOLU TI ON ANI)st\cE 1952

L{TIN A\f ERI(],\N STUDIES\'1ll-1r\lE 13

Johannes \\¡ill,ert, l)/#or


and U.S. Aid since r9f z

IAt, BACK(]RoI]ND ANI)OI' POI-ITICAL DECISlONS

FINANCCONI'EXT

tsY JA\rES \r',. WI LKIUnixlît1J ol Calir¡ni¿. Ias t\ geLcs

I-A'I'I\ A\f ERI(]TN (]ENTI'R.\T\,EHSIIY OI C.lI,I¡'ONNI¡, LoS ANf;EI-É5

'96s

I t 96!, Lt tlú, R.i:atr t)f thtt L'¡tix(¡titu of Catifut¡¡itt A1? r¡g/r¡r ¡¿J'tr{1Lilrur! oJ C.n! \t (iú¿lo! C¿¡l Nr'¡l'"r: i'l'¡E0!'i

ht^t.,l t1^ I xi¡.,/ 5r' . . ',/ {",.4, ''

This book is declicated to

RTCIIABD W. Wn,KIE

long time compuniotl in studY

anl ÍrateL throughout Mexico,

Central America. and South Ametica


CoNT},]\ I'S

Ack¡üvL'd,Ier,.¡ris

't'he lmp¡(t of lnflátrn,

Firm¡mn, (l«»vth.1950 t !lli6

t'olitical Asp.-cts of Lco¡ronr r: l'Lo1¡len¡s

U. S. Aid k) Dolivi¡

'Ih Ntrhrr. of Centr¡l Cov.rm¡rettt ExPiiditure

The P¡tter¡ ofC.ntr¡l ah!t,nnrcnt Polic)'

P.r C¡pit¡ Ar¡llsis ofErpe¡dih,r., rnd Economi( a;fosth

Prohl.ms,¡f (lentr¡1 Co\r'r¡ne¡t ¡n(1US,\lD Policl nr Boli\ i¿n DeveloP¡renl

lmplicrtions lor t'hrnurg

Biblnrgraphic Ess¡y

Bibliogr¿phy

\iii

rvii

3

(i

8

E

1.1

19

2i

28

3rJ

.1i

.1t-

78

8l

99

I05

vii


I-IST O¡ TAI}L¡JS. CRAPHS. AND APPENDICES

TÁBLE

t (losl of Liling in La P¿,,Index \umbers andRate ofch¿nge. l93l 1966 '1

2 Estim¡ied (lross Dom.sli. Produ.t. 1950-t96ti ;3 ¡'unctnm¡lAMh sis ofUS,\ID Programs, 1942 1966 l0.1 Sh¡re oflbt¿l LTSAID Actual E¡penditure Dcvoted to

Su pport of Bolili ¡ C eÍtr¡l Govcrnment Budget, 1957 I 966 12

5 Sli¿re ol tsoliviLrn Centr¿l CovemmentIievenue Contributedb), Lrs^tl).195;'t966 lrl

6 P.r Cent ofActu¡l Certr¡l ClovcrD¡rentExpendihtrc bv Tvpe ofEmphasis, 1930 1066 21

7 Proiected and Actu¿l Expenditure ntCurre¡rl ¿nd Dcfltlt.d Currency, 193r-1966 26

8 Estimates .rf t'opul¿tio¡, Sclect.d Years, I925-l96tj 28

9 Estnnates ofPer Capita Actu¡lExpexditu'e, Selecied Y.ars, 19.1t t966 29

l0 Estim¡tes ofGr.,ss Domcstic ProductPer (lapit¿, Sclcctcd Year, I950-l96ti 29

I I Tint Sh¡re in Dollrr \'¡l¡¡e ofT(fal Exports. 1950-1966 ilo

12 Re,l'lnr Prn.e I¡dex 1930 1966 3l13 I¡dexes ofVolum. ancl Real Eamirgs of

]n¡ Exports, 1930-1966 3l

l.\r'rju"l P' r( Fril"r" fn, r,..p rr ( oir oi I i\ ing.La l'az. 1931 1966 5

2 I%r CeDt of ^ctu¿l

Central GoverrnncrttE\Frditure bv'ryp. ofE¡rphasis. 1930-I96tj 20

3 Per (lent of,{clu¿l Expcndihrre ¡r \lilitarv,Communic¿tions/hbli. § orks. ¡D.lEdu.¡tion/P.ásant Affairs. 1930'1966 2i)

I Indexes of'Iin Export, 1930 1966 355 Actu¿l Per (lüit ofEconomic Expenditure

b) tsolilia ¡nd \Ierico, 1930 1966 .10

A L. S. Nct ]rir¡rci¡I ( inn m i h¡ents to Boli! i¡. 1916 1966

B ltel¡tur 01 (le¡,ir¡l (lo!.r¡nert A.lu¡l EIP.Ddihue.\l¡jor D,rüir¡1iz.cl \qe¡,c\ Oulla\ ¡n.l (1»iiril)utr¡rs oftlS\lD to Gross Donrsti. l'rodlrct. l95E-196;

al R¡lio ol l'rojecte.l (1.¡,r.¡l (;.^.n¡ú.ni ¡lrp.¡dituresto l'rciect.it Dcp¿rt¡r.¡it¡l Iixf enditltres, Sele(1.ilI.¡r.190(1I966

D l'erce¡,t¡ge,)f (iltr¡l (h\trn,n,Jit P.ojd 1..l¿¡d ,\.tu¡l Expen.litL¡¡e l'assÚg l.]nouulr lk Frrrcl1¡¡ St¿tr Oblis¡l0rs. 1936 1961

E lrust lrunds E\.l,dfll li'(,¡ tiriim] Cor:nnnentI\lc.t.i ¿rd,\ctu¡l E¡purdllurcs. 193Íj 196.1

]r Sou,.( of (lilt.¿l (i^ ( .¡m.ni Irrol..,td¡D,l tctu.l [\pe¡ditu¡.\

C P..r (iali of l'rqrcti d Ce¡h ¡l C;o\ eDr¡rertE\¡lrdilur..1930 1966Itesi.lenti¿l {sñmptnnrs o1 O16ce Sinq: 1926Ilstún¡n d f;ross Do,¡.sii. l'roduct bv Sector. l9;(lit]6ti'fi¡'s Sh¿r. ol 'Iot¿l Expori Vahr., 192$1919ln.l.x ol lndusiri¿l I'ro(hkit!»i. 195(l]9ti.1Net ftllectnnis ol Boliviarr Reveruc. l9;i tgai;(lh((ifi.rrn)¡.l 1l,nir ir¡ (].¡rhrlr.r-, ,r.,.... t.I.,',lrr,, , ¡.. t\1,"ñl t,',1,r .,,l)et¡il of Acturl CeDtr¿l Cover¡nentL\p,Jrdirurc, I930 1966

Th. \\'est¿qc Ov.irh.¡d ! ¡itor in flovern¡ent Iir¡n.eT]l Boli!i¿n Uentril Go\emnrert s I'u¡ction¿l,h¡h sis otHap.¡iditrrc, 1955 l9ai6

Q U S. Amb¿ss¿rdors ro Boli\ ia si.cc \Iav lqrR

{ll

1!l

50

;I

:)2

;3

;56263ll.1

ii.l61

HI

lKL\I

o

65

6b

i.l

76

ACKNO!VLEDCNIENl'S

ItEsEAi.H ro¡ .¡.rnal out ni 1966-1967 \!ith gr¿nts

pro\ i(1c.1 lrr \ n e Pr.sident Allrcd B. G¡.r.ti\ Offi(rr ol liese¿rch ¡n'lit' U,',t,,1.,,.',r l,r,,l ,, l'. ol'ro\,'r, rl.\'î \.1'i\''riu:rr."' t

L, | / $.,. qrrurh ,r .-'l l,\ lh. Bu i' 'r,( o il rn'll.r t',','r"l't'lTi¡¿n,l tt,. tl.S. lgenc!' i'or llrtcm¿tron¡l DeveloPmcDi (L:SAID/Bolivi¡)'

l'rrticul¿r tli¿.is ,lrc duf' t,) Nésto. Sáinz (.¡P¡lnr: compil r of lISLlD/Bolir irt verny Iranor ¡i antl Logun Stutlstirs-i 1¡r his h'\'] nr u¡d'rr-,t,nJ,,rll,,r ''

'',,'o,.'n,i.,1"'.',,1i',,,'r ',r .l r,,l¡"1'I \l'''rm:'r'¡"'

r \\lD,,. .,,1. l,' \\:'.1',,':r,,,,. D.t,'j \1.,r,'r',n'l[ñ. I 1..,, 1,,,.,n ,, ,'. ls\lD lr,l rr,,,rr" \\'r'rñ' T'r'\ f"r''t,.,lr r, J...,' t, ¡', ll,-f,ü,'r

" lt,'. ñrJ' t.-r,'' r. \rr 'l.rr,'l \l-ñ1,'''l'

Tso «tdrrs p«,vtcled r cn he\,nrlr:ditorial ancl (!»i.ePturl criti.isrn§l,ich h¿s \ ¡stli imp¡^ «l ihe origin¡l work. Joh¡ D. Stüsm¡ (trrr¡ er'sit\ of (ihild dre" r,prrr iiis erp,:rlerrce tri Bolivi¡ lo \\ dte ¡ l(¡ig tlrd.¿;ef',ll] .o,,sid. ¡,,.1\sis of this st¡(l\. tnd Llle C. Brorv¡ tB¿r k¡r

Unirii;jt\ ) olli rcd his Lrsr¡l ilrcisive crilicism of bqic i,r Prcs'nt¡tion''ll¡¿,,ki ¡Le 11,"'to ltich¡rd \\:. r'¡ich ¡¡rd,\lbe¡t L' \lich¡'ls for

criii.i!! ol r¡ e¿rli.r t.rsnm of iLjs slrtd\'. lh.se Prol¡ssors of th'Sl¿r. t-li\.6itv of \.§ York grrrurslv oíIcrerl .or¡¡rents n¡ llullLlo,

\l¡rch 22, 196Á, tt thc Coilircn¡r o¡r Politic¡l I'¡rties ¿nd the Sctuch

1¡r Instihrtion¿l St¿bilitv nr 'I\icntieth (intur\ i,rliiD A Cric¿, \'hcr'tLis work N¡s origür¡ll\ pr.se¡t.d.

tt.p,'."ti ", .,iil p","Ási¡,g of d¿ta w¡s li¿nitL{ iti P¿ri l)v tl'ln¿ itl'

\\'iki; lL¡tn A¡¡1cri.¡,i Cle¡icr. LrCl,A), wlio collal)or¡ted in ¿ll phtrs's

.,,,,nn'.,ini thr, ,\,.¡iÉJl,oi. \\"l,lu \\. \\ lLr'", 'Ll Kurli\ \f r'us

fr"t,.,r;,1rh"L..,ll'.( 1.,r,. Pi,,,,'" t. p,-l I'r r','n,r.,"pr.- ir¡titudii is acknorvledged k) Jol¿nnes \filbcrt 1¡r ¡rr¡ngü'g a

I-flLA grilli of l'o«l FoLind¡tt¡r fu¡.ts to revisc and prepare this

vohure for publication.

Pacifu : ktlisa¿.s, (: alifonia


INTRODUCI-ION

Ir rq64, r'hcn \ícto. P¿7 Estensr)ro was o\erthro\ln. the Bolivi¡nA¡¡ed forccs slr¡rtÚed the ¡pp¿r.¡t st¿bilit\' of r.qL,l¿r presidentale1..tio¡s whi.h had bc.n.stnblishe.l Lv the Natio¡rl Rev{¡l¡¡in¡na¡a\1,^,1,,,.,,r'\tNH B,l,,n rl." tr,,iLlfl,(i,lothtc$,\ Éll.d l"t.,th JE^Lh I966 t\ro n¡ilit¡r1 ¡rcn exchangcd po"er lilur tir¡es iD ¿ ¡¡anner r.rminiscent of the hequc.t .h¿Dgcs i,l olnc.: bet"een tg30 ¡nd I9;9.Durnrg thc 22 ve¿rs bet\reel 1930 ¡nd tl¡c IINR.§ \rtory in tg52. I I

Pr, \rll.r',5 o'rl ,,1 l,i\.nF.lir'dr':¡t:Ie,.,p,,rt\ n c.\lp.r,,li\ tl .

$'ith thc fall olthe UNR sorre otrsr:mors thouqht th¿t instihrtion¿liz¿tion ol'th. Revollúior in the \leri.tr¡ st\]e ha.l b..n rhn,rrHt,I'u§.\,.r. ,',,'$h,,,^.r,r,..' 1.,/tin,t,..,,lluL,,-rh,,,Brun\:,,11 rt,,ide¿k 01 dre ltevolutio¡ bv elj¡ni¡¡tine t¡ad goviirn¡re¡t ¡út corr¡,Fion.Other ! ie!v..s to.,k thc positnm tli¿i insritl¡tionáljzati{rr of ¡ "movcment. i¡ co.traf k) ¡ polnical p¡ú\," wl|s nnpossible ¿¡d th..oll¡Pseollhe \lNR was ine\it¡blc.

R¡th--r th¡n speculate n) polilicrl tenns on the meaDiDg ofthe IINR'srjse and l¿11, we s¡sgest tLat oDc look ¿t econ(,nic aspects of Bolivi¡ndevelopmcnt .luring thc last third of ¿ centun. in order to r¿ke nik). ,,,,r', ll¡ t,rr*,r.\.,,.. 1.,r...sl,r, I'l'-\, rnrl,,.n,, LIp,,liri, ilr,|:,,,Whil. politi.¡l slu.lies ar. inDo¡1aDt, thc Gnancial rn¡ch¡r? whi(lrint.racts §ith ard is gen.r¿n'd br politns is espe.i¿lly signili.¿nt iarf',,tr,a,. ñr tn,liir.1 ,,,JI\.r:..\lrl,,,¡rh b,,lr\..I fulirr..,l J,l,,nr,-,r""r, in\,§r:g.rr",t Lr Hoh,r, l .\l¡r.r,d.r ,,,,t .o,ut :,nJ..nnñrni,aspects oi devehpmcnt h¿ve bcc¡ tr¡ced in pionee ng works l)vHnh.rnl \\ PJr, l,'r'J ( .,n lr .,/or,Ll¿r,,\\t",n,,rn..,.1r\tr.-l,n,h-sis oflnlanci¡l stfl¡cture ¡nd st¿i. policv h¿s b..n l¿cking.

Analtzing Bolilia:s ffn¡¡cial ¡ff¿n.s, we ¿rc concenr.d with thcimp¡ct ofinll¿tion n, Boli'ia ater t930 ¡nd its rel¡tn)n b tlc ne,ohiionth¡t bcg¡n nr 1952. 'l'hus, nrrerpret¿tior of economn, grorvth uDd.. theNINR- esFciallv ¡s tuflucnced bv thc Lt.S. rtgcnc,l f¡r tntcrnation¿tDcl elopment (USAID) togcther § fth the ¡¿h1rc ofatertr¿l alove¡menreipenditure, providcs ¿ cont.xt fbr undcrsrandnig potitic¡] ¡i,tivit\.In di,'r\\ir.r ,ln r,,h.r. o¡.,,Ll t.,ll..,r\ i. B,,t,,r:,r (',.nir.,] G.\,.rnr¡ent .xpenditur., \re m¡\'s.c the problms .,{d.rvclopnrent with wl,ichBolivirn politi.,i¡ns hrve Lee¡ «rnFo¡,ted U.{,¡use this st¡¿\. is int.F,..,F'r

' t\,'lr' , nt ' \t,"r,,tr,,rf. , npt, 6r\ h,,. t,.. . I,t.,, ^d "t,,,n ti. dr"r.r^rn..ir,.r\,,r1,,,rl,un'rl.nll.1,,\,,1t.,\"¡,a,,$hi.L,\,tr\cj*,"th,r.

Sincc this is ¡ sp.cieliz.d study oftsoli\i¿n Ji¡irs, the re¡der sho¡rldnot expect a lull discussn)n ol Bolivi¿n histo.ical devehpnent ¿ftcr

1930, cspecialh ni reg¡rd to thc co¡nple¡ soci¿l rcsults of the (lhacoW¡r ¿nd the Re'olution. \\re rccognizc in thc l¡tt.r .¿se, li)r exam e,

tli¿t expropri¿tio¡ of the tnr mincs, Linivi,s¿l sullrrqe. I¿nd relb¡n,ne$ l¿b¡¡¡ laws. ¿nd rtr&ged politic¿l cnvironment have dr¡rn¿tic¿ll)¡lteÍ«l rloln i¿n lilir. ,,Uso it is ¡pparent th¿t thc crir¡s.rs of the \fNR s

risc and fall and convolutc. Nerert|d.ss thc scoPe ofürquir\ h¿s b«rr dclinrii.d.

lliough P¿r Estc¡sso«r, ¿ prfe*or of econo¡¡ics, l)eg¿n his Iise inpolitics §ith ihc lou¡(I¿tion 01 tlre Natnxr¡l Rcvolutionar1 UovemeDtnt 19.11, hc (lid not consolid¡t. his positior m thc ctccutir. branch ofgov.rnm.¡t until liis seco¡.i pertu.lrs IIiDister oltlie I¡ets¡rviJaIn,i.)l, t9.l; J,Ll) I9. 1916) in tlie C¿b¡,et of P.csid.Dt Cu¡ll)erto |ill¡.r.cl.'l he ve¡r 19,1; w¿s cr¡(i¡l ili detemirn¡g thc ¡,¿l,,rc of Páz s tictoriouslicvolutn»r ¡lte¡ 1952 Li,causc ¿ p¡ttcrn in $ci¡l e¡pmdilurc (i!1.on-tr¡st to cconomic cxpcndjturel,z enierg.d whi.h, in ¡ sense, \r'as tofreeze thc conccpt olsi¡kr aotü»i Lr át least thc ncxt ¡'!.)rtl Iears Thisuphe.rval h sl¿te policy d¿iing lrom 19-15 must be ¿nalvzr{ ¿s contri-buting to Paz s rise to presi.le¡ti¿l po\rcr i¡r l9;: ¡nd his l¡ll ni 196,1.

D.'vclop¡nort of lLozen budgetar¡ policJ in (irtral (;o\eñtr¡cntexper¡diture h¿d roots in th. .arly years of the trveDri.th .rintun ¡ndhrs allected all srlxequent Bolivitin histol"l. The.risis ofworld d.Pr.ssio¡ ¿ftcr t929 ¡nd liolivia's part in the Chaco §'¡r from 1932 to tgllSclc¿kid stresses and str¡irs \']ii.h in p¿rt s'crc n'solved b¡ Przt fi-nancial progr¿n, of 19.15. Ihe P¿z proilr¿ú may h¿ve bttt soci¿llvxe.essáry. gne¡ infl¿tio.. bul iis }.prcussn,rs ctustrl a problcm fortbc Rcloluin,rary golrmmcnt from 1952 to 196.1 in th¡t lvith

^meri.anforcign aid theoretic¡lh assurnnrg the burctcn of c.onoDic expenditLrrein Boliritln alTeirs. the ltevoluii(»r yN nerer fbrccd t() ¿s«{t nati(»ralauthorit) i¡ st¿te pl¿¡,nnrg.

The Bolivian ltevolutio¡ q,¿s underlak.n widi the beliefth¡t r¿tiorralstate pl¡rnilrg is ¡ possible ¡nd ncccssaw oncommit¿ t of mtion¡lv)cnle.onomic devetopnrent. Unforiun¿tcl), ffnancial anallsis *hich§ould m¿ke efi¡ctire st¿te pl¿.ning tl r.xlil) sas not possible lbr trvore¿so¡s. First, ru.lits were not publish.d so that planneLs could understand lvhat th. ¡tovemment w¡s doing *ith its nicomc. S.cond. thetr¡dition¿l fodn ot th. budgct ánd ¿udit fifiures q¿s r¡ai¡t¿i.ed *,irhlittle ch¿Dge alter the (ih¡co W¿r ¿.d this mca¡t that linanci¡l ffgureslrere l)asicállv Lrniltelligible. lt is ro §o¡d.-r that in 196l l'residentPaz ¡ccepted the ide¿s of thc Unil.d N¡tbns budgetary experts re'gardnig the implemcntation of program budgding.' A shift liomad¡¡inistr¡tive budgeting to prcgram budgeting was not l¡llr cr¡D¡p]ct.until ¿ti.r Paz f.Il from power, but the elTect on k»¡g'tem h¡toric¿l

¡¡¿l\sis ,i.v w.ll prc\. ro l). a s.rn»,s proLlcrn if nrclr ¿¡ ¡pproach is. o¡r i¡".(l sitholt nnnl¡ *tn¡r

In ¿n¡l\ 7ing llolivi¡ s fin¡¡.j¡l ¡fi¡irs, i'e ¡re co,)(fucd \rith i.l.ntilvinq histori.¡l p¿ttems ¿nd !ritli rssu.nrit thát,i:onrp¿r.rii\1'd¿ttr li)rcli0¡rcnt Listoric¡l tnnrs \\ ill b. ¡\ ¿il¿b1c. In this lighl wc olTcr c.iti.,isúolproqtum trudgetnrg. wliichis beingsponsorc(ll)\'sor¡c Unik{l\atn)nsexperts as thc i¿lcsl rncihod i¡ st¿te p]¡nnnig.3 lr ¿dtlition. Positi!e(ro¡m.¡d¡tions ¡re o$i're.l 1¡r tl,. Boli\idn govcrnment.orceú ,9tl(: m¿nri.n¿,(u 01'tnne seies. §l¡ich tnust be conürued ¡nd roi suppl¿ntcd ifstxte pl¡nnnig is to Le sorhble.

I1 the problenrs 01 ¡.Lievnrg polrtical st¡bilit\ nr Boli\ia ¿re to beundcrsnn)d. ii is n.fussld\ to cunrile firarcial fn,cesses ¡s ore nrpor't¿¡n ¿tn'cl infl,,{ir(i¡g politi.¡1 ¿ctn»i. lf poJiticia,s thd¡sclves are

¡ot lullr aw¿¡e ofll¡r¡¡,ci¡l ll,cto61vhkh inlluen.e theú¡, thcn, is litrlcpossibiliir th¡t thc! .¡n .*¡cti!el\ ¡nlnilml¡lc thriir .¡vironmert to¡(l¡i01, politic¡l n¿bilit\. I¡ aD\ .¡se, \ hethe¡ or not P¡z ¿nd th. \INRmi(ht reh,n, to po\1,r or *lrth.r or not tlre post-lgti{ g.\(r¡¡r..ts.¡r rule iL thc n¡nre oftLe Purilie.l Rc\ohnion." the successlirl qoveÍrnn:nt ol Bolivi¡ will depend ui a ltrqc mc¿sL,rc rF,n bri:xking the nloldof si¿nr ¿ctnnr.st¡blislred ni t9.15.


List of Sytnbols

'l'hrec d.ts ( . . . r nrdi.¡te thnt drt¿ are ,1ot uü íldLk.Ihk, dashi:s ( - ) iúlicate th¡t tl,e nr¡gnil,1de is:¿r,

,¡,(g7ig;}lf ¡liss th.trr .05).'l\«r d¡shes (- I n i(¡te tlr¿t thr inim or .¡l!'gor)

Aoer not d?p!.{ n,inu\ sign i - j b( r<),e ¿ ligure ii(licxt¡s ¿ .J91.,.,¡

t¿c.rc6" in núNt¡itude.\r¡ ¡str.risl¡ ( ' r is usi.rl to in(irc¡l,. ))¿/ti.ll! ?sti't1dte¿

N,¡¿

'Ih.: te $ Lt.S. .1i.1" ¿nd LjS^lD ¿rc uvtl u¡trrlntleü¡¡y in this stutv.fot nir.11ssn¡gpro{unrN ¡,1th(L'.S.

^!"n.! Ji,t ltú.núttu aL Det,.Iop»/ it. Iü.Iis-c6sia,1 t'f o 'tLu!tút. ot).¡tuúl.f|ctt :' n nú. efrcn n.:yL'l ('SAtD ut:titíty \t <l Bolnio CLútul (t)Lt¡núu tptogru¡:l). scc Appt,tdir o.


f II I,] BOLIYIANT],S AID

IIEYOI,TITIo\ ANDslNatE 1952


THE IN{PACT OF INFL{TION

'fHE ÚoBl-D D¡p¡¡snoN afier 1929 sti,rulated manv cou.¿ries, includingBolivia h t931, to bcgin b me¡surc cost of living Unfortunatcly thead'ent ofthe Chaco \\rar in I9il9 curtailed the recording of price levels,but nr 1936 the work ofBotivia s statistic¿rl ¿genc) w¿s resL,mcd and th,ls¿me sample ofprices for th¡t year showed ¡ 217 per cent incrc.s. whencompar.d kr prices of 1931, or ¿ 26 pcr ce¡t co¡npound ¿nnual growthlb. e¿ch of ffve vears. A cor¡stantly high yearlv infl¿tio¡ the.e¿fier setthe stage for chan¡les in lin¿Dciálpolicy {hichwere to converge in 19.15.

Dat¡ uscd in the cost of ln,ing i¡dcx ¿rc for La Paz. Though data ¿reavailahlc in rcccnt \]e¡rs Ior dcpartment¿l capit¿ls. the iDdcx for LaPaz is the oDlv oDe going back b l93ti the Bolivian Statistical Agencyh¿s not developed an iDdex for the.ountry as ¿ whole due to weightin¡{problems in the s¿mple.¡ Therelbre, we use th. inder for L¿ P¿z lvhich,nr anv case, domiDates the economic life ofthe couDtry.

Though th. cost of liling shown in Tablc r and Craph I droppedappreciabl)'du ng r9.13-1914, it is cleár thát the Yill¿rroel govemment,which took offfce in 19,13, $,as ünder great pressure to relieve soci¡ltensio¡s accumulated over a 14-vear period. Obviously this stress w¿sa key i:rctor in the thinking of Víctor Paz Estcn$oro. for protest whichculminated in the policies ofthe villarrcel govemmentofthe mid 19.10 s

rejected the argument that sound cconomic polic), decried state inter-vention i¡ n.tion¿l ¿B¿irs. '11¡e result was ¡n atte¡npt b amdioratcsoclal proLlems caused by infl¿tion a¡d compoundcd by thc aftem¿t}¡of the Ch¡co war. tronicallv, once thc Bolilia¡r Revol¡tion came topover fron 1952 t{, 19& it had to maintain a rate ofsocial ¿nd ¿d,ministrativc cxpcnditure {hich precluded the m¿king of economic ex'

lr ndinrr^ r'.....an r,,.s'"t,. [n,m infl¿li,,n.It is nrt{--(rting to note th¡t the Revolution of I952 coürcid.d wit} ¡

new surg. of nrfl¿tion heginning in 1950. Inflation, ofcourse. could not¿Lrt.rn¿tic¿ll) c¡use ¿ Iull'scale y¡cial uphe¿val, for many cot¡ntdes inL¿ti¡¡ Anerica lived lvith in{l¿tio. as ¿ fact of life vithout revolutionduring tlic samc v.¿rs. Civen the dramatic ratcs ofch¿nge in the priceindex, however, the coDseNative governments, which sided {ith thc''ttu olig¡rclil) without s(*king to alle!iate economic causes of soci¿lstress in BoliviaD socie§, inevitably Iost suppo( among the niddlesectors, goremmeDt buleaucrats, and workers $ho make up the bulkol the economically activ. scctor ofthe couDtrv's population.

lr L',,,.,.r rh"ur izrnB.L,úur,.\úl'¡riuns L\ J¡m,¡ C. DJ\ i"\ i. r"tc\ d,,(.

tlie ltc!1)h,iio! of tu;2 shorrld h¿\e co¡x ¡s ¡ rcsult .)1 r sud.lcn (lctcriofulio¡, ()f tli. «¡ i,rl ¡,,.1 e(ononii. sit,,atnr,, ¡lier ¡ proh¡g.il poi((il nnprove¡r,rt §hi.t, ¿s¿k.¡,ed popr¡l¿r .rp.cr¿li(n, lo¡ .hange Ilevels 01 livinq. D¡\ies's cor.ept. \rhi(h s\IthcsiTcs ¿nd cl¡L,or¡iesi.l.¿s o¡, c¡use of¡erolrtr»r br \l¿r: ¿nrl Dc'focqur\ill. does finds,nnc suppori in thc Boli\ i¡¡ e\lernrr..r lrl)le l sho§s thrtt[e qenerrrl

.'r''' ,,sr..,,1r,.-.. r. l'r \.1\ 1..'\ t,\ 1..,.. 1,{l b.,. ,,

st¡Ddar.ls i)r aj lf¿rs prur to ¡n ufsnrqc ¡lir.r l1ñ0 -\l!), t,(.\ih¡.rn,n

Ti¡ LE I

Cojt oi Lnn,g n, L¿ l1z,l¡ i'\ \u,,,lu\ ,¡¡1 Rrt. ol (il,¡¡{e,t9ilI 1966'

(i n. ¡l(:.\t tl Ln.i¡t!

\'.tt lt):11 - 101)\Q':1t¡ Lit¡lt l.t (:.nt(t931 : 1t)0) (:hn {r

19J I

I!]J: "I !:l:lrl 6

11)11.1 h

I t)3¡ b

1934it9rli

1!391910I911I9l2I913l9l1I915l9{or 91;19,1¡J

t0i)'l:6'I;9'200

31t361l6:

l,0l I

l,¡31l.5aiEI.UlJ91.¡J211

:.0151,315:,59E

l9;019;l195:195iiI95.1I95;l!56lt5il!l5EI959I9in)l9LitI l]li2r 9ii3196.1196;l9{ñ

iJ.1!6.1,;l:iJ1.661

II,.1t22;,ailrl.16,10:

i2¡,51uft{i,.163¿¡J;,058311.0003¡i1,1.1.1107.5t2.131,iI¡i¡12ri.133'1il,lJll015ti,5755r9.0rJt)

li:iljl2.1

10tI1.1

rt9ll5

il20tl7

Il03;

i:o't6':(i':6't6l1:3

:u213:

¡J

t215t0

ro ¡d ,on ,,i,, el ( re66)

r (i{!r5 arüirr, nnJ ?,r(ri,'(, , ,:

GmPr¡ tAnnual Perccntage Increase ir

Gxt of Living. La Paz lc)31-1q66

Dolted liñ. ndicot€s est¡mot'

on¡uol grotrth rolo ¡n lhe

bo.€d upon compound

p or to 1950 ma\ parti¡ll) ¿c.oü¡t 1¡r the laihrrt ol the \l\'R's ott.mptk¡ overthrow the conseñ'atit. (ovon¡nrc¡t in th. ali!il $'¡r oi I9.19iso.io-t.oíonli. strr.iLr.rl tJrtors f¡vor«l tll-str¡tDs ituo at tl¡l l¡mr).

D¡ries's concrpt is rclt.!unt, ri ith qualific¡tidr, .rlter the Rc\olution({me to pox,err ¡lthougl' ¡lcreasc jn cr)st ol livi¡rq fcll during tsi¡2.6 th€g,c¡t infi¡iion frorr 1S5,1 tó l9;; iheor.tjcJi\ D,ight hr)!. crusc.l theer¡d ol thu trlNR govcrnrnirt i¡ 195i1 or 1956. Nerertheliss, s¡ic. theIf\R ¡ct( d to stcm mo¡¡itürg n,fl¡tion rr(l was .rbl. to pon¡t k, ,dple-DreDt¿tioD ofre\olutiorr¡¡1 ide¡s ir, ¿ \ridr ráriclv r,10rlrls.1'¿¿ Estcns,s^,,, .ou lJ \u(1 .:.lullr h.,nJ ,".' ¡, "'.r r,, hr' ',,,

, , *,,'. tl, ','.ln s,1",

Zu.rzo. C¡ren th( i fl¿ti(¡rr xnd the thrcat to the lt\R s !n torious holdo¡¡ goverrñcnt, jt is Do §o¡d.r th¡i Uaüsr-ori.¡lrd \'ídDr P¿zEstenssoro litt conrpclled to ¿.cept the süictun's ol the lnlcnr¡tion¡l\lonct¿¡a F'u¡rd rIi\lF). c! ¿\r at the cost ot possil,l), disruplir¡É nlch-r,","1,.J -,,,r',',',k l,ruÉr¡s l,¡ n".",,1 (,-(or'lr\r,g,rie]q.,1,,,',,',FJto onl] 3 lcr cent. the lorvcst ch.rnge on record. lhou{h thc pric¡i levelsuune ups'rrd srqniÁcantll in 1959. ther¿after p.r(entrgc (ains decre,rs.al u¡)til t9tj-l -.rnd nr 196ll the cost of living did ¡rot ircl:trse atall but actua)l¡, l'e1l b¡, 1 p.r ceni. Davn s s thcoñ would indic¡te th¡t

l(l per (c.t nrcr.¡se rn pii..s duriDg 196{,., \e¿r of politi(xl .risis..,,,¡ld n,,r r, ,\, h, tpF,lP,,.rJ,,,r t,r/ n,n.,,n i,, t,.s,,

Ecorr¡¡r¡: C¡¡»vrrr.1950,1966

,{ program of m{»ret¿§' st¡l)iliz¡tion. whi(h wenl Írto .fIe.t inDcca¡l¡cr ¡,1 1956 undcr Presnknt H.riim Sil.s ZuJzo. h¿d Lecnsorked olrt ¿lier tr bitter strugglc within the \f\lt. Paz and Siles optedfor the IIIF stabiliz¡tio¡r ¡n spite ol Jr¡a¡, L.(.h;¡ s ohjectio.i As ipdkesnr¡r' t¡r thÉ ttu n)i¡)crs ¿r¡(l thid p,^!er iD the tri pron¡lcd \I\R 1c¿dership, L.d¡in cl¿imed t}¡at the prol.t¡riat \'¿s to be sácrifi(ed nr order toachnve u st¡bilit\ $hich \!rnrld onl! ben.Ét capitjlist interests. I-erhí¡$¡s nol ¡ecess¡rih in 1á\or of i¡flaiioD, Lul he w¿s ¡¡jrrntst thú IIIFplan to.ortrol it. Uo$ev.r, Paz n¡d Sil(.s, as oütqoing rnd nr.,,¡nrgp¡"',.I.n,. ".t,.,tr?I. !.,1i.,.1 rl,.r, rlF)' rn r,r ,.oDi,,,l r!,fl"!rur, D

o¡(ler to c,mnt oD the co,,tnru.d LISIID support !,hich w¿s vir¿l k)maint¿in the \lNn in power.

lnf¿tii,n \!^s rlTc(tir.h hali.d bv ihe stibil¡¿ir'ox p¡oqr:o. is ma\be se.n in Table I ¡nd Cr¡ph lr büt thc ellcct on Cross DüDestic ),rodu.t (CDP) marks a tur¡n¡! pon¡t in die tsoli!.ian nevoluti(nt. Del)¿te§ithjD thc \l\ R c^ er the f \fF prortr,rm and mired eride¡ce ol rts ¡eultssplit the mó\enr.nt ¡rd doonnrd ¡ls existe¡'cr. Latest esti¡r¡ates oICtussD.rm.stic l'roduct ¿re presented in Tablc 2; ¡o ñf¡DRrs ai. a\ril3l,lelor !errs p¡lor ir) t950.

