first dialogue on green and inclusive growth in bolivia
TRANSCRIPT
FIRST NATIONAL DIALOGUE ON GREEN AND INCLUSIVE GROWTH IN BOLIVIA
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Can Green and Inclusive Growth contribute to overcome the primary export pattern in Bolivia, under the Law of Mother Earth and Development for Living Well?
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Based on the case study of Green and Inclusive Growth in Bolivia, performed by MA. María Rosa Gamarra C. supported by the PhD. Ludwig Torres C. within the regional project of LATN Network, took place the “First National Dialogue on Green and Inclusive Growth in Bolivia: Can The Green and Inclusive Growth can contribute to overcome the primary export pattern in Bolivia under the Law of Mother Earth and Development for Living Well?”
This time, the concept of Green and Inclusive Growth was presented and identified as an innovative and interesting framework because it encompasses three approaches that have been handled individually so far: the approach of natural resources and environmental protection, the sociological approach and the economic approach.
In the course of the event, both structural (exporting primary pattern) and more current issues (Law of Mother Earth and
its implementation) were discussed. In this sense, discussion blocks were put together, working within a structure that allowed participants to receive information, in some cases conceptual information and in others instrumental information of the topics described above, and thus make contributions based on the exchange of experiences and knowledge.
In the first block the actual situation in Bolivia, as well as some projections, has been presented, beside the framework of the Law of Mother Earth and its treatment. In the second block, the application of the law in a particular case was presented. In the third block, which was the focus of the event, the project of the LATN Network and the case study on Green and Inclusive Growth in Bolivia were discussed. The fourth and last block complemented and closes the topic with two particular perspectives, productive and sociological development.
Executive Summary
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About the Dialogue
Given the current reactive position of Bolivian government, to discuss any issue related to the Green Economy topic is a major challenge. While the concept provides a framework for studies within the project of the LATN network, and it’s not limited by the concept proposed by the United Nations Environment Programme1, the perception of various stakeholders are strictly associated to it. For this reason any activity related to this concept, with intention to add value, requires the development of special strategies to motivate participants to exchange their knowledge considering the context is in processes of structural change and setting new regulatory frameworks.
The First National Dialogue on Green and Inclusive Growth was implemented by the Center for Research, Training and Technical Assistance - Latin America (CICATAL)2 , whose mandate is focused on making knowledge accessible to both individuals and organizations, using efficient and sustainable channels designed to increase the ability to absorb and adapt new knowledge. Ultimately, the main goal of CICATAL is to act as a connector in real time, to build bridges of understanding between the different actors involved in the process.
Under this mandate, the event was designed with the aim of create an intellectual space for actors in the Bolivian society involved in promoting sustainable development through the exchange of knowledge, concepts, mechanisms and alternatives that contribute to address structural problems that limit development of the country, where each and every one of the participations are valid and valuable.
“Environmentalism within the concept of Green Economy is a new double entry colonialism, first is a colonialism of nature, to commercialize the natural sources of life, and second is a colonialism to the South to carry on their shoulders the responsibility to protect the environment, which is destroyed by the industrial capitalist economy of the North.” (Evo Morales, 2012, Rio+20)
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Why a dialogue? Paulo Freire suggests that dialogic situations produce new forms of emancipatory reflection from the confrontation of knowledge and experience. To build knowledge we have to get out of our comfort zone and be able to look beyond our own limits. In this sense, the dialogue is an appropriate modality to promote processes of transformative action, which can only be developed on a territory by the same participants who construct their own collective learning.
The focus of the dialogue was knowledge; knowledge that each participant may contribute from their own context and from which concrete actions can contribute to the public policy agenda. In this case, the issue of multiculturalism that exists in the country, rather than a barrier, was conceived as an opportunity, not only to enrich the dialogue but also to encompass a broader range of actors involved and contribute in their context. At the end of the day, the focus of the event was to propose concrete actions.
1The Green Economy concept has existed for several years, but was officially introduced to the discussion table when the General Assembly decided to convene the UN Conference on Sustainable Development in Rio de Janeiro, Brazil 2012
2 Event sponsored by the LATN Network and the IDRC of Canada.
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ParticipantsBolivia is a country of multiple languages, multiple nationalities, and multiple sociocultural contexts, which come from the hand of very different visions and perceptions by the actors who represent it. In the event this diversity of contributions was rescued, and enriched the dialogue between the participants at the time of share their knowledge and experiences.
It was attended by actors who are not only involved with the development of the country, but also interested in changing their reality, whom showed the kind of discussion that can be articulated when values and commitment take place to make agreements based on respect, honesty and truth, and in which not necessarily consensus among all parties are reached, but where the dialogue is a result itself (which means listening rather than talk).
