Bolivian Economic Crisis
Bolivia, as we know it today, is one of the poorest nations of the world, but it is not located in Africa or Indonesia, it is in the middle of South America. Bolivia was, in Colonial times, one of the richest nations in the World. So how can this wealthy nation have fallen so hard in such a short period of time? It might be hard to explain and even harder to understand. Many factors influenced the roller coaster ride that this nation took and some of those factors are still pushing the economy down. However, if we pay more attention to the process of decadence that this nation lived, we may even come to the conclusion that this country was destined to be poor (Bolivian Gov. pg 1). Colonial exploitation, wars, and revolutions were just the beginning of the problems that were followed by adverse atmospheric conditions, geographical disadvantages, and the crumbling of the silver and tin market prices, which led to uncontrollable migration and international debt. Among the possible solutions to restore the nation's economy, we find some macro economic reforms that require the capitalization of the state-owned enterprises, the stabilization of the economy by remonitisation, and the international help of entities like the World
The 1981 World Bank Report of Poverty (Gall, pg 2) states that Bolivia's total government revenues (8.5% of GNP) were lower than any country in the world except Nepal (8.1%), Uganda (0.7%), and Yugoslavia (8.4%). These figures placed Bolivia in 113th place in the list of the poorest countries in the world. In order to decrease the level of poverty, the government of Bolivia started to accept international loans and US Aid. These loans were designed to create bridges of trade for a landlocked nation by building airports, railways, and roads. But Bolivia became dependent of these International Donors, not only to build the roads and airports, but also on subsequent foreign loans to maintain them. The national debt increased dramatically in just 20 years and by 2002, it is estimated that each Bolivian citizen owes an average of 300 dollars. It might not seen a lot but consider that 60 percent of the populations still live in extreme poverty and that the average household earns less than 764 dollars a year, far less than the average for Latin America of 2,389 dollars (Rocha, pg 1). At the beginning of the 17th century, Bolivia was the greatest producer of silver and gold in the world, and the opulence of the country improved Spain's economy. According to Norman Gall's report (pg 4), it is estimated that 43,000 tons of gold and silver were shipped to Europe by the Spanish conquistadors. In a 1730 census conducted by the Spanish government, the city of Potosi reported an estimated population of 120,000 at a time when London had an estimated population of 200,000. But forced labor and the consumption of food and materials created an extensive trade system that supported operations at Potosi. However, following the collapse of the Potosi mining boom, the region became so deteriorated that by the time of Independence (1825) a British diplomat described the country as a complete ruin. He specifically detailed that the roads were only fitted to accommodate mules and that a carriage road in good conditions just didn't exist (Gall, pg 4).
Some common words found in the essay are:
Bolivian Gov, Dr Wiebelt, World Bank, Tin Bolivia's, Kiel Institute, Europe Spanish, Latin America, Poverty Gall, Education Reform, El Niņo, wiebelt pg, pg 1, gov pg, pg 9, bolivian gov pg, bolivian gov, bolivian citizens, pg 8, world bank, gall pg, labor market, gov pg 9, wiebelt pg 9, rocha pg 1, wiebelt pg 8,
Approximate Word count = 2720
Approximate Pages = 11 (250 words per page double spaced)
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