T^ú¿E 2

E{tinr¡tc¿ Cro$ l)o¡¡.sti. lrrorluct1950,1966

Changc

6.12.4

1L1

irl1.1

3.1_ .il1.32l5.6(¡.1.1.8

5.6(i.3

04. r9l3 196i, B.tivi¡. s.odr¡i¡ \&nr nc ,h¡iñ!a.ióD ,,),,,,'.,,-,':..ad.1us\¡D/BoriLi¡, ¡co¡oD'. ¿r¿ ¡¡o».¿nr P,oar¡ siqr¡rn\ 91r96¡| 6.

Der'€lop,neDt .,f ihe tsolivi¿n econorn). hal üecu vcq tneven. Ap-p.rentlv nation¡l ecDDoD)ic life wns ir¡ a veñ he¿lthy co¡ditio¡ during1951, a vcar th¡t brought ¡ 6.'l per cent nicrease in GDt). AlthoughI952, the !e¡r ¡)I lhc uclolutn»¡, featured a decre¡s¡ itr c.onol¡ic¿.tivity, not until the disastrous year of 1953 djd the effect otecono ri.decline (!rd id\ tin prices (lúcuss¿d üelow) hit ttrc ¡¿rioo. BeginDütgin lS Bolivi¡ recovcred $mesh¡t from a d.cLe¡se in CDP of 11..1

per cent lbr the previous year, but the gre¿t úrfl¡tion of 1956 1957 s¿sa.co,¡p¡ried br ¿ .ont¡aetn)g e.Dnom),lvhi.h Niped out {¡y ¡llins. In1957 thc countrv re¿ched th. losest poilt in prodlrctivity snrce 1950.Only ir 1960 did the economy rccovcr, ¿rd not until 1962 w¿s the 195,output surpassed.

1950l95lI9521953t951r9551956I95i

Igrilt96:1963l9ltl196'1966

355.9ii8.6387.83.13.73iI6.23?1.335.1.8312.935t.7352.736i.i3;5.ó39ti.5{¿l.9{ 19.216 t-.l196.7

]br.¡1( \L r\spn.rs ()ts lico\o\n(: lhoBr.!:\rs

Bñlr\r,n,". .,,,,i, 1"'^,1,l ,r,,: L, '. .r.1.,,,t ,. ,, tq,{.t,,ril,,,,1J,,o'r.....1\, t,,l ,\ t,, J.t,' .,s.rl ,,,,t,, \t\n D, ng,).,r..t,ti,,tn»r (¡Íie(l out b\ ¡,resid.Dt Siles. Lq,hín rurcl Sit.s h¿d Leco¡¡,opcnerrrr¡ics. Strtr1, ¡'¡; .ontirnrll to su¡port rh( (1.\el(,pnurr ol ¿ x¿tn;r¿t¡¡r¡'\ ¡s ¿ court.rpr)is( to tl¡c.nili¡n ¡¡iliti¡ ¿ pro..ss hcjlu, b!(r'-. .n I . 1.,,,t,..\r.h r.,, t, ,....,t.trf -¡' n h\ p., .r L.) i,,'i,r.,,..'r,rrl,. - .(' .r,..r r,,1,.. . t ..i .r,, . .,tlr.,i ,. §rrlx,rl.. \tNHnrigl,tlrr\1'¡ss,,rc.ltLeiDdit,,tion¿]iz¡tn)nol¡rOl6ci¿lPrrrr.t¡oLlemsñl 1,,-.r l.,.r'.1.',,, -\,,,,,',, le,,r. h...\,.,,.. r,. \- ,, J ,,,,,.. l, ,'tr,n.,..

\\'h.n in 1956 th. Sil.s sing oltl,. \l¡-ti irhl the ex..üti\c otfice.¡pp¡r.,,tl\ it $rs ¡qrerd u¡olfi(.irll' thrr ali{.¡ ¡,¡zs laro¡r.t tem, ih.L..|i, se.tor 01 rhe \lN"R sould ¡ssLUnc tLe prcsid.¡,(.\ ¡r 1961. §'itlrthc d.cp split o\.r r(ono¡rk, polic\ Lr th. c¡rh 1960s, Silcs did nol.\.¡i.r r..,. I r. r, . . r- ,, .1. n ¡,,,.,, , H, ¡,,,.,,,",, s,, t,,.r,,t t\ rh,L'nit(rl St¿n s Anl)¡ss¿.lor, Ben S. Srt])L¡Isk\ 1trú,6 of U.S. ¿,nLrss¿,1,.r. r,, ts,,1 \r,.,,- r.\. i. \t.t,.,,,i' qr r,.,,,. ..r... p,, \,rt,h ..t\h.liered th¿r l.erLtu ¡¡s ¡leek i:¡de¡ *horould¡¡ot1¡r:¿hlr'to resistcommrúisl Diflu,nrr'¡f¡er g¡ini.g tx^ver.r In tlis sihr¿riür, prz s Dri.tdt.Iositnrn r¡¡.rg,1l ¡¡reN ¡s ih( onl\' soh,lio¡, ro pr.\.nt the \l\R tro¡Db,e¡kinq up. Su.lr a su.cessn,r. Lo\re\1!, rcquired ¡¡rjxtrDenr tu ih..onstihrtio¡al p¡e..pi ih¡t presidcnls shoul.l noi n¡nali¡l.l! succeedrl., .,,, l\ .. \ t". r,,r.,t ,r..L.t p. r"r rh¡ ,..u" , \, n ,tn,,3., t,,/cl¿inrs tl)¡t hc o1}e¡ed Silrs tLe'iiT.(.tive prcsid.Jr$r'in 196:lj tliis¿rr¡¡g.nrIt \yorLl.l l,¿re loüncl t,¡r recl<¡,rq] ¡s tr.sid(J,t lNt ¡.iinsnr ¡,, ccono¡ri( (.¿pr.it\. (love¡n¡ort \lnristo Silcs woutd h¿\e Lee;;the .e¿l Pr\i(le¡t.\.¡, thouglr lx, rvoulil not luve licld rh{, title. ID rhisrn¿rner P¿l coü1d hav, c¡rritd o,,r his proil.¡¡¡ ofe.o¡o¡,i( de,.lqr

U. S ,\¡D ro Bou\r.lPressur.s i.o,,, tLe U S. \l,ssnr k) Boli\i¡ pt¡i1,.l ,in ¡,\nr¡t¡nt tul(.

n, the d..isio¡, of l'¡z tr¡ scek ¿ rrrrr(l con§:.¡,rnc l.¡r¡r. p¡z n.rli1c.lüat if thc rLLdi.¿l \!ing of th. partv suc(ri.ded hnn nr th. P¡esi&r,\,not oll\ rnight thc \f\R [i]l ¡p¡rt, but th. L-. S. \'outit cut ojl ¡(ce$rirtj .,.,i,1 .'..,\r.,.,. r,,rh. H,\ñ1,,1¡,j \i ,.. t.¡,r tt,e L 5. )..,1 t,.I,tthe Rr\olutn)n at the b.hcst of \lilton ¡iise¡]!)vcr who !isited tsoliri¡

1953. This ! isit h{d fro! id«] ¡ turning poi¡t nr tr. S. ,el¡in¡rs s ithrlr \lNB e '",,," r,, l' tl' r \ \,..t,. D, 1,.,r,ñ,.,,r $ § r,, j,,.,t. ,t.,Ll,\r,,r.rr,¡' r\.!, ,],,.¡h rh. 8,, irj..n ti, r,,l,rtj,,,, $J. \t:,r\.., r, s.,n(»-Comúurüst t0 Ntu,dless to s¿y, s(h ¿ distnntnh w¿s ¡ r¡r ! .l¡riDgJohn Foster Dull.si ye¿rs as U. S. Secret¿.\ ol State. This distincrio;

becdrc evc¡ nror. in\n)rt¡¡l durinq tLc Kenn.d\ ¿dmi¡ristr¡tionl)eL¡usc of al,rstro s rise to Po\\er ¡D(] to¡versn,D to (i)nr¡n,nis¡r ThcL s. \ as ¡.tenoined t., Prer,.'ht uy ch-úgr in the,,¿hrre,,flhe Boii\ iu,

A f¿lltinr ,; in.r.¡sn,g r\meri( ¡r1co¡nnribnenl k) Bolir i¿ nrrr l¡c see¡iI, 1pp...)i\

^. 'lLs ¡¡t¡ i¡rcl¡drs I¡¡¡¡1.' -i(lt¡n)isl¿ rc,l hr Ihe t-.S.

Agrtrc\ for lltrrn¿in,rll De!, nrpnrcnt (Nov.n¡bcr l9lj1 I rnd itspl(1ic.essor ¡gricie\ (Errurr¡i( Cooper¡lroú A.l¡¡inistr¡irni. l9¿8M51 \1,1h,.,1 s..rrril\ Aqen.!. l95l 1g;il, Forei,irr (\x{t'tions .\rlnrinis-tr¿tiolr. L95il 1955; tnk'nr¿tnr¡ril Coopü¡tnrt .\dmn,istr¡tio . 1955

L96l i ¿¡d t]¡c Dcvelop¡rert Ii,¿n l'LlDd. 1957 1961).

The s¡¡¡ll ttrt¡nrr¡l rssist¡D(r, proj,\'t L('qrnr L¡\ ll,. tr S. i¡ t9'12r\1Ls.xp¡¡,.1{.(l irto.r nr¡rnnÚtlL ¿ssist¿,,(, Progrun brgi'¡¡,ing n' lSl;.1.'llrr,,st of U. S. ohligLrtions cmpl,^sized gr¡Dts until th. l¡te I9l-,0s, L¡nsiL(- 1963 l.,.rDs L¡\ i Le(.o¡rc ¡¡ost imfort¿Dt (lblig¡ti,rs ol Iood f¡rIe¡cr. r¡r<ler P'LbL. l,{\v iEo ( ,1.tie.l pc¡ks , 19i5 ¿nd l9(i;1, s itl' ..*'obligations decli¡iDU.li¡ring thr P()rnxl I 958'lerjo

lhough t. S. «,rnitnenls r.¡ch.d high fisures, rx,t¡blv irr 1955

¡n(l I96, ttrti.l, .ttul r.drnrl,t.illr {¡\. lhe Ir,\'.R .on6d¿r¡cc, ii is n¡por-tart to «»rsrlcr tlic .[(:ct ol n(h ¡ss¡tance o,r Boli\ i¿t' dclitofúcnt.It lll of ihi\ aid hail gonc fi,r e«rno ic developnrent, Boli\i¿ ,¡ighth¡!r .Ipcr,¡n..d 1rl.r¡lrd cc(tr¡.¡ric trüfth ¡) spite ul th. tte!oltrin¡n: fiozcn polic) ul soci¿l .ripcndrt,,ú. An i¡nport¡nt shar. ,)f this¡id, however. suppo.l.d ron .«mo tk'¿ctivitv.

'l¡hlc 3 sl¡»vs d l,¡n.tn i¡l l,re¡kdos¡ oftlrr actur) experclrtrrc o1

pro(r¡nis rdrnnristr« (l l¡r US,llD/tsr¡ljvi¡ lirr n'(I ic,¡l ¡ssr!(.Itu\-and devcl<¡rntrrt {rants ¡nd loans, ¡s lrell ¿s c¡s}r ¿nd otbcr gr¿,rts6rrrrrced tl,rrrrgh gerrrratiol óI lr).ál (,)rrercy ,inLler salcs olagrirrr)tural(.o uno.litG l hlh l,. t,.Lw .1S0. l itl., L itis ¿nri\ sis b] t) pc ol er p.nd!tL¡r. ¿lso conr¿i¡s .lonations ,)t surplus .onnno(lities to volünaN rclicfagc¡,cn:s. gr¡nts 1;r elonomi( .lcv.lop¡»o1t, ¿¡d dollar lo¡D.redils lionith. 5¡kr ol (o¡¡ñr¿it¡rs undr. r11l))i( Lr\v {E0 rTitl.. IIl, Il. i»(l ¡\'.rest)...tiveh ). So.i¿l Progress Trust FL¡nds. E\port-ln¡po.t lla¡I loans,It¿cc Cotlx. ri¡id nrilltañ assist¿nc. (nrcludcd nr ,\ppendix

^) ¡re

¡xcl¡dcd 1ir,:¡ T¡Lle 3ln'..¡us. the\ ¿r( Doi rdDiniste .d b\ I-'S.\ID."'fhc Lea<1¡r should note th¡t snrc. USAID has dcvclirped a courpli

.aied ¿(cou¡tn¡g svste¡n ¡Dd ¿ s.ries oi .ategori.s \\'hicl, are veí diili

.r,lt to rdn)iDir{y. r¡¡.1 sir.e ¡«1)urts halt Lecn cor)sl.tntlv ,e\ised,USAII)/\\'rshrngton a¡cl L!AlDitlolrri¿ sl!\L corflictnrg ¿,n(,u¡tsobiig¡ted ¡Dd a(ru¡lly spent. In f¡cl, both \Vashingtm and La t'¿zer(I, have !r!errl s.ts of fig,'res o¡ .\fenditt¡r,:. f¿l¡le 3 is l¡ased uponL'SAID's Litcst pub¡rshed rc\ isi.rn s'hich .orü(ins tle r,nh lnsk'ncrll\'colrsistent ¿ncl ¡lcanütghrl furrctrmtl anallsis av¡ilal)1.'.'3 (Oblg¿tions

TAtsLE 3

¡ undio¡al AMI\sis ol USAID Prcg¡anrs. I9l2 I9ti6a

(li Dollaa t¡ú1 P.t C.Lt)

1962-1t6i6

TUp?.1 r:rtlt d¡tutt ¡tilli¡,ú Pt¡ Cctt lli?nns Pct C\t

Food ¡¡.1 Agri.,,ltL¡reTransurrt¡lior r¡rd Ilxrcr\lürnrg, Oil, rnd I¡dusr^

Develolr¡ent li)¡¡sIi,c¿l Cnrr(r¡c\ Iro¡ctsb

IIc¿lth Úd Srnitrlú¡

(inD¡ntr,itv Dc!.loprie¡tAgri.rkur¿l Clonnno.liti.\Lo.al Curre¡.\ l)rot(,.ts6

9..1.1.1

I.J

31.8'

52.5 4i_2

J,I3.6

.2,rl

(rictrf). 6.6:1.0

I7.rJ lai.o

3.1.9 31.1

t§

202.1

6.0 5..1

ll12 1000

t.79

llJil. I6.0

1.1.5 10.3

29.ti gl.t

3..11.95.1A.t-

l7.l 121

t.1¡.0 100.0

1.21,E.1.0

3.09¡J.rJ

3l.ll,r

79.6

B¡dg.i¡^ supponSul)-ioi¡l

rulri..\dnlnristr¡rn¡i xnd s¡tih.l'1¡nnnrg

l.oc¿l (:trrn,r.\ ¡,.je(tsh

t0

presented i,) Appe¡dix A ¡re t¿keD fmm N¿shinston sources lvhichprc\ent the onl] consisuit ¡nd rerrsed ¡nalvsis ¿v¡ilable f¡r trnalaui)rDriz¡tio¡) bv ),ear.) Because rvc h¡re »o rrvisr{l ve¡rlv scries..rndl¡ec¡use 196I providcs ¿ n¿trrr¿l \¿tershed with tLe beghning of theAlli¡ncc for P«r¡¡ress and trarsition to tl¡c ,teür§ lbr lrn.m¡tioDtrlD.!elopme»t ¿s the ti. S. s org¿nizatioD r.spo¡sible for for.ig¡ assistancc. tigure" i¡ Tabl(.3 ¿r. p.csenle¿ for two pcriods. I9.rZ l$6I andlgtl 196A l¡¡ o¡Jer to pres{:nl ¡ roü§(,lnlrted ¡ccount, loc¡l curreurvh¡s been cr¡nverted to d,nlars by using tr lvcighred r\.r¿gc e\oh¡nger¿t. ot Lol,!r¿ i» t() th( doll¡r t{,r lrth !,erit,ds. Sn,cc \carlr lo.alo¡rrcD.\ nn¡ls ,¡r th ti¡si Pt rio.l wer. ur¡¡!,ail¡ble, ¡D exch¿nge ratcc¡](lrlrtcd t¡y thc U.S. Opcrátn»rs \fissi(»r has Lce! ¡d.lusted k) xrcllrdcl96l ¿nd .t.ivt ¿t ,i!¡.r:!q. r,iluer¡ The ¡najor prol,len wirh ff-q,¡res inTal,le 3 rc8ects i¡consisten.y in liurction,l ¡nalvsis b) USAIDI doll¡rilccotrnts ar(. pres.Dted r¡, tenns of obligrtir)ns a¡d loc¡l errrrencr nrter'¡s.,t¡lisbursc¡nei,ts.Fort¡iD¿t.lr,Losc!er,¡,blig¡tions¡nd.\pe¡di'hrnrs ¿R: ¿pr)roxim¡t.lv .qu¡I. (Dat! on dist¡urserDe¡ts o{ dollar dc-rel)t,n(!t ir)¡ns. eseltrdcd t¡u¡r¡ t'SálDs li¡n(li(»rl ¿r¡alysis, ¡rc¿r¡il¿hle and ¡re cl¡ssiff.'d under cconomic erpenditxrc.rl5 Thougtrthese citim¿tes rppnrenth h¿ve ¿ high p()babilit\ of reli¿biljtr,r6 ttre¡eHlff sl¡ould nott, th¿t the dat) ¡re nol ¡recrssrrjlv lilr¡ but ¡re pre'sented to,eveal tr¿n¿s of expe¡dihrre.

Durrug tle 6rst per0d erdnrg h t961, t'.S. aid s¿s ¿istrüdte{lhe¡rilv nr fa!or ofsDci¿l crprDdilure, with I6.0 per cent of td¡l or¡tlavgoj¡g 1;r ürect social m¿tte6 a¡d 31.{ per cent for bL¡.lgct¿rv suppo.toftbc Boltri¿¡) Ccntrrl Colu¡¡,¡ert\ so.j¡l reloluúrn. B.,l\'c.D lC6:and 1966 büdgetan support fell k) 2l.l per cent of expenditurr: anddircci socirl as\istance lell to i0.J per cert. fhough econonii. outlrygaD)ed ¿l tbe expense of so.i¡l emph¡sis, hos ever. 43.5 pcr ccnt of U.S..,rd ,r rll \upt",rr, d no,, , ,.nr,úmi,. r',n, rions.r'

As OS,{ID ¡lconorii( A.h¡sor.lacoL P. }Ieen,¡D ¿otcd ir¡ ]¡te 1966:

l'hroug)r 190.1tl,c ni{o¡ e)cnrert i¡r USÁlD's I)¡E¡¡¡r \t¡s pDvj.}Dg rrr)urccsto rove¡ Roli!i¡i public se.tor dcfi.it. Ir w¿s a¡ era of disibv.srr.ent with rfc¡g..{,.., .nr t.ono¡ni. .!¡¿,mnil¡¡t of dr. froto,r,(l n'd¡l !ph.cyal loil"q,r,s-r"!l r.',n,r'oa."',lrl,$,.,ldN,,,grn¿.,lqov'n,n'r,,r'.r'nF$',rhirP,¡,nÉ J,,.nJ ru rld d,h,1r l(\.,,,¡.'¡' n-^rl.J,¿ :g,,,n,"ñ, lol rr'prSol,,,'Lon Slr¡t.)j\ . . ,,' ihr L sAID nr,Arrn.r3

Th¿ sh¿re ot the U.S. expenditure {ex.ludnrg programs not idmir¡is'tercd bv LTSAID) de\oted to direct trudg.tary support of the Bolivi¡lrC.Irtr¡[ Goven¡medt is shoúr, i¡ Table 4. Diklt budge(¡ñ support lv¡sbegun in 1957 iD order to heh Bolivi¿s stabilizalion progr¿rni and inth¿t vear it co¡stituted 27.2 p.r.ent ofth. U.S. alloc¡tions. In 1960 this

t1

¿n¡c'{r¡t ¡r¡.h¡d ;ii.g |er.¿nt iDd rcrJ/,Linc(l ¡bo\r ilo per ce¡r r¡rilI96il wheD .-durqe in t S.{tD policl ¡tlempied to rcduc:c this enqrha,sis. Ir¡ 1966 Dr. II(.er¡r¡n s ¡ol. rhc fi,lln$ in( nremor¡¡dun¡ ror trsr(tDi\\- r .,..ert. .h-r,,, rsl¡¡¡ r.,t,^\ .\r,l rpt,.,,.cr)D lri, \. n,, r,r,,. 6,.t.\.,, t,,.t.,, ..,... J.,,r. ..,.,..,. .. .r.1' ", ,, N 1.,,.1 ,.¡,.r.,,¡r.¡.,.,., t,ut.,.,,., !,.r\ ..,.u|" ,i,, ,¡,1 't' fft" r r ., r ,1

A¡¿ltsis ol the lrSl¡D (oDt¡rLutim h) B.ri\ ixn Centr¡i Govrirn¡r.intnrconr in Trbl{-- 5 bca¡s ,rut thr ch¿nge of I SrrtD poli(\. Si¡(e rheC.iir¡l Go\.mnle¡)t op.rntes u, ¡ cal().lar,"err in c,)rtr¡st n, rLe U. S.Í\.,1\".,r ,l:,r.in j.rhl-:,rr, n^,,.\.,,rt..,,ñ,t,r..1,t,.r,,t:!,,,,\,,, I t,t,.1.1¡,t .¡ \ en ¿efi¡iire tr.n(l ,s re!( nl{ d. ttr lg5i. iil.o ficr t,!,)t ,f Boli! i.¡)hean¡r! re\.rru. rar¡c ll,n US.\ID. This rnrouDr w¿s th. hi¡lh ¡r)¿rt

llBI ¡r'1

\)ur, , t I,.t.rl r\\tD,\,,'J L\r.-r ,,jt,L. D-\ ,,, .1

r,\,.t.,,¡11..H...r".r.i,1.,r.1(:,\,n,r1,,,, ts,.,t., t,5i t {|lJ

tl!{lgtt,¡'a SnU)ort¡AB(('.5. Ari¡n,¡: Dóllü ú11,,),!

L-is.d .l [.tt:lún!c olfcdt ,9olnin¡¡os', Ratr D" ,¡"

t)T,r¿l L5.\lD Süt4t,t!Í.r¡).Nlili . \PLr(:c t¡" ,Villn)b úfUSAIDri DaUl^ [.yc ¿iu¡.

19;il95llt9f9

I96II96:

I961

"59.9c'51.5.sa0

ll.t.365.0

r:7.152ri1.o51.5

'20.0

8.I9.5

IL9

1.r 0I1.9rI9l r.9t:.2

'J.76t

5.1

1460{.1

'1.6

'2;.:¡25. ¡J

:1.9I7. b16.8z¡J 0t6.!57.6191

" I7.6

27.2271¿9.i53.932.1

122I0.i122_5'9.0

.\ u¿n 4, \!ú ,\ r trr6ar r.r. ¡ r ltu fr», \ :¡. ii¡r-i J,-,l,,i lll

12

of tl S l)nds.t¡rs ¡ssisi¡Dcer for the ¡e\t lbur \.¡rs ll,e fil{ur. r¡¡gedlr(,,,'2l.9tol9.lp.rc.trt.Tliepattclrrv.úb",I.ninr()¿j:i.'n,ltl" \1,,,rof !:S.\lD {tunLl\ drcr¡ ¡sed th¡r.¡li¡r l¡, l,et\{ee¡ I ] ru(l 7.í p.rr.qrtoi (lextr¿1 (lolcmllmt rercrrrt.'t'liough LTSAID trred to (hr1rr,elbÑtqtt.rn sup¡,,rt ¡It(, \el(({e{l t)¡¿q¡rr¡s. p,r¡lror1.,h r(r»x}n¡ic. thcB.rlivitin {o\eÍr¡ne,rt usu¿lh s¡s licc to rLse tle núncv ¡s it Ñishcd.dr.l nr .niv (.isc tsoLvi¿

" os rr iurls u tr' ¡eL:¡s('d li)r irish (lcpl(,\!¡(rlt

t, ¡rerl s¡tr!¡l ,1,D¡¡,(ls.ln ¡ I¿rsc nr.¡sL¡r., nid lo Boli\i¡ should ¡ot h¡vc 1)e,ri 1¿l)elc.l

''(\oü.,¡i( nss,rt.u'(1.. ()l rhe :i;.9 urill¡r¡r rloll.L¡s di5hrrs.¿ br theI s rr,¡4, r1.,,.¡ . pri {.

" pr,,r,,'n.'h,u,,rr. l9bl :, r,.,*., r, "n" thir.l

¡rd ore h¿lf ol ¡ll grtint ¿n.l k)¿ issrst¿n.c (1uslskr.l ol shiprtrcnt\ 01

¿gri.a!)lur!l cor¡rDr¡lities to tsoli\ i¡.'1¡ Ec,»rini.,,llv. redistrlhr¡tnnr ofl¡r.l u¡,.1.:¡ lhe Rcvoltrtion oftrrr r.sultr:d in ¿ shifi 1io¡h prcductio¡ lbr¡Dtrrkct 1,v l¡rg( l¡qd l¡¡kl1r n' pn¡ir¡(hon tor suLsirtin.e rrd rur¿lcoDsnr¡ptj,)¡ L\ sD,rll 1¡nclholders. '1hus, !ritl, re!,rlt¡¡,t fi,ñd shortxscsiD tbe cities, Uillr»r Eise.ho\rer s¡\\ .mergencv shipr,.Dts o1 s,LrPIs¿Aricultur¡l ..trn¡roditr(5 to Doliri¿ as s¡rü¡g tl¡r.o!r¡t^ llo¡r st¡rv¡.

'IasLE 5

51l¡r.ol Boln idr C]l¡tnlC,^!nnn.¡tne!.,r1(. (.',t¡L,,t,n l'! IslII) 195: Il)1iri

tstun \ oJ Batlú¿r."us.1l])

1957r 95lJ1951)

1gii1I ')ai:

t fai.¡t!16¡

t6;.0:')i.!r¡ ll.¡lti.u.tl'113. I

l;9.:I lfl I:,t.I. ¡

;3i ir''¡:li r»

¡J; 5

t(xl5;J ¡

l0;.5r'

6;.0]]Ej0 0,1t¡ 1¡

lt.0:íi.019 l:1.9:;i

i7.1.1

'{. ¡

13

tion.l'¿ Actuall\, this assistar¡ce w¿s i¡r¿xpensive fi)r th. U. S. .s iheseco¡nnroditics had alreadv l)e.. pu.chased to provide farln subsidiesto Arncricdn trnne¡s. ¿rd .ccording n) the USAlDlB.,li\i¡ St¡tusReport, l€64. '12.6 per ce t oftotal assist:rncc through 1964 was in loxnsfor the purchase o{surplus Añe'ic¡n ii,ods\,fi\.

Floodng of tle Bolivia¡ m¡rket witl¡ Arnericán agricüihlr¿l com-modities did ií¿eed prevcnt a social (ri.i! ¿risn\g {io«r lxrl ofBoli!i¿nfood prorluctn». but rt also }ud econonric ¡!mific¿tn)ns in thrt whcatproducti,n coll¿psed !¡long witL the millürg n,(hstrv.23 Irnports ofU. S. foodstufls. horvr"er. did not Decessarilv discouragc Bolivia's (le-vclopment of ¡lriculhrre ¡s might be c{pected.za Lr. S. techni.nl ¡ssis-tanrc has he¡pcd thc cou¡rry diversiry its production in order to endnnports offoods such ás sug.ir ancl rice u hich it had tr¿ditionall]. boughtfru¡ll abro¡d.r'Neve¡1hdess, in 1966.lxrut l9 per cent ol th. valuL'.,IBolivia's imports was devoted to food, b¿verages. toh¡c.o lmd l¡,e¿nnn¿ls, coñp¡red to perceDtagcs of 2I aDd 30 p¿r ceüt in 1930 ¡ndr95r, respectively.,B Evidently. nnports ofU.S. commoditics IEve hád ¿

mixed €flcct on ensouragi"g Bolivi¿ b re$lve its rur¡rl production

Civen t|e abo!e lssessrrent of U. S. ¡ssistrnce to Bolivia, it is ¡pp3rent that though the U.S. w¿s theoreticall) charged $ith cuononricdevelopmcnt, e.rrly etrorts of the missioD werc l¿.gely ¿lissipatcd inmuch ne¿ded social ¿ctio . There is an noDy herc, ti,r US,\ID h¡sman¿ged ¿ shift to econon¡ic invesbnrnt at the ve§, time shen theAll,¡n,c iñr lrog:.s rnrnr|(t. a shilt lrom c,o,,,rnr,i ru s^,.rJl in\.(r-ment. App¿rentlv for very sound reasons, usr¡alll USAIDEolivia hasbeen Dut of step wilh offfcial thn¡king in Washingt¡,, about th¿ Dah¡re

Trm NAri-RE oFCENT¡aL CovERN^rENr ExpruDrr(,¡E

Now that the context of Central Covemment action h¡s bee¡¡ exam-i¡ed, the impo(ance of Bolivian Trc¿surv Depart-cnt expenditurerna) come iDto focus. We h¡ve found that USAID dñbursemcntseither tend¿d to lbllow the Cent¡al Govemment policy ofy,cial erpendi,ture suggested at the beginning of tb¡ stud) or *e¡c tumed over rothe Central Covemrnent as budgerary support olth¿t policv.

iust ¡s tlSAiD experditurcs in Táble 3 lverc pres(\¡ted in f¡,ctioD¡lterms, Bolivian Ce¡trnl Covem¡üent expenditures may coDv(,Dientlthesep¿!htcd iDto rategories acco¡dj»g to soci¡J, ecoDomic. ánd rdrninis-tr¿tilc emlh¡sis. Naturally thcse groups are used Ior summa¡y purposesrreal meaning must be ¿xt.¿.ted Éom the movement ot fuDds ole¡ D

period of tinie bI ciose examination of diEercnt programs which are

t4

grouped bv tvpe 01 emph¿sis (s.. ,\ppc¡dix \ll. lull r¡tion¿lc for thisIürl ,'f in¡)\sis L¡s be.r¡ preserted hv th. ilrlhor in ¡ sltrdv \vhichn,vesti¡i¿tcs polic] in the llcri!¿n RevolutLon.¿3 'Ihough ¿n¿llsis otexpendit(Lre ccó¡omic tc¡ns is ¡ot possible bec.tuse gove¡nncntal¡ceorntr¡g i¡rolr¡s tli. "gen..rnl yi(e ol an sepn¡rliDg .urre¡n outl^!fro¡r c.rpital cxpe¡diturrs,'" thrs prol,l.ni docs not afie(t the presentstudv rvhict, is interested jn pólitic¿1 iD¿hsrs of tf'pes of e{pcn(lilue.

[x¡¡nination of budgrts ancl ¿chul cxpenditur¿! nr Bolivia. ¡s i¡\lexico. oñ¡rs a lest of ideolory. Since politiciárs mar promrse ai]thnr¡ts to ¿ll p€opl¿, ¿nd (trün thcv are ülfillnrq ¡ll prl)nris.s. rt is anritlirlto i lestig¿tc th. exp.n,lihrr. of fünds. A gov.nn.nt's cxpe¡diture(o")es tr,101) p.¡.p¡tarr¡l the.oDrptñ.Dts ofsu(h outl¡v n¡¡y b. rtite-gorized quantittrtivelv to dcúo¡sir¿te thc ¡¡t re of ideolo¡lv ¿s it is.xpresscd nr practi(c.

So.ial e¡pcnditur( incl¡des «ntribuhons k, irtemation.rl ¿nd f¿rcigra¡{erci.s working iD Bolivia, funds for }¡ousing aDd public welf¿re,.lnd rll(i.atrons t. thc Ilnrist¡i€s of Ed,¡c¡¡t¡(»r, l,rho¡ ¿r¡d ljo.i¡l Seflríty. ¡¡d Peas¡¡t AII¿irs. t¡ this alalvsrs of expenditure, 1'or examplc, alloutl¡\ Dec.ssaN to ,¡¿k. the \linistr) of Educr¡lio» linrctnrn (s¿l¿ries,

equjpment..oxstrLrctio¡r. etc.) is n¡clúded as ar¡ educ¿ttutral exp€Dsc.3')Iicó.omi. expcndih,re e¡compasses funds for agrnrian r|form, public

§orks, cornmu i.¡tünrs, agriculture and Ii!estock,.nloniznti{,n, and th¿\Iinistries of\{nics a¡d Petrolcum ¿nd Economv.ln ¿dditioD, economict'{p.ndi¡ire rnclDdes trár¡sfers to dece¡traliz€d aAe¡cies l)I. the Boli\ian Dcvelopment Corporation, subsnles k) i¡dustry an(l co¡rrrerce.ud p,rrmerts to surtr programs as ru¡ by th. Agricultur¿l Seîce.

