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Country profile - Bolivia

Bolivia, the highest and most isolated of the Latin American republics, is also described as being the most 'indigenous' country on the continent: most Bolivians maintain traditional values and beliefs. Nearly half of the workforce are engaged in agriculture. Although the bulk of the country's export earnings still come from minerals, the collapse of the tin industry in the late 1980s increased the importance of agriculture, as the need for a more diverse economic base was realised.

Slow growth for farmers

In general the development of the agricultural sector has been very slow despite considerable potential. Export markets could be an area for growth but poor roads, and therefore poor access to ports, frustrate farmers' efforts to meet demand. In the past, government policies, political manipulation, and strict lending procedures have made obtaining credit difficult. Prior to economic reforms in 1985, the government kept down the price of food in urban areas, thereby discouraging farmers from increasing their production. In addition, Bolivia has the worst farming technology in South America, and an insufficient network of research and extension institutions to reverse that trend. The combined lack of infrastructure and technology makes farmers vulnerable to almost yearly floods and droughts; the drought caused by El Niño in 1997-8 for example, had a catastrophic effect on the potato harvest.

High, dry and cold - The Altiplano

The nature of agriculture in Bolivia varies according to its different geographical regions. In the west of the country two towering Andean ranges run parallel from north to south. Between them, stretching 500 miles long and 50-60 miles wide, is the Altiplano (high plain), the largest plateau in the Andes, with an average altitude of 4000m. It is here, or on the rocky brown slopes above it, that 60% of Bolivia's farmers live. Extracting a farming livelihood from this high, dry and cold land is very difficult; the area has the least fertile soils and the least rain. Most farmers have minifundia, small plots of between one and three hectares where they grow staples and vegetables, chiefly potatoes, maize, haba (beans), and quinoa, the highland cereal crop developed by the Incas. About 30% of the harvest is sold, either to truckers or at local fairs.

Farmers tend to practise very traditional farming methods; fields are terraced in the Inca style, and many still use foot ploughs. However these methods leave crops vulnerable to frosts, irregular rainfall and erosion. Sheep, llamas and alpaca are abundant, providing insurance against poor harvests, but also contributing to soil infertility and erosion, through over-grazing.

Wet and fertile - The Yungas

To east of the Andes, broad, wet and comparatively fertile valleys run down to the major river basins, such as the Amazon basin in the north. These are called the Yungas, and are home to 20% of the country's farmers. Both food and cash crops are grown on plots averaging between 5 and 10 hectares, and the more favourable climate allows two crops a year in many places. In the low lying regions to the east, sugarcane, and tropical fruits are grown. A little higher up the altitude is perfect for coffee, cacao, and coca. Higher still, corn (maize) is popular, both for domestic consumption and for sale to private animal feed companies. And, in the highest parts of the Yungas, farmers grow wheat, rye and oats.

Farmers in this region are very isolated, especially during the rainy season and, like those in the Altiplano, they rely on truckers to get their produce to the cities and mining camps. Coca was very lucrative in the 1980s, when Bolivia was the second largest grower in the world supplying 15% of the American market. However, the illicit industry was hit in the late 1980s both by a government eradication programme and, more importantly, the fall of the price of cocaine in the United States.

Rainforests and Savannahs - The Northern and Eastern Lowlands

The sprawling eastern and northern lowlands account for 65% of Bolivia's land area. In the north of the country they are covered with dense rainforest, while in the south there are grasslands with seasonal rainfall. Nearly all Bolivia's agricultural exports come from the lowlands, grown principally on large commercial farms using modern methods. An average sized farm in the lowlands is 50-75 hectares.

In the northern departments of Pando and Beni, rice, cattle and timber are the main agricultural products, while in Santa Cruz further south, soybeans, coffee, rice, and corn, as well as cattle, dominate. Here, farmers are engaged in all aspects of the agricultural economy: harvesting, processing, and marketing as well as research and development. Infrastructure improvements, land reform and better access to credit have helped to make Santa Cruz the central power base for agricultural interests, and many farms here exceed 5000 hectares.

Hope for the future

In the last decade Bolivia has made good progress in the development of a market-oriented economy. Under president Sanchez de Lozada a free trade agreement was signed with Mexico and the Southern Cone Common Market, and many state run companies were privatised. His successor Hugo Banzer Suarez has tried to further improve the investment climate with an anti-corruption campaign. Bolivia's agricultural potential may be the key to its future prosperity, but if subsistence farmers are to build modern, competitive, productive and sustainable enterprises, the development of the transportation, storage and communications infrastructure will be vital. With poverty alleviation at the top of the agenda, environmental concerns have tended to take second place. However prosperity will continue in the long term only by responsible exploitation and protection of Bolivia's natural and agricultural resources. 'Win-win' technologies which both increase production while also improving the natural resource base could be the answer in trying to tackle the growing problems of deforestation, soil erosion, desertification, and loss of bio-diversity.

Date published: March 2001

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