The decentralization process in Bolivia has involved giving more power and autonomy to indigenous peoples, municipalities, and regional departments. This process began in 1994 with laws promoting citizen participation and transferring powers and financial resources to local governments. However, the decentralization process has faced challenges in clearly defining the responsibilities and competencies of each level of government as well as establishing a financial system to ensure all autonomous entities have sufficient resources. Ongoing tensions also exist between the central government, regional movements seeking more autonomy, and indigenous groups demanding greater self-governance and recognition of their rights.

1. THE DECENTRALIZATION
PROCESS IN BOLIVIA
Manuel De La Fuente
Utrecht, 2012

2. History
• Given preference to some aspects (ethnic and
regional)
• Centralism and decentralization
• Actors:
– Indigenous movement (country where more than 62%
of the population says that are Indians)
– Regional movement (country where each territory is
different and is not connect with others)
– The State
– International organizations & NGO’s

3. The indigenous question
• The independence of Bolivia in 1825 did not mean
the emancipation of the indigenous peoples
• They continued being excluded.
• They did not participate on the making of political
decisions, elaborations of laws.
• They did not have the right to vote, since those who
could vote were those who could read and write and
demonstrate income.
• The majority of the population were poor.
• They continued being submitted to the regime of the
estate, being treated almost as slaves.

4. The indigenous question
• Free communities have their lands constant subdued.
• Government was forcing them to pay taxes →
indigenous contributions
• Bolivia at that time was in perpetual war against his
population (Zabaleta)
• Situation that will start being modified newly from
the revolution of 1952

5. The regional question
• Bolivia at the beginning adopt a centralized
regime, given little power to the departments
and the municipalities
• History is marked by numerous conflicts
• Federal revolution 1899, north vs. South, La
Paz (federalist) vs. Sucre (centralist)
• Nowadays: decentralization → through the
department vs. through the municipalities

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8. The way of decentralization
• Via department: regional power groups → civic
committees
• Via municipalities: MNR, intellectuals, indigenous-
peasant movement supported by NGOs and left
political parties like MRTK MBL.
• Also international organizations ECLAC, UNDP
• Favors the latter route

9. Decentralization process via municipalities
• Occurs while privatization.
• Response to the Indian-peasant demands.
• Waiting that the Indian & peasants will continue
voting for the traditional parties.
• Indigenous issues and struggle against poverty were
at the international organizations agenda

10. Characteristics of the decentralization
• It begins with the 1994 Citizens Participation Law:
→ Creates local power all over the territory
→ New powers transfer to the municipalities
→ Economic resources redistribution
→ Participation and social control

11. Creation of municipalities
• Previously, rural areas did not have a local power.
Now they have the reference of a municipality,
including peasants, since the municipal territory
covers urban and rural areas.
• Space was defined in a chaotic way.
• Districts and associations.

12. Transfer of powers
• In the fields of health, education, culture and sport.
• They are responsible for administering, improving
and ensuring the infrastructure maintenance, they
must also build new infrastructure.
• Dealing with the development of its territory
(productive municipality)

13. More financial resources
• The municipalities now have some financial
resources
→ Resource: Sharing taxes → 20% of all national
taxes goes to municipalities
→ own taxes properties, cars
→ Development Funds
→ International cooperation.

14. Sharing taxes
• Changes were very important
• In 1993, the big cities (capitals) received 93% of
revenue sharing.
• Between 1994-2004 they only received 46%.
• This means that the balance, or 54% were for the rest
of the country

15. Financial decentralization
Nivel Gobierno 1992 1998
Gobierno
Nacional 71,8 29,4
Fondos
Desarrollo 6,7 18,2
Administraciones
departamentales 19,6 27,0
Gobiernos
municipales 2.0 25.5

16. Citizens participation and social control
• Recognition grass roots organizations (OTBs):
neighborhood associations and peasant-indigenous
organizations
• Propose, request and supervise municipal works
• Social Control: Monitoring Committees
• Resources invested social and regional equity and
honestly

17. Participatory planning
• Important social mobilization process
• Develop a municipal diagnosis, identifying problems
and felt needs of people
• Claims will be prioritized, dialogue and consensus
• Works, projects included in the Municipal
Developmental plan (PDMs) and Annual operative
planning (POAs)

18. The rise of the indigenous and peasant’s
movement
• LPP give to the peasant unions a new life
• Peasant unions and Indian people developed
successful strategies that enabled them to take control
over their municipal governments
• Assumption of 464 indigenous authorities as mayors
and councilors in the 1995 election and more than
500 in the 1999 election, amounting to a quarter of all
municipal authorities
• Election in 1999 of a certain number of deputies (Evo
Morales)

19. New political scene
• Proceeds from the law of popular participation
• 2000 water war, roadblocks
• Critique of neoliberal model rises and attempts to
build an alternative model
• Decrease traditional political parties votes in 2002
• 2003 resignation of President Gonzalo Sanchez de
Lozada
• 2005 resignation of President Carlos Mesa

20. The fears of the regional movement
• The rise of the indigenous movement
• Start to lose control of the local power
• Less and less representatives of regional power
groups at national level
• A counter neoliberal ideology emerges
• Continues to fight for straightening the
departmental power

21. Subjects in discussion
• October 2003 Agenda :
– End of neoliberalism vs. a new development model
– The recovery of Natural Resources
– The realization of a Constituent Assembly
→ given more power to indigenous peoples
• June 2004 Agenda
– Election of governors & referendum on autonomy
→ given more power to the regions.