AdrniDist(rtive .xpendrture inclu.ies firnds cxpenddl b) the Cor'grcss. Judi.i¡rv. l'residencv. I'orcigÍ Offfce, Tre¡sury .1nd Audit De-pa¡hncDt§, aDd \lDis!^ of Liêñ»¡erl .ncl Imntjgrrtion. Nlilit.tr-\'outl¡v. pa\m¡rnts on the public debt,3' ¡Dd retirement coDtributionsare gr,uped here as th¿iv also .re activities which mainlain th. statefrod d¡v to dav r¿thcr th¡n stimulátt soci.tl rvell bemg and economicactjYitv. Boli!i¿'s subsidv to the Catbolic Clturch has contn,uctl as ¡¡¿d¡rir¡istrxtivc e\pcnditrrc ol the al.ntrul a;ur.nn¡cDt i¡¡ spite Df thesocial re\!lution \vhich h¿s resh¡ped nitio ¿l lilc. Sbc. IINR revolútionisls did Dot lerl th¡t the Church w¿s r power whi(h thr.ntenedthcir idcals .rfnatioDal i|togr¡tim, thel did not ch¡llengc its position.slThe Presidcnts \pecial res{--ne funds for cl¡ssificd ¿ctivit}, a¡rd theEle(torat (lorLrt ¡r. aL., sruup.(l under ¡.lmürist¡dlioo.

There are some sp..irl cases of cátegoriz¿tio¡ which desen'e com.mern. Thp lund for St!tc Obligatio¡s oriq¡rallv cncornpaxed d.bts andprogr¡Ds \!rth lilnds c¡¡narked Io¡ r.quired p¿yrñe¡ts. lletw.eD 1936

¡¡d I96:1, however. this .ategon, iDnnedi¿t.lv caúe to represent oDe of

I5

genc¡¡l crpü'diture. Be.ause this cxpendihrre I¡rm¡ed y,.i¿1, ecoDomic..n)d adi!)nrislr¡tiye p¿yn¡!)ts bg.ther uüdÚ one hc¡dDg, it l,¿s bcÉnrecessatv to distribuic thcse funds actnrding to t¡nction. Sinc. rlr.i)rr.t,t,rgr of¿.tüil exp.i)rlÍúrc rllo(.1t.d in tlüs gdtrr¡l qroup rc¿cLcd61.1 p.. cent in 1957 ¡¡,d r¿nq.i lr,n 3.1 to 53 per cent thercafier, it isrr) w.,nJer thrt P¡¿ tstenrsoro b¡.kcd thr nnpienBrtrtn» r,l ¡ fl¡rc-tionrl l,t¡dg{rt in 1961 rrhich lvould ¡eve¿l the struch¡re of CiintralCovenuncnt erpt'r«lihrre Appendix D sho".s the importan.c of thisgdleral c¡tegr,ry \hich came to be .lomnrsted b\ erpenditur.s ih¡twc¡c not Deccss¡ril\ obli{¡tion! ol the st¿te. I he .¡tego.y rv¿s ffn¡lhnl)olisLrd in l$6.,1.

Trust fu¡ds within Str¡te Otrlig¿tn»rs htr\e b.e! deduct.d lronr(iertral ColtírnreDl.xI.¡,ditun rLr ll,e putn)s.s olthis strd) Sp.u¡¡lI\ Eann¿rked Incor¡e, 1936 19ti.1, ¿nd Trx Comp.nsatnrn, 1957-1962,h¡ve be.n omrtteíl lior¡ ¡nahsis bc<.rusc thts< in\ils

"(.re lhstin(d

for.rpe,rdittir. not detemrnied bl thc exccutivc braDctr ofgov.r¡rrrcnt.Tl,e lirst ito¡ Íbnto parc lines Espe.:¡d¿¿r $¡s in(ludc.l in ttre hüdgetlJ|t not,n th. ¿.tú¿l acróuDts since this rncorre uas r,ot pÍ,cesscdthrough norm¡l 'frersu^ and Audit Dep¿.h¡ent channels L,Ltt de-

1,.,\ited in sp«ial ¡c..,unts lor prirpos.r earD)¿rkrd by LlDngr$s. Thus,for ex¿mple, incone lionr the tar on consumption of alcohol nr Coch.Ft,¡ntba. ,rutom(ti.¡ll\ tnrrsfcrred to S¿n SnnóD U¡iversrt\r of Co(h,rb!,nba, is exch¡ded from projectcd and actual analvsis her. (just as it ¡exchded from the llolivian govennneDt's t¡(,jectir)ns since 1961 3ndliom anrlysis of ¡ctu¡l crpenditure t)resent.]d nr Appendix P). Thcs.c.,rd itenr, Compe¡saci<jn .le t lpu¿stos, arose o,rt of the grelt infla-tn» ofthÉ ni(l-l950 s. Tlr. Bov.D¡m.nt decided th¿t it cou,d not preve)nor ke.p up with infl¡tior ifall ea¡Dark.d expq¡dih,re we.e to iDcr.ase¡s usu¡1. Th.relore, ror eri,Dple. instc!d ol ¡uto,r¡ti.a))\r tr¿Dsferringa §tlrchaL¡j. o¡ nrnnDg patents in ihe provnrce of Bustillo to pro'idcthc Dep¡.tm.nt of R»tosi s ith fur(ls f.,y publtu \,orks in I957, ¿ systc¡Dwas devis.'d Lr which iD 1958 the Departme t of lbtosí would rec{iilea perc..t¡ec in$easc over the previous yerr r¡th.r thrn the ¿rtir.'su,charge.3r Tlough the conrpensatioD was included ¡r the bud¡i.t¿nd actual ¿ccor¡nts. it has been exch¡ded here as rcl¿rted to the Speci{l-l) E¡r¡r¡rk.d lDcome. Accounts exch.led trum pr(,jcctcd ¿nd ¿chralexpenditures are prcsented in Apfndn E.

f'\ sfite of ¿ !?ceDt trefld r') mi ) coúntries to iDt.gr¿r. ¿ll erpeDdj-turc of thc public scclor into corrpositc n..ounti¡g, úe must distingujs¡be§ecer thosc ¿ctiv¡ties o!¿r $ hich thc exe.utive has smt hrrdgct.orltrol and thos. ¿ctivities of tnrst furrds ¿nd de.cDtralized ageD.n:sin *hich incoxre is .¡mrark¿d for speci¿l p¡,qr()ses. In vañing dc4r..rsth. exec¡,iive üllocates funrls froo the poolcd funds ol Mtion¿l rcveDucs

l6

in l|c first instr¡rcc; ir thc sccond hc l¡ts no bud{¡rt¿n ¡uthorit) rn.lh,üe rrrrr'litt!e fo\.r ló iDnl{rtt. il¡csc ¡uto¡ )Dous ¡ccórrnts jnto

st.rr,. pl.u,,'ing fr,r:t li¡rL¿ts. Il, rr.tr¡rI', .r. {\.¡¡Pl &,r, ,\cctlir.iDll c¡cc prc(is.l! l)c.¡use inkrresl gtouP§ NisL t,r t¡ke Pn)Sr¡rns outoi rhe poliii.¡] sphcre. ln ltoh\irl this rcsulte.l in r v.irv cu,nberso¡rc§nr¡r ir §lli.'), r!¿11 \e¡r1\ «»rtriblrtn,r to hun.l( ds of firn(l\ li,nite.iti¡, er,r,¡ti¡es ¡l)ilit\ l,) IrL{t spe.i¡l (¡Pil¿l rretds of tn' pr:rrurlar

Dc..ntr¿lirc(l ¡gen(xs r¡ch ¡s lhe Bolivi¿D Di \itop¡rent Corpor¡tio¡r ¡nd thc B(,livi¡n \lú,Dq Cor )r¡ti(»r ((io\llllol.) ¿Le .¡cl"dedli,»r¡ rl,is ¡¡rl\ §is I;r th(' \Jr¡e r.¿s(,rs rs sivc. ¡hrr e (lO\lIBOl,oper-rtral §,ith ¡ d.fi(¡t, i¡st¿rd .,l proJu. Llig divicl ndr fi¡r ¡rli,,c n¿tro¡rl..oroú!i( d iIe r s rfictriion rs tlle \l\R h¿.1 hope(l'ra \ot orl! w¿s iaxrer, nu. lion n,ininq lost n) tltc gove¡uncnt ¿lirr .xproPriatn{' of thel¡rgr ii¡ mnres i¡ 1952. hur lhe ()rnirJl GovemJnrDt h¡d k) r.»lributesuLsidirr to th. ninies,)rri ol ¡ls (trrí ¡n(,)xre.3s onll sin.. lgli{ has(i)\llB(,1 . r.ry J 1,,.,1,",.rr, s rllr:r ¿, firrl rd

With de..ntr¡lizi,d ¡¡ae¡(jes trnd tnrstlirnds e\(lud¡:d fro¡¡ ¡li¿lvsis,3'lr¡lts o¡ tLis str¡.l\ ¿re.le¡rl\' ¡nncd at estal¡lishir,s the r¡anjpul¿t¿ble.linr¡1. of(lc)nr¡l ai)venn,xrt acún\ iD!'hi.htli, pr¡blj. ¡r'd pri!¿tesc.t(,rs niust oper¿(c.33 Thouilh thc (:,rntral (lo\cmnrent, I't cour§e.is rot soleh rrsponsible tirr Uoli'i¿¡ develop¡nc¡ts, ii does set a toDe

¿D.l ¡hrospher. in x,hicli ¡ational dc!,rlop¡nents are b¿scd-h¡ll]rcstü¡f1l\ in the pr§. the chiel .xrüiive ol tsoliviá, lil. thc cliief

,'fst¡tL ui Sprir, h¿s n(Jt eontrollcd directll th. nl¡tor a{eri.n's involv¿dnr .conomi( dcvelopnrqrt bccause of de.e tr¿[zrtion ol (oüonlic¡ctivitv. Thus. tkmgh ir¡porta¡t cconomic policv h¡s bce¡ excludedfron¡ politi.s, sñ too h¿s tlr'cxecuti!.'s power to resolve Datior¡¡l proL-kr»s l,ce, qe.at)¡ lnnile(l. \\'hile r») o¡. Iúrd such aD¿n-q.,ne¡¡ts navb. healthv iD freventing the dcvelop rcntof¡ rnonolitltic st¿te, o¡ theother h¿nd the co¡ntncnts of the llissron k) Sp¿i¡r of the Inkmation¿lBrr¡k for lie(o¡structior ancl Dercl¡rment ¡r. (luite ¿pplicable toBol^j¡. l. ñotjDs th¿t .Dtor)o¡nous áge¡r(i€s shDDld either L. brought.lir,,(tll tnd.r the co¡troL ol thc go!'emrnent n' reg¡rd b É¡{¡,.cs (irrth. s¡me §¿v that ¿ pri\át! comp¿nv is ¿ccou¡tal'le to its sháreholdcrs)or reirt.grated into the govcrnnent, the Nlission louDd th¡t wlile theren)d\ well be so¡¡e c¿scs shere a mc¡sure of autoro¡,), is desir¡hlc. the.irn- t¿r reintesr¡tion ir ¡ rtrong (tr¡e. In süin. tl,(\ have $ nttcn th¡twhile tLe case tor autononry rests oD n number ()1!rguments, rncludingl¡rvcr co¡rplications in promoting lvorth), stafi or letting of .onüacts,thr iDswer to su.h proble»s:

,1,.',ldr,F,,.".,r.¡.',.,1.\.,.i'.$,rhi,,rl.- en',-l-J' ,,tr,.rhr,",,.,'ir (1" ,,'.,-r¡,n"1 r¡,,¡,..i',r1.,.u;"d,\rl.lt n,l''' \ur.,,ñ'.ñ''',4,a,"'e'1,,',.t'tr..lh.

\i

l,¡,1' cr\pn .n'r L g¡ rler t¡eF.lom ,,. p.rJlJr.h,ng,t.p,r o\t,, p,¡,\,.¡,,¡ ^r r\.t'.n.1,r,.r, ,,..1 l.r\,.,,{^,,1',,r,r)1 l,é.., l-*',arr,r¡\t, l,,rh(,!r,,it u,,,(es,{ .u^,dinJr,un ,lHr lh. L ;dg"r1n tro,.J,,¡" ,\o:LtJ , ,h,.r. !!,. t, pl ih f. ,l

P¡'.pnr ' rrcurr\lJn! '.r l\j.n,.'ffr¡\.r1or",rt!JrJd!.,rr.rB"rl."r,",l...r.uc".i'r H .t r,ri,DJn' ollHr ,,1 r)'* go\pn'¡"Frr\ 1,lJr,,rñg I,r d.r¡t"l r¡, r¡ :, inr¡nt)ro\ e co,'r¡ln'¿rior'.Js

In orde¡ to derehp plmning in Botivi¿, post-JNR govenrmenrsúot oUh. .o¡rpletel) shfied to proerrm hudgetiire begioning in I965 GorhJl rrprrLtrtD¡.¡s \¡o$n l,v tLn, tron rl,,n¡ rarhprrh.,)¡l,r,;rnrsl^ "n,l

in.orporat.d into th. srLme lina¡(i.rl st¡tern.st (¡s in the t',¡ited StárLrsb.,ginrii¡¡t in liscal I.¿r 1969).¡0 Thüs, thougl, apptrre¡rt progress hash,-n ¡,,.,d¡ i,, , LnrunB '1," rñl- oJ rh. p,,l,l,r rc, (ar. \.\-,,l ,cIl,r¡.proL)ems rerr,rdn. Fi$t, il this i,tegralion of fin¿Dc.s nrc¡¡)s that rlrecxecu(ive is still unable to control aL,tonomous ¿gencics b.ic¿use ttrev.et¿ir lower of proje.tio¡rs and rud¡t c,f rcorrts, ¡s in lU.\iro. rhe¡state planDnrg remuiDs limited. Also, ifprogram budgets cxclude tr¿di,tional ¡nalysis ofexpcndih,re by .rinist^.thcn no comt¿rison oftsoliv-irn proje.rcd ¿,rd a.tual prpend¡turc prior to ¡ñd alrcr 1965-1966 willLe possible. Unless d wav can be devised to separate Cent l Covcrn-ment erpenditures ltum tho\c ot decentrali?ed ager.ies. ¡ bre¡k it)Bolivia s time series datá on govcmmenl¿l poli.y means statc plan¡ñg,nay lacl historicAl relev¡nce. Io contrast, luexico successfu]lv has.¡,l,le,l run.ti',nrl ,,',"Iv,i. 1r,d pr,\enlJr,un "l ,l"c¡,¡rr¿lr¿"J u,,i,,,,r,r.to tr¿ditio¡al áDalvsis ofexpenditure bv ministries in order to maintainhisk)ric¡l s€ries l¡r invest,g¿tn,n of long rangc de!.lopn)cDts \l]lIe¡dding n.w ¿nahses.

'Ihe relation ofCentral Covemürent expcnditure, m ajor dec¿Dtratizcdrgenc! tutlat, ¡nd contributrons ofUSAID to Cross Domcstic ProdDctarc otr¿red in Appeldix B. It is ¡ecessary to note th¡t thcse rel¿tioDsAre only rough approrimahons ofcomfar¿bilitv lir ve¡rs nr s hich d¿tarre ava,lable (r958-1965).a1 u¡e h¿renot deducr¿dfor transter pavments¡mong the three scctors, primarih t¡ec¡r¡se USAID .omp(t¡tions ¡re,eponed in tucál \e¡rs md Bolivi¡D reports arc tascd on c¿le¡d¿rvears. Ce¡tr¿l CoveDñeDt expe¡ditures h¿ve ¿1wavs amountcd to.bout I to 10 per ccnt of(;DP. i\l¡jor d€centr¡lizcd outl¿y (for minnig,,,,1. ¿nd r"r|\¡rs orh, r,.1, h.J ¿l,no'r j5 p¡r, cnt in r"t¿tio,, to CDpin 1958 btit har d.clined sterdily sincc l96t to 16 p.r cenr in 1966. 'Ihisr¡te of cha,){.: r¡ak('s seDse in lj{ht of P¡z EsteDssoros poliey of en-eouraging the return ofprivate enterprise which Red Bolivi¿ {licr r959.LISAID j role i¡ rel¡tion to GDP h¡s ¿lqivs l¡eeD undcr {t pft..nr,and fiscdl ve¡r 196.r would ¿ppear to be no er.eptio¡r iI the dat¿ ererd.justed for Eolivia s cale¡ d.r¡ .r'ea r.

r8

THE PAl rERN orCEN] RAL Govr.H¡.'\rtrrr PoucY

Tle stnrchrre of achral Re!1)luti.)nary linanci¿l policv is prcscnt.din T¿ble 6 and Clmph 9. llcre \r,c m¡y see ih¿t thc Chaco \\¡¿r rcquiredhe¿v), ¡dmhistr.rti\e outl¿v fro¡r 1932 to 1936. These $aFtnne pro'grams of ¡n ¡dmnristrative n¿ture offset Bolivia's sbortlived .e¡ctioniD l93l to the \lorld dcp.cssnrn of thc e¿rlv 1930's. Adn¡i¡istr¡tivce\pen.liture duri'¡g l93l lé11 to ¡ post-1920 lo\r ir¡ order to ¡llow tliest¡tr more r.spo¡sibilil), i. developi¡g soci¿l ¿nd econonic pro¡{r¿ms;for c\an¡plc, soci¡l outlr¡v rose to orer ll per cent of¡ctual cxpeDditur..A conconimitant ris. of cconomic limds lor ilr¿( \e¡r was ¿ signific¿ntt$cnticth,certur- e'ent i¡r Bolivia, though projections (sce AppcndixC) had called lor.rn eve¡ greater reve rs¿l of policies of the 1920s thanrrere achieved. Ililit¡n' expcnditures. s}¡own n¡ Gr¿ph 3, c¿used a

coll¿psc ni soci¡l ¿nd ecor.,mic percentaqe ofexpeDditure during I933¿¡d I93,1.

The task ()1 the post-war erá was ¡tradu¿llr to r.d¡ce ¿rd¡n inisl r¿( ir eexpenditure in order t) relcasc aúnds for th. socio cconomic reconstruc-tion of a defeated countn. U¡d{--r (lolo.el D¿\ ]bro. rrho c.lled lor'tt¿ie socialism, project;d aDd ach,al $(]i¿l cxpe¡diture rn¡de ¡ rela,tirelv dr¡matic rise in 1937 to surp¿ss pre-Ch¡co §'¿r Ievels. Torc'sgoleñrDext created ¡n indcpcnd{--nt l¿bor dcp¿rh¡ent to protect tLervorker¡ also the 'Ioro regime Dationáliz.d Sta¡dtrrd Oil (lomp¿n)of N.w Jersey lioldings to begin ¡sscrtnrg ¿uthoritv orer .¿tim¡1

Colonel Cemán Buscl,. rvlro h¿d led the 1936 move b iDst¡ll Toroin pl¿cc ol tlre deleated rvar qovcrD¡rcnl, seired executi\e power in1937 t{) prclcct and ovcrsee nnport¡lt griDs h ccoDomic ¿s $ell ¿s

fucial poli.v. Busch s úrstcrious dcath in l9il9 brought C.aier¡l Carl(,s

Quint¿nill¿ iDto ih. pr.sidcncv ¿s iDterim executive u¡til t;eneralEnrique Peirárand¿ was .'lcctcd to t¿ke office ApIil r5, r940 (prcsidential terms ofoffic. ¿re presented h Appendix II).

\\:her..s ¿(tu¿l social expenditurc ¡c¿ched ¡ h¡sh point of 23.6 i¡1939 uDd.r Busch an.l Quintanilla, Peirar¿nd¿ s}¡ilied goremmeDtalernplrasis lrcm social to economic outl¿\'to rcs(,lvc Boliii¡'s prol,lems.Bv 1912 ecoDo¡nic progrüns were to absorl) almosr 98 per cent of tlieoutgo a¡d though this outl¿y fell slightlv n¡ 19.13, prciectioDs called forthe s¿me high poini, as Appc dir G s}¡ows.

Presid.nt Vill¿rroel ¿nd \'finister of II¿ciord¿ Pr¡z Estenssoro settledth. struggle in govemm.ni policv ¿s to §hethcr cco¡omjc or soci¿lc¡ipl,¿sis should prevail. 'Ili. \'ill¡rroel-P¿z so.i¿l poln,), w¿s lomu-l,itcd ir¡ the bud¡let for 1945. I'lris social pro¡gram me¡nt th¿t ecoDor¡icexpenditure wds sacrificed.'lhough ¡ctual expcDditure d¡ta ¡ not

19

C¡¡Ps rPerccnt oI Actual Central Go\€rnment trxpenditure

bv Type of Emphasis. r93o-1,166

2t)

TaULE 6Ppr (1,¡rt oi A.h,rl (l.ntrrl a].i!, nrmpnr

E\t)e¡rlitun l)\ l\ Jr. ol Enpl¡¡\is. I930 l r)66'

t00 0100 0100 0100.0r00.0100.0100 0t(10 0I00 0

100.0100.0I00.0100.0100 0100.0100.0

Lf)(l.o100.0

li)l)0

l(x).0

100.0

i00 0100.0100.0¡00.0100.0100 0100.0I00.0100.0

l9:10 Sil.s ¡n,l Bl¡nco C¡lxr(lo

tg:li '1.i¡da s,nz¡no1936 Trir,l¡ S(!¿.¡,,o.¡rl 1,r,,l9:l? r'o;o.n(l ur6.h

l9il9 Br{ h xn¡ O,,n+rnill,I9.lo l'eir¿r¡n.L '

I9,15d vill¡n!el19.16 \'ill¿r! )¡¡,d \lonqÉ G,'ti¡ücz

I9.19 H{Jtzos.Lnd Urjolago,il¿l9;o Lrrnohg.itiil95l Uúiol¡qoiti¡ ¡nd Ilrlli\ii¡195: Sile\ ¡,rl I'iz

1951 Paz1955 Paz19s6 P¡z and Silcst95t Sil(s

I960 Silcs and Pdz196l P¿z1961 P¡z

1965' B¿rricllos ¿nd Ovru¿o1966' Or¡ndo rD¿l B¿rir.tó§

7.5lt.{l0 .:l.;3.0

6.1I2.59i

15.5Ir.8r ].6:i.996.621i.0

'15.0r 1.6lt lstE.59565

lti 711.411.52i.lr9.lr5.7Iti.6

¡ir)q1t6.l:.0

7.5 85.0lrl 1i_5r0l 79.73.0 93.32_ó 9{.52.E 90.78.i 65..1

lil.s 7.]..712.7 1i.f)23.6 60.922.O 63.2ló.I ;0.920.¡ 5t ¡20.8 53.2

'2{i.7 '56.326 8 61.626i (i¿ I:t07 5962i1.0 63.931.2 60.3:18.1 62.1

,11 I 57.033.5 52.E32.r 50.550.8 36.;25.6 i I

35.; 15 0

33.; .19.9

35.2 .19.!16.3 io.13il I 5il.I

'10.E .17.2

.neh.É§ rsce anp, idk D fo, !i

s.!¡.e s!¡ {rEr!Li\ F

21

¡vailat,le for I9.15,a2 wc ¿ssu¡ne dr¡l t9.15 is dre k{rl ye¿r in d.rte¡¡iningtsoliri¿n lin¿Dci¿l policv i,ecause the prcjectioDs given ir¡ ApperdixC (Part I ) c¿ll.d lar thc shilt liom cconomic k) social outlay. Fortu¡ate-h. i,, B,,liri., rh, fr,,J,1r, J :,",,unr' Lr rr¡. ui"mtlr,§r. lu\.. qirl,rare exceptio¡s. bee¡ clos. to ¿ctúal .xpcDditurc, especiálly during theL910si tlius we are ¿blc kr m¡kc rcli¿hle cstnrtntes ofpercent¿qc o¡rtl¿vfi)r l9-1;.

App¿reDth the DÉn wlio ovefthrew \illarroel nr mid-19.16 ivereconvinced that t'¿zs p()gr.Ims ¡net tlie needs of tlie tn¡es, lbr the\neither redr¡ced P¡,: socj¿l cxpcndihrrc Dor cut his incr.¿s.s i¡ ad-niiDistrative lir¡ds. 'lLough the inilit¿r\ perce¡tage l¡ll to 21.1in 19,17

under Lnrique llcrt,og ((lraph 3 ¡nd {pp.D.lix N). it 'vent

up ag¡irito copc with th. \lN"R rebellion jn 19.19. Heñzog \\'as on leave 1ro¡rth. pr.,sid.r,c) lbr "reasons of herltli' \rlien tlie Civil $'ár broke outitlius A.tnrg President \f¡merto tÍrriolagoita (tuelled the rerolt. Objec-tiDg i(¡ thc bl.r)dv er.csses of the govem¡r.nt. Ilertzog resigred thepresidencv nr o.der th¿t Urriollgoit¿ \rould b. rcsponsible I¡r hisow¡ ¡cts.{3 Though Urriol¿goiti¡ hnd put dorvn the retellion, }e.ould Dot prc!.Dt P¡z Estenssolo fron winniDg the l95l presideDti¿l.1..rn,. H,thcr rhrn fini(h ,,r plp.r.rxl .ó,,nt Nhich vould cither givcPaz thc prcsidencr outright or else allov Congress to choose the Presi-deni, \fámerto Urriolagoiti¡ derised r str¿tegy which c¡me to be¡¡nred ¿lier hn¡. In th. Matnettozo ol \Iav 16. 1951, Urriol¡goitiatuDed executive po\rer over to a llilitarY Jurt¡.aa 'llie ¡rilit¡ry h¿dre¿lized qLrite cle¿rh, that, even though anti N{NR forccs controlledConllress, Paz s staftling victory had made such a drámatic impressionon the country thát CoDgLcss would rot be abk) n) dcnv him victor\'.at

P¿z's successful Revolution of 1952 did not L¡ring ¡bout a revolutionin fin.rncirl policv. That revolutbn had alread¡ taken place nr 1915¡nd hrd teen ¿ccepted by antiNlNR lbr.es. With victo¡_v, nioreover,lhe NINR dish¿nde.l the old a¡nr' ¡¡d cleb¿ted the rnerits of cr€¿ting a

new ¿nd unáller nrilitan org¿;ization, thus freeing morc ftrn,ls lnrnicreased so.ial outl¿). Thc milit¿njs sh¿re of actu¿l c{pcndih¡repluDgcd to 13.7 pcr c.¡t in 1953 (Appendü \) ,¡.d n¡ strcc.ssive ),.arscontinued tr) fall uDtil it hit an all-tinie low of 6.7 per .ent in 1957certailllv a wretched situatnm lbr a once-proud fbrce.

Boli\i¿'s Nlilit¡ry l¡stitutbn was saved, as we have earlier ¡rdicated,bv inflatior *hich caL¡s.d the ¡niners to st.Lrggle lvith Prcsidcnt Sil.sover ecoDomic policy. Also, Paz had encouraged the lbm¡tio¡ of a

¡ew "cl¿sdess' army bttau«: hr: rcalizcd carly in his lirst pr.sid.Dcvth¿t he .ould not d.p.nd on iÍ.,gul¿r rniliti¿s conipos.d of tui¡crsand pe¿s¡nts to enlbrce tlie will ofthe ¡1ovemment.a6

22

Gnarx 3

Percent of Actual Expenditure in Military. Communications,z

Pubtic Works & Education/Peasant At{airs. 193o'1966

Educotio^/Peolort Af roirs

coñmu.icorion./Public Works

23

t950 t955

/z-

r/.1,'-

r\!1940 1945

""I

'"1 n

_t/\t/

."[ I

)

""IL

" f':'E\^/"l', )-í,1930 1935

¡'idcl C¡stro s rise and Jolú F. Kennedv s de¿th ,neáDt that Bolivi¿'sarmed iorces weie to be well supplied lvith funds l(,m outside of thcBolivián budget as a rcsult ofch¡nged U. S. policv which l)egan to rehincreasingl), on military opthns b resol'e co¡¡Plcx Protllen,s. The

extent of U. S. corÍrnitments to supply nrilit¿ry' l¡nd§ is Poftraved i¡Appendix A. Thesc disbursemcnts reached a peak in 196'1, enabliDgthe militah- k) act as ¿rhir.r ni preside,ti¿l Policy as tlre \h-R began

to disnrtegr¿tc. UDfollunatelv for Paz, though the Ney Uilit¿ryhad LeeD cre¡ted ¿long "clássless lincs,' thc \'lNlt xegleclcd k) instilla profession¿l outl{)ok{'or to exami¡c periodic¿llI thc ¡m}"s loy¿lt}.By the earll 1960t thc amy w¿s ¿rn instihttion lo)¿l to itsclfrather thanto a feudhg \'1NR.a3

The major change iú linancial policy vhich came with thc Rcvolutionrr¿s thc gradual increase in sociat expenditur{-- olcr the level of 1915

át the expe¡se of cither econonic or administr¡ti\e ouilav. ln preP¿r¿-

tio. for economic stábilizátiol, durhg 1glj adlninist,¡tire exPdrditurewas slashe.l to an ¿ll-time low of 36.7 per cent t,'ncconomj.all), holvever, Paz pumped f¡nds thus rcleased into soci:lI prograns - educ¿tnrn

maknrg r norablc ganr tom 16 to 22 Per ce t ofoutlay (see APPendix

N). Tlough Siles s]¡¿red r.sponsibili§ for programs n, 1956, Pazs

Presidert Siles's projcctions of 1957 e¡nPhtrsiz.d moment¿rl ..onomic gain at the expensc ofso.ial outl¡t. As ¡chul cconomi. e\Penditure of 27.3 per cent neated thc rccord lerel of 1942, social cxPer¡ditureof25.6 per cent i¿]I to thc lowest perce¡t¡gc sincc t9'1'1. Educ¡tional ef-

fo¡t, \r,hich had reccived gre¡t imPctus the previous )ear, \!as sln¡drcdwith a redtrction to9.7of tot¡l achral outl¿y. Pe¿sani Afairs sas reduccdfrom 8.5 to 3.6 per cent, though forihc ffrst time liurds lbr so.ial securit)wcrc limly est¡blishcd. Administratilely, the Nlinistries .,I ForcignAflai¡s a¡d Govcn¡ment found their sh¿rcs of total actu¡l exPcnditurercducedby abouthalf. Economically, though tlrc Bolivian DeveloPmcntCorporation was atloted 11..1 per cent of tot¿l ¿ctu¿l outla), tunds fbrthe Viristry of Communicatn,ns were severelv rcduced and alloc¡tionsto the N(inistr,v of Public Works were not jncre¿scd enough to win forthat jnistry a signiEcant rcle iD govem'ncnt policy naknrg.

It is impotant to note th¿t the eco¡omic emph¿sis ni 1957 did notc{use ¿s gre¿t a shjft ¿s might appear, fbr more than half of the ll.7per cent economic sh¡re of the gener¿l c¿tegory (7.0 Per cent) went tothe Road aod Agricultur¿l Scdices, both ofwhich were joint Bolivi¿¡-U.S. ventures involvmg tcchnical coopcration. Until the early 1960s,when the ll. S. tumed such oper¡tioÍs oyer to Bolivia, the Centr¿lGovemment w¿s limited to the extent of road and agriculturál action

21

ttut could be takcn oD its own ¡c.ord. 'Ihr: cconornic share oi gcneral

.\D.r,Llrture wl'rch I" ltr,l,. ,'onrril,ulr',nr Io th. tso Scwi' 's\ i\g,i ,, ,,' r¡¡,,',lo N. Nler llr Llr',rn.rr,' .hirl in 1957 qhr l. n' rrl' ¿

s*,d d.,,i ;a ",-* tu gross terms il not in detail, Siles Projcctcd altd

¡¿rric.l out ¿ rchrni to the tr¿ditnD¡l \lNR pattern.ThuLrrL Jdmini'irJr'\' ' rn'r'rlrrur' r"n"rr" J u"ll u,drr ¡r*

lidol .(ion,n l-r,1., rr r,n l;d lo g,in,Iadi,ulJr[ rtt rh, ar.d ñl

nilitarv expenditure) u¡til b) lS61 such outlay toPPed 50 Per cent.

trconomic óutlay rvas near the sta dard cstablishecl during the villar

^fier 1952, thc rcall), revoh,tionary asPect of \lNR ffn¡nci¿l Policy

\ras ihe nrcre¿sing c.ntraliz¿tio¡ of go!'emmer¡t¿l ¿fairs in L¡ P¡2. As

reve¿lcd b) Apperdi\ C. in t952 the (l.ntr¡l Gove úncnt Pl¿nned to

spen.l I8 lnncs as muclt ¿s the .omb¡red cxPcDditures of thc country's

I dcp¿ftnent¡l govcrnmentsi bul by 1960 the (l.ntral Govennncntdcp:itrnental govcrnmi:nts r¡tio had riiached 126:1. ts{rf¡re t}le Rcvolu-

tio;, thc l,ig chartge iD ce¡tr¿liz¿tion of ffn¡nces h¿d comc ni tlie carlyI930s as the st¿tc bcgan to exP¿¡d its role tu n¿tbnal afi¡irs. Prn» k)

1930, the Ccntral G.,\ er¡¡n cnt-dep¿rtmcnt¡ I golermenls ratio h¿dranged from.l:1 to 7:1, ex.ePt in the late 1920s when deP¿rtmcntal

go!.ninieDts $.rc able to ¡da¡ge l.,ans wilh II S. l)ánle(- In 1929

th. ratio w¿s t:1, a far cr¡ fiom the mtios of lhc 1960 s. By thc end ofPazs li$t teñn i¡ 1956, tlie Rerolutn»l h¡d ellectivclv destroved the

power of dep¿rtmcDtal govemrncnti and though thc results by thc cnd;f his secord tenn in 19& !'erc n) rcst)re sor¡ervh¿t the rcle o, dcPart-

mental govcmment, in 1966 the ratio had r.ached 5{l:I. lvfunicipalgovcrnment ¿pP¡r.ntly h¿s l¿red bctter because its pmjections fori966 gave thc Centr¿l Govcmment ¡ r¿tio of 2l,L'0 Cle¿rlv. however,

thc Central Covemment h¿s com. b domi¡¿te completely Bolivian

Crowth of Cent¡¿l Govcmment expenditure is showD in T¿blc ? forprojected and actual outl¿v in ¿hsolute anrounts orcurrent r¡d dcflatedcurrency. In constant terms. the highest ¡.tu¿l cxPcnditure Prior to thcRelolution.¡mc in the e¿rlv 19.10's. tseginning in 191. actu¡l outl¿),did not kccp up with inflatioD and fell to 56.1 million deflated L.,livianosin 1955. 'lhe t95l mark was not passed u¡til 1957. BctlvccD 1955 and1S62 the govemmer¡t fieqre¡tly lost ground rel¡ti!'e to infi¿tion, but¿lier 1963 it began b recover its nnpetus.

