Bolivian civil society asserts demand for involvement in fight for debt cancellation and poverty reduction

Ordinary people must be at the heart of decisions on how to spend money released through debt cancellation, according to the conclusions of an unprecedented mass consultation organised by the Bolivian Jubilee 2000 campaign. The consultation exercise, involving more than 4,000 individuals and 800 organisations, culminated in a four-day National Forum on Poverty Reduction in La Paz.

The National Forum and the preceding nationwide dialogue, launched by Jubilee 2000 Bolivia in February, aimed to include civil society in assessing and identifying the main areas that need to be addressed in order to reduce the high levels of poverty in Bolivia. Nine regional consultations were held, in which delegates were elected to take their conclusions to the National Forum in La Paz. That the forum went ahead in Bolivia's recently tumultuous climate of social protests (in large part an expression of anger against poverty levels), was seen as a sign of the strength of the movement.

The forum had been organised, with the strong backing of the Bolivian Catholic church, to run in parallel to a government initiative to consult the population on poverty reduction as it defines a strategy paper to be presented to the IMF. Early in February the IMF announced its support for a debt reduction package for Bolivia under the Heavily Indebted Poor Countries (HIPC) initiative. This would begin in 2000 but only `when Bolivia has adopted a poverty reduction strategy - in a process with civil society...' Many Bolivians were sceptical that this official consultation alone would fairly reflect civil society.

The level of organisation of the forum was impressive. A total of 429 participants attended in La Paz. This included 90 departmental delegates, 275 representatives from 114 national organisations and institutions and 64 international representatives. The topics discussed included economic policy, social participation, human rights and justice, education, health, employment and land.

The declaration issued at the end of the forum called for the participation of civil society in drawing up the government's eventual debt reduction strategy and also participation in monitoring and evaluating its implementation on an annual basis. In relation to the debt relief expected under the HIPC initiative, the forum considered it to be a `first step towards greater international justice'. Nevertheless, it also stressed that the new funds available as a result of debt relief do not present a solution to the problems imposed by debt.

The Bolivian Jubilee 2000 campaign is now calling on the government to allow representatives of the National Forum to participate in the government's 'National Dialogue,' which it has put together as part of its Poverty Reduction Strategy Paper (PRSP).

Irene Tokarski, co-ordinator of the Bolivian Jubilee 2000 Campaign said: "It is the biggest event of this kind that has ever taken place in Bolivia. In total, an amazing 4,000 participants and 800 organisations participated. All those who participated in the process felt an immense responsibility to ensure that what we started is followed through for the benefit of ordinary Bolivians. The Bolivian Government must respond to this and take our collective voice into account."

Dan Driscoll-Shaw, National Co-ordinator of Jubilee 2000 USA attended the National Forum as an external observer. After the event he commented: "I was immensely impressed by this serious well organised effort to involve community organisations and individuals in decisions on debt. Everyone who participated and observed felt empowered by the varied discussion and debate which amongst other things included a powerful presentation by Charlotte Bagorogoca from Ugandan Jubilee 2000 on her country's experience of organising civil society for debt cancellation. After her talk, even the journalists present were excited about the possibilities of making debt relief work for people in Bolivia! It is a real sign of hope that civil society in Bolivia has become so active on the debt issue and it poses a strong challenge to us to support their involvement in the 'National Dialogue.' "

Bolivia is one of the few countries to have qualified for debt relief under the HIPC initiative. The introduction of an `enhanced' HIPC initiative last year at the G8 Summit in Cologne has meant that, according to the IMF, Bolivia is in line for a further US$854 million in debt relief, providing agreement can be reached among creditors.

This would reduce Bolivia's debt service by a third and if redirected properly could amount to substantial social gains. However, it will still mean that Bolivia is diverting two-thirds of the equivalent of its health budget towards debt servicing. It will do little to repair the damage that debt has inflicted on Bolivia in recent years. According to the Inter-American Development Bank (one of Bolivia's principal multilateral lenders) spending on health declined between 1994 and 1997 from 7.1% to just 4.3% of total government expenditure. Spending on education barely changed, averaging 19%. Even the IMF has admitted the lack of real social benefits as a result of Bolivia's economic policies of the 1990s: `Although annual growth has increased from virtual stagnation in the previous decade to an average of about 4% in real terms during the 1990s...about 70% of Bolivia's population still lives in poverty.'

Liana Cisneros, Latin America and Caribbean Co-ordinator for Jubilee 2000 UK said: "The creditors response to Bolivia's debt crisis has consistently been inadequate. Poverty levels in Bolivia remain devastating. The IMF would do well to study the findings of the Forum for ideas on how to reduce poverty - and show the same commitment to debt cancellation and poverty reduction that ordinary Bolivians have demonstrated in support of the Jubilee 2000 campaign."

`Only together can we construct human development for all, to initiate a time of kindness, solidarity and justice – a true Jubilee for all.' (National Forum Declaration, April 2000)

 

• JUBILEE 2000 National Forum conclusions Bolivia 24-28 April 2000
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