22. The victory of Evo Morales

23. Victory with 54% of votes
• The victory of the MAS is impressive in the Bolivian
political context
• Amazing electoral growth → MAS newly created
political party (1999) achieved in some years an
absolute majority of votes
• But the surprising electoral victory of MAS does not
guarantee a smooth management.
• Three issues are not resolved:
Economic-social
Ethnic
Regional

24. A divided country, that complicates the
Bolivian governance

25. Social question
• Bolivia South America's poorest country, with great
social inequalities
• Since 2000 → programs to combat poverty →
Meeting basic needs & Mother and son pairing
• Evo is on that line → education (Literacy Program) &
health, bonus & land, farm machinery, bonus
• Juancito Pinto, Dignidad y Juana Azurduy
• To pay all of this → nationalization hydrocarbons

26. Ethnic question
• Primarily by two measures: agrarian revolution: land
& machinery
• Modification of the political Constitution of the State
• Process complicated and with much violence
• Finally a new CPE was approved that recognizes
indigenous rights → indigenous peoples autonomies
• Choose authorities, legislate and judge according to
uses and customs & right to prior consultation

27. Regional question
• Struggle for the departmental autonomies
• Process complicated and with much violence
• Cochabamba 2007.
• CPE vs. autonomy statutes
• Manifestations, “cabildos”, departmental
Referendums
• Taken institutions → massacre of Pando (2008)

28. From confrontation to agreements
• Both sides make concessions, that allows:
Mayor decentralization & State plays an
important role in the economy
→ The new State Political Constitution
→ New law on Autonomies & Decentralization

29. Autonomic process
• December 2009: presidential elections &
referendums department's and indigenous
autonomies
• April 2010: Governors elections & departments'
assemblies.
¿Empowerment of the departmental power?
¿Empowerment of indigenous people?

30. New Constitution & Autonomies Law
• Constitution introduces a rather complex system
of autonomies, given that four different types of
autonomy are involved: departmental, regional,
municipal and indigenous
• Two issues are key to the success of their
implementation. One is a system of
competencies that clearly defines the
responsibilities at each level of government
• The other is a financial regime that grants
sufficient resources for the exercise of the
competencies shouldered by each type of
autonomy.

31. Powers
• It is unclear what level of government is the
domain of the exercise of jurisdiction.
• It affects the exercise of powers to the
approval of more than 50 sector laws.
• Adapting Autonomy Statutes

32. Financial resources
• Not defined economic and financial
arrangements.
• Responsibilities' are delivered without secured
funding.
• There are no mechanisms for transfer between
regions "rich " and "poor“
• Possibility of self-financing?

33. Financial autonomy?
• The fact that departmental governments must subject
their “annual budget” to approval from the Legislative
Assembly is proof of this persistent centralism.
• Likewise, the changes Governor may wish to introduce
to the departmental budget also depends upon the
Assembly, when it should really be a matter for
discussion and passage by the Departmental
Assembly
• This centralist nature is also manifest in the recent
“Tax Classification Law”, According to the law, it is
only with “a favourable technical report from the
National Tax Authority that the autonomous
departmental authorities, can pass bills intended to
create and/or modify taxes”

34. Temporary suspension of elected
authorities
• The Autonomies Law allows the temporary
suspension if authorities have been formally
accused in court of committing a crime.
• This provision is becoming an effective tool for
political persecution on the part of the
government.
• Several opposition mayors and the governor of
Tarija have been suspended

35. Future challenges
• Stop criminalization of political action
• Define clearly the responsibilities of each
level→ match between departmental,
municipal and indigenous autonomies
• Fiscal Pact
• Alternative development model

36. Conclusions
• Much flexibility will be needed in future months and
years, to say nothing of an open mind and a spirit of
dialogue and commitment with the process of
autonomy on the part of all actors involved.
• Elements which thus far appear to be in short
supply.
• The weight of a centralist culture which still
impregnates the ministries and government
institutions, the strong presidential tradition in
Bolivia, and, more recently, the judicialisation of
politics makes it more difficult to advance with the
transfer of competencies and resources to the
regions.

37. Gracias