Fro'n l93l b 1952 :lctual oDtlav nrcre¿sed, in constaDt te¡ns. 129

pcr cent. Durtug the yc¿rs of the NÍNR it went uP atlot¡t 65 pcr cent;bchvcen 1964 ¿nd i966, krtal spendnig advanced about 2'1 pcr centAlthough these incre¿ses may seem impressivc, they must be neasured¡g¿i.st popul¿tion growth.

25

1rRr.d 7

l}oic.teLl ¿Dd ,\ctu¡l Eape¡,Llituu n¡Cu.rent ¡od Dell¡tcd Curfur.v. l!l3I 1966

ltn Mittid$ ol Bolixianos)

of t93th of 1931b

t93l1932t933I93.1193519361937I93¡lI93919.10l9il Il9:1219.1319,1.1

19.1519lt)1917I9,1¡lI9.19I950l95tt95t1953195.11955t956t9;7I95¡JI959

t 90l19621963196{r9651966

32.I11.0

to2 7133 2173.31l!.3l9:1.32fi2,ll2E5.0605.170L¡l

I,l:16.31,r 37.2I,1.18.71,10E 81,565 21,663.71,709.1,,111.81,lul 81,336.?5,311.0

r3_776.527.815.571,0191

280,7,10.2297,729.1358,8ó0 7.113,714.9.11¡1,¡133.1,156,¡12,1.0

5r0.000.0ó51,000 0750,000.09I3.900.0

32.1'3.1.9"61.6'66.6'68.E

35..153.856.7.15.5

i5.76l)..16i.973.167.3ii2.E51.24i6.56!1.061.270.1916'i6.616.553.E60.155.3

10r.5i01.1IOJ.2l0E 510r.8105.91t9.0Iri.2r5.1.5176.1

12.333.591.6

t¡J:2.,1I32.120i1.533¡1.¡lrt99.95ti 1.il1J99.3

1.I62 31,200.3l,ti0.1

r.r EiJ i1,306.71,667.31,813.02,363 03,713.,1.r,l E9.?8,.121.9

11,7t0.625,8iI3.977.058.9

265.?¡J7.0326,I50.5r157,192 I351,f1E9.51I.1,.1J5.8151,i71.150ó,0ó.1.1575,1ri2.¡l763,900.0

'7E1,200.0

32.J'26.6'59.5'67 6

,11. t-

73.363.f)70.6

i6.5

;5.;6.1.261.969.081..17.1.073.8ó,- I5tJ.l60.0

I1.1..1101.i9l.l

I0I.7105.1117 Il2l.9lái..)

'150.5

6. r.oi(hd ¡,¿

vi!! rú$r Jrion '.m

ird.\ iJ¡J¡r,!r tri? ú lrnr i 'hd\

28

l'jER CaB ra -A^- {11§I\ oFExru¡»¡r,n¡ ¡¡o E«¡ro\¡c CRo\rrH

'l'hcre ¿r¡ serúus proirlc¡ú in ¿ncmpting to set lótth p¿¡ capi(aexpe¡diture in Boli!i¿ h.c¿r¡s. thc last national popul¿tn» colsuses§e/. Lilc., ir¡ 19u) ¡¡rl 19 , ¡Dd the v¡lidjry of these (cnst¡ses h¡sbeen qilestnnred.rd Since there ¿re as m¿nv estim.rtes of Bolivir¡ pop¡flntioí ¡s thcre ¿rc cstim¡to$,5)rve have prcsentcd ¿ r^nge ol alte¡ia-tives in f¿ble 8. Hopctully thrs problern witl l¡e re«,lvccl if Boliv¡aundcrttkcs a pn,porcd lx,pul¿tiDn ccnsus.

ODe ol the sre¿t üilurcs of the Rc\(,tutn,n \'.¡i ¡rot kr (ake ¿ popol¡-tn,r colsus betveen lS52 .lnd 1961. Although the \'lNR did publlshthe ..sdlts .,1the 19.l)(¿nsus rr 19s5. ! n.\! c.Dsus !'¡s Dot tnle dueto lhc monrt¿rv Gisis and the pr.rdisposition of the Nlh*lt ¿nd USAID¡g¡n,st sI.ndü,g oD coüDting l«rplc. Iroricallv, ifItrge nurnbe* ol B.ni\1.u,s mi{r¡te.l o,,t of the eou¡tN tútcr 1952, o.if th c I 95O .ensus \r,rs b. si.¿ll\ * roD}{. ¿s ñ¡n) obseñ ers belit r e. thenplan¡ing ol state ¡ctx,r xnd UsAID hec.nnrs ¡nythic¿l. ltecc¡tl\ USAIDollicials h¿rc cornc to thc co¡clusnin th¿t a census should l¡e taken.l)(t ¡ (le.is¡,¡ i» l9ti5 I966 l.).')nt¡il)ul. 3 ¡nillioD dr)ll¡rs to sucl) anclT(nt §,as iormuhted ontv ¡1t.r orcr.oning gr.at resist¿n.e. Therel¡lls Leen speo,hti(tri th¡t oppDsitioD to r censur b¡'' some UNII ¡¡dUSAID offi.iáls s'rs ge,¡crated L¡v th,, realization t}[t f the populationof Bolivir were lound to 1,. appr..iably lorver than the generall¡,¡.ccp te d .stnn¿1.r, tlren ttre higb l('!11oItrSAID. alrc.r.¡! uD.l€r ¿ttrck,coul.l ¡ot be justiffed. lpp¿re¡,tlv USAID r'¡s prompted k, suppo( a¡¡t¡r ¿ e¡¡sus i¡¡ 1969 o¡ I9i0 brcause ,n puhlic knr)u led(. lhat d Boli!i¡nsample ce¡sus.ondúctecl iD 1963 wrth U. N. assirtance had becn supprcssed hv the &rivi!» Govemm.nt whe¡¡ popnl¡tn»¡ was found tobe o¡ly 3.1 millnrn p¡rso¡s..'1 consider¡hlv less th¿n ¡nv Atün¿tes.Some n,nors conte¡d.,] tl¡¡i the c.n$s rv¡s srppressed becruse itrvould ti¿r e shosrr ¡nor€ pa,pi(. votr¡rg thnn li!'ing in sonie dist.i.ts. á¡elv census. if co¡¡ducted, couid rcsnvc these speculations and citl¡er¡rspirc co¡fide¡r.. iD p¡st ¡nd pres.Dt plars or ofl¡r.r »srble h¡seli¡refor more rc¡listic pla¡ni!i¡{.

Gj\.n thr popuL¡tiorr cstirnates ni Tabk'tj. \'e..n exa»ir¡e percapit¿¿ctu¡l exp.r¡.liture in -lable 9. Estnnate B. which is oI most \1Luebecar¡se of its hisk)ric¡l cont¡ruitv, shows th¿t úDtil 19e,6 th. recordedtrigh for d¡fl¡t(iLt per ¿¡pit¿.utLL_! sas ll2 l,olivi¿.()s. Erpcndrt,rrc¿1rcady ha¿ i.ll.n grcatlv bv the tim(i ol thc ltevolutio, i¡ I95: and didnot recover until the 1960s. Il lhe bnsis for rhis eslim¿te is sr)rDd. the¡the Revolutn)n d,cl not cxpa¡d its t¡x baser and evcn with substantialLr. S belp, ;¡flatn» ¿nd incre¿se in pop¡rlation posed probtems §ithwhich Bolivia *,¡s not ¿blc to deal effecti!¿ly.

21

tr{ti,nr(,:.n ll\i(l.rf rri,S.l,rl,rl \',.., r\ l9i5 Jl,ril)

E\t1hú¡tt Ll Fnintt. O E\ti"\ttt l)

r9l;I9l0t9il5t9tll!J$

t9;:r9;btgan)

1.0:l:lai!.1'LErl0

2o2.!

).o:.sl.¡) ¡1.1rl.13710r.l

rtl3.rl3.5j.t.i.B

I i,"3.:3.53.¡J.1.!

I1 Bolnr¡ h¿s bcer unabkr ro trrak., sig¡rfic¿nt g¡iDs in per.¡pi(a.\pendih,rc, other scrious pd,lcrns hare 1)( cn e¡¡cou¡itlr.d in temrsol p.r c{trLL qro!'(t¡ llr Cross Donrerti. Prod,¡.t. despi(. qrms in ¡bn)-l¡tl. t, nDs sll,\r. ¡, TiLle r. F,q,,res in libl(. l0revc¡111,¡t,depeD(t,¡,9on th. popul¡tnm estrm¿t.i one usi:s, br l9tu eithcr (;Dl'per c¿pitain const¡nt temrs h¡cl not reco!1r.d to the pr.r Rc\ol,rtnm¿¡\' lclclo{ 1952 .r. elsc had Lrriy surprssed it. ts\ .¡ll est¡n¿ies, 196.1 oulp(¡tlvrs Lel(tr\ rh.rt of 1951.

PBoBLEVs ()F CL\rBAr. C;ovrN\rE\¡aND USAID Poucy r¡ Bouu{r D€rEr.oprrr:rr

Though Bolivi¿ h¡s sDughl c(oDor,rc co¡1tu1 ,)v.ir ¡¿tio¡ral intcgr¡l¡oDthrough revolution, §e ha!e sceD that hea\') soci¿l expeDdihrre bv tLe

1S

tsoli\iaD got.mmdrt a¡.I USÎD h¡s not k.pt p¡cc with popul¡túngro\lth a¡d i¡flation in order k) resolve problems of so(io'economicder clL,pment \!hj.h h¿r(. ¡ long h"torical trt¡jcck,ry. E\paDsio» (lf.er(ral go!enrnrcnt lunct()Írs ¿nd \penLhi( hns virtua)l-v c¡¡mrn¡k.ddepr.hr¡enlal ¡Dd rnuni.\r¿t soven¡rncDts as meanirgfnl ard usefirlpolilicrl units, ¿ fact which seems to destrov the very bris of nruchof US.LlD :i¡tir»¡. espe.i¿llv in the ¡rca of ro,¡munitv (l(:velopmet¡l

And ,¡ntil re.r'ntll alo\lltsOl, i'rs bee xr e.onorni. Ii.Jrilit\. r¡thcrthan ¡n ¿id to de\.lopme(t.

TABLE 9

Lstn,,¿t6,n P,, C¡l)x.¡ ^.tu¿l

Li\|dditure,s.1( r.d Y.¡r\ 19.11-1960

ll Boli.inno! of 1931)

Ennnttt( Il E\tinat? C frsfiñúc 1)

1.1..'

20.i:l.l (r

:3 1r

l;.rr

.]0 ;

TaB' r l0EsúnrtLs ol Cro\s I).nre\tic Product

P,r Cxpil r. S.kted I'.rrs, 1950 1966

(It Dollh d 19s6)

I911

t9lt)19521U56lo(io

I rlti6

36.72).215.626 :1

:10.0,t:

i¡.í.1J.9lE2:ti.till.9Jal.6

23.023.1l7.l2.1.52ll 0J.1.!

t9;0195¿

19611966

13r.SI3E,5tt83l t t..1

I25 L

101.199..1

l]l) oI Lll rl

L tl.6t25.1r0;5.105 r)19.5t30.7

Í156121.2101.1

105 lrL:.s

sour! i c,'rcnl (d ffoir'r ¡n§,l rrd 3.

10

tsolivix s problems h¿'e bcen acccntuatcd bv th.r i¿ct th¡i rhe .oun_rr\'. dp\rl,,t!',rnt t,.¡. ,1n,ri,,,,"lJ rn t,. d.t,;r,,t.,,, ,rtnrr, ..r, , \tr,.1.'4,'úm\ lh, r^fo," s^ in,r.r t,at J(¡rn p,u¡u..r,ñ,, ,n.t ,.,,,.^ t,,.i,,,,.h, ".¡,, ,.nJ, r.r ,,,,1 Bot:r i ,i h:.r,,^ ,in.. it,,. Hc,,lrrr,,,.. in_.t,i'c ,,f rl," ,1", r¡.,', ,q rmfolr ,n, " nt ,t,. ,,.i,,i.,{ ,,¡,rril, .ir,,r, r,,

,h,. (.,,^\ Dur,.\r,,. pr,,tl,r, r .,. .\¡,¡, rr.lir L ,n,,,,,,e 1," ,,,n1,,,,.,1lñ 1,. r¡Il('ri1r,r rn ,¡ñr'. úl nr,nlx rru,, ,ñr .1t",ri t,, I,Jrix,rt,tr.,'ur'rin,r"\,\rh, IrHj,,r 1...t.r rn\.,1'.,.,J.\p^rr\ 8.,$-.n te2JJr,,||qt,,,i I' pr,,Jrl.1io , :¡1uL¡ r, Ll .;,r l,.t$," n Ao

" r,l \o l, L11,r ,rt rur..l p\l,u11\,¡lue (scc Appendil J). As Tlble I rcveats, di,rn,g thc c¡rh. l9;0slhis sh¿rc fell §ell u¡.]er 60 p.r cent kr ¿ lo\r 55.t in 1956j the;áfk,r itgr d',Jll\ r.,ir,.d rn irnF,r ',x ". ,, ¿.hi.,g rlr ;,r I, r,,-,t l, \ct ,n teb2.lgtil. rDLl 196;

In tn'* of the ünport¿nce of lin to the tsotjrian econonrv, rh. re¡ltrn.nf ll,bm-r'l \.Fl,e"r'.r.,r.,l r,, J, r,loprn,l.r ,.o.^.,¡u,r,rrr rl,coll¡pse of rcal tnr prices durnrg rhe c¿rlr' t950t caused scrious prob-

Tü, s SL¡r. nr Dollrr \'¡l!col Tor.¡l [r|olts, 1!]50 1966

'IiaB

r 9501951I952r9;3r9;1L9;5195iir 957

t9{n)l96tr 9621963I96.1r9ri5t 96ai

4i3.,:l9U.,1rJ18;2.35.1.9¡7.359.:57436.352.8iI2.950.65.1.O573

93.3

9,1.:150.6

lt2.;99.5

102..1107..19i.i

7;.{1{i7.Eiti.216.1E6.1

I13.8I3I,II150.1

6i.:l6:.0

u.l.2

ó0.055. L

56 I

ii3.3

71 0

t l.I70.66:0

c.tro!, ,,i,nl ¡nk¡r.lo s5 lrgr¡)60 63,10¡ l9;0 )01j0: 86 it962les.1,. rsnt;9: trgea) r¡; ."1

TMc 12Real l ú Price l.der, I930-1166

(1951 = lOO)

B(, s at,orr

¡lB

1930t93r

1933193{1935l9:16193í193819i1919,10t9,tt19.12I9431911I9.15I9{6I9!17l9illiI9.19I950L95i19521953r 95.119551956r957195819591960t96l1962t 963

19651966

2it9l:301l39:16

1:it33939lllt4t{¡lt.¡i(it77t-i75

100

75?:7.t

7480

9l123t3;L:17

56,t3il;391516

511746

5¡6l;lE]817i9il979187

100

9899

IoilI05I05t051oai10810?I07108I t2I l.l

151.!.16

779t

7t-8270lJ580ti6il5¡J

5t5l566679u5¡J6

r009í76i3

7i71;076758l8385

ll4t22112

.l th¿ t'¡¿.t \.aÍ.! lra¡n onnlo, frs6sli, sen6 u!2¡, p¡ce5 s0.B and s66¡; 1963 196., u S .

E.on" i. R¿nan ú tht P,tn¿.nt,1963.3t3,

3t

li,ns for th. R.voluti.,¡. As President P¡z Estenssoro ¡okr.l in lrisItl.'ss¿ge to (loDgress i¡ t956: liach cent drop iD price rcprescntedfrom 600,000 to 700,000 dollars drop in the annual tu.ome ofBoli!ia."r3The real ti¡ price indcx is.¡lcul¿tcd in T¡blc l2 ¡nd showD i,r (iaph J.Ti¡ pricc iD Ncw York is hcrc dc€¿tcd with thc U. S. pricc iDdcx lorexports so th¡t w. m¡\'s.c th. r.tll purch¿sing polv.r of th. tiD pri.clevel in coDstant tcmrs h¡scdupon l95l.5a

The widelv ftuctu¿tin¡j re¿l tin pri.e i¡dex is ven rereali¡g. lb soneextent, the lcngth of thc (lh¿co \\'¿r s.¿s fin¿ncr:d br ¿ grc¿t ri§c inrerl tin prices during 1933. Il.q¡ining i,r I935 th. ¡rd.x fludúat.d ni ¡ni.r.gul¿r pattern until l9il9 ¡lier which it qent n¡to ste¡d\'(1ech,cu¡til 19:15. \\:hen, in the f¿ce ot incre¡siD¡l pri..s for the puch¡se ofU.S. .xports, tsoli\i¿ ¡c(cptcd t|c fi.S. ficeze o¡, tin pri(es dur¡rg\\'orld \\'ar Il. thc South n¡nürctrn couDtr\ ccnainlv did its sh¿re incont buting k) th. war cfl;rt. Bl, 19-11 1915 the riial pri( ind.x h¿dl¡l]e¡ t.,51, a post-1932lo\y. ltecovury to tli. prc w¡r level lr¿s completebr 1918i clLrrnig the Kore¿. W¡., Boli\ ia hoped (o n¡¿ke up some of itsrcal losses {rom \\'orld $ ¡r ll. Though tlie ltevolution of 1952 Lurfor'tun¡telr coiDc ed sith ¿ sern)us decliDc i¡ thc r.¿l tin price hdcx,USAID p«rvidcd funds k) tid. thc NINR ovcr thc difficrlt 1950's u.til¿n uptunr began in t96t. Uith th.low r.al tin pri«is ofthc post 1952

er¡, it is ¡o wonder the US,\ID h¿d to srpplv finrds si¡rplv k) kccp thcU\R from lalling lrom poÍeL. l'oliticál .oDsiderátions obliousllweigh.d núr. hc¿lih on polic\ th¿n econo¡ric pl¿r¡nn,g,1¡r the U. S.

was concemed yith keeping non Communist \lanists in polver inorder to pr.lcnt th. risc of ¿ Conúnu¡ist go\cúnDe¡,t. Due to ¡¡nnpro\efnurt of tl,c inter,¿tion¿l tn, price sitlr¿tion in relattun to U. S.

cxpod prices, tiSAlD h¡s shifted to econonric diivclopm.nt snicc th..arlv 1960i.

The relatio sliip lr1 tlie volunre of tnr production to rcal .amnigs iscalcul¡lcd in Ttble ll], usirg pe¿k e¡rrnrgs nr l95l as Lase rear. Exceptdlrrin¡{ the Cha.o War and th. Korcan War, the ñ.ler of vollme gen-d¿llv grc¿llv ercceded t}¡e nr.lex of re¿l e¡mnrgs behv.en t930 and196.1. Ilese exceptiorls, sho\\11 in alraph 1. m.¡nt thal onlv in t\roperiods prior to lL)6.1 has Bolivi¡ r.cci\cd LigL re¡l e¿ñ¡nrgs lbr pro-duction. During $:orld W¿r II the U. S. ¡grecd b l)u). all of thc tinth¡t could be produc.id in rchrrn for ¡ guar¡rteed price, but since thcU.S. would have treen obligt:d to bu) the tnr jn arrv case, politic¿lconsi.ler¿tiols r¿ther than economi. b¿ril¿ining seün to b¿ve pre-domüdted. This ¿ccouDls for thc .\ception to the firct that genoall].the iDd.x of r.¿l prn,e 1'or tn' h¿s exceed.'d thc iDdcx for r.,al cá.ringsof exports. Craph 1 trlso shows tl¡¿t the index for vohnne ol .xports h¿s

e\.e(.d.d th. (r¡l pnü' L\el,.x..pt ñr thc period fiun 193.i to igjg¡rd for tlie \r¿rs snr(.c 1958. Slatistic¿l e\i.I.¡ce indic¡tes th¿t prnr.ler.l probleins h¡re l¡cer closelv ¡el¡t..I to lolunie of producln»;.\¿.pti(,,s DrJ\ 1{ cxplrn,cd hv thc nnp¡.t ol lhe Cha.o \\'rr ¿nd h\rh",'.,h,li .. ,,,. f, ,É .ú,, ,rrJ.r. rf rn,¡t1,.1'

trrfbrl,nr¡tely for th. IIN R. .¡tiorrli^tnD ol thti miles ¡,id rew¿.dtu lh. úiriers ior thciL sppr»t conrcntcd \\'ith f¡lliDq tnr prklis ¿fterlL. ñ,)re¿. \!.¡r l,oss óJ li)reign tr'(1,niciá¡! ¡¡,d worl.r.ontrol" of¡r.dr¡g.nurt ¡t r t¡¡, *'i¡¡, ¿ ¡rI¡L¡c¡ ot ¡ri..\ ii(e.i tr.i1.ciiue i orcco,rlcni (fien !,r.rnt tlr¿Lt th. cosi ot l)rxl,lcln,r cxcee.lcd dr¡rket \!lue.'ll¡üs, thouqL thc \lluDre of lin p¡,du(tn,r h¡s n¡creas.d so¡relvh¡tsir)re ¡ l)v ir) 1958, pmdr¡.tio¡, ha\ »(¡t kepl p

'( . with r..,1 price l.rv.l

i11.¡rúc of \l,ii.(s ¡DJ ur,isl b! nr¡(.ñ kakifiq (o pnn((t (hcn t(o'r.»,,(. ¡I¡ins nrt(l politi.¿l Io$.r.(livc. .ritic¡l poliri(.¡l I¡rot¡lons in the ¡¡uts ¡Dd ¡ gr.,al flucturtio.or the r.¡l pri(i lir tn,, oD..¿n D,,d, rst¡Dd §1,\ P¿z lishJissoro \\¡sol .t.,)ufu(c.l lo inlrit nru(li in tiD prod(.ln,n, eve,, il.xp,,rt ii.(ds

§¿ranted ii¡rlhcr tni de!elopm.rnt. 1'.¡/i hop. \ras to di\1,Gifi produc-tn,¡ $ tli¿l tsoln i¡ lrould not l)c dependent upo¡, ¿ sinqte expori fi)recorxrtri. si¡l)ilitvi ¿.d this lvol¡ld rl$ me¡, tl, r Do si¡ri{k. (.onom¡ci¡te'in gr(trrtr <urld,,¡sct polni(nl rtaLilitl. l'rz s¿5.n.(rui¡ge.l I)rth. ¡riinci¡ll\ high tru,S\(¡ price5 «,..ivcd u¡Ld.r ten,,s .,f ¿ spc.i¡l.o¡tr¿ct s ith the U. S. ilo\.ninre¡,I hdw.qr 1951 ¡ncl 1957.56 llso. hehoped thal jn\ cstme¡t jJ, p¡lrolulu¡ r¡rjght change economic pro.luclioD

tr thc l(,ng run, P¡,s cmphrsis on oil productio¡ nr.it provid. ¡p¿rti¿l soluii(»r to Rolivia's dependcnc.r o. tür. As ¡¡¿_v- be s.!n i¡.{pf.Ddix l,,'rinnril h¡¿ decrc¿s¡d lrorr or.r Is per Lr¡l ol Cro\sDi,i¡eslic Pn uc! to rl)or¡t I po Lert br 1966. I'jc1rol.,,ñ t,¡)I Dpt))issl¡ck b,l in.rt{snrg lronr unde¡ I p.r.drt nr o\cr 5 per.ent. Ali(irrrivisnn¡ of rhc oil .ode i¡ 1956, priv¿te pcrrol.um co¡structn)n helpedtlre co¡,stñ,.,ti.» sector ol CDP to rise hiñ u¡,d.r I per cent lo o'cr;p.r ..¡t l)I lgfiÉii ¡¡rosl ,r'this g¡i,' i,, .oDstruLtrol s ¡s dr). n) exprrsi,,nol thc pri\'¡t. oil industr\.s7 While l,rz $¿s d.sirous of srnnulxtit¡(pri!¿t.r oil irvestmcnt, Loth thc ll S. govcrnnkrt and tr.S. oil .orlfpanres $erc ¡lso ler\ rrrler.sted n¡ the projcct. A sh,rt iime aliprlc¡\jng the Dep¿rlnrcnt r)f St¿te. II¡DI Ho)lard rppcared n Boliviaas ¡ l¡§),c.lor oil ir¡ter('§ts seekirg .onc.ssi(»rs Lrncler th¡ nov aolrrr¡¡oil oode, thc ¡doptior d *hich he h¿d officialll e¡cour¿gcd shilescrl ing ¿s Assir¿nt Secret¡ñ ofSt¡t. for l,¡tn, A¡ncri.¡.i3

'Ihouqh ¡, rer i \.rr¡,t corle \r¡s pa\\.d iD 1960 ro.ncoDr¡{elirrther li)rei(r ir)lesnn.nt,i3 and though US,{ID tun)cd 1«)m soci,¡l

3li

TaBG lillr exes ol Yolufu,,nd ltcrl

Eaúrnrgs o1 Tn, Expons, 1930-I966

t1951 : 10A)

B (i I)¿¿,t¡ngs n¡ Ltr1.r,uil1r,,r of R¿,t

0f Dallur' ¿¡dx g§.

1930l9il I

1932I933193{t9j519361937I9ll8193919{0t91lr9.12191¡19.1,1

r 9.15I9.1619.{i1918

t9;01951r 952r 953I9ó.1I9ó5l9¡6l95i195¡r1959

I U6l1962

19611965

¡rJ.83l .ai

209l;013.!15 il21.125.525927636.5t2.7

38.9.11.0

39.:l13.23¡J.23i1.8:l;.9

3193i1.7j25:15.121.92¡J.12;)

tE.021.¡l9.i!072L623 I

2.1,14.1.:2ii.2

I15

62tó6975;2ia71lJ!

I I,1127ll¡1:21\ ¡'

r26I13100ti2l0il9;

I00

105E3

8.1

5:l125lJ(il65

i2i2

20.113.010 0r19:lE ti31.0t i.i22.0li.ll22.13;.;lt ¡i.lil I550531(j()359.03.]..7E0.2

63.693..1

72.151.957.3592;i.1

;:912950.351.0

9:1.09r1.3

¡rl30.1r

69i210+i1052i887i:l

;0

i36liJf)

10092

606l6256

;.1l:l;0;.1ii{Jl

.!úd f!o, rrh¡ (rrn! L:r i

i].1

Gueu.1Indexes of Tin Export, 1q3o 1966

,\,

'f'l'

ril t,II

90

ao

70

60

50

30

-

R.ot Ed.niñ!.

- ñ.ol P.ic. L.v.l fl95l: IOO)

35

/t, I

\l ,,i[,' I

!/l/li/ \ Il \^/

to ecoDonric activit\ ahoul 1963, thcsc ch¿¡{r.s nr poli.} seelnc.l k)¡c..ntuate ¡ccunul¡ted politn¿l prcbhns r¿th.r thlLll to resolve thcnr.l'¡,'s ll ¡,,.1 tl,c coll¿Ps. of th. \NR nr l¡te 196.1 r'cr. c¡úght up inth. cn.our¿gement o1 pri\¡tc urterpris., lo whi.li the Itelolution incr.:¡sniqly turled in orilcr to ¿.hieve eco¡,onrl. gro\rtli. SiI¡ce (].¡tralGo\er¡mcnt cxpeuditure 1,¡d bccn lrr¡ze¡ tu soci¿l outlaY, I'].rz l'¿slinritcd ir tLe numhcr ol wals }e ¡night stirnulate ecoxoinic dcvitop'¡nt, l)ut by encour¿giDg li)rcign ntvestm.Dt l'¡z lost ¡lor. support1ro¡n lin lri si¡q U1''lt ili¡n he g¿i¡.d flonr tlie righl

§ith nrcentn'es to pdv¿te busnress. t'u rlso ¡ttcrrpt«l to stimul¡t.the return ol Boliri¡n .,rpital rvhich litd fled tfter l9;2.60 (lovenú¡drts§n,ic| l,r1rc ccc«l.(lP¿r ¡n.l th. \lNR h¡vc.mph¡sized even li¡.th.rthe role of pri!¡te l)usiness n, ¡¡tjon¡l .le\e]i¡p¡D.nr. S¡ r n'li¿n.e onth. prn¿iti r'.tor h¿s re(llr¡ed \\inrir¡g the (onfi.1.¡c. of inr.slors¡¡rc1. ¿s P¡z k¡or. ¡n\ s,rgqcstn)n of ¡.N t¡xes.¡n .lestro\ ¡¡ alnnxphcrc ol «,rfi.lcn(. In fLL.t. tN concessidrs rre p¡rl !n.l p¡r.cl ol thcund crcter t:Jo ped sr»lds hopr to ¡ttr¡cl capit¿l ¿nd oltm this polic\js ¿ppro!cd l)\ nrterr¡tiür¿l ¡ge¡cies.6'

'lirere nright lre ro no\ cconontic ptn,l.n in derelopment il ¡lloc¿tnr¡ ol t_Srul) fu¡ds to llolni¡ vere to continu. al th. sdnt r¡ti as iD

tlre p¿st: host\ er. ll,. lo¡,¡ t.ün b¿l¡nÍ of parnie¡ts c¡ isis h¡s caugl,tuf § itli tlie U. S. (or er¡D¡ent. Also. \ ith lh. I¡ll of thii \l\R ¿¡d ihecnlnarchnr.¡i ol r stroDgh ¡nti\l¡¡aist regnue ckxclr ¿llicd with ih.nrilit¿ry, tliere is no lor¡ger ¡n ¿rgu¡r.¡rl th¡l ih. Conrmr!rists nr¡v t¡keo\er ¡t ¡rv nn»nert. Sirice the Boliri¿n go\crnnrcnt h¿s losi its l)Lu-

g¿n¡nrÍ{ poser lor t;. S. !i.1. r,¿¡,} ohs.,rvcrs \r.r. in.lincd k) l)elieveth¿i th. rppii¡r¡n.. otqucrrill¿s durnrg 1966 $t.s n, f¡cl si,nph trf¿bri(¿tnr, hv lllc (l{Ilr¡l (ld.,lnncnt k) ol)t¡in iD.r'¡sed ¿i(l. lhis vi.§has norv bccn proved rrrong rs a result o1 the c¿pruri ¿nd.r.oLiii»r ol'''(ll,,, G,d¿r¡ i¡ O.lob.rr. 196;.d'1InrtrvitliCue\¡ras del¡¿t. tLe U.S.Corrgress ma\, feel that lisAlD h¡s lcss juslific¡rion iháD.ver iD ¡ski¡gl¡r funds to hclp uolivi¿.

Ofter nre¡rl;ers of (lon(ri'ss h¿\c bcen crilic¿l o{ tht¡ Boli\i¿n aidproqarn. and for vcaLs ih.\'wer.r ¡ssured br LSAID tl¡t fi¡rds coulrll¡e rcrlL¡ced ¡fiertlie e¡¡erqe¡() st¡bili7¡1n,i.63 \tr'hil. ¡id has.ontinuedsn,, e e,r»xnnn rü1)ilir¡lio¡, hr ¿l¡o,,1 1960 ii is o])vior¡s thxt th. lL S.

