Sunday, February 28, 2016

The Bolivian Water Wars - Corporations and Revolutions

International corporate conspiracy, fighting in the streets of Bolivia with tear gas and bullets and a power struggle at the highest levels of international politics and business; it sounds like something from a James Bond novel, but it actually happened in Bolivia in 2000. High in the Andes, trouble had been brewing for fifteen years, but no-one expected it to boil over for the right to drink a glass of water.

Problems for Bolivia
Hyperinflation destroyed the Bolivian economy in 1985, rising at an incredible 25,000%. Foreign investment possibilities were destroyed, and in the financial crisis the World Bank stepped up to loan the government money when no-one else would. As condition for it support, the Bank demanded steady privatization of Bolivian facilities, including airlines, telephone networks and railways. Our story begins in 2000 when, according to The Economist magazine, the World Bank told Bolivia of the possibility that it would not 'renew' a $25 million loan. To secure the loan, the government needed to privatize its water systems, based on concerns about the efficiency and sustainability of the state system.

Enter the Consortium
Bolivia set the wheel in motion to privatize. Only one bid was put in for the state agency SEMAPA; a consortium called Aguas de Tunari formed by foreign corporations Bechtel Enterprise Holdings (USA), International Water Limited (England) and Edison (Italy). Aguas de Tunari projected a water network to provide drinking water to all of the people of Cochabamba, a city in central Bolivia. This was set to double the existing coverage area and also introduce electrical production to more of the region. The Bolivian government under President Hugo Banzer agreed to the terms of its sole bidder Aguas del Tunari and signed a $2.5 billion, 40-year concession to provide water and sanitation services to the residents of Cochabamba, as well as generate electricity and irrigation for agriculture.

Warning signs
To legally support the contract, the government passed Law 2029. Concerns arose amongst Bolivians that it would lead to a monopoly on all water resources; for example, the communal irrigation resources used by farmers that had been independent of regulation. Previously free water could be charged at the discretion of Aguas del Tunari.

Nasty surprises
As soon as they took control of the water supply, the consortium started making some unpopular changes. A 35% rate hike to an average of $20 a month put incredible strain on Bolivian families, the average which earned a monthly income of about $100. Increases were justified as payments towards a dam project. A manager for the consortium made matters worse by threatening to shut off water supplies if Bolivians were unable to pay. The poor quickly joined in protest; their numbers increased when the middle class and business owners lost their government subsidies and their rates also rose.

Panic in the streets
The response to the rate increase began in in January 2000 with a 4 day strike and boiled over into a national state of emergency that created various violent clashes, resulting in numerous injured police and protesters and five deaths. After a televised recording of a 17 year old being shot to death by a Bolivian army Captain, public outcry forced the police to tell the executives of Aguas de Tunari who had been relying on their protection that their safety could no longer be guaranteed. The executives fled to Santa Cruz and resistance to civil protests dissolved. Within days the leader of the resistance, Oscar Olivera, signed an agreement that pushed Aguas de Tunari out of Bolivia and turned Cochabamba's water resources over to the state facilities, revoked Law 2090 and released all the detainees from the conflict.

The aftermath
It all sounds like a happy ending, but for the $40m lawsuit filed by Aguas de Tunari against the Bolivian government for being forced out of Bolivia and violating their mutual contract. The lawsuit was eventually dropped in 2005. In Cochabamba water prices have dropped to pre-2000 levels, but service and supply are still poor and SEMAPA is even more burdened by inefficiency. With an unsuitable budget to expand resources and develop what already exists, Cochabamba seems to be in the bizarre position of exactly where it was fifteen years ago, but with the history of a very messy conflict.

So what do we take away from this story? There's the obvious problem of international corporate interests paying little attention to the needs of the population that they were supposed to be serving, but that's not the most disturbing insight. The reason for the violent and passionate protests by the Bolivian people was due to the fact that they were having their access to water taken away. It's a common saying that "Water is life"; as oil becomes scarce, will we see water become the new global commodity? We can live without oil, but what would happen if our water supply was passing through political or commercial interests?

Gary Sargent is the Managing Director of the tour companies Escaped to Peru and Escaped to Latin America and has lived in South America for over 10 years. Gary is passionate about life here, the people, customs and places. To learn more feel free to click on the links below:

http://www.escapedtoperu.com
http://www.escapedtolatinamerica.com

Toll Free USA / Canada 1-800-305-6543
Free Phone UK 0-800-680-0617

Thursday, February 11, 2016

Visit Bolivia - Coroico's Budget Friendly Nature Getaway

The country of Bolivia is probably not a well known place for many tourists probably because it is one of the highest and most remote countries in the world. However, this place on earth is actually one of the best areas to spend a nature getaway.

Coroico is one of the best places in Bolivia to visit. Situated specifically in the Yungas region, the town overlooks the scenic foothills of Andes mountain ranges, and is a frequent access point harsher and more rugged mountainous landscape of the northern region. Coroico experiences nice warm climate and possesses calm and relaxing ambiance, making it an ideal retreat spot. The suitable environment in Coroico is also a perfect site to engage in activities like jungle hiking, waterfall trekking, wildlife viewing, and following trails set by the ancient Inca tribe. When you visit Bolivia do not miss seeing the Cotapata National Park, a small natural reserve that houses highly diversified ecosystems. Just three hours from Coroico, is the ancient rock paintings called the Kellkata Petroglyphs.