ProgrammeAs mentioned above, the articulation of the event was strategic to achieve synergy among the participants and between the knowledge that they could provide. In this sense, the dialogue was based on the question: “Can the Green and Inclusive Growth contribute to overcome the primary export pattern in Bolivia, under the Law of Mother Earth and Development for Living Well?”
This approach allowed glimpsing new issues in the country, such as Green and Inclusive Growth, trying to delve into historical issues such as exploitation of natural resources that has occurred since the birth of the country as well as other issues such as the Law of Mother Earth. In this regard, to discuss important issues for the Bolivian context allowed the actors not only to share their experiences and knowledge, but also collect the others’.
The schedule was divided into four discussion blocks. Each block consisted in two presentations by experts in the field that, in turn, opened the discussion in two related questions from which participants had to reach concrete conclusions.Taking the different contexts where each of the participants came from into consideration, round tables of discussion were organized in order to encourage dialogue between them.
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Blocks of discussion
As introduction, in the first discussion block was presented a Prospective Balanced Development Agenda for Bolivia, by the PhD Luis Carlos Jemio - Senior Researcher INESAD (Institute of Advanced Studies in Development). Forward-looking agendas not only allow us to have an idea of the economic situation of the country and the region, but also get a long-term vision which leads to develop growth targets related to the projected scenarios, where, for the realization of these objectives, it is necessary that all sectors contributes.
In this sense, the type of analysis required to give substance to the prospective agenda is constructed from the interconnection of variables and the same trends found (demographic, economic, social and environmental trends, etc.). That is, you need to have a broader and more comprehensive view of the actors involved in the process to achieve the stated goals.
As Jemio showed, per capita GDP of Bolivia is far behind per capita GDP in the region, only to double this number we will
need to grow at a rate of 7%, which means to increase the rate of investment required from 20% to 25%. However, we can’t ignore the consequences or implications of any growth policy on important issues such as poverty and employment, and in this sense it is necessary that each policy is accompanied by other actions to mitigate those consequences. In the case of poverty, for example, is necessary, in addition to growth policies, implement redistributive policies, so beneficiaries are not just a few.
Growth has also environmental costs and for this reason the concept of Balanced Development is important, it allow us to see the whole picture of growth and its consequences and to promote the achievement of goals in a more harmonious manner with all sectors.
In the same block, was presented the framework of the Law of Mother Earth and Integral Development for Living Well, by Mr. Ricardo Rojas – Director of Joint Mechanism (Plurinational Authority of
First Block: Overview and situation of the Bolivian regulations
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Mother Earth). This presentation aimed to provide additional information of the Law, its conceptual framework and the state of its application.
As expressed by Rojas, the context under which the law was built rise from the declared position of Bolivian government against the Green Economy, describing it as a false solution to the climate crisis. In this regard, the Bolivian proposal was based on two principles: the complementarity of rights and a relationship between conservation of systems of life and the use and exploitation of them.
Given the history that preceded it, the Law of Mother Earth incorporated into her conceptual framework the approach of integrated development, which, according to Rojas, is an intermediate stage for the realization of the paradigm of Living Well, besides establishes its foundations to ensure the livelihoods and conservation. It has four aims: to determine guidelines and principles of systems of life (access component), to set development goals, to guide laws and to define the institutional framework.
Also, the conceptual framework is divided into three approaches: sectorial approach, programmatic and utilization approach, and use and conservation of resources, which are referred to mitigation, adaptation and assembly, respectively. Under this line and according to the speaker, the economic and knowledge transfers are important.
How this materializes? Rojas claims that it materializes by the principle of complementarity of rights, which refers to the complementarity between the rights of indigenous people with integral development, as well as the right to live free from poverty and the rights of Mother Earth (this time as a subject). In three steps, the path that is being followed includes: characterize systems of life, reach agreements between actors and stay in line with conservation.
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For the second block, Mr. Carlos Carafa, Executive Director of Sustainable Water (NGOs), made an important contribution to analyze the impact and implementation of the Law of Mother Earth in the case of Mauri and Desaguadero Basin, where the challenge is to align the work in this region with the approach of the Law.
In a political context where foreign policy is very active in contrast to what has been done inwards and where these policies are related to extractivism, predation and megaprojects, according to Carafa, in the Law of Mother Earth predominates discourse and a framework conditioned to mega-investments.
He said that Bolivia is a country with large institutional weaknesses, where too much emphasis is made on the rights and almost nothing in the duties and obligations, leading to a vague idea of the pursuit of common good.
Furthermore, although the country has a large population mobility (urban-rural dynamics very strong), and we can’t deny the fact that Bolivia is a much more urban country than a rural one, socio-culturally
speaking, still is a rural country, where three types of economy coexists (that are often opposed): household economy (sponsorship), market economy (supply and demand) and natural economy (resource extraction).