.¡n nol k..p up thc p¿st lev.,l of .ommitmcDi forcvcr. I¡ --ov.nbcr,1966 S,r,ator ,{ll(t Elldrd.r of t¡uisi¿n¿ visiü,d Bolni¿ kr ex¿miDeU.S. ll,¡btssr ¿¡.1 t-'SAID opc.arions: $hil. there he pro\ok.'d a p¡nicnr go\crnmcnl .ir.lcs b\' st¿tiDs th¡t th( U S. \ioL]ld h¡\c kr limil its.«,rmic ¿ssist¿¡.. to ¿ll natn,rs. nr.ludiDg llolivi¡, Lec¡use ol liiscolurtn s l¡rge foreigr .lebt ¿¡d b¿la¡rce of pa\ ent crisis. l',Lrth.r.Ellqrdcr noted thdt re(ll¡ctiDrr §rrld 1,. Llden¡nx{ l^ t}x .xt.nt oithe U. S. ell¡rt i¡, \ ietnúr.6{

Oftici¿l Bolivia rea.ted very deforsiYelv k) the scnator's state¡rcnt'

In a 1ro¡t page response, President B¿rrientos d..lared:

\\t lL.?tun'{,1úrr{incrhJr t, ' 'rr

l¡-l''r,..rlr'" lor'ijt"r'l' 'lrr.,,o.h ul L- l':rea\..,,ñ 1..\ r,:.$,.J sl,i.".'.'u.t,., '-d 'F r',

rl',^§ t,nP'xrrl,- \'.".i,.." r,,,n.,,r .md i¡. "Tl..tr n Cun,,,,,,,'n l"r, r,d it \ñ,r '1"not lrc\r, Boln,¡ lvill go urdcr."65

(i:ni:r¡] Alfrcdo Or'¡ndo (l¡ndia. (i¡mmander in Cliiel ot Bolivia's\n,e.l ¡-or«s. stated on \ovenrtr:L 27, Ilkxsed be thc hour in rvhichAnuic¿¡ crcdits dnninish.t6 Dick Oblit¡s \it.ude President of tlieFal¡ngc palt\, com¡rentcd:

'll,e \lNR. \'itl, its uiion¡l liber¡li,m tl,esis, h¡nded th.r.ountN ord to

-\_orth ln,eri.¿n ¡nl. Ior vr¿rs Bolivi¡ h¿s co'ered its needs Nith ¡nl ¡nd., h-\, l,.r,l¡,1 y..,r,.ur.{. r' ! .,/ g, .,r¡,.n l" rlr:,,,,', r, rJ tu., J-l.¡n,h' 1,,,r,1.. t .^,,,¡n 'h,.1 "¡'

i,,.,d "r,h ',. ',u,, $1,.r ' .,

,.,,,,,, t ^ 'ih" h,1"e' r,or mcrit '',n,..¡ 6r

As sc have seen in ,\PPerdit ]1. ¡ot onl) li¡s U.S. ¡itt l¡eoi dc-

cr.asirg, bui outright gr¿¡ts h¡vc b..n redtlced id fá!or of lo¿tis whnrh

Bdjli¡ c¿D ill ¿lli¡rd. 'l¿bl¡; shows th¿t Ludget¿ry strPpo s hareLee¡ much ¡educccl. While Bolivian le¿.lers ma) obt¿in Pcrsonal satis-

ll¡ction or politic¡t g¿nr hom Puhlic st¡telncDts ad!oc¿tinq ¿n en'l loU S. ai.], ¡ny reduction iD the ¡ssista¡ce Pmgr¿In will requirc ¡ reorien

t¡tion ofBoli!ia s public spendnrg.Sinc. Bolivi¡ cxp.nditurc his beelr frozcn tu soci¿l outla,vs §ince

1915. the (lentral Cove¡r¡rcnt vill encoLrnter colrsidcrable difTicrtltviD trliünptil¡¡i to ch¿ng. this Pattcrn or to reducc ¿dmil¡isÚ¿livii cxPeird

rtu.e. ,\; US,UD reduccs operátio¡,s, ¡s Proje.ted, rh. Bolivi¿¡ b¡rdgct

faces a v¡rcezc rvhich r.t onc. den¡nds maint.I¡xce of th. tr¡ditiontrlp¡ttenr i; outl¡v ¡s rlcll ¡s a shili oflunds i¡to economic developmcnt.

l'¡euu¡¿blv, contjnued high tü prices might help Bolivia ove. anY

tr¿rsilion f.om depen.tercc upon U. S. aicl, Lut riD) futur. reduction iD

¿itt sho,lcl b¡ gr¡du¿l r¿th.r th¡n ¿trruPt. If tsolivi¿ is to .hange th{l

tr¿dittun¡l patteni ot ltil izir¡!Í st¡tc revenues for soci¿l ¡n.l ¿.Lninistr¡-iive expenditLlrc. ih.r otllv feasiblc rvay ofavoidi¡q disruPtion ofuxistmgsenices is r¿pidll to increáse ü,conx, so th¿l established soci¡l and

¿dmiDistr¿tive outl¿) ¡n¿t be maint¡il¡ed nr ¿bsohrte tems whil.dinrinishnig iIl rclati(nr to tot¿l cxpenditure. Tli. in.rcas. in rc\eruesrcquircd fbr se lfsufficiencl , ho!r{--ver, x'ou1d require taxes that could$cil discour¿ec ..onomic growth upo¡ \\'hi.h Centr¿l (lov.rDmdrttunds must dcpcnd. ttowcver, il eam¿rlect trxes are pht*:d out oferistcnce bv I910 as pl¿¡n.d bv th. Bolivi¡n gov.rn,¡ent,lirnds mi¡lhtbe releasedto cushio¡ fr shilt to econonic e \ü¿sis in expenditure.6$

31

There is no doubt th¿t USAID has l,een successfitl in helPing Boliviato reestáblish economic growth while encouraging tax reform and

modemization. The Central Covemntent has been working ú ith USAIDto reorg¿nize the t¿x structure and restructure thc Boliviax Customs

Senice. t¡ut betrveen 1958 ¿lnd 1965 inremal rcvenue did not ¡icreasein proportion to customs revenue (see APPendix L).n'g Hop.lnlly.neitber the Lr.S. Congres nor the tsolivian leaders will rush nrto ¿

quick termination of the USAID prrgLam. Such ¿ction coul.l l¿veserious ¡nd h¿rmful consequences.

lN{ruc^no..-s ¡os PLA\NINc

Obviouslv much pt¡nniDg to date bv the USAfD ¿Dd BoliviasCentral Govemme¡t has worked at cros*pu¡poscs. for exarnple, com-

munrtv det.lopm.Dl programs frumott d b)' t s {lD ' nnor h.hcl¡"d,l rh"iolcofl,*"1 dnd d.p¿¡t¡n"ntJl finanués is Jimini.h.d h\ (eorr-liz¿tion offfn¿nces in La P¿2. ImPortnlg ofLr. S. ágricultural cornmodities

is a chcap but inefficient v¡y of Providing §¡trsidies to Bolivi¿n consumersi the result is to handicaP solne types of agdcuitu r¿l devetoPment.

USAID funds might Letter bc used to c'e¿tc ¡ Nlexicá¡-stylc NationalCo.poration oft'opul¿r Subsistence (CONASUI'O) inwhich the govem'ment subsidizes the f¿rmer bv purch¿sing croPs átfavor¿blc quotations¿nd m¡rlets th(m ¿l lo\L co\t l,' r.Éu]llP.on{tmcr nricei.

In regard to Central Clovemme.t expcndihrre, Paz h¿s told thisinvestigato! that he believed he had expended Ceniral Covemme¡tfunds ñ econo¡nic outlay, but th¡t becaúse ofthe conf¡sed Presentatio¡ofprojccted aDd ¿ctu¿l expenditure by the N{inistry of the Tre¿sury, he

did not h¡vc ¿ clear picture of wh¿t was happerttug *'ith fuDds.?o Forthis re¿son Paz instihrted program budgetinq with the aid ofthe U N.Lhfortunately. a full development of program budgeting in the Post-I!ÍNR period has caused problems for historic¿l ¿nalysis; as a restr]t,th. possibilities for comp¿rhg cxpcnditure t¡efore ¡nd ¿fter 1965-1966

áre problem¿lic. Snrce programs have bec¡ carricd out without minist.riat reorganiz¿tio¡, various obseners qere co¡fused in 1965-1966

and fclt that new analysis shot¡ld bc added to ¿rd.ot st¡pplant tradi-tional tbmsi othenvisc the rclative fflaDci¿l role of agcncies h dilEcult

IfBolivi¿ is to bc successful in developing state planning, the govenrment must realize th¿t timc scries data are irDpo(a¡t. Pricc indexesard budgetary series ¡re me¿surcs oI action and s¿vs of ¿sse$inghistori.ál cha¡gc which must

'¡ot be ¡bandoncd bec¿use sornebody

38

IEs ¿ irc!' i.lc¡." Cert¿i¡r1\' th. cost of n¿i¡hinüig est¿b1ish.d series

is not gre¿t,'r anct if agencics in\olved i¡l inteü¡tio¡rrt ddeloprurnoul.l strcss the necd l¡r ¿ltern¿tiIe Preseni¡trr)n of drta rather than

allc¡¡pt k) sell the ltrl.st method. \iIr lrould be f¿r t)dter Pri'P¿rcd to

asscss th. pro.ess ofchange Pcrh¿Ps this l¿ttcr ¿sfict of d.veloPúentis .qurll) nnport¿nt, i1 noi ¡n»e nnpo.t¿nt, th¡r Plu¡ging ¡hc¿d withnov plans b.rscd upon st¿tisti.¿lquicks¡nd. State Pl¿nning is nrcrcdihlyunrc;listic úitliout regul¡r counting of popul¡tnrn and mensLrring oi

econornic ¿ctivit) rvhich provide a ñrm basis for delelopment prcje.!tions. Probl.:ms ir Boli\ i,i s lack of tnnc scries dala rrc compounded b¡¡bsence of coordin¿tb¡ ])etrl..n the uoljvi¿n St¡tistic¿l ,A.gcncy and

the N ¿tioD,il I'lannn¡ g \l in is tn . r'? lhis 1¡ck of coordnr¿in)n. f¡ r ex¡mPlc,

hrs reached hrdic«rrs proportio¡s wheD the l¿ikrr ¡¡lencY.stimates the

counlr\¡s population 16 pcr cent high.r lbr Pl¡nnntg Purposes th¿nthc fomrer, *,hich prov: dci .stnnates oD Datidul de\cl)Pment lbr ¿ctu¿l

experditure offunds.P¿z E't"nssor,, has st¡ted that altltough Bolivi.r prcscntl]' is not a

l¿rge .xpoter cxccpt ni selectc.t are¿s which e¡.lude manulitctures.rh. -",,.t,. oa¡ l¡ecor¡e self sullicient in ¿r [u¡¡ber of ¡rcas in which itnow nrrports.?3 ln ordcr k) develop sclf-sulEcier(\, §'e would note,

thc Cenü¿l Covemment Inust devote morc of its o§n eflort to stinNlt'tn,g ..o¡omic production. As th. situaiion has developed, i:conomicturctio¡rs h¡vc ¡een assigned to cl'ccltralized ¿ge¡cnrs. Paz tri.d 10

o\ er.o¡r. th. auk)nomou s ¡¿t u r. of tlie org¿¡ ti ¿tr ions b) settnr g uP r1,1

¡genq for slaic planxnrg, bui thc co¡cepts ofst¡tc planuig and ¡Lrto

¡o¡¡ous corpor¡tn)ns ¿re cont.¿dick,ry unless clTcctNe budgctawcortrol is .xcr.is.d L-"- the (icntral Covemrnenl - ¿Dd this control' r, ,, . rl'-l llr":rrl''r¡ i''\. r,'r¡'r ulor'^rña"\.

I'enr¿ps ¡ .ompariso,, of Boli\ i¡n Lrn.l l\lelicti¡ c.onomic e\Pcndihrre is heui¡l in und.rst¿ndn¡g th. process of go\cnrmirt actio .

\fexicos su((!ss ili stirnul¡ti¡s irr»xn¡ic ¿cli\itY h¡s l,ee¡ ¡chi.v.<lthrorgh nr\estmc¡t ol lid¡:r¡l ¡ere¡ucs in müiistries whk,h Promote¡nd r.gul¡ie economk qr^'thr though ¡uion(n¡(nrs ¡gencics ¿r' nn-port¡¡t, ihc cxi\artive li¡s pl¡vcd ¡ stt»iq role in chann<tiDg tax funds

i, rñ t,nnh¡,r\'','1,\ irt. t r.,fl' i t",nr. ).'h.,ol. "1,.,,n,,mr, .'P, n,lr,,r , '

rr,,l¡r ,.r,,.ur ^

p , ", rr,,l 'n \1"\ r,'. ,n,l Lt,,l., r.,. B, . .rrch iir,lir,¡.nrdi.¿te th¡t tl,..xcculiv. ¿¡(l le{islrti\. hr¡nches m,st h¡ve.o¡rtr{)lo\.r l¡nds if ¡ ¡,¿tio. is kr (Jrlo\ conl.ol o!.r its destnr). Tnrsi liutdsa¡,d {le«rtr¡lized rgorc(s shoull Le }ept to r miDimuni ¿n¿l if notsL,l)¡{,t io eIl¿cti\c co¡trol árd ¡udit, s¡,ch Innds s}iould bc cxcludedfn,¡ budgcl¿r\ ¿c(ounts. wLcrc¿s \hlico hrs nncgr¿iiid the dec.ntr¿lized s.cior iDk, l)udgeti¡,g, it h¿s.lerrl\ deli ctrt..l the d¡tin.tnrnl)ri\reen go\c.nnrcntal lur(Is o!.r \rhich thc u,rsress ¿¡(l cr(arutne

39

Grrra 5

A.tual Percent of E.onomic Expendnu¡eby Bolivia and Nlexico. 1s3()-1966

Sourc., Tobl. 6 oñd wit¡i.rTñ. M.r¡coñ F.voluiioi, r?E

{1r

90

ii20

I

,\/

o1930 1935 r940 r945 t950 t955

h¡!c áutttoritv and thc fn¡¡ds lvhich ¡re co¡trolled bv decentralized¡Se¡xi.s. Búli\i,¡ h¡s.oDluscd tlris deliDcaln)n, ¡s Nill the lnjt.dStiti.s beginnu,g in the fiscal l.ar 19611wh.n it.o v.rrts to corrsoliilatedac.ounling. There is ¡o doubt th¿t it is import¡i¡l to know (h. totalirrrpact of the fuLlic scclot upon ¡,¿tnrral lil¡ i¡i 11,ese l¿tter c.tscs, but§r ¡DUst also IDow thrl se(lor of¡¡tioD.¡l life sl¡jrh is m¡Dipul¿t¿bl(irnd th¿t s.(t.r qhicl ir «rk,d t'r r¡)nnr¿Dilarllt f,lc ¿gerries ¿Dd

In \lexico the Presjddlt h¡s all poucr over fÉdcral Ít'vcnues, butnr Boliri¿ t|e (longrcss liis,nanage.l n, linrit.\rc¡rtive ¡utl(,rit) b)r.tn.¡rking rr¡n\ t¡rer lor sp(r'in. t»rrposes. flxx¡gh this ,)igl¡t sL'c¡»

trr bc r good ray of red,rcuig the p<,litics of thr: L:uclgct, txcessirt:cr¡¡tion of tr,st fu¡ds proliil,its l¡iitlrde n, state ¡ction. If ihere is nol¡rge pool of i¡x fu ls wLilh orv 1>. upenrled ¡s the govc.n¡D.Dt seesht, thrre ¡ri n-rn{s lirrns ()n qover¡,¡.nt Fów,,r t() nieei .hingingci(.,nnstances. Allo.atntrr ol rinor L,c!l t¿x.s 10r 5p(.(.ific depa(¡n.DtalPlrr?oses is erfe¡sive ¡¡d cumbeno¡rc to ¿dDri ist.r, ¡nd ,l is kr behoped th¡t the ehDilatiur of crrmarked t¿¡es sill be cornpliited b)1!)it) ¡s pl¿Dned.

(lo^.'cLUs«)-"

T]¡e r.volrtroD in C.ntr.¡l Cor.irnnre¡t fiúancer c¿rrnid oul bv I¿zE,r, ¡,,,o,,,¡, Ivl5 h. . e,\, ¡r,, d.,,,, I¡,lr r,,, !)- 1,,a,",t,1,\ I'rc.,dentr:rl budget.Lry poli.\ lt.ts b«I froTen in v,ci¡l .xpertditur.:. ¿

p¡ttem of \l\R outlay ¡cccpi.d b_"- the NINn's encmies iÍ th. l¿te1910's and rerffinncdbl'' 1'¡¿ lvhcn he took power rg¿in in r952 Thoughtl!. r,tt.'s rol. iD.co¡x)n,x iDreshr)cr't has i¡.r¡ ¡sc¡ with r¡tn)naliz¡tn)n of th. [rqe tii ¡ni¡¿s !n.1 w,th efbrts to tr¡nfoon th¿ Bolivi¿nD.ldopnrent Corpor¿tion and the Strrt. Oil (i,np¡nv ink, (|fl¡ctiyede.entr¡liz.d agencics in .h¿rqc of m¿ior econon¡ic .lev.lop¡ne¡t. theñrnds of t}¡eq¡ ¡,¿e¡cies ,!r! not pool, d tor presid,\tj¡l decisn,r Dn l¡olvth€v ¡r. t() l)e sptrrt. ln the J¿ i. nli,,rcr ¡s ln¡st li¡nds, thes. crpendih(es h¿vc beelr rcmovett ln¡m the re.rlrn ofdi¡ect q(,vernmcnt ¿lthoughthev ¡r¿kc an autononous nnp¡ct on ¡atnrnal development.Tl

)ri¡anci¿lh' sF¿king, il¡e¡. th. lte!()1¡rtn)n ol 1952 w¡s rxf revolút!rr¡rl PÚlr )p! rhis s¿s ¿ Dcccs\i^ I¡(tor i» r¡).¡king tlx nranv r.!oLution¿ry .tr¡nges whit{ were nnplement.d after 1952. If i,, ldditiorlkr ¡¿tio¡¡liztrtio¡,, lltnd (lrstributnxr, and clEnlles ñ voting { d laborrights the NINR iiad ¿dd.d revoluti(iDañ fin¡ncial policy, sl bility ilR.,rernrnent D¡iqht hále l)ü'n totallv destroved, thus prc\.-ntnrg iheRevotuti(xr 1«¡¡r gctting 6nnl¡- undenvay.

$hilc no¡-r€volutnn,ary financinl pohcv ma) h.iv€ hehed to pro'

,{l

vide a transition b r.voluti{)nán gi)vernment, in the lurg nrn the polic!has not promoted Dolivia¡ politic¡l st¡bilit),. Inftatiurrr! p¡essu¡es¿lier the Ch¿co W¿r resulted jn Paz s progr¡n to klnive $.i¿l naistunsi1,,, [,\ ll,c,n,d r9i0\. rh, L.I úl¡n,ll/.r,\c,,,,n,,,,i. t,,,.(,.!,,, i1'i¡tributed to a vicious circlc in lvhich Bolivi¿ app.ars to be tr¡pped: thcneed for econo¡nic ¿ctiviqr gener.ltes soci¿l icnli(trrs $hich must beresolve.t n,rmediat.l) if a "revolution¿n" go\'.rnnrdrt is to sta) inpor!.r. aDd thus no funds ¿rc liL:c for commitne¡t to rc$lv. basicstructurál problems. I¡ short. Bolj'ia hrs been t¡king rspirnr to rclie\e¿ chronic headache ratlier th¿n ¡ttq¡pting b get ¡t the c¡use of th.mal¡dv. The o¡lv devi¿tion fro'¡ this patte¡¡ c¿ e in thc stabilizatn)nprogran of 1957, bul ¿ oDc y.¡r efibrt succu,nbcd k) tre¡rirdouspolitical pressurcs.

Boli\ ia is confroDted \\'ith ¡ serious dil.¡nm¡: in order to provi.lf ¿n

escape iiorn thc sin,¡tion in \rhich Uenl.¿l Cirv.rnú.Dt relenue isfrozcn bv «rial policy, t¿x rcr.nu. !¡ust be nicrease.l gre¿rily so ihatsoci¡l progra¡ns ciin h. m¿inta¡red ¿t thc s¡,1. r¿t. lvhile relati'el)becoming a sm¡ller p¡rt ol a larger pie. 'l'his requir.d in.r.as. ini¡krrn¡l rcvenue wouki, ho'vc\'cr, shake the conffdeltce of the prir¿tcscctor !'hich the government h¡s hoped to l,,re b¿ck or ncwly ¡ttr¿ct.Since priv¿tc husnxrss is no¡c too srre th¡t re\1)luti()x¡ñ" governmcntsarc to be tnsted undcr th. best of conclitior¡s. t¿l conc.-ssir)ns mustLe ofi¿red ¿s inc.Dti!cs to timi(l irvestors.

U¡til reccnill, not onlt, h¡s the Certral Cov.rDmcDt been depende¡tupon tudgetury srpport lrom LSAID lbr its social progr¿ms, but also

thc tsolnian Development Corpor¿tion hrs becn dcpcndent uponobtainirg lo¿ns a¡d gr¡nis frcm inkirnatnniál agencies such as lhc U. N..th€ Export I¡nport Dank, ¿!d the \Vorld Btnk. ln the l¿tter c¡scs. i¡Dds¡re hnited to stipulated u«:s. Thus, peLhaps se n¿) see the re¿soningin \INR and post-IINRr5 decisions to ¿ttract pri\'¿te capit¿L the publi.secto! has not g¡ined c1»itrol ofBolivia's destiny and has not been ablebv itself to pull thc country up b) its bootst¿ps i tlterelbre, clevelop,me¡t re{luires cooperatio¡ ofpublic and pri!¡te sectors.

Paz's insistence that priv¿te c¡pital, both natio¡¿l ¡nd lbreign,might h¡ve an important role in Bolivi¡n economic developrne t m¡_""

sulp¡isc those who believe that he is a ri¡{id \fanist. As ¡ \f¡rxist. P¿z

initially compromise.l tLe Re\olutio¡ by accepting thc strichrcs ofworld b¿»kers .rmli¿ted with the tNll'. He {elt th¡t unless the gre¿ti¡ftatnn of the mid-1950s were halted, the ganrs of the lte\olution*ould e¡d uith \l\R lo$ of pow.r?6 Ironic,illr, thu so c¡llcd lNf!-m.thods of .!ri¡g inilatioD ürHuen.ed politi.¡l dcvelopmcnt aDdmade Bolivia r--vcn more dcpcldent upo¡ ¿ social policy i¡ CcniralGovenment expenditure. It srs not dilffcult lbr P¿z to l.'¡\'c econornic

42

srowth in ihe h¡DdJ of USAID. ior lew persons understood at the timcihat USAID s poticv w¡s not rc¡I1\' of economic n¿ture. Ncverthcless,

prcpagrnrla «gardiDg ecorDlc ¿ssist¿D.. ' t¡ust have give¡ ¿ f¿lTi."i ol *.",itv to ¡ll .o¡cemed with the dccisio¡ to ac.ePt I\fF

lD a sense, tle Re\ohrin» endrd with the e¡tr\ of thc l\lF nrtoBolr!i¿. n,e m¿j,,r radic¡l stcps had ¿lreadv l,een taken, and the st¡biliz¿tion policv forc¡:d L:ft a¡d right lring ele¡re¡ts of the NfNR intoi¡cr.iasi¡iglv tiostilc carnps. \\ritL thc NfNlt disnilegr¡ting, the Lr. S.

Ennrassy sarv the Drilit¿N rs tLe only non-Communht force with the

recess¡fv porf.r ancl expcricnce tu co¡rtfol th. country' I¡ order toprevext the rise of citlier the Inilit¿rists or the Com,nu¡ists, P¿7 lv¿s

induced tr¡ run for ¿ rcco¡d presidenti¿l tem beginning in 196'1; ho§e\er. this ¡ct t¡rther sh¿ttiired the \INR nrste¡d of pulling it together.

Tholrgh tLc military-backed govcmment of Rcnó Barrienlos P¡ysho¡ragc n) ihe ide¿ls of¡ Puriffed Re\olutnni'f¡'ec fronr lhe neladousinlluc¡ces of th¡, \l\It rnd whikr it co¡meúor¿tcs tlie de¿th of\-illarroel.rr undcr whon l'¿z ¿s luinister of tLe 'l'rcasurv initi¿tedsocial progr¡nrs - rhc rcal questi.¡n oi'*'hcther or not institutionalizedrevolutio¡ will contiDue ir¡ the Ucxican style c¿ not bc ansvered.B¡r'iertos can claim th¿t he has not r.'tr¡cted the m¿¡rr revolution¿rydecrees $,hilc attemptnrg to m¿k. the s),stem work b{rtt.r, as in puttinglhc ¡atn)nal ttu mines on a paying basis.?3 lhe *orklng out of develop-ment will be thc rcal test o1 the Rc\()lution. lftlte Revolutbn is to conreof age, liowever, thc Centr¡l GovcniÍreút must shift i¡to economicnrvestnre¡t ¿s lvcll as m¿ril]t¿in soci¡l outlay. As we have seen ilt NIexico.

economic expendjture h¿s h¡cl more rtpid results iD relievirg social

te sjons than prc!'iousl) h¿d b.en thought.?eThough the post \lNR goverrunent has l,rought dccentr¿lized

¿!Íe¡cies n'to consolidated putrlic scck,r budgetirS, thcre is little hoPcthat th. Centr¿l Gorer¡mcnt will eflectivel) coordinate all outlay As

we h¿'e seen, stat. pla ring ¡Dd public admnristration thmugh de'ccntralized ¡gencies ¿re mutualh cor¡tr¿dictory concepts. While tlreposi \I\R govetnt.nt has irteñeled to rcor¡lanize the natioial tinnrnrnrg ¡dntinistration b) firnlg excess workers, cutting \'¿ges, cli¡rin¡tn1g food sul,sidies, axd en(hrg lvorker influencc over admnistr¿tivc.lecisions. the tact renl¿ins thattheCentral Covennnent docs not h¿rrdle

CO\'1ItsOL f't¡¡ds; rather, the govcment received taxes lbr the ffrsttime in 1966. fhc best th¿t srah planDnig might l)ring i¡ the nea,f¡tur.is in\rement¿tion of the Nlexic¿n sYstem by which the Projecteda¡ntral i¡con,e ¡nd outgo of ¿utonornous agencies is ¡Pproted by thePresid.nt aDd Congr.ss in order to be sure that oPeratiotN ¿re re¿son-¡Lle,¡d not out ofb¿l¡ncc: the lrfexican Controller Ceneral docs not

43

¡udit the deccntralized age¡cics. but simplv ¡equires st¡nd¡rcl rcportslbr integr¿tbD nrto a .on!nidated public s..tor ¿ccor¡nt. This is ul¡nrtrll th¡t (1ni Le crpectrd if the ¡g.').its ¡r. to re,niir' .tritor¡úrnous.though püh¿ps the trend to\tord sl¿te plannnrg miglrt bencff(i¡llyhri¡g a gradu¿l end t.¡ d.rc.ntr¡lized r¡nits.30

In pre-Rcvoltttion*.y Bolivia the populrtnD s¿s willür¡< kJ p¡,t trpwith ec(,rorric stag¡ration Snrce I952 much oa the pop,,ln.e h¡s i,eenrnobilzeil nr many dillerent s¡\si ard though th§e a,e ,r¿n), diiler.itdcgrees ofpolitical ilvarencss, tkrc h¿s bec¡ increasine populnr pres-sure on tlte gorer¡ment to rer)lv{-- ¡rationnl p.obldi. thus, !!henPrcsidents Toro and Bus.h r.sponded to sd.ial ü¡rest ñith t ]l ol''state so|i¡lism,- br:grrn u)Dch h¡s coDre k) meaD l)r¿tthc govemment is widely charged with responsibili§ n,r developmert.Also, the ti¡nes no longer pen¡it delay in devel{)pment, tor the nussi¡rt,Chniese, ¿nd Cuban exarnplcs irr this age of r¿pid (,rnmuricat,onbrirg pressure for rapld vtial aDd ¿d»ton)n !h¡nge.

With cxpenditu.e of the Centr¡l Goven¡¡.!t f()z.n. USAID gr.¡nts¡educed in l¡vor of lo¿ns, a¡d Bolivi,i tuore d.pcn.lent upo¡ tin lorf'oreign c{.haDgc thurr ¡nytitr¡e sin¿c the l9.t0s, what ar¿ the prospertsfor politic¡l strhilit! 1.d socio.ronomi. devel(,p",tst¿ Ii tn¡ pric,rshold up and USAID hc¡lds out. ¡ transiti(,i n) (le tr.rl (lovemDcntparticip¿tion in eco¡omic expenditure migltt be possible. If either otthese fav.,rable fa.t(rs disappcars, Bolivia lvill h¿\e ,{¡e¿t dit}i.,¡lt),trr conti üins the l,ng r¡nge elorornic divcrsiffcation besun t v l'¿7Estensgo LSAID coDtributioD iD th. fon¡ i)f l.,ans is ¿lr¡¡dv rcacl¡inga levcl o, d¡¡hishnrg rchrDs, since the Br>livia¡ debi stnrcture c¿no l) bear a reasonable load before the pe(ent¿ge devóted to ¡ep$vmeDt 01'th¿ debt L(«)mes overlv impo(¡nt in outl¡!. App¡rentl!..Pr.isjdeDt B¡rrienn)s is ¡war(' oi ihr 3.1 per c.:ñt n¡creas. tr, Bol¡\ i¡ s

extemal pDblic debt bctB'een 1960 md 1965, f'or he hás stated thatterms of repayrrent begi¡ning in 1967 will be onerous.s' 1hc exte¡raldebt stood

^t 257.9 million dollars i,t 1965,3, ¿n ¿mount very near th.

nrt¡I &)ll¿r disbursenreRt of 2;5.S D)i[n,D doll¡rs (n,clu(lí)g grants)tiom U. S. prograñs benvcen l9{9 ¡nd 1961.33 lf Aolivi¡ were to ibllowNfexico'.s p¿th, holvevL'r, frequent Dew borrowing mi¡lht l,e us.d to paydebts and, in the meantimc, to stnnr¡l¿te incrersed eco ornic ¿ctivitv.sa

t l"r¡lt. pulrlic¿l rt,hrlit\ \vrll r¿quI,, e(un,¡ni. \r¡l,rlrl! anJ rlr.search Io¡ both will gD ón until thc Bolivia»s háve confi{lenclr that rh(|Centr¿l Govemment is able to inftrence tlre economic life as well as thesocial lile ofthe nation. tDstitution¡lization ofre\'oL¡tbn in the \'Iexictr¡style requires creation of ¿ mystque rvhich .ncourages s¡th conc«t.resuits the belief th¡l the goven¡ment js sh¡pn)g nation¿l integrntioD

44

r\t sonre pojnt Boli!i¡ must consider the degree ol ccntr¡lizatron\yii.li il wishcs to ¿chie\. iIr (ientr.tl Go\cnnncnt ¡ffair§. §rhil. veh.r!e s,r(g.st..l (hat slate pl¡nüins *ill Dol be \o.I¿bl¡ ur'til th.(iltr¿l CoveÍ¡mert exercis.s dircct influercc {)r'er cconornic fin¿¡ccsol the public s..k». p.rh¿ps Ne sti[ld ¡(l(] thnt inflüor(r does notnc(cssarilv¡nerr.ont()1. Rather. influcnce rtr¡y nre¡n abilily to rcgul¡tc.oDstí,ctiveh, sut sidize, ¡nd stimul¡te the private sector and make

IrrDts tr, &'cerlr¡lized .¡geDcirs i¡r d.r'elopDerl ol the nitio¡¡l econ(¡mic inlrastnkture. Ileannrgless c.ntr¿liz¡tion. ir \rhich thc CenlralGo\ cúilncDt sB,¡llows loc¡l gt!crtr¡rnt ¿Í.1 ¿ttempts to sct up compli(¡l¡rd det(iofrr(rrt phns, can leatl onl)' t,) L,u.(iu(r¿(i. refti.ie¡rcy¿rd inabjlitv to solve pi)lre rs. Cr¿ndnxe goals otstate plnnningrnightrvel) be rcduced to pn» idinq (oor(lin¡tion o, pul)li( ¿nd privete s.ct.rr¿.ti!it) ibrough colle<tnrn ¿nrl dis§.mi¡¿ln)n of iolbmratro., seuchfor ¡¡¡rtual ¡icls. ¿nd attünpts lo stirntrl¡te .coDo'nic dildsificationr)i¡,)ug)r Dir..l p¡Lln aD.l pr!.¡h .{en.i.s. l¡ ful¡.¡rd to th. l¿it(r ¡liopcl'ul trcnd can Le round ú the 1965 reotganiztrtm ot the tsoLvi¿!D.velopnnJrt (),rpor¡tio to .re¿t. such ¡ ni¡cd publi. ¿nd pri\¿te

\\'. h¡ve not trn'd to pro\ide solutions to lhe Bolivian scarlh forrn\tih¡lioDil slrbilitv but to .\imin¡ the stnxt¡¡r.:,¡nd nrocess §hirtrhavr-- influenced thJ coL¡ntry's present positron. ln this ar'r¡\sis certani..coún.Dd¿t¡¡rs have l,e.-n m¿de, esp(,iál\' tu req¿rd k) thc nah,rcotexpcnd¡tr¡¿ rnd st:ttc pl¡»¡nrg.

USAID is norv ¡lvare of its own p¡st emplrsis in social expencliturc,eilhcr in direct budget.try support of tlrc Bt livinn CeDtral Coveruncnto. m ni¡ports o1 agricultural .omm)ditics, tor ex¡mple. rrd has ¡ctedt(, rech¡nnel assistance into economic development. Tlius it is to belxtped that thr Il)reeoin{ a¡,alysis ot Cenlril Gov.¡nm.nt outlav §il1hring ¡\var.'¡ess of past polrcy bv lvhich .calistic projectio¡s can bedralvn. l, testn)g the idcolog! of the Bolivian ltevolutio¡, we havetouud th¡t Ptz could not ¡<n¡¡D holr Centr¡l Uolc¡¡¡n¡nt l¡¡¡ids rrc¡el,eing expended because of confusion in prescDtátion. He thought he§¡s makine aD pmnomic re\oh,ti(ni. brt re¡liiy was tied to policv th¿the himself hatl established in the mrd-]9,10 s. tde.rlly, Ccntral Coveni.,ncnt e{piindilure shoüld be prese¡ted nr such a lvay that B,c can ¿ssess

E\pe¡dih¡rc in hjstori(al tenns. lt wi)l be iDt.reslnrg hdeed to firlowBolivian de\el,,pments durnrg the next felv ye¿rs, for, though Bolivi¿l¡as co¡ne f¿r si»ce 1952. the gre¿tcst tests arc yet to coúe.

l5


APPENDICES

1rp¡:\Drx {t-r. S \et tn¡¡nci¿l Conn¡,ihnc¡rrs to lloln.i¡. I9.1ai 1966¡

Ig.tti .119:17 3..1

191¡J .1

1950 16.5I95l .5195' I.5t95l 1.3195.1 18.21955 33.51956 !U.i)r95; 26.8195¡J 22_t1959 21.6l9ti0 13.8196I 9.91962 38.31963 6J.3lgail i8.91965 1.1..¡

1966 ilS rl

.1

.rl

.l',|5

,5

.316.0

,316.02.i1.0

2.11.7

t':

,.iT,¡7.ó

t 2.¡l25.322-822.019.913.6

19,124.21i.2I;,8

8..1

5.7

,l3 '{0

.;,i

2.22.A

I9.5lntal 157.3 1,1.6 95.6 217.i1

,u.i.6

33

,.1

,22ll3.,1

I6 21.1.t)

6.¡

70.9

,1

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48

APPEND,! B

Hel¿tn,r olCortr¡l G(^.¡n¡cnt,\ctur1 I'l\P.nditure.\l¡tor De..¡rtr¡lrc.l Ag.,r.r Oatl.¡\,.¡'(l ai,rtrib,'rñns

ol !S,\lD ro C )\r Do]ncst,. Prtrh¡(t,195i1 l9ai5"

(In Billbns of Bal|:¡túúr)

l9¡¡Jt9;9

l96lr 9l:i2t903

..junnr (i¡oDnsn, \frn¡ D(c

si¿iiJ¡i.J 7 i196t) !9i ¡id 91r TrLl. a (rc D e !" arrov¡.