Unlike other high-profile tourist destinations, you don't have to spend too much money or deal with boisterous crowds to experience a great nature getaway. When you visit Bolivia, the view of the valleys and mountain from the town is already an attraction in itself. In fact, a number of tourists are content staring off into the scenic surrounding while drinking the local coffee or tea the town is known for.

Best Places in Bolivia

Aside from the budget friendly nature getaway in Coroico you can also visit numerous places of interest around the town. For instance, you can go for a tour around plantations for coffee and banana, and the citrus orchard. Expose yourself to the agricultural heritage of the locals and visit the distinct villages in the area like the Jewish-community of Charobamba and the Afro-Bolivian community called TocaÒa.

The rivers (rio in Spanish) of Kory Huayco, San Juan and Coroico are also few of the best places in Bolivia that you ought to see. It is simply near to the town and are great spots to have a refreshing swim and lovely picnic. The nearby Huarinillas River is a favorite spot for thrill seekers as its strong currents are ideal for rafting. Guided tours are available for those who like the see the beautiful waterfalls in the area. When you visit Bolivia, you should not be contented without seeing its notable spots such as the Paradise Falls, Perolani waterfalls and Pozas del Vagante.

History

Ironically, some of the best places in Bolivia have a deadly history. For instance, the Yungas Road that runs from La Paz to Bolivia's Amazon rainforest region in the north of the country has been dubbed the "World's Most Dangerous Road because of its scary downhill direction. Based on statistics, it is the most dangerous road in the world, killing 100 to 300 people every year. But despite its frightening view, it is one of the favorite places that bikers and adventure-seekers love to go. If you are confident with your biking abilities, then you can join the ranks of the few tourists who dare to bike on this road as part of your nature getaways. Other less-risky mountain biking trails are also available within the town's vicinity.

Your nature getaway in Bolivia is made more convenient with the availability of affordable hotels and accommodation. From big luxurious hotels to eco-lodges, Bolivia hotels offers the best price and service. You can also have a delightful dinner at one of many Coroico's restaurants, which serve both international and local cuisines. To make your night more fun and memorable, head out to some of the several cafes, bars and small clubs, which are located near the best places in Bolivia.

To get a daily doze of inspiration of the best travel destinations in the world please visit: Traveler Dreams

Thursday, February 04, 2016

Silver Mountain - Rags and Riches in Bolivia

At more than 13,000 feet above sea-level in the Andes, we were as close to heaven as most mortals can hope to get - and closer to hell than anybody would want to be.

A group of miners steadily chewed coca leaves, mixing the wad with ash. They claimed it immunized them against cold and hunger. Armed with carbide lamps, most not wearing safety helmets, they began to file into the mine, ducking to avoid broken timbers, crawling through puddles.

I thought about the dark stains smearing the mine entrance. They were from the blood of the llamas ritually sacrificed to appease El Tio, the devilish deity who rules underground.

Coca juice numbed my mouth and claustrophobia gnawed at my stomach. My heart thumped with the exertion at this altitude. What the devil was I doing here, deep in the depths of Cerro Rico (rich hill), the mountain that broods over Potosí in Bolivia?

The astounding wealth below the surface of the cone-shaped hill, called Sumac Orcko ("beautiful hill") in the Quechua tongue, was discovered by Diego Gualpa, an Indian, in April, 1545. One story says he detected silver when his llama scratched the earth.

If Diego had known how much suffering his find was to bring to his people in the former kingdom of the Incas, he would surely have kept quiet. But five rich veins were located close to the surface, the mountain was renamed Cerro Rico and soon Potosí had 160,000 inhabitants, a colourful mixture of officials, traders, desperadoes, and millionaires, plus at least 800 professional gamblers and 120 prostitutes.

From its mines poured an estimated 46,000 tons of silver, worth anything from US$5,000 million upwards in modern terms. It brought undreamed-of wealth to a handful of adventurers, adorned churches and palaces, and helped pay for Spain's Great Armada and a series of wars. It also brought misery and death to thousands of Indians forced to work below ground.

In Potosí only the best was good enough for the silver barons. They competed in licentiousness and conspicuous consumption. They shipped their finery back to Paris to have it properly dry-cleaned while their ladies wore elegant shoes with heels of solid silver.

Today the city, declared by UNESCO a World Heritage site, is remote and sleepy and conditions underground are still perilously primitive, as I learned when a young student guided me through some of the 785 kilometres of tunnels honeycombing Cerro Rico. Little silver comes out these days for the most accessible veins are exhausted.

Tin replaced it in importance, making fortunes for a lucky few. But, after the bottom fell out of the tin market in 1985, thousands of miners lost their jobs and only a few mines struggle on.

The dream of easy wealth contributed to Spain's stagnation, helping to impoverish it for centuries. The riches of the Indies were frittered away - and that perhaps is the revenge of Potosí.

Those who carried off its treasure were left with nothing either. Except memories of the silver rush, enshrined in a popular Spanish phrase: "Vale un potosí! It's worth a king's ransom!"

Journalist and author David Baird has worked all over the world but is now based in Spain. His book about a little-known conflict that raged in the 1940s, Between Two Fires - Guerrilla War in the Spanish sierras, has won praise from such leading historians as Paul Preston and Ian Gibson. His latest books are works of fiction. Typhoon Season is a thriller set in Hong Kong. Don't Miss The Fiesta! is a tale of passion and adventure set in southern Spain. More information at the Maroma Press website, http://maromapress.wordpress.com/

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