J36ll85i,1179

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203 1.73¡6 o.:l13r i.56¡15 r0 522i 3.I,li 2.7

19

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R¡rio otproje.tcd Centr¡l alo\ enioeDr!'1,,,1',, ,. , r..r,, r, lD,r, ".,.,,r ."r..t ,1,.1,', ,. . \, 1,.. i ,, t, . .. '(,', t {,(i

@ R.tt"-q B B¡\)-rur Dqdn t.\Lalb C.rlttul (:!r:e nn¿tnt

1900t9:91930

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Percc¡trse oI Qrnftal Covemnrcnr¡uj.Lt-,1 rnrl \Ln,Jl E\t,cnJitur

PJsi,,g Th¡{,gh riLe F,,,,il n r si.,rtr)l JiqJr,ñ,,\. l'llo re6l'

l t:\clud\ TüL\t Ft'lds)h

I936I937I93{J193919.10rgillI9{:l191319.11I9;15r916t.)17

r9l9r 950r 951195:l1953I95,1r9551956I957t95819591960l96lr962r963196:l

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tft6i lu¡(ls Ex.lud(d kon,Co,trrl (;(^.rn¡cnt l'roj.(r.rl

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52

AP.END¡X F

So¡rce of (l.ntral (:ov.mm.DtPrc.jectcd and Actüal E\penditures

Thp \ñ'r, p tu. t,,ut..n J a( cñLnr, rs tu¡lbl,' d )..'rrt ¡n Eolj\ r¡. Il nnt.nn

'ie H,,r,endJ. /!.r!pu¿r¡, C¿n.¡¿¡ "\,1'r.rl ,,"1,rir . ,re u.,nllJi.hrd \rn,¡ le14 Jr¡i f¿úId nr a,,l¡k-. omc,

.,1 rl' t',,nr,,l, na C"1e,.;l ,,, rhe ron,,,n \,1,'\ 5,,,n,1dn' {.¡^',n, tsô},.I1,.e.", m,n". r,e r...rJ,rl-,r D¡.¡,1,"1 \,.o,,nr l!o,'k.,,1 .¡,,",,,r.nLn.l l^ ¡ rnr.r^ ¿nd r,,, .r. c ohl¡gJr,.,n\.. lh, D"r.,l, J ,1., ñunr Fool [,,,h. \finN,n ñl fd'¡ ,li,¡,. l:,, é\.,'nple. iJ! ,ll ilea'. l,^m th,. Pt,.upü"rr,.d notrr all ch¡nges while re.ordi¡rg i¡núunts ¡.tu¿Ul cxfrended. Det¿iledA.couDl Bools ir..rrrenlll rorÉd iD lhe ¡rchn.¡l se.tn¡r rn th. L!\em¿ol,' ,h,.\lrnFrn,'l ll,,1p,,d¿ \u,,,n.,^ drr¡ fo, l.,l¡ ltrrl ¿r,. t,,. tid,.J ,n

1",g, P.,-,"r,.". I't,"h, ¿Bútuun¿ Priñ t Pdrt.. Anoltn' \'¡a,¡nrd,l¿r¿r¡pr¿J¿¡ Nd.nr¿¿1. Añ¡i l9il l93l (Lr Prz: Trlle'es (-rn6«^ Bcna.i-mi.¡h. 1933), 61-67. Palcnque trrcludes .xpendrturc oulside dre budgetwith his td¡ls o¡ p¡ge 67 and the5e erpcn¿itures ¡re .lassiE¿d her. ¿s hali¡g.rdmn,ish¡tivc enrfh¡sn. Strúr¡an'.\pendi¡¡res 1ir 1932 and 1933 ¡r. foun<ln. B, l',i, { {,r,,1.i/ r.,n-r.r ,I l, li,t,,L ,-¡. /¡4,,r,,, .rq1. L/,,3.(l-, PJz EJitonrlAnrrrrr i, J.) I57 271

Itol,\,.. ¿,,r",nr..,."J " rl,.l'.,t,,,,p,,,i.,l,rr,nñ.{,{,rh,,,É1,,,,.,d,,u.,n i. llhr g,'l'.,,,',,..,.ñ-J,n p.\.,,.,' -,a,L'.i I r. InO0 tlh r{,, r.,trhh,".,,\,r,¡nsJ. l,.,e,lu.plrll,ur.u¡l.ulr,¿n..r',mrllr,n.o,p,\^ Ilh.ro,nalcú,.¡,n.nc\ nerc!,,dre,.or'l,r ucd L\e ofl,.l,\ iJLo,. \bsolLt. -ñoL,,l\',.-Jrj, r,l,lc;l-.ú-h,-, talnJll, ru,,,..-.1b,.¡,,.nj,q,, Ie6I

Iter.rd, .l f:nd. "r¡.nd, J u'nrl- r\' l,uJqci '¡¡l,a d,I pt,,üput't,, rnt'out authoriz¿tnnr are add.d to tor¡l e\penditure¡¡d apprcpnatelv dinributedb) trpc ofenrph¡sis. Thu. the Christnras Lonüs f¿g¿iraldo) to govemm.ntal-., pln\-,.. ¡e{0.r154. l:,r,\,n.ll, N ir. -cr.'rcJ,rfJ ",,rrl ..,",rnr..,1"1l.ür¡"',: b'..n,'t" n rl,'r -. ¡ ",,¡c,,r,o Ftr4' ., rl,p P¿ rl.u"vo,,,r lthl5.6 econo¡nic, 32 5 $ci¡I, a.d 61.9 ¡dministratnal.

Sources lor a(h,¿l erfenditure through 1939 er.hLle E\tr¿órdin.rry Exl-rd u'.. .,a , ,,. d, ,.'t L. ' .p¿ú"1 ' ,;,x,". ri. ,.',.,.,,1¡,. l¿ ¡1,. . unt¡thu.10 l'"trio¡t.¿ e\."l,l mrltr-D fo, Tr'..r F',,nd Fr,.l',nnr...,pe Af.tnnJi\E,

N' P\ oi, \,.,., -.\\ ),,'

t932-1913, Soutue is Boli!ia, Cont'alori¡ C.¡,Ér¡1. Inr,D¿...I9.12 d

IqJ1.l9.tr: ErrmJte. ot miljtJñ ¡\rr' n,Ir, ,r. ..r' 1,a., d rl or. .r ru,' "rl.-nLr,uA Dunns rh-ch r., !t Jr.,,ilirl,^ tu,J, $pi l1,r i,..i"c"t "., oua,.úóiáo rannrib!.úin pdni(j,i.¿) l,ur l,¿ve brer ür.o¡)úr;ted i;tto r,¡úl¿r ¡.,

193.1, E:.lules eme.geú§ p¡qell¡ons.

.".-,' ¡-i",r_¿-i c-n-¡i,,¿rüú6c*n¡5 n p¡ojdúnr. tor¡lr aer fL.ht¡nr r. rh¡ P(nlE Lrrhr, Fdn.i

^,"¡,*r"(.¡-¿t

á3

AP¡E!orr F 1Co¡ln)u.'ll

19.15, D¿t¿ in nu,trtrx^ ¡re ,,n,d irr ednn¡ti(i,§ oi ¿.h,nl .\p.¡(ljtu(,.1917: He\ised t(¡t¡1.19.18, SumDr¡ry is nse,l Lrut tot¡l lor Strtc Ol,ligrtlons is relrs.d to ¡g)ee

t95(). li¡.h¡de\ I I l.l) ¡x,lln»r buli¡ i.,,x n, pzrrl¿¿t/, ¿¿x n,r//l.ril r',,\L/.r,.,. h.o' l r.-.1',r 1 " - r,,r. .rn- Lr .','..1'1.,.1',,. .

rr lu.l,-.¡ l\ {\\, 'l¡ '. r¡\' ¡{' ol ,,,.,J,"r,'l 5t' ' .'¡ rr" r',.n,,¡J', L;, r', ¡/

1958, \linistr\ ol^llri.trItlirc inlludcs tunds to stnnul¡t. p¡rduction: -l1 l I

l.J_,''.l r¡,. r,J r1,."''l.ll\,',.'illiu"l,ñ1,.r,n,., t'",, -l\| ,1,1 I r L, \u'r'., 8..',r. ,J. \1r.".r. a., J, 1t,.. , r"1., D, ,. '..' ,-,,r '

lj.] ..t,.. ..,," t1¡. 'rrr, .r,\. I ih', . ..gr ,,1',. Pr¡.i.1-

'r h. , -r,rñ.. l-',1,r' ..

I I, 1965, I f)6ti is mo,lili.d nlnrm. oiAngu( 1.1966. Regni)nig nr 1965lhe,,1.|.l,rr,,',.,.,1'..,,,n,r¡.,.L.r.,,|,,'.,I L,,rI,r-|.,,,.IL IIr l) ,'r,.'-r,r, l'..Lrr r,, l- P.,.'t i- u i..¡\ r1...r'.r.h ,.-J ',..r' ¡-, ¡ .q-\ror .¡.,,1.¡l)lf Ii)r r, ¡( itenrs ¡r 1965 196[i ¿r. n(lnd.r] ,¡ ('tlk,r.¿teq,'r,Ls(for c\¡n,|1., qnnn,uúic¡tn)ns is n(luded nr l1,l,li. \vorks).

tu!rr¡ 1:\p.»¿ih¡(I9rll l9l.J Boli\ r, Conh¿lorir c.ner¿I. ¡,¡/;¡ne . . . 19)) t 1933.1;1.71 )193 1, S!'¡¡n¡r\ A.e¡mt Book a trsed nl .onlu(tn», \!,th the Ll¿¡m.l93rl l!)il5 See ¡onr 1¡r Prcje.k{

^ccouDts.19ll? 1938: Rrvis.¿ nnx,¡rcs.t, s,.P1..,!, ltlx,c.r.,,,.,n.{,,,.,.r. h,",^r.r: h,I'rJ.. ¡,,r .rlLo,, l-.lr,rrn^ ,r",1,t." f.l.rr.,r\(.urf,r.l rr,o

,\gun,rL<1,, ¡ ¿(lded r. rxt).¡(lih,,.\ or rr.¡gc 1,1í n, Su¡,,¡.¡,1 {ccotrnr B,!,kl., ll \-x¡i.¡/d .r, |.;nr¡, i ^.¡ ¿, I1,,^J "r".!1,,-.1 r., r^r.l ¡.r..,.1 r'.,

I t2,,t \,,, ,, ,.,n .{!,,,u,,r Bookl',liIr,,n.,,.,l ,l l- o ¡,,.,1 ,.,. or,1 f.r',,¡:' l¡,,Jr"¡rs,,.. ¡¡r',.'l

l916-l(1.17: e¡rr $,.1, rs {D . xl'Cllllf .,¡. csiim,t(J i«n¡ p.,)ie.r,.tr,siotl,es ¿rc rst¡n¡ted tom t¡turl e\t)erdlh,rc!.

l!1.19. lnclL'dcs e¡¡e{e¡.\' flnrls (rtsidc ol budr¡et) to .o¡nb¿t ci'il Nar(¡17 6 ñ,,llion l)oln irr¡§ I¡r ¡¡il r^ ¡¡d 55.9 fr! (:or¡mment \tn,¡r,a),d,i l.d,^ \.,'r', ^ tt,h.r., IL.r.t,',,,lp H-.,',,1,, DFt,,.,,rrIr.,1..,.'r.r.,, I, II,.,',",...,,. l.r-.r'r' 'r^.1.r.., I, r. ' ri,- i-, 'rn ,.\ ,r'..1,1. 1,'

',1,"...r,'r 'q6'.l.rbu,r, ,r.,1,, 1,.1 ,^rl, ,,-1,¡ ¡. 1,r¡\ nl,l¡ i.,rl

nnnriururs ls nrclulLeLl nl Publnr [i)rks].Igtj{i D¡t¡ ¿s olDL..mbe¡ 2¡1,l9ti6itunrc e\tnr¡rio¡r o¡ l,¡§is oftrroj(.t.(l

5,1

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t96A

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1963

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.l

APIENDIX H

heside¡tial AssDrl)tnns olOlffcr: Snrce 1926

l{emando Siles Rer{sC¿rlff Blad.o Calindo (¡(tn,g)

José Lu¡ rejada Sorz¿no G.ti¡g)Cemá¡ Busch (¡.tnrg)D¿vid Toro lactürglCemáD Busch (¡ctn,g)

C¿rlos Qui¡t¿nill¡ (¡.tnrg)

(iúlberto Yillaroel (¿.ti.g)Gu¡lb.no vill¿roel\óstor CuilléD (a.tn,g)'lin¡ás \lo.Je Cuti¡rez (rctingl

\1¡¡ncno Utrnnagoiti¡ (actnrg)Hugo R. B¡lln'iá¡ (¿ctnrg)HenráD Sil(s Zuazo (acti¡g)\'ícto Paz Estensoro

\¡í.tor P¡z Est.¡sturc\¡íctor Plz Estcnsr»oAlkcdo Or¡¡do Can.lia (¿ctn,g)ReDé Barne.tos Ortuño {¡cting)Rc¡é B¿rrie.k)s Onuiro nnd

Altiedo ovando (¿ctn,g)Alfredo o\'.ndo C¿ndi¡ (¡.ting)René B¿rnentos OltüñoLris Adolio Siles Salin¡s (á.thg)

6 (L¡ l',!¿, )\fi¿ción u¡ileAi

1926 J¿nu¿l Itrl9il0 Ju¡.28Igill \f¡rclr 5l9il.1 \ole¡¡ber 281936 NI¡r l6

NI¡i, 22l9rl7 Julr- 13

\{¡r 981939 AuÉust 23l91o Atnl Ill9l I D,..,..,1,.r 20

19,16 Ju\ 2r

l9lí itl¡rch I0

l95l \fur l61952 AI,;il9

April I51956 Augur 6I960 ,{ugust 6196:1 Auguf 6

t !)ai5 \I¡) 26

r966 Ja¡uaN 3

1969 April2T

62

,\P¡.\Dr\ I

Esti¡n¡tt'd alross D.rn$ti! ProduttLv Secior. I 950 1966

(\'.olu Totul\= 10t) o Per Cüú)

t9;(, 33.111,;l 31.2195r. l9 21953 30.8l9;1 29.11955 :!r 01956 29.1l95i 32.31958 31.71959 32 1

I !)§0 31.{rtt6i 3l q

L9o2 29.91963 29.71961 28.?1965 28.0I 966 2ti 8

1.1.7

)5.215.0\i.2tJ.01t tI1.013.¡J9..1IJ,O

s1

¡1.;

9.1

I:l 5L3.l1it.6l1.l]r 5.815.01.1.510.5t2.t-l2.il3.It¿.8l.l..l

lil013.6l:.I

ii {lrl(it2.;l2.ll:.i12 t11.9rli12.u13.0I1.01: á1.1 r

128l3.rl2l

,5i

2.03.0

il.¡.1.0

3.73.93.;¡.;3.E3,E3.95.1

5.5 553 .762 .96.9 .77.6 .i

E..1 .ii.9 .96.5 3.6¡J.l 3.8u.5 {.I/t I i.,E.3 rl9i1..1 .1.3

8.5 1.28.5 5.38t 55

t t.; 9.0l2I ti llLl.:¿ ¡J.9i.2 l0.I

E2 967,) LO,I6 0 lo.ti,- i 9.67.9 10.I?.9 to.lE5 l0rl91 1039,0 I0.I8.8 I0.l9.3 to.I96 I1.5

63

Tnr's Sh¿r. ofTot¡1Export value, 1929 19:19

^ppENDrx K

I.dex of IDdndri¡l l'ro.luctñn,

1950-1961" ( 1950 : 1 0A )

100.0I06.3r0l0100.0t 10.:I15.0I07.0I13.69i092.095.0

t02.0Ill.6119.6126.1

I930193I19321933193119351936t93i1938I939I940l9:l I19,1219.1319.1{l9:1JI9i16l94i19.1¡J

1949

75.176.276..172-369.179.5t'i). ¡'

6L562.563.366.3?1.370.6

67168.475.070.661'.2ii.Ii0.E

1950I9511952

195.1t95¡I9561957t9;¡Jr9591960r961r962

l9ai.1

AP¡E\Dd l,\" 1ullF, r,n,¡ ñl B^-,r i.'n Be\ p,',¡¡ l,j5;.lshs

(t¡ BilliúL\ of Bolioiatuos avl Per Ccnt)

lnt¿ttlPet Cent Re.nue Cust¡»ns

195;l95EI959I960I 9ti I

I9621963l9til1965

221_3179.3230.1269.I33;.3.10,1..1

505.5532.9599.3

100.0

100.0100.0I00.0100.0IO0.Olo0.o100,0

3l.3

.1¡J.l

.19.1

i16.0.13.5

40..1i15.012.2

50.950.5l9.E5i1.955.65E.95,1.35i.o

M

I,51.51..11.1,8

,7

APPEND¡! \'f

Classitic¡tio. ol Bolili¡r C¿rtel Cove¡n¡entExpendih¡re by T),pe ol E¡nphrsis.

(Cod. is Kc! to rppe¡dix N)d

E.o¡o,¡i. ¡ir¡x,t¿Id¿r¡i b

,\R Agr¿nan R.fomOP Public $Jorks, lbmerl) Fomento, in.lüdes n¿gligible amou¡ts for pót-able w¿teri in.lu.les traDsportatn¡n s,bsi{lies

CONI Communic¡tions lsepur¡ted froñ the l.ea rN Department, Il, prior

EC ]ln¡istN of Economv, lomi.rly hdust^MI' Nlines and Pcüoleum UhistAG Agricult!úe and Livestocki iDcludes irngationr excludes COLCOL Colo¡iz¿tion ¡.d Rur¡l Developmo.t (sep¡rated froú AC): prio. tol94t l¡.ds for Colonization in.luded go'emment ofsparselv populated are¿s

-especi¿llr police, defense,¿ndcommu¡ic¡tio.

CBI' Bolivi¿¡ Dcveloprnent Co+or¿ttun gra.ts (separ¡tedfrom EO)e

EX Eco.omic share ofChnstr,¿s Bonus. 1940-195i1

Eo E.o¡orúic share of State Ob)igatioDsrd includes ccono¡ric sha!. ol expenditure outside the budqet, pnce nlpports, rr¿nsien to nrdufry ¡¡d enrmercc, subsidics oldece.trali2ed age.cies, paynrents b intematn)nal ¿ge¡ciesoper¡ting in Bolivi¿, bDl¡r stock lun¿s, tr¿nsport n¡bsidjcs, civil ¡.rcDaüti.s,a.d contributioú to Bolivi¡.-^nerica¡ Cooper¿tives tü Agricultu.al Devel-opmeDt and the Agricultur¡l and Roads Scnicesr excludes gra.ts to CB¡'

Sot:itl Erpe ditutet,

EDO Educ¡tion shdre of St¿te Obligattu.s (sep¿rated from SO)j. i¡cl¡ es

unirersitl subventionsi ex.h,dcs kanh.ri.s and CIur.h schools (n,cl¡ded in

ED EdD.,¿tnn ltlhjst^.i in.hrdes negligible ar.ornts forCatholic Edu.atnrniexclL,dcs F'ünd¡rn.Dtal Edncatn» fir liter¿c!, .ommunitv deveftlpment, ¿ndagnculhral e\te¡sion (admi¡ist.r.d bY AC)

AC Peasant Aftairsj i¡.hd.s ¡-ürdamert¿l Edu.,tioni ,drninist¡attu. of.óope.¿tivesi andaglicultural c\t.nsionT Labor ¿rd Social Secüntvi ercludes R I'

SP Publi. Health (sep¿.ated fu¡ C pñ» to 1929)

SS Soci.l S.crúty transleE (sepant€d lion sO)'

65

AppENDrx \l (C.ntnned)

Y Housi¡g (\eparated Iretu SO)e

SX Soci¡lsh¿rc olChristmas Ronus. I940-I951SO So.ial share ol St¡te Ol)lig¡tioú;d n¡clud.s socr¿l slu.e of e\pe¡d,ttrnlonrsi.i,i d,r hudgd !\ Neu ,1s .ontributions io CARE, Cltholic Rdiei Agenc!.llestaur¡¡t d¿l l§i¡o. UNICE¡', pul)tic ¿is¡srr,, Li. N. pcas¡¡t n.:i¡¿trit;urr{;iCenter, a.d Eduetjo, a¡.1 pubtn. He¡lrh so^,ic.sr cr.lu¿., EDo, ss, \i

A¿minis tratb e Erp etuliü¡.. h

L L.qisl¡hre ¡nd Yic. Pr.side¡ct

J Judiciary 0ustne D.p¡t¡.ent tr¿nsle.red to G nr l!)tjl)CE Elector¿l Coun: n,.lu¿led nr C until 195¡i

P Prcsnlencvi i.clud.d in (] prior b l95O; i¡clL,dcs Prcs ,\ge¡cv lnd ¡egligiblc an¡ounK tór Toürb¡¡ ard So.ial Sen,¡cc ro lbstrr .rreer ¡dmi,risrr¿ro6;cx.h¡des I'(l ¿ficr 1963

F ¡oreign Relatio¡si er.lL,¿es C}¡ur.h AILirsC GoveDrm.nt, .Justice, and l¡r¡rigr¿tioni Justice Depafnrent n, J prid to196l; Elect(ral Couit r,cEafter 1958i p¡esiden.v in paliüt950i p »n)

II Tre¡s¡^; i.ch cs Controller Cencrali O1fi.e á.d Statistical Agcncv as\Lell as old (i,¡pañi¡ Rccaud¡dofu N¡.nm¿lr erc]trdes CO\I pnor to 1993,an.l D and R prnr to 19!9\f lUilit¡w\lO Itilit¡n share ofSt¡t. Obligltn)ns (sep¡tured 1(nn AO).D I'ulnic Debt (separ¡l.d troni H prnx to 1929 and fro¡¡ AO thereafter.)ln,cludes n,terest add rnx)rtiz¡rio¡: .xcludes R

c church AJIans (sep¡rated fr)m ¡oreig. Rel¿tn,ns)j üich¡des $bsidnr rosemnraries aDd schools.

PC Pld¡ntr¡g ¿nd Coordnutn)nj nt.h¡de.l in p ¡ntil 1963

^X Adñn¡i\tr¿tive sh¡rc ofCllrist¡n¡s Bonus. 19i10 195{

RT Retir€mcnt ludds 1ór Chaco Ur¡r reter¡ns, wióws, orph¡.s. ¿Dd INltnrmlr.ction veterans (scp¿r¡ted tonr T)F R€tire¡¡enr liú,ds (sel,¿r¿red fronr H prior to l92fi ¡¡d sep¡ráted. lioúcategories AO ¡ndft,r D tho.e¿fter)j ,rcludes prj?es aiier I922; distributedl,y ¡¡nrktr L¡eqi.ning n, I965AO AdñnrÁtrative sh.r. of State Obligatn,nsj.l nr.ludes ¿d¡¡nristntive

66

AppENDr\ NI (Contnn¡cd)

sh¡rc ol .\peDdihrc outsntc ol th. budgeti i¡.,lud.s sü,Ntln,rr,¡¡/idr.,si in-clLrdcs subsidics oI dep¿ftment ¡nd nuri.il)al gov.nimcrt, Church constn,c-tion lúd ¡t¿i6 (i¡clu din g rtróó1s ) , p(rrio¡ iu¡ds, sccret funds ofthe Preside¡t,a¡d ft¡ds 1br sp..i¡l militan a¡d police u¡i$i n¡cludes .odüibution to mone-

t¡N commission aDd to intem¡tional orgaDizationsr incl¡tles C¡¿¿lilos Á€.o¡o-.¡dor, cxch,d.s c¡teg{ es D, UO. and R

'¡o so i,ro .¡r . ¡r)o ssrr+\«)

67

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APPE\D¡X O

The \!a*¡e{] ()ve¡.head ¡'dctdn, Covenimq,t Fi¡arcr

All gñ\, Tm¡,'r. .n§'N, 1,,r' lo.- r"n,l. ll ,o.,cl. I¡'.,¡.,,,¡,.,,r .t,.lt .loo.J'fh.r'rln.iral t,l"r'r':ng "¡,l.o r'r,t ,"'.rl"1t-o¡',.1',-r \,.\ rl.rt rl(rr ..§',J, n,,, 1.,,,1.,1"-§.,.r.,r-,^4\",dr.,.,..",,,, c\I,.,,r,r;,,-.:i,,p,hr,IJ. rñr r,n,..... ñ.Ll nc r., trt,' ot.Lt'.\,r,,1'. r "l,o,.rl, - t,,.,- ¡r.,I,, ., "t.1.1 n,,l¡.,.d,-,,..,r i'^,.r¿.,rr,n (hr.h n,¡ ^,,,,. nur t" rrr¡,t s"c.i ,..,r.{,h ,h"r rr,o,,qr, q.,\pmr¡nr .\r,,,Ll't,,,p tr., nn\.r, (\De,,.l,t,rL. x\,,1\r. in.ft, ,, , , 1 il.e . ",r ot ",.t¡.,1"., mLn h, ,'.,I',.te. ,', j,,,rt ' r,,, ,, .

¿,\ra t¡,j.r.'11.,..,.,,., rr,r,.,. , r,rLlrr u,4.,o",,.,,r, ,,,. '.,.r,.., ,,,i

,ni,.,n.l,ts,'rI,,."r,',.r,-l.u'. r"-ri.'.rl,orr s rl,. "r

e LL.¡ n,rrr r^.,.,, ,r-,lor-,""r.r'r,'¡t','¡'.^,. .',, .1,to',.\,nr,le,1r.,,r.r,,.t,,,,,rr,..,n1,or1,,,F r,,ri',,1, LnLl t,'il.,i l\',..",\''\ h,.$-\, r, rl .t tl,..s,,r^ 1,..\,"..,.^r,I l,-,.d k rl,., r¡ x,,- o, l, ..-, " ,.r ,¿, n\,.,1 ,

".1 t:,1,,,.

The L. S. Aid lrognm to Bolirii rv¡s tnDe.donsl\ w¿slcful ú its e:1rlvte¡rs m¿n,h L,.c¡use the prcd(esy,r ageD.i.§ ol US,\ID sert neqligor i;,,1 nu rn ,ft,,,, r

' tiorr,,.' ".',-¡, r'nr. l,J,Ét,ñr..r¡,, .,1,1 .\ !j,.t.^',,,,,o r-. | -,,xiJnr,Bnl,.,.,J,,,nerl,.",.,Ltl,.' l:rstrot,,5b . . t:.,1,a; r,, J,.,g.,,t-',"¡ l,u'1, r.','J.",J-'l' "'p, ¡d u,, n:.il,a Bul^.- I., n, ." lqs; t,rh,rrñ1.,'.rp,. .,,1',,'.,"1 ,.'nl,pt.,n r ,r,.,r,,c ri-,ne.,,i,.,. .., r{.,,,,,,,.t .n,-.gca..r.,ial.rr,.r,'lrsJ."\ldd,j.,t!,61,,.1,e,p.,.,{1,1r,r,-r¡,r.t-.\,.p,.r,,,,entsul'"{n" ""or'ln\rrr8"rror.ñlrlr,{,,r1rrr¡,.urLj¡,\.nT,.Op..rdtnnN .onchxied rh¡r the

^sid,lt¡,ral Sc^ i.e ,)per¡tnnr rvas r\.Jnplitie.l

t 1,, ,n.,Jrl ,,'J,.'l^,,.,¡ {h' r ,-,,1,, ,,,1",c,",,r.,.x,,,",,J' i,,¡,di( i,.'.. ,'.,i ..rh'r, .r\ t.,,n 'jr.,1, ,'r ot ",1[,n,

. ,j.llJ,. §,,d l. ,,r m ¡ h,,x.^ J,,de(l¡rip¡¡.Dt nr o\.ess ol nc.ds, .ru.b o{it ¡ot ¡d,pted n,r use irr Boli!i|, ;isuse^f ,nJ rtr,l, , r,,,.q-.n.1 T-i,,r, ,,,n,, ,,1 ,,,,,1\ ,.,1u , ., n, t n,ll ,,¡u,ul .oL,.r,rt',rr.',n4o,,u,,-Lrh,rilp,l f¡.i,r" Tlk \ei,.ú,.¡ ñ,,,,,,,,tF¡ n r,nn.-n,h,l r1,,. l.S.\lr*runrorn\.,.rili,,g t\,.n,r,1u.,,,.,not \,nû,t.,,.t-,..1'§l'c,,ir Juuldh.'r-',pc..n,.oL\,,.u. tl ,r rh, \ \,,, \,,,."hc¿doi rli.¡eeds ol that .ountN or qcre needles hc.á¡se iI the ciargrrg cconom;cs,t!¡tion Iespccklh tLe Yill¿¡úo¡res irrig¡tnm pr)jc.l, sr]icü i;iolved l6sñl-l.Lr ., m,|Ln,, J,.t-,,. t,,.,.h1.r.J.,,llx,";n.,-,,r,, ,.,,.t. De,r,,r",h,t¿(r,h",.rl,,.a.,l,ri.,nlr.u\,m,,x-'rs.'.I'.,u,,,o1,.,\"Leen¡tm.^r'iln,llion m ¡rrears for scvcr¡l \e¡Á ú the coll.ction of l,ral cur.r.v se.ent..ll. r,,l c-od..l,,lt*,1r".1,n,,1.,,.J.,,.1,"1di,,rl,.',,.,,arn.lrh,r.s.\t,-,rñn ,r.,1 u¡\1. At.,n r, uf,u lrjs\. L"J,ur.[,red,¡ rerunr¡c¡d ¡¡,1.r.¡'g1-rl,",t,l'-,rur,ol',irc-.',".o1 I \..'r,,a,rr"r,ir,,.r L,.JS.t,n.,'t,1,;rro{the Bolivi¡. Gorenn¡enl. .

\'rho':l'-iJ,., Ir^rr\.- 1... I'iJ " hrEh uJ.r'rp. ,1 ',..1 rJ,t,i rt.r.n..\

h, .,.¡,m.,1 l,.r'..ñ,oll'.\. 1,,l.Jr l-.,.t in , n.i,.,,,.J',,,n. ,,.J$h,t, -,,Jiir,r.,qr ,m n h, ,. , { ,l,lj.h¡.I ,\.rr,c* rt p f., -1,r \'.crn,¡ Lr,,JI^n. \p\.rrl"l,* I \ "d,,.1',ap.ll,ol,,r,1,J,j.c,,i,.,,,8.,,ri" .t ,,.r -t,,,jr,r,.,.1.".1 q, r{nr t,.Jl.. ll r..tlruql.tr'et,n-l ,.o.r.,t I \ .!r.t.,Ll,teh")t(!nm¿¡r times higher rh¿n true coir might L¿ve be.., *.¡ nn¡r un rhe ñmrer

74

Apprf,Drx o (Co¡iln,urd)

6q,'r's)th the (lL,.iljh.atior tl¡il ¡ hiP), §¡r¡ge o\.rhuid ia.nr h¡. been

l',nlrars oftl). Bolivi¡r C¿ottul Colenrme.t ¿l{) htr\e n,*¡rcd hom thesame iiigl l¡ct(,r. Snce tllis la¡td Las b.en deell ñgr¡ine.l ñ Lat¡¡ Amen. 'n 1,1,.. ¿,"1\.^ ni B,',\.r,, ,\r'-nJ,¡,,n 'i''lúd,. rhF.,*,,,1t1i,.n riu, rheh(h,,"r ñl ,,,íF,,.n.. l'1,,r,,Il,,rner--n[F,,r,h,¡ .trIi\'l\ ;¡n¡1,,p,,,'¿r.strlts Sonx, ol,{¡Re^ .laim tl,at the w¡st¡s. ,^,e.h¿!d l¡(kr conh'il¡nes to

I a\.r1,'.'t!r.'l J¡ ¡ u'"'l-ri,r \n§, \.r s- h (. J,gu-d "l', \ h, rP rr',r u,.r.,gr Li,.l'.',. ,'or ,,¡e...',,'\ ,1.',¡1.'.dr,,c,r.ir .l .n\e.tr',,i,b,, li',rFl,.','.1',o',r,r.",'.'',,,,,,," i,,l .nJ.,1.,',,,,1 -r-r,'.-,r,,','.'

l,;.rr¡i"n,. .r, ( -nr,.,l r,,¡Fn,n,1,r h,,,,.,,,1 ..ll r. L. n'r.,',,,1 rr."'Jstnrggle lrv tht Cont.ollcr Cetrerrli Of6er to gtre th¿.!(l,t mnt'dr¡tt' r€lrv¿rc\:. Accoding to repo¡ts n, the Su¡úrd, A..ount tlooks. thc nc$' aonkol-ler (irerali tllfi,,e began so.k ñ iantrary. 1999, \rith ih. aurlit ¿lnúst I0ve¡r ú arre¡b.' li 1933 \fi,n,el R,udgrr reportcd th¡t th. n¡F.t ol the('l ',,, \\Jr .l ,rr,rrullkiL.Il .l,r(l,.. nl '.rcn

r,,t.,1 .,,n,'''1, '¡ ,,e,r,l-.., 1 ,,,,tr,I .¡..t ,rl,r1q, r-.1,,,! ,1.,J!', . ll, ,. , Ll,. tl,. r¡,,,,:¡. 1...,¡...1 1...9, -,.,,r,,,\1.,.\$,,-,io,.,Lr!,..1..,1 .¡,,J rl.r',,r",,,r¡r J"|,.¡trd ineffici.n.\ h¿dc the Coutrollcr's lvork ¡nost diffi.ult, espe.i¡llv wherdrrr¡nc¡ts *eit.¡ot n,nr¡rdrd lir ¡udit. I¡ 19.11 rh. Contrdllcr l;"r,t.dth¡t ¡('cent ve!A,n h¿d go\.nrnre¡t h¡d oi¡ted disonlh n¡d d.m,trrliz¡tnnrn ¡Jx,x ...¿,\' .adnl"\ r,Ll',,1 ,-, l,...iE',rr.' n,r',r1,.1,¡1, . ,",Ji,qúl.,L,l...tr.,c..rrlkxus,,j,,rrcuo,,.,l".l,cn,,t<.ltl..tvr,,<,1h.,..1.,,n,-Jil,¿t «.vr¡ue wh h thev coll..te.l did ¡ot have to b. ¡udited ¡r ¡ll t,e(.nseit did ¡ót.omc through the liermw.

Iri orderb orerco¡re budAcl¡n pr)l)l.,.\- in l95,1tln Pre$qúesto C¿neraL.jri¡rl rhc Di,\'in) ll¡¡t no »¡r¡¡rr¡lts rvo¡ld he r,¡dr l)\ tIr Tre.§,ñ ¡,¡lessth.! \yc,e r¡l,rolcd,n th. L,i(lset. Th. (i,nt,.llcr Cereral rvas retlurrcd t<,

w¡reh c¡rcfullv 1¡r th. sour.e ol anv u.¡uthorized exp.ddihrres. Thu,,gh thisactn¡, took r¡;le tn¡c to inrpl"mrnt bec¡us. ofthe i,rflation *tilch preierrcdrl" qñ\,.mn.p,'r l,'".o1e,..r,,($'ir\{:'b',',¡n'r,ar.ol nr,,,-\.t,\ lqqx,',,'d.,,1,,',lp,l u.,ti,l ,l¡p ¡. ,,)8, r h.tJ,,.'.,.,1r,,l,r ¡ proh], r,.n,,,,..., r n!,¡',,1,,p,i

Thus \r. mav n! thai the Aohvi¡n audit h+s ac.ount..l t.,r funds.\ en \lrt-\t,. ,.1¡,1 .,u1. a,. ul r"- Lud[pl. t ,,,d. n ¡" ,,or ..'nt,l\ I ,..n .1,,1,1,." ', ,l:11...,1.d to tle r,rrou, m,a,.t,-c5 $l,i ',hIer.<.1 rr.cn $,r1,,,r{p ,I's.llújencv. Tho¡Kl, the Co»g,e$ has ¡dt p¡rmnred tln Co¡trollcis au.lits.n,,'pl,r hure.rcn('. t(n.c h¿r divor th. (i,nt,.ll.. (;eneral\ Olfi.e to gr,thr(n,gh thc pre\Lnbed ló,¡s ard r.(luir. rhnt ¿ll anD¡n(s l)e ¿.co,,nted lbr nlthe gencral and specific b¿lar..s. Cilen ¡ high t¡.tor l¡r §¡st¡ge in Iloliri¡Dhr.r,,.,11,' k ,.'n. \ l¡','l ll.phûr,.lrp-al-drnlh'.1,.1,¡rl \, m¡¡'.,,,q ll,e J.r- r,llr., -' ,,, r\- ,..'.; ur 1..\lD ¡\l."r,.l,r'.i' rl., t{,-.1"9r)r¡\r ol p.li\..r'.,nr g¡r,, nme

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APPÉNDIX Q

U. S. Añbassados b Bolivia si.ce llfaY 1928

A¡rnrytion of ofrce

\I¡v l92E 'Noie¡rL¡er 1930Augnst I9, I933

^prl25.1936\lay;1,1937Jux.22, i939\l¡rch 5. 19,12

Septe¡¡l,er 2l, l9'l'1ctril 17, lc).16

I trc, 'hcr

19.1919Dece¡nbe¡ I4, l95lO.tober I i, l95.1\ldrch 28, 1957\ltril8. la59

Devid E. Kauf'¡anEdúard Fancis Fe.lv

Robert Ó. CaId$ell

J, ^rt,h Fl.cl

Ed\'¿rd J. Spa¡rsGer¡ld A. Dre{

Douglas Herdcrson

BIBLIOGRAPHIC ESSAY

Ixrs sruDy is primarilv b¿sed uport ra\! data ¿rchivecl i¡ BoliviaDTreasur| Dep¿rtment liles. \I.lhodology ¿nd proc.ssing of d¡t¿ h¡!e,r, r Jiilr\\.J Jr l"r(rh in ih, pr...dint r, \r .'nd rr, ..\pl¡,'d;\ l.These data h¡ve nevcr bcc. putlished in ¿ny «)mplcre historical f¿nn¿¡d p¿rtial publication ¡len.rall)' has been isleading in that coDsistcntand ,¡c¿ningful c¿tegories previ.nsly have not Leen devel(,pcd. Func-tn)nal ¿n¿hsis b) the Bolili¿n govemment, given in Appc»dix P,illusir¡tes the co¡lirstun cngendered bv classificatnln of Oblig¡tiorsof thc Stnte ¿s ff¡ancial in ¡¿rture, when i¡ Iá.t this .at.gor! htrsdico¡¡p¡ssed¡11!vpesof.xpc¡diture,tbuscross cuttin¡tmDyl¡¡ctions.

As u'e h¡ve seen, of coursc. .liscussion of aolit i¿n (lentr¡l Covemment expendiiurc in the terms o1 th...lnomist h¡s rrct bedi possibl.becáusc c¡pit¿l a¡d current expcnditure lure LeeD confirscd nr presen-t¿tio¡ 01'¿ccounts. lD an! c¿s.. the fom ofanal\sis us.d tr¡ the presentwork is thc most suit¡b]; i,r politic¿l ¿na\ sis (if the n¿turc ¿nrtcourseof thc Boli\ i¿n Rerolutn»l

D¿ta regardjng .xpcndilure o1 U. S. fturds br th. Lr. S. Oper¿tio¡s\lission (USOII) to Bolni¿ prior to 196l ¿nd b\ the U. S. Age¡.v forI¡tcñr¿tntr,¿1 Developme¡i (USAlDl si¡ce 1961 ha\c bcen obt¡iúedl;om \\'¡sliingk»r and Bolivi¿! omces of th. USAID progr¿¡r. In¿.l.lition. it hás b.cn ¡ecess¡n io iD!.stig¿tc i¡ractne ffles of USO\l/Bolivi¡ rvhich h¡ve btun dcposite.l ili tlie Fcclcr¿l Rccor.ls Center,Suitl¿nd. \l¡¡rI¿nd. Brtarrc Prograrn Áe¡nrts ancl ln¿nv docurnentsol trSO\I/Bolivia Ln,n..essarih have been l¿bcled classified' andLecaus. th. US,\lD l¡lbmation Ofli.c refused to gr¿¡t pcn¡ission tor:r¡nn,e such m¡tdi¿ls. thrse items could not b. co¡,sulted lbr thepres.¡t slud]. Cive¡¡ the policv of ITSAID on public niform¡tio¡, il isno\! n¡possiLle Lr invcstignro.s who ¿re not in crnplormcnt ofor unrler.ontrad \rith US]UD lo g!n, ¿ccess t().I¡ssifi.d filcs.'l'hus it is notpossiLle át this ti¡re to make Dr.lcpcn(lent anahses f¡rr a lull historyof US1ID ¿cti!itv in Boli\ix. U¡ilcss USATD retxnrs classiÉcd rccords lbrat least ¿ third ol ¿ certL¡n, wbcn its files nay Le opencd, histori¡nsnra\ ¡ever bc ¿ble to reconstm.t ihc historv ofthe Bolivi¿¡ Re\ollrtion.wlii.h h¿s bcen so ent\viü{ \vith U.S. rid.

I¡ ¿ddition to USAID s eed to d.vek,p cle¡r Ludg.rt s1sl.¡ns, ther¡¡deL sl¡¡rld l)e ¡\'¡rc of rh, St¡te I).p¿rr¡rnfs polkr\ o¡ clispostiloi l)ooks, ollen i¡, ¡ destnrtile ¡r{nner. :l'h. ú¡brssv in Boli\ i¡ ,n¡inL,i . ,,u lr'.,.,^ ,r rh,.h"ots.,r,l m"r- .,1\ sl,i. l, rr r., Ir,...,nJ l,,,odicallv \\'ashi,rqtr» has given orclers 1¡r di'pos¡1 of ii n,aterials úichar. Doi curre¡t. llius, man) of tlie lrasic Bolili¿n reports, books ¡nd

7E

p¿p¡rs fR)n wtridi Dcp¿.tment ot st¡tc ¡nd USAID .r¡nlvscs \\c!cdr¿\!D in rhe 1950\ h¿d l.ee¡ liter¡llv dur¡perl in Lir P¡z's \er bv1966. A sugg.stio¡ lrol¡ r US\ID Lfbnnrtn,i S\stems -l¡sk Forcr'thli Boln'¡an ¡¡id Ll. S. mrteri¡ls he s.\ ed nr the li¡nrre h¿s b.d igDoredto date t)! t.SAID ol6cials in Bolili¡ !sho. bus)'proj(.thg the ft¡n¡Í(.fnl the! , ¡n w,Nh: little tinn: or sc¡r.!: 1u¡ds o¡ m¡nite¡¿1nce of adcqudtc ¿;.hna' ¿nd libr¿rv l¡ciliti(is.

'Ihe U. S. Emb¿ssr i¡ tsoli\ ir corld do grcat scrui(c io tb. delelop¡ncnt 01 r.se¡r('lr br' lJoliviLu ,r¡tion¡ls ,l the t oli\'1¡n rrnteri.tls an(l(lsllD .,»¡tr¿cts ¡¡rd reports gathüed ¡nd d.veloped in the $urs.of toncliretmg tLe ¡i(l progr¡m sde snnplv s.,\ed r¡rd pl{ccd ¡t thedisp,,s¡l of t¡oth schol¡rs ¡nd go\ernmeDl oificials tryir¡ia to trssess

d.\elopmeot li L-.S titl rs tr¡ Le cfficti\., recilnent feofles ¡rust b.-co¡ne seltsullicrlt in dirrcthq ¡rlr»ial afliiirs, xnd infonri¿tion is a¡,

nngtrtl t le\ t(, su.h ¡ctntr,.!()r aspccts o{ policv r¡d m.thodokg\, of ¡ssessins tb. econorni(,

otrt&ntr .,1 L SAIi) prosr¿,ns r{n.rllses shich ¡re l)(i}o,d tl. scop.of the pú se¡,l stu.l\ r. thc re¿der nr v cors¡lt rrorks \rhich de¿l lvith\1¡\hingt('d Jrd T.rr*.rrr, rcsfe.tnei.f. tr.S. pol«r .1..¡si.,.,s rDd¡ttitl¡{l.s of poli.\nr¿kers i¡, $¿shnrgto¡ ¡re drcuxed i¡r Rot¡ert A.i'rc}¡ngh.¡uj, t)olitr(.J l)ev,l.,pin(rrt D«tri¡r's ü¡ ¿he .{,¡e.i..i¡lirr.ign Aid I'roqr¿rr. \varkl Poli¡ict lil rl9tj6) I91!35. Uethodologllbr cxarninrig the resnlts oI Lr. S. alsir¡¡rce is p¡.s¡rt¿.d iD \.il H.

Jacohli U. S. Ai¿ ta lailant: A SIKI! of Forei! Aid. Setf.ll.Lp. an,ID¿\.1.1n,..nt (\.$ li,r[: l'¡ne{cr. 196{r). Biclsr»¡»d ,)1 1r.5. aid¿ciivities, iilr¿rrce ol i¡itern¡tn¡,¿l o¡g¿niz¿tn»i ¿nd rrtern¡tion¡l flowo1 l¡¡ds .rr¿ t¡e¿l.rl i. naer.tl stu.lns r.§pe.li\clr.. Sc'e. lor e\¡¡¡pl¡.\\bllg¡¡Í G. Frieclmarn, Ceorge K!lm¡noof. u,d tiobcrt F trle¡eher,Í»t?nÍtti1),a! t'r¡¿,t:iul Airl (\¡ry \ork: (i)ln!¡bi¡ Lr¡i\frsiiv Pr.s\.I lbti l. D'.',r \inq"r t¡,rx,x¡,,! lat,tn¿trc¡,tt ory¿ tr¿tr\,: l'tt,Ltrlitul |;otjo1¡t ts1¡d!?totll Pt',(ess lTl). Hrqr¡cr \l¿¡1,¡Lrs Nijhol.196l ): a¡d Ronrl.t C. N¡in. Ial¿ln¿¡r)n¿l ,r\id b I htilu (l: |'he NeÜjCo¡.,aidli9i) l\.n' ll.rver¡: Yale tlni\ersi§ Prcss. 19661.

I! re.crt y€¡rs \\e ha\e se,ri nler¿l nudics ()1 fi¡a ri¿l ¿.tivitn\of;rdi\r(]tr¡l .ounlrj.s. 'l h.se sorks tend to be inter.st.{l jn .conon¡i(¡r¡hsis, r¡ther th¡r in r(leol,'gv ¡s re«:.rled in pr(¡ect.(l rnd rchrLl¡c.ruúrs. ¡rd .,re.¡empliffed br dr follosi¡g. lohn IL Adler. Euge,,cR. !chle5ntgcr, Ernest (i. olso,,, /6 f,n¿a:ns Públn<Lr I ¿ DNLrtunü)Lu¡ómn-a da (;"¿¡e a¡¿ (Uexico. D.¡ F'ondo de CultL,r¡ Eco¡órni(¿, l952li lkrrv C. \\'.¡llicl, ¡Dd ¡,hI, Il. A.ller. Pu¿,1¡r'Iü!r¿¿r¿! i¿u Dttelopotg Oorn¡!: [.1 SnLta¡lor .\ Coe. Sttúlq L(]¡ml)riclAe,H.r(arl trn¡'e6it\ Pfuss, l95Lr {l¡n T. Pc¿.o(k ard lr(k \1ir(m¡n.'tl¡, Chtth .,f Publ tart)?n¿ittúc h th? {.r,ti¿rr, Kin!.lon (Prnr.etorlPrircen)tr Universrtt Pr('rs. I 96t).

;9

It is interesting to Dote that thoullh we have su(h shrdies ¿s Lewis II.KrmDpl s ¡n ¡lysis of U . S . F etknl ButLget unl Fiscal Pol i.! , l7 89-195t)(W¡shnleton, D.C., Brookings lDstitution, 1959), it prob¿bly wouldnotbepossible to analvze directU. S. expenditt¡res ¡s a gDide to politicaljdcology ¡s is done in thc preseüt stu dv of Bol iv i¡. There trre tn'o reásonsfor ¡nakürg this slatenrent. First. the president (,f lhe (r.S. is .uhjrct to¡n impressive ¡umber ofchecks and balances (sec Aaro» \\¡ildavst!.The Poli¡ics of thc Bu.lgetary Proce" [tsosto"] Littlc, Brtrvn, 196,11).

Second. tr. S. expenditure has complex r¡miÉcations of intemationaland nat(»¿l oblig¡tn,ns which are long tcnn r d thus not subject to

Brcat control by rnr one president. tf expe¡rditure fr)r items sueh ¡sdcfense rvere omitted lrom aDahs¡, hosev.r, Lvrdon B. Johnsonssoci¿l expeDditures, centercd in the Departñe¡t of Health. Educati.rn,¿nd welf¡r., ñight show ¿ nrajor tuming po,r't i¡ U. S. f. d.r¿l budget¡ry poli(!.

lD co»duetilr¡{ rese¡r.li irito B(¡livi¿n afl;il§. a ncw source of inlorm¿tion w¡s generated by the ¿üthor ¿nd his wife (Edna \lonzónWilkie) uith thc completion oI a number of oral histor" ilrteNie*'§.Particula.h valuabfc fbr understrndnrg BoliviLrn develop,ne,ts cret¡pc ,ecurdcd tutrniews with \'Írttr Paz Estenssoro. This reco ineh¿s been fuanscribed as a 900-p¡ge manL,script on thc lil¡ and timcsof the country s leadi¡g revolutionary ligure. Discussions of personaland n¿tional history with, for example, opponents of the revolutionsuch as Jo¿quín Esp¡d¡. üeas,,n'nrinistcr scveral tirncs during thc1930s .tnd 1940's, ¡»d Hugo RoLerts Barr¡gán, disilh¡sir)ed propigand¿ minister for the Revoh,tior), were also most hclplul in qualitativelv examn¡n¡g developments ofthis century.

Since a ¿lysis of Bo¡ivia prescnted here cc ters on ffn¿nci¡l Listory,bihliograplry (hi.h i,llorvs is b¡srcallv ¡corx,nri. nr n¡h)re. For bihln)gr¿phic Dr¡idi¿ls o¡ lind refom. tLe re¿der is ¡¡dvised to «trsult JanesW. \Vilkic. "Bolivi¿n l,and Rclbrm Since 1952: A St¿tistical View oiTitle Distribution,' m,rnuscript, October 1968. Politic¿l bibliographvmav be ñllnd in H(.rbert S. (lein, Orig.¿/r de lo RtDoluciónNucionol Boliiain \Lá P¿z: Edjtorial Juventúd, 1968).ind J¡mes l\1.

Nlalloy, Bc,livia: A Sludy in ltelolution.'Piltsburghr Ph.D. thesis nlpolitic¿l scienc.. U iversity o, Pittsburgh, 1967- Ilclpiul econo¡nic andgeneral bihliographics..especti!.ly, are provided in (lomelius I{.Zondag. I¡. tsoli{ion Elonon¡\,lgil i965i 1?r¿ Reooft¡rn)n ,r[d ltsAftennath lNew Iork: Pr¿ege,. 1966); ¡nd .\nericaD Lriversit\',special operations Research offfce, u. s. AtntJ trondbook lof Botixitl(W¿shiDgkin, D.C: Colemm.¡t Printing OlÉc.. l9fi3). Also seeCh¡rles \\'. Amade. Bc,livia's Social Revol,rtn)n. r952-I9;9, .\. Disc¡rs§x»i ol SoD r..s.' Jou »r al oJ l¡¡ttt.^ñeri.o¡ Sr¿d,¿s I (1959) 3at rit)2i

80

Valenti¡ Abecia Baldjvieso, Ilistoriog¡tfra Bolir)iana (L¡ l'¿z: EditorialI-etr¿s, I965)i ¡nd lterh.rt S. I(lcin's ¿rticle on Boiivian historiogr¡physinrc lB30 iD Charles C. Grillen led.J, Iatin A,nerito: A Cride toHistoric¡1l Literuture. (forthcoming). l'or ffnances. see Ceorge Iack«,nE¿cr, l¡ilution a¡d D.ctlopntn! h l/rtin Añci.a: A Otle Sht¿y ofItilution an¿ Dt:aeLaprnent i,i Boli¡io (ADn Arbor: Gradü¡te Schoolof Busnress A&ninistratioD,University of \licbig¡n. l965).

BIBLIOCNAPHY

lrEMs LrsrED beio* include not onl) c¡tations iD the text but D.atr¡i¡lsselected to sho\v varioús views:nd analyses whn.h htrve a direct orinrlncct reltn,¡ to topi.s dcveloped in this hook. Thus, for exampki,¡ number of anti'NfNR sDrls .re inchded alo¡g wjth the public¿tioDsof the Revolution. Nl¿ny ¿utho6 who oppose the luNR do not go be-

Iood criticism of vn)l¿tnr ol ci!'il rights, but siücc th.! sp€nt yeirs inj¿i1 or iD exile. p€rhaps it is understandable that the) were in no positioDto rn¡ke ar¡y deep socialor economic evalu¿tion olthe rcsults ot uphear.¿l.

In .rdllilir»r Io the Hisponic Anlctiton Aeport, three nes,spapers (ElDiorio, Pr¿renci¡I, Nel¿ l'o¡i ?i,¡¿s) were most helpful in complcting

Acddenlia N aciondL rle (lie¡¡¿ids. La Paz: ltlinisterio de Educ¡ción.1960.Alborta Velasco, Guillenno. ,l Flaedo de h Infaciti^ lÍonennia en

Bolit io, Poís ¡Ionl'p/orlürl¡lr.. Uadrid, Editorial Románic.t. 1963.Alex¡ndef, Robeft 1.. 'the Bolítian National Reaolrtíon- New Bruns-

$ ick, N.J.: Rntgers UDiversity Press. 195¡j.Allia¡ce fo¡ Pr¡)grcss, Comjté I¡tenmerica¡o de la Alianza para el

Prcgreso (Cl-,\.P). í,1 Esfutno Iñte¡no ! las N¿cesi¿ades de l'inan-ciamitnto Ertetno po¡u ef DesatrcIlo de Bolirio. Yearlyr U'ashington,D.C.: mimeo.. 1965, 19ti6, 1967.

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ritul ¿elSuht:omité del Ct-\P Sobr¿ dd¿,o¿rr. §rshiogton,D.C.: ñinreo. 1967

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Allian.e for Progr.ss, Comm¡ttec ofNine. llr¿asutes Desig¡erl to Sp.e¿Econanlic D.DeLpm.¡tt in B¿lhia u^¿ct the A?idn¡:c fot hogttrs.N.p.:¡nin)eo.. t962.

Ahnso, lsiLlro, Cü¡és Cr¡rrido. Ifons. losé Dammcrt Bellido, ¿nd Jtllio'l¡tiÍi la ltblid .R Pe i y Boltia: E.rtr ctutat Lcleliórtitas.y¿ilrid: Offcina lntenl¿cional dc lnvcstig¡ciones Soci¿les de FER¡lS

¡lI

(Federacia»r Intentactunal dc los Institutos (iatólicos de tnrcstigaciones Soci¿les v Soci., rcligios¿s) and Ccntro .le tnlomación vs,,.iñl^qir dFlóul,r., J.t ôtr"'.r,,I\ .rJ.r rl,o( \ll.\.. lqhl.

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Hantlbook fu Bo¿iür,. §'ashnigton, D.C.: Coveñment printn¡gOf6ce.1963.

Anaya. Ric¿rrlo, N¿¿ionaliz tió,I¿e LtL\ tlint\ ¿¿ Boltr,d. Cochab¿mb¿:Imprenta LDivcrsit¿ria, 1952.

Anclrevs, Stanlev, D. C. \fvrick. ¿Dd Clen R. S¿ms.,r. Bo¿,¡,¿D ¡gri,ulh¡e: Its Problems. Ptogtotns, and Pdsihiliti.s. w¡shnigton. D.C.:U. S. Dep¡rtment ofAgricr¡ltrrre, 1962.

Ant.z.na E.. Luis. ¡ll ¡Í.1.úni¡.nt¡) obre¡n Bolioi¿no (1935,I913). N. p..t966.

Arce, José ADtonio. Boliiu Bajo el Tc¡Ío¡isna N..i Fa.§¿is¿¿. LimalEmpresa Editora l'cnr¿¡¡, 19,15.

Arce Vargrs. \lüi.t. EstadístiL:a de la Diaisiói Palíticd Adtui itt¡atiDud¿ Boltt;¿. l,¡ Paz: \lhistcrio de Aslurtos Ca¡\resiDos. 1951.

-.

Manoerufu t:stúrlístico tndíW t de tsoliúe. L¿ Ptrz: Señi(io(l.,oper¡tivo Intü¡meri.¡no de E{luc¿ció., 1 9,1,1.

Argued¿s, Alcid.s. Obre\ Campleta:|2 vols.r \féxico, D.F., Aguil¿r,1959.

,{madc, Charles \\l 'Boli\ ia's Social Revolution. 1952 1959: A Dis.,N-sn)n of SoLrrces, J"¿¡n¿rI of Inter-t\n.tican Sütd,¿' I (tgsg) 3-tr 352.

. (lo¡nrn¡Disn in Boli\i.t, South Atlantic (rru¡tcrü.t -D3 i1951) 153-

-.

'lhe Historiography of Colonial aDd Nlodenr Bolivia,' fli¡I¡r¡t¿lAnrctic¿n Hi:btical Reoi¿i¿ 1211962)333 38a.

Averango Nfollinedo, Asthenb. .Asp¿ctos Cenerales ¿e lú PablaciónBoliDia,la. L^ Put Editoriál Argote, 1956.

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tsal.ázar, Juán Nl¿nucl. Las Proble¡nas Sociale' ¿n tsolil)ia- Und Misti.fcaLión Demagó gica: Iz M&taÜe" deCatNíLt P¿z: t-rDiverso, t9.17.

Balderram¿ l\I., Alfo¡so. El Trun\porte por Calfeterc. La Paz: Consqo\acion¡l de Caúnios 1962

Banco Centrál dc tsolivi¡. See Bolivi¿. Banco Ce¡tral.Barcelli S., AgustíD. Medio Sigb ¿. L&ch&, Sitdi.:alas Retolüciotu¡ira

¿, B.riria. L¿ P¡z: Editori¿l del Estado. t9$.Barrientos Ortuño, Cral. Rcné. "La I; .¡zat Atnla¡la, tú tisc¡ito s1l

I¿ca¡io ¡:oi el Sentiníe\ta Lle Liberu.:ión ¿l¿.s1r p"e¿,ld lD¡cursoen Trinidad l']¿Drpa,20 dc Noviembrc de t965). t,a P¿z: Direcció.Nacn t¿l de lr¡fonn¿ciones. n.d.

82

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tt.nsaje a la Na.ión . . .6 de Agosrode Pre¡rs¿ e Infom¿cio¡cs, I966).

.i¿ 1966 (l¿ P¡,: Dirccción

Nd¿iondl. L¿ P¡z: DirecciónI'to.:eso Histórico ¿e lu Rexohtció,1

Nácion¿l dc tntbm,¿cio¡¡:s. t r9651.Iledregal, (irillenno. llfonopolios Contru Puíses Pobres: Lo Crisis Ml'n'

¿ial del Lstaño. Nléxico, D.F.: Siglo XXI, 1967.

-

t 4 N ¡tcionaliza.iói il rrcra lJ la ResponsabiLid.td del Sit¡licalisntu.L¡ I'¡2rn.p..19;!).

-.

Pnblffia' LIc lnfiaest¡uctura. Réli¡rti Morcta¡ia y DesatrolloüuLónn:o en ltoLixil. L¿ P¿z: Corpor¿ción Nlincra de Bolivia, 1962.

-.

Rectlryración rl" lú !úircia Nacionalizútlu; Un Plan tu:tx¡luci'onario; Ijn Drunn de Produu:ií¡n I.¡ Pa7: CorPor¡ción Nliner¡ dc

Bolivi¿, Dcpartamento dc Ritaciones Públjcas, t961.

Bectrega], cuillcrrno Lrnd Goose¡ Broers¡na. l:l Conxe¡úo litetnaciotúL.l el tlstaño. Eúltrción U Tentleicia de los Ptccios d¿l lt,¿.1n., I sP..chcstu 1961 by the ¿utl,ors. r.sp..tivel)l. l,¿ Pa,: CorPoración \{nicra.lc Bolivi¡. n.d.

tscltrá¡ A.. ! a,,sk) ¡nd Josó Fcrnándcz B. .;I)rind e ú la Reforntt Agtarialtoliiatral l tL P\'\?.: 'l Álleres a;riffcos Bolir itrnos.1960.

Bl¿iscr, Colc. "Shrdies of Social Rcvol¡rtr»1: Ori¡lnrs h }t.xico, Bolivi¿,¡nd (irb¿,'Ltr' A¡r¿/icun R(sertrr:h Reríea 2,3 (1967)28-6'l

BhLmgart, John. List of Econo¡nic r\chieve¡rcnts Rquested By Pat

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Boli!'ia,li¿nco Ce¡tral. ¡I cnoria Anual.Bolivi¿, (l(,ns.io N¡cit¡n¿t de Estabilización \Ionet¡ri¡. R¿Por, ú,

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- BaLatín Estadístico, l.y etrly).

-

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-.

'Cel¡so por lrlüestr.o,l963, rtrrpublished.

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Con.e¡cio Eatetior (ycarly or irregularly).

-.

Erno.tu Estadístt¿o ¿¿ Bolioi.J (v¿rious voluúcs), La Paz, 1936.

83

-.

t\rlJt tión¿( Pol)ku.it; i, 1e50- 1t)62 [rn¿n¿]gErl.T,¡l'¡2, I!)ii2.B{'li!i¡, Dir.c(rln \r<n,n¿l J¡ li-s(r.listrc¡ \ (ienn,\. (i]¡sc -'lg«,/,r-

( ario- 1930. L¿ P\2. \\)if).Bolrli¡ D¡lr.niD N¡r'n»i¡l dc l¡,1.ún¡cioncs.

î hue¡on lus Llet'

Lioñrr ¡1t 1966.l.¡ l't¿: l'rusjrl$n i¿ de 1,, H.pÍrbli(,,, l!)G6.

-.

A,l¡Ln¡: /a) r\,i¡\ ¿. n.¿i)¡¡¡.(,n. I-t |J1 Bii)l!)r(cr llisl,)rL( t(i,ltura lJ.,líti.¡. 1962.

Bolivia, [],1,)t¿ N¡cnr¡l dc Pl¡¡c¡rdnr¡to l, l'l¿¡¡ t ]¡ ur:b¡nl tL. 1)cstrtull.Lú¡l¡;h1il o tt S.cio l. I 962-t t)1 l. Rr \u útt t L 1,.¡ P¡2, I e(j).

llol,!i¡. \1i,,§terb de llco¡¡¡,¡Lr N¡.r)n.¡1. I/ tiltt, rút;t l'tcuú1 Lconiuicu Llc k¡: L*ulos L:nklas ¿t .\ttlii¡:t u BaLitin. t'¡ t'¿/.:Ctttro Ardnr \-isu¿1. 19iU.

- l/t l'nlutnnL )\:¡¡nrdo ct¡ t!)t)3. Irr I'.¡2. 1963.

-

P(,sttl titt6 lttt Oft... B"üt.td ul l'",^¡t)ri\ttt tiPaa (.t l)r\u(tñ \'isu¡1.1962.

B,)livi¡, Ilinist.rñ ile Er¡»ron¡ir N¡cion¡lil SAtl)_t'].. D.P¿rlx,nc¡n)d. CoordiD.¡cjón \ (bnrrol dr Provecn,s. lufor»tt tlc Ünnn s 7'r ltC,estio¡ I9(i6 lcor¡ .L¡t(,s dcsd. i9;9]. L¡ P¡2.

Dolivia. \lrristcrn) dr Itaciend,L. hú¡ e ¿€ btlx¡l\ l!s6 ln6tl. l,¿P,iz. 1960.

-.

Pr(süyut sb C(nt 'rdl (\1 ¡r1\ lts,)linia. L¡ ifirni,¡

^.,¿nu,rct rn BoLirt¡t- Pt.'yer:bs t Inlo n.i\ t'r.\e¡t

tados alSupreuo C,kiern¿r. Lr l'¿2, I927.Bolivi¡. I¿ i'l¡:to/¡¿crj¡ ll¿t:iontl o trutls d¡ srs Dettetos núr lt]xtr-

t nfcs. Tt tu r't Ana ¿r lt Vi.n)¡tu ltn iú'ttl A. Ar¡il t-, P¡z: B,,rill{).I955.

tsolivi¡. Sccret¿rí¿ N¡cio¡al dc l'l¿nifi.,¡cion v Coordrn¡ciú. tl¿¿nt¿rt\"-" q, , L B,,tit tt. 1e',\.|'a'i L. 1 .,/ LLlil, , .,l ( 's ¡nl, lrtir'

- Plah tsit:t\ll ¡ l)Lruú,llb l:..h¡;ñie y Sdio¡.19$5 196ti. t:t.-

:untenlLcrstúr prtlmndr). 1.., Prz, lgii:)tsoli\i.r, Supernrtendoi.i¡ d. It¡ircos. Sittu/cióñ o\;tücu ¿e BaLlxiu

l9:]7-19i8 L¡ P.i llni\.ô 1939.Brill, »i)li,r¡» 11. \lili!nrU hnt¡t(¡tk), üt tsnlnxt Ttu ()xüth¡¡tu oJ

luz Esu nrsoro o,1 ¡/¡¿ .UNlt. \\:¡shi¡(n,,i D.C.. frlitute f¡r theClonrpar¿tive Stud)' of Politic¿l S) stcms. lgtj;.

Bror:rsm¿, (;oose¡r. Er¡nucnin \ le dctr!ir ¿e los ll.rios del t\l¡iro,E.\k¡;¡o (Ottt¿t, Ofr.i¡¿l tu li {)otpo k¿<)ü tt)Nru d. Br,/ntu),\oven,h.r l)ecd¡ln.r, I96l..)I 60. S¿¿ ¿ho Cuill.rno Bcdr.(¡l

Bmv¡,, A¡tdrio. R.sunt d. los ^ctiri¿d¿cs

d?l S.rLicb Coopt utita)t t..runúji«uo Solud talblira (S(:ISt'1 t,1 BoliLkl 1912-1959. t.!l'rz: \lir¡isk, n) d. S.rh¡'l hiLl¡.r. 1959.

81

Cabrcr¡ Ronero. SiDlbr)so. la tsúrocrú.ia !:st¡dnguLa d la COMIBOL(InJorne de Inbores t¡no Ditectot Obtero de l¿ Catpotdción\tnúr¿ tu tsaLitia) La Pa?, r.p., 1960.

Cám¡r¿ ¡*acn¡nal dc I¡dus(ri¿. lr¿r,¡¡o¡id ,{,rü¿1. l,a P¡r.C¿¡di¿, Alficdo (l Bolil,io: Lin Erp"timcnto Coñti1istu en h ñné¡ica.

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C¿¡elas O.. .{m¿do. tÍita ! Realidad de La ltrdüstrioLizo.ión Boltuiatñ.l,¿ P¿2, Editori¡l Los Arnigos del Libro. t966.

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-.

l:L Prcsi¿ente CaLga¿a ( tlistatia Bo¿iridn¿). ltuenos Aircs:l-iJrt,,riJlIorg, \lI ri /, I Lrtjb

Ch:i',/().r,, \',flo \a¿l¡¡.d,/ Ln, ",J¿l¿ B4olu,nt\a,i dt ysú L'toqeui¡;n húr:io (l !'ülüro. La Paz: \lNR, I965.

Cl¿rk, Ron¿ld J.'Land Refonn and l,easanr \lark.t Participation oD the\orth Hiqhl¿n.ls of Boliria," prelim¡rary rcrsion, P¿¡r AmericanUnio¡ ¿nd lDter-American Cotuniltc(' lbr Agricultural Devclopment, lu¡rcb, I968.

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¡17

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. Colltr La Rest¡lurucititr pot ltL Reúlución Nacional. Lnna: n.p.t9ti5.

-.

Dis.ef¡o IntuertuLl ¿¡i:irlo tl ha,brable C.,1gk:so );dt:i¡»n\,6de Agasb ¿e 1960.1,¡ P¿zr l'residcnci¿ d¡ l¿ Repliblic{, D.d.

--

Dircut\o\ Patkon¿ntatios. Lt\ Pu. E.Iitoti¡l Can¡ta. 1955.*. Discúrros \ :tt.ns¿j.s. Bue¡os Airesr Edicion.s \l.ridia o, 1953.

. ¡:nlr1\'ist¿s de Histuria Or¡1. S..r J¿¡nes ¡rd lid¡¡ \1. \\,ilki(.

. lmpctutixo Ntcio,tdl d¿¿ lfom¿n¿r). N.p : I p 1965.

-

rlr, ñr,$ r ilrr P, nr.J..r,L \ li. tqh..

--

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,¡¿1. L¿ l']az: Editorirl Sl,lC. 1956

-.

Mertaje dcl Ptcsi¿ente d¿ Iu R..públicn . . . ul H. oo,lgrcso Nucittn¿¿. Lr I']¡z: Blrillo l96l

-

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. )Iensaje deL Pr.rklente de kL It tptiblicd . . . tl rt. (bngrc\a de hNd¿ini¡. L¡ P¡r: Dire..ióD N¿.1(,,¡l de lnforr¡¿cio..s tfl63

-.

tttcns¿j., del Puidctte cle h Rt1úbLita . . . al It. (hn{..so Nacio.

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--

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-.

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97


NOTESr¡or¡n I

^hlndo, 7h¡ jlr,(o' r¿¿r1l ¡,¡¡r'rior i\!E n.ur{i1.I. \.1; ndaús rlivo

rlqD nernn)n§. le60), 103 176.th." R4 ahtio¡ .n¿ |: aft¿fndth

)d t:.§. ¡!enci¿5, rhe rde¡ s¡oul¡] ¡oic thar s. h¡ve P¡evnied

rs.. (ioD/Jo \L¡n!{, ¡¡o¡¡.¿.anitna¡a .ie Ptnrin.acnt¡ tion¡r¡ül q so!r, lv¡\iq,, l).r., sislD xxr, 106?) PlJnn,e ¡dlo

ú¡ ¡ed ¡i¿l}5n, .srüorrit 5

(re66) rr¡ 272

:J¡n.\ C. Dali! _lowrfd { 1'

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(h'dco crt!, tr-.Y., Da'rr.d¡r, red3l, ¡i7is.t tun.ñat h¿ \ ,\t.âútq s., s¡ñ.i¡.r rvrii¡ ri 06

s(i.i1 Doo¡m.trt 33 (reí6) 1r6 11?.

llntI!ñl', shshinÉbn, rngn{ ,, 1963),

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o.m.!i L,.tn, ro, the n6t p,nt

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99

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Irolirún l).r.n)potdú CorPo'atnn,l.LL¡ l)a r dión B. 1i1,¡¡¿¡a ¿. F.

an,l drFnd.n{,v trpon furiSn s.cbr,

r.lrtnn to Pnvat( s.'L)r, n):, . i5r.org¿rnation of, n' n,Llu¡r Privatc

üolni¡¡ Ui¡rng (j0p.,arion. 5.¿

B0l'via \¿rio¡"1 R(\olurñn. t¿.Rdolutnr of rq4¡

Bolnia¡ §i¿n' ()il Con¡¡¡n! 1v¿.n,nr¡n\ P?t¡atil¿t o. Fi\.nt¿:,,lni¿¡., s¿¿ P.úolcunr

Bolnian st¿risri.al .\g{rxv 1rn¿¿,ió¡G¿¡ettL.le Ln¿¿i\ti.a), r, 1, 1,9

xn{t.o¡f r¡t rLrnrs.l.urr".}, taDI.,

r.lation of, io Pts), '2,5,Innr s. r/¿ I\rlri..icbtIt,!lg!r¡ry suI)por. srr rJs,\ID, r.'t

l,udgt(ary supp.r of Cenkil

105

atr{l arlninisrr¡¡ir. b¡dB.rnrg b}Ccnrral Corc¡rm.nt, riv, r6

JD¡ amouna dPr¡{led oulsidr

pr€se¡ritnm ot Yiv X3¿nd p,ogrrn hn,tg.ring, xir. rr. ¡-¿.

d¡o Admn,isürtir. .\p.ndi.u¡.iCapital.\pcnditur.si C0ryniar.¡ r...trnrin8, ¡.0¡0n,i.

¿xp.n,lnDrei rlxp.ndirur., c.¡ú¡l C¡^Útrrxr ; Programbudg.tn,gr l,Ioj.(td exprnrliturci So(irl.xp.n(innr(

¡ (l:o.i¿l ¿xpe¡dnur¿ ñ 'gjos ,q

rs ar(¡or a¡rlrzn,g !snID srppoof C.¡rml (;or.rnmo t, rr, r3

(i3pitir tr¡rnditnrrs, r5 ta,ia s.. aha

^dminú.atvc cxprDditun,;

(u,r rup.n¡lúnr(§r E.o.omi..rp.n(lntrrri Exprtrditure, a.n!al(br.nrm.¡r: PnJgrtrm bu(tg(tn'(iProj(.r¿d ¿xp.n,tirun.; socral

c,¡rtu, Fnn¡,8, q,1, n.4&' cub¿

cBt t.ootto,t irt Rotii'ut ¿tFu ¿ o) s¿. Bol¡ian Dd.bpm,rrc0rpor¿iior

Cr.r,s, populatnnr, :7 29trrtxpl]nkd mdhúlolog,v 0t, h r950,

'o, D 50. r¿¿ a¡, srnpl.(l.rrx

(l.nrral (;olcr¡n,tnt of Itoliria. S.¿Exp¿n,tnur., c.ntal core¡nm(nr

¡r (auy of nrfiarn ,,lsrfI(r óf, on ad¡¡inhrratn( rxp¿¡{li

.ll..r of,0n ,\u,lit Drparmor ir

.flc.t of o¡ poli(nr of ñf\R, xirrrf.cr.t. on,a¡,1ln,g of pri(.

exp.n¿nu,.\ rl{,in8 f,3 5{r¡¡ rin Pr0du.rnD,51c1

rs nro.l.l for (lerrlopff:nt, i.1cnil tv2r of,a1a,6 !2.5.1(:{)\lfBOL l.ú¡fornión t\l 1¡¿rn d"

ain¡nodir¿r .\¿¿ ]\8,i«hu.al

2nd.xFndirurc,Sraph, 21

(innmunúm,3, 9, 52, 36, J!

¡ (l lorign 2ii. Aatricnrot virwon.37

Con,munitl, d.¡.l.pm.¡r, :q rN(r),tl,tn:utión ¿. hnlkra:. se¿ Ta\

c()\.\§llP() .§.. corPórÍion ofP{,puLr sdbsisi.n..

(,on!,lnl]rr¡ a.countinShv Cmtral (;oveDncnr a¡d r¡.tr

¡ralüe,t aBcn.i.s, 18, 30 1', ,r1 ¡4,

'.3 n 30. s.. {^d BudSrts

L I n b t h» i o¿ n ¿ f al. s¿ ¿ catn¡f oll.r

(l! ¡r'ollr, (;rn.,¿t 53rnrl an{lih,75 s¿¿ ¿/r, Andir

(i» ¡o, ¡rnh¡ u oliti¡nn.]e Forn¿nta(aB4 s¿. Bolirian Der.lopm.¡i

co' fo'r.¡ó¡ Mnint ¿¿ Raltuia. s.¿

(r(rporari.n ot Popular substuten.e

¡'kl onnnunis dcr.lopnr.nt n)

¿s f.(nn nr.xPLnditür. bv B.li!ia¿¡rt lrS{ID, r\ii, t.t 75

n'rr{ig2¡&l b, tl S s.narc sub

i'trlr\ of. ,9:r, ,q66, rabl., ir graph. i,

ItSul tnn, o1,tlr. J..¿¡¿ I¡rark,n(i»nkrpin fu¡rl§. 1.. Lo.Jl (trrren.l

Crü)¡ ü, ,.1. r¿r ¿1. (iarr¡, tid.l(iurr.nc) rx.l¡¿n$ rJns s.. ¡)olr¡r

(ir¡'r.nt rrpú{litur.\, ,n,7li. ¡_.¿ ¿¡d\dmú,ntrarnr rxpt {tirur,;Crrpi(rl.xp.ndi(rcsi Economi.exp.ndirun r F.xp.¡(lirure, crntral(n)v.nr,¡¡n¡i Irtrndn,r., Is1¡l):PtuA,¡n budgrrn,g: Prolc.rdLrp.n,litrc; soci¡l.rpcn¿nDr.

and rh.o,) of 150luln,rs,I 1. ri

r06

tl(.nrr?11¿c{t ¿gc¡cir\, ¡6 r3(i.¡rÚl C0\.r¡me t sübsidi.s t, ro,

¡nd (t!r'3r-¡rion, r',¿nd r rp(

"dúu'r. r'! t\pr of cn'phr:ir,

6nan.,al nrlrtrc' d.¡.. .f, Irom Cr¡ir¡l (,o1.n'¡.nr ror tr ¡3

¡¡.1 p¡»r ¡f\R 8,n.'n¡r.ni, ,il.i.lrn¡ fnr( tlrnnn!8. \Icxi.o a.,l

Bol'ria roi.par.tl rg, {l

0f Cc¡rr.¡ (;¡ndrn,Ir,?

hnrn.irl rorc of, ,n :§11¡rntrr ol. bl().a1.'nd n"rnrial

¡)rprrsi,D "f ,020. r^. 'q.rlict of. qf lkn,vir, g

D¿railrd \(L.urt Bo.ks, 5i,1.\.lopnt.nt ¡.o,n Fu.d, 9I)n..tiói Cei?r¿l dz E.tdditi.a S?¿

Bol'\i¿¡ Stari§ri.at .rFcn.\l)inlar.(.fttr"9¿ r¡trr

" '1,9q" r{

aDd irolnian R¡\otutior, 3

f, an.¡,r¡.1r ¡A.s s¿. iP..ialltErnn¡rl,d hxo 't¡Lonori. Co.t.Érn,) {dminisrr¡tnnr.9

¡.i¡n. )r i\p.Ddirnrrhv (l¿r(¡l (;ore,n r(r, ,,1.

'4 r6,li,

u3.12 lt;t?Üt6, e', in 6,, ri3 i3

t rxi.rn ,ind Inni!i¡".onrf¡r.rI

hl tISnlD q r, ,1 12,13,.1¡.rqr¡27i tablc ,o s¿. a¡o AdDi,ristr-rn..\pdditrr!c: Au¡geki( xt,i¡i¡ raF.,nlii .(\; {]lxrr¡crp.r,litur.si r rpen{lnu,. ( cnúrl (](^.mmertr Extr¡(lnur.,Us{Il)r I'rojr.rrd.x!cn,li'ú,.;\'('rl,,rprnrtr¡u(

hnn ¡rr rud) b], !r B.lni¡..i(rd

rn,t (-r"¡ir (;d.n»¡.nt c\tflxl't'rc.:,t; grtri,h ,,

h¡rnd¡l núdvo¡, rir$,, 79

El(.tions, p'.\nltnrial, rüi

rn!3 of r" Pa¿ an¡ ]!¡NR powc¡,

Ex.htrng. 'r(( J¿¿ I)ollir(x.ha gr

Dxpen¡ilurt r_d¿,\¡ñn¡nkativee\P.¡,iirurei BudF.rr; Cat,ital.x¡.r!li¡ui(s; ('¿¡:Q¡ (\pr»d¡.runa, E«mooic Lrt'etr{titurc;Extr¡núur, Cir"r¡ii (;overnme¡t;Erprn,lirü'c, tis,\lDi P'oje.hi.\prii,l,ru,ri S,n'rl úxI,ttrdirDn'

Lxpr.d,,n,.. (,crú¡l t;orcrnm¿ür, rrü,

tr.rual, '1 ,ri ,9 !6,53 n.t ,o, n..r2;t¡hl.\, r,,63 i3i t¡r¿phs,20.1¡

i.ru¡l jnr »ioj..r.d. n¡ .ur '.n

r ¡»d(l¿f.L«t (rrms, irblL, 16

a¡d.apirtrl and.u,r.nr.xp.ndnur.s,

.ltrsilnr) t1 t\p. ot¡ nrphasn,65.6i(ort¡

'rt ¿ !, (l(p1,inrr,{3¡.ütl,i,

¡n,t rcnv,lniarrd ac.ounrs, r6 r3a¡d ¡ír"r,¿lized ag.n(i.s, ri.r3,

.lehn.¡ l,r §!c oi (mphas¡, ,o, ,i,

an,t fr,.» poln) of. rlat,t6.ll,0.rtr,))l r»Jlrs8 o,. l)] r¡,rral

cú\!' nnrc¡1, t,l'L¡r. i6ftlr.rn,,al ¡¡nlYsú.¡, lo¡ rudl.f

rYPltr'lnurr '.1 'rl¡.¡ i"flu(¡fu 1s.,.rr,',1. {!

NId(."' ¿u(( Solirix¡ {.mpxr.d, 13,

.usnlrof t)n,lgtr, ic ¡r, i5in p.r{dl,ir¡ ¡ermr, "i :qi tahl., rq

Prol.rnrl, (rblcs, r¡ (,rrnll ¡uhli. xtrd p'náte srLtors, r? ,3nunar(3rn)¡ of pat¡rn of, ,7 33.

«¡¡.,1 nr ni¡r polrt, ¡q 4rr)ur.rs t1tr ru{l} ol, rr 51,73

¡¡d snr"lics ro ,l..rniral;e,lra. ocs '01). i.l

t0?

Exprndi!ur.. (lcDtral (;ove.nm€nt

bI ltpeofemphrsis, ,95o r9ít, table,

w¡ a8.orerh€ad f2c10r ñ xvii,7.17!. )_¿¿ ¿&o ,\dmn¡is.ativeerp.¡¿itrtrci Capilal rxPodi.tuÉr: cufe¡t cxPcDdnu,cs;E¿oDomic c\pcndinre; Pr)8,antl,u{lg.tnrg: Projeden rxpen{ii.iur.r So.ial exPcndirút

¡rd Ianltl k«n,l krepi¡8, i3 toñnrLtn)na¡ anallsis ol,9 ,o: table, ,.rnn.ts lor rudyof, g

' ', i3 79$rr,Srorcrhcad Iactor ñ,74 7r J,¿

¿to ¡l.onomiL expt ditu'.;Erpr¡.lnur.. (lcntnl corernmcnr; 1l\R, rnd U S. nid; So.ialdPc¡din,re:lls]\lD

Export Impo.l B!nk,9

dirdsilicari.n of, 2nd Par, 1cof .nr,30 :Jj,li,,t4r tablcs,qo,J,, J.t,

ot u,g*o,33. J.¿ ¿lro f in

of prtDlcunr, ,8, ,9 (S¿¿ ¡60

úf tin. xiv (.1¿¿ ¿td Iin)

re.lerat R..orr1s C.nler, i3

rs faltn nr analy?ing lls'{lD suppor¡.f (ientrl Golcrnm.nt, r?, r3

r.n¿o con t ) ib r. ió ¡ Patió Li.u, 5X¡.n¿as ¿.lttro¿n,,.\rood fOrIL¡... S¿¿ Puhli.Lrs 48o

poli.,v, iiii, 6, 3 ¡1, 2.1

¡or.i8n inv.rmrnr,13Ia7,: ctr.ou,¡gcmcniof.j6,,o? r 60

Forcjgn ()pd2tio¡s Adminisúarn,,. !lri.,lmann, Wollga¡EC.

rudr b)_, on iniernarionJl fina»cial

li,ncrn,,al bu(lg.ring s¡¿ l\ogranr

(;lnern r¿¡t, Nfi¡istl of, r5,5.1cDP. t¿. cros l),,rcsti. Produ.t(;J.s Doneni. Imdu.r (cDI')

tr¡d r¡bilizr.nnr prcgrn r, t i

(,fNs r)onr.ric P,, u.i /¡0nrr¡¿¿¿llrn¡ oil prr¡uLrntr¡.3:J

f¡»\irrr1 g,{trrrh oL q

in r.lJrn,r r. trs\Il)indd(rDrarr/(1ag!n(r.s r8

r,1 &'.t)r.,10. 13i t¡r)lr, 63

hu"n¡l rutLl otr. rit(L i!

¡s Itrcro' in t 5. ¿nl o Boli\ia. x6(¡rar,tr, tih. lr:n.f.) 16r¿tni,¡1. ol. fd &nnirn.p.,a1n,,s,

r (l (:,ril\l'rr.f 'q1q.,,¡¡¡l \.iln,ni. s 11

3\ r r.J1r{l l)1.1P.'¡litúr,,i. l¿¿,¡,,\{lmü,isú!tn. rxp.'¡litu,.iE..r0Di. Lrtr.(titu¡r; Exl,r Jiru,c c.nrr¡l (;,nr'¡m.ni: s..i,l

IUI; t.. Inrcrnarn"ral Nknretarl lun,l

of $h.¡¡, Ohlir¡s |rl,'¡( t rn'$.n.17. 'oo.. 23 Jn,i r(i

of (i ! agri.ult¡¿l.o¡n¡oditirs. ,1.i3 5.¿ ¿Ao Pulrli. Law 48o

rñt.t of, on ru.lú,7i

nnpn(t 0r. on Roln,¿.xiii 3

r¡r. ot. ,ql' 'q(ilj,

rrl)l. Janrl $ial tJ*nms, 1{¡nd rar c.mp.nsltnn, ,6 5¿¿ dA!

(i.s of Lnnlgr §r¡bili,rri.nIntr,ntrrio¡al Rrnk ñr R.L.rr,ucrion

¿n,l Drr.l,)¡nd't (1\io'ld Rank),

l,rtcr¡r¡onal (lo.p.rarn"r .\(trIn,núa

bil)liogrr!hr.l (n.(1, 79Int.r¡rtional Mo"etal rund (l\fI)

r¡rl Ct¡rral Cd.rnnxl,r poln\, J! l,l

InrJnlnm lnr (ir¡(il. ,or ¡ fi

108

nadl hv,0n Ü S ¡i.l to T¡i$a¡,

an,l L\A¡D, rú" 2i¡¡d U S. domeri..xpodit¡r.,lro

nurll bl on,n!n'ationrl rinaD.irl

ru,l) l,r,on trS. budg.r .nc¡,30

l,,blioB¡!phics l,y, on ¡loliLia, cit.d.

cfic.r ¡f,.tr tin prn.s,32,33

and {0r úllnn,8in,llx,,h¡an(inl impo¡1]n.. óf, ,r,:6,2q

d.ptr(n,cnr(rc¡t.(1,,!,

trnd'kork¿r.!¡tol," 3tLard r.l,rm, ,1 ,1,4,, roo n.:3

rs r¡biliz2ln,' Pr,8ranr, 6

I ibtos Ccntaliatto,¿s ¿e Castot 5..Dcr¡iled A«ou'ú B.ols

¡,idl¿ü¡¡.n¿¡ i,¡¡g.¡rú ¡r '¡ i) it ir

p¡nitn¿l l)¡bln,8i rphy bl o! Bolni,,

¿s nd1o.ri. ó¡ prugkm l,u(¡gc¡ing.

and rh¿ory olr¿!!nutjon,.,

nt BoLni¡r R.L!lurnrn, ri,3in r.laiñn to ..múúnisn. 3r, 16

rudy Úf, on inrcrn¿t,onil I'nan.ijl

on U'iAID ro Bdl,via, ¡,

¡le\ian R.\01ü¡o¡,5, 38comp¿trd witl Rohiln R.rolutnnr,

.1J

xn,l (!!r(tr,,it .\1,(f,rix ( s9.Ira¡¡ n,f duti,nlrltrIion of tloliri¿n

ReLoluinm riiian,l prlrli.,lrbi J,olnl {1. \¡. ¿Lo

Rr1{lut!r' .,f 'qÁ:,

RLtun¡(di.

lnkl8d,r\ n,rrhr¡s of, ']i. .. ¿/r,¡.rp(urliru'. (,tnúJl (¡N0núr.¡r, NIi ri.¡¡ and Bolr\irnco'¡pa¡rdi l\lc\nr Rrvolution

rn,l.nrlian n,iliu,,. 8.rrj , rp¡r¡¡lj,!r' g¡¡¡¡ rl

.{P.n.litur.s (l¡, ing charo \vr,,53ind fJll of NI\R \iii.1ri, {1

prolcsi,",rl ro1. or, ,01n.17r01cof,rn.L '!lo. riiii rt t .s .6rkr¡iL(L.q

rxdD¡,ic"t»,ocn 73

nlinnrg, ,3 ro? n.lt. §e. ¿ro

rxp.ndnurc or, l,\ Np. oi.dphasn,

\rn)i*'r.f (-r)DmunnJtio¡. t.¿

lUñGtrr of F.r.isn Afi¡irs. s.¿ For.isn

[rinñt] rf (;r{.n'¡'Enr. §¿.Corcrnm.nt. Nfnr¡try df

Minist) ot Na¡id,rt Plannnrg. S¿¿Pl¡n¡,ng, \fnrrI of Nari.nal

\linir¿rr ot ¡,uLli.rl1rts \./ ¡,uüJi¿'$rorts rlrinG{r f of

NIi¡is.y ñl thr Tre¡su.). t¿¿ li.û,r_,

NINR (Nbviúitrtu \J{:iúnrl¡«n

¡nd cnil War of rg.tq,6 22

and f¡il¡rc to t¡lrL popul¡rn r ..ffus.

frll of,,n ,964,xiii, xiv, nrt

a d lnt¿¡"atior:¡ Mon.r¡,) Fund,,t?

109

Posil)lt ,.runr tu Po+cr of, xrtul,liL kretr t).li{r of, ,7 ,3st)lnrro 8i{tr,r.f.8. 11.3h, {3.¡(l r¿n polnr of.xprn(liri¡(, {l.unl t \ rnl q er, X6 J¿¿r¡, P¿l

¡itens0r0, \'i.tori Srar.

I'lnr'¡inA: sr)t poln l\1. .rtri\ nrbili/¡rior J./

strr)iln¡!.f l,r.grrn'\r,^ in,nrrt) \¡Ln¡ralnra R.rolr

.nn¡¡r tu r\rrntr,¡l R(oluüonarYIr,¡.'¡.nt) s¿. nI\R

\1nni{ilr,l *o1r, ¡r.ns 11, 1q. 18,.16lInn,¿l nrnrir\ \s.n(r,rl

iurLr 1)\..n rnlb Thailand cii.d.iq\¡rn ,l Rrlolutnnrr,r Ui,rcnr.nr s..

\t\rr\rri¡mrln¿rn,r t.. ¡:I,ro¡'iarion\.I fro"r,tr E«trr,¡i.s. ro1n 80

ru(l\ l,,v on (;urtn,¡lr .irrJ, i!.i\ !)n'.. l!¡ fu,lin'g Bolnirn

()\ a'!do C¿r¡i.'. 1lf ,.!lrl

I'rckinghrm R0br,1l.{n¡\ l)\ on I S xnt poti.!, Littd, i!

rn¡r l)1.o Eolnitrn t\p.frlrn¡,c

ru,lns l)r. on Ddi1i.,..ir(d, xiii.

BrInIrÁ\.riti.nm o1, rir'¡1.."úaln¿rn».1 go\.nrm.n¡, 25,

r.ononri. dnLrsilnarn,r Ix gun t)r,l1rn.l .{oron,iL ,rlolurnnr. il3i,(l f¡ll !,t \t)iR.xiii, xil 6, 36¡n,lgo,tinnrrnt rn, ¡1i¡arg i.lcr

in,l Intrn¡rn,,rl ñr,tr,rt r rund, {:

P¡7 rii."\v,o. Vi.br ¿dn¡nr¿nl

,'n,t olf.r n, S1 6 óf' .rr..in.

a"(loil P¡o(lu.rion 11

."nl l,l¡rnirg prnn.ms,lu. t¡ la.k ofn,nrnidnf iir.18..1r

po$,r)l.,rrüi¡ n, P.wJ ¡f, \1¿¡(t piesnl.nlirl rl(.tnr' oL!i,, ::rnd prn¡r¡ri,l .1,, rn,r.i

'glil,4Jlnd ¡rir¡rt inr.stm.nt ,r¡

.nrl !trirl r\¡(ndiru'.. 'q,2r,.1'¡n,l n¡l)iliTrrl.n pmgrrm.6. r1

on rn, prnr (lrtrrs..32rn(s ol .n A'¡D¡$a¡or st'phansll,

8 (\¿. ¿lr, st'phtrnsk\. Ben S)1n$s ol..n c\po, h ¿¡¡ impons.19i', \'ill¡,iltl gor.r¡m.nr, \n,l. r2.

11. r..,1ú \t\R

ru,l) h) .n.:p.n{tirurrnr Lnir«1Iii g¡{,n.in1l 7q

¡trd .\p.n¿itur,, rtr gr¡Ph ,1

rr¡ r.n.mit §Po.iin¡r., r9

of.xttrrxlirurt'.2t 2q

of (;n¡s lrdn.nn P'o(lrcr,13l,(rnünor !ul(.nlmirna'.n Inrrrigr

rnn's. §¿d t.S \.nare C,nnn,nreronco\ernmenr (\,rr¡ti0¡s P.rnran.niSurr..nn¡trr.c on

itrll ¡o1¡i¡n 5rrr. Oil C.,nt)rni,.1,.\Propriarion.i.,3, rqf.rigl n¡1.rmcnt in.31rn(l (iros I).nr.ri( Fr.¡u.i ,02 . 5iI,'0(lu.rnnr, in,l l', 31

l,lnnrnlg v. Pi!,gr¡m budgÚingi Srrtp1!nnnrgi sLto polic)

llrrnnrg. \linlr,r.f \riñ.)1, .lq

.nn Jtsot. vi 19i tabl.. 13 5..¿^dSr,¡¡lr(lrn{§0t,06¡

únlprii.\. J,.rr.r of. i'r k,liriJ dd

P'oblr'ns.l n((.sn,' n) ri

iol.or snr(.,gJo,riii. s¿¿ ¿t.El(.in,x, Ir'sntcntiali ft .,nk¡I\

0

.xPrn(l¡u'.§.1 uLlt\, e', 2fjlri of, i¡l)1c,62 s.¡i¿¡ro Elr.tiún3,

Pt.n4,t!a G)rJnt. \1 5a.. it)?¡ice jn¡,x 5¿¿ Cor of lnn¡8il¡f!a1ior

a.,l Rolni¿n D¡.loPncnt (i,Pora

ro.rli arn ¡ .1. $ith I¡hli{ srdor,lirr.l ¡o'¡.{iL an(l nr.igr.¿fnal l2r¡¡ nnrig .jlinld r¡t 11¡n(l ñ1.(m.ni n,LrntnG I'orr

¡¡¡ $xfrgf tado¡.7,1Pr,güm hn(l8rring,

'ri, tB .11.5¿¿ ¿¡r¿

l¡otr.nalrxp.tr(lnurchl cr"t'al (;ln.rnhtnt, ,t ,8 /,¿snni

,q :r;irxblts,16, r5 r;,rn,l liS\ll) ac(ual extLndirür., I I

ld¿ d¡o Ea p.¡dnu re, Cetrt¡l(;.¡ ernrx n Li ExPcndi nre,

PuLlic d.bt. '5,1.r,5,1,,or

n 3'Barri.nnx s ¡ir$s on, ,03 n.3r

Pnbli. L¡r.13o q ,.. rl r,1 llq n. 'q s..d¡¡.\gri.ultu¡¡l «,nrmo.litits

¡n,i (.nú¡lnarior.46an,l d...trú¡lned ¡grn.i.s, ¡7 r8riler's \irls on 1or ¡.3? (§¿.,¡r,

¡{irr. Gc.*elr.rson)anrl arc tl¡nnn'8,3rr, lt

Prhln rrorls. 'o' ¡ 19

rnd txp.¡¡itur..8raPh, :3

"r'uri6d R.L.lúnr " §¿. R.volutionoa ,qi2, püril,.d"

rn,l e{1a1.\u nlliiDr., tq

¡r(l andit Probl.ms i5R?|t! tt¿ i¡úd¿lt'0 Fint5 LÚe.nna.

J¿¿ St,(i¡llr Earr¡r'*.d In.ont.Rr'01¡ridr ot , q',s. xiii

.omparr(l to \l.xiLm Rcrolurnnr,,l3dilü.Dra of , itr Rolivi¿, 1r r1rn,l (;rcs Ddotric Prorln¡ t,linrirution¿lüatio¡ oL xiii, 44

R.eolution .l ,95! ¡.o,ri¡rdl)

''purif,.d,' xiii, xv..1,rsulh of, n, PLr caPir! lernr, !i ,9¿nd da(. poli.Y, l' .1.1

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Varx s,.1. l.¿ d¡, Nfcxican i{evolutioni R.\,)lution úl ,gn?

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,¡..\¿c ¿lr0 ccnsus, PoPula¡ion5.ilAnrg.r, Eugcne R.

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an(l r¡bilnatn, Prcgram, 6. 24

ru¡l hl,on t nit«l \arnrns bndgel,

br C{Jrú¡l Gor.m¡tnt, ,1,,1, r9 26,

,rr 29,36. ll7,.1' lzikbles, r',55 6'i 8rrPh. a)

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so, i¡l Ptr)g,cs\ Ttun I nnds, eSolonrn,Rr|oi,,,,o0n. ¡N

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rn{l lntern,tntr,rl ll,,,etrrr Iund. t:and mnrir¡8 p,!blt¡s, 33aDd Siles rs Lechln,6 ir ,1T¡\ ürnpcnsatn,), ,6 S¿¿¿¡¿

(,i^s Dor..ri. Pr0du.t; húÚnatioral Nlonctart llund

Stan,la¡,1()il Compan,v of N.w Jersr,v§! ht, iation .f holdnrSs of, ro S¿¿

Sl¡t¡ D.pnfu¡.¡t. 5¿¿ U S D.pIo¡e¡t

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.'iti.nm of, lr! Unitcd Nainnrs¡h¡u§, ,0, n. i,

an(i,le.rnt!lized agen{ies, l! l.l¡nd lack of populaú)n {l¡ta !i !9a¡d publi.scctor, ri.r3,4i.nd tinre{ci.s data, 33 4.1.5¿¿ dlr0

¡l\pendit¡rc, Ccn.al Gov.rnmcn| IfliRi stareP.ln,v

dqr(. .l c.n úalüatio¡ of, 4iand depirtnenul Bênnnetrt,15, !9an.l ...no'nic .\p.¡dirurc, 33 1,ilflu.n.f of cha.o u,¡r on, ,9 26,fttr ,945, aiv, rv. S¿¿ dlro Expendi

lur r, crntal covenm.dti lf ¡.. Rl

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ricws ol, on Paz a¡d politic¡¡rrbilii),99 n. I I

su¡rtrurr ,'\c.onnt Books,i3 5,t, ii

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:n¡ us.\rD, ñnd!on,úed, 79

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16!nrl e\durne 3(rnnr,1er d net.ollectior ol re\.nu., rabl.,61rnrlscl, snh.iencv in C.ntal

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rn,l úkrnrrnn'al rnl. {udv on,

Tim. s.ri.s, r8,33 39 i3

rxpoia, Jo l3.li,.t4i tables, jo.3,.34,6{i8ra}rh,3i

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rnn¡úsol, 1rble,5?dclircd. r6 ri.5.¿¿to Spccially

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finanrial $udl on (i¡€d,7.,

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a¡rl f,ogram Lu.l8rrn,g, xiv,xv,38 4l2nd sanrple.cnsus o{

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112

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Jl.37, 12 1i;

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!mbrsr{lo$ lirt.d, i;rJ.ulr\ ,do,¡ (.cpi',9 nl, ir ?!poli.,\ o', Bolrrirn Rr\.lr¡tid,, 3

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on srrr ü U S anl tn Bolivi¡, 14

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t13

nn.n¡2¡,Jr.r rt.¡¡ni¿¡tas P.ttotüe'ot FÚ.tt¿:rndy b), otr cxp.nditürc nr Unitcd a¿ri,i¿n.r (Do¡ivian srarc oil C.m

Knrgdoni, .ite,l, i9 p,¡y). §¿. Petrolcum, a¡d Bolivian"$.rkcr .on trol," i]3 SL{r Oil Compan}

utrld It!¡k .\..In1cr¡¡rio¡al BanL forRe(nrúu(ion a¡.I Dev.lopmcnt ifon{itlg, ConetnB H.

\V.rld W a. ll rüdi.s b1 , on Bolir ia, .¡.d, riii, 80,a¡d u s. nteze on iñ pri.es, jr 99 n. ,

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