In this context, he said that, although the fundamental principles of the law intended to ensure the regeneration of nature, if a culture of common good isn’t built, the existing problems will be worst in the future. Life systems have limits in its ability to regenerate and humanity has limits in its ability to reverse its actions, in this sense, public concurrence is essential to implement regulations.
As he indicated, there are too many resources in this country that have not a proposal, due to the drama of the pre-investment and feasibility studies, beyond the drama of the bureaucracy after the award of the project. With these limitations, we must rescue project initiatives with the adaptive approach, i.e., we must implement what we have and what there is, developing capacities of individuals by forming them, whom are equipped with instruments to transform.
Second Block: Application of Bolivian regulation in a particular case
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For the third block, which was the focus of the First National Dialogue, PhD (c) Juliana Peixoto (FLACSO Argentina - Red LATN), presented the Green and Inclusive Growth Project Latin America, who showed the general context in which the First National Dialogue is inserted.
According to Peixoto, the main goal of the network are to produce oriented public policy knowledge, articulating different stakeholders and views, and contribute to the consolidation of a Latin American expert community so that it can, in the medium term, import less foreign theoretical framework and create more of their own. Under this line, the maturation of the research agenda of the network has taken into account the risks and opportunities for the implementation of various agreements and regional integration strategies.
As background, she mentioned the crisis in the late ‘90s, where it began to present many questions and demand for research on the distributional impacts of trade, and in a context of wider integration, investigates the link between the trade and growth patterns. Distributional impact of them (and its capacity for inclusion) became more relevant.
But the study of growth patterns would not be complete without the big question about their sustainability and sustainability of the patterns of specialization and integration, which refers to how articulate production integration in the countries and its relationship with other countries, said Peixoto.
Now, the green is a new trend and since a conceptual framework was needed, because there were disparity between concepts in the region and a general rejection by actors, was set a conceptual basis of three dimensions: environmental sustainability, including social and economic growth. According to Peixoto, this represents an additional challenge, since the major stresses to analyze these variables simultaneously focus on the traversed of the north-south discussion and the motorized growth for the exploitation of natural resources. In this sense, the main objectives of the initiative are to understand the tensions between the different actors and sectors, to search and find successfully examples of applications and to give visibility to the debate.
For Peixoto, the great engines of growth are often economic sectors with resistance to the green concept, but green
Third Block: Green and Inclusive Growth
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can’t be a barrier over exclusion. Some characteristics of the region, such as the great inequity, the general weakness of the welfare state to absorb excluded groups in their transition to green and often ineffective regulatory framework generate this rejection.
In the same block, MA. María Rosa Gamarra C. presented the Case Study on Green and Inclusive Growth in Bolivia, which she developed with the support of PhD. Ludwing Torres C. for the regional project of the LATN Network.Under the premise that Latin America is not a flat region and has large asymmetries in terms of their visions of development, the researcher remarked the common conceptual framework of Green and Inclusive Growth defined by LATN network, to make the regional study comparable.
To enter in the landscape of green and inclusive growth in Bolivia, according to Gamarra, was necessary to analyze the evolution of the Bolivian position on Climate Change (where Climate Change and Green Economy appear overlapped). Given the obvious rejection to the proposed mechanism of Green Economy, and a direct linking of this position claiming to create a mechanism for climate justice, the framework of the Law of Mother Earth was created. Which means a big progress, since is a precedent, at a regulatory level, to the recognition of the importance of the topic. However, it also was noted that since 2005, Bolivia seems to have begun to show symptoms of the “Dutch Disease”, since the real exchange rate started to appreciate in response of the boom of natural resource exports, which generates less competitive national industries and
productive sectors, unrelated to mining and hydrocarbons. To Gamarra, the concern is not that there is growth in certain periods at some point, but rather when that growing stops.
Analyzing the economic performance of the country in the recent decades, regardless of the development model is more liberal or more statist and the higher economic growth is achieved in a particular period, she indicated that the fact that the economy is based on this pattern of extractive primary export, this factor appears as a cause of the persistence of poverty, problems of inequality and poor long-term development. Gamarra said that this pattern is a key factor limiting social development, and that despite the good economic performance in recent years, there are still poverty and inequality in the distribution of resources, i.e., the majority of the Bolivian population doesn’t benefit from this growth.
Under this line, the aim of the study was to identify potential sectors that enable towards Green and Inclusive Growth in Bolivia, according to current models of development and growth patterns, and identify key policies that would help their achievement and overcome major challenges. Thus, within the study three sectors of the Bolivian economy were proposed, which the authors identified with the greatest potential for Green and Inclusive Growth. The criteria for selection were based on those sectors which had the highest contribution to GDP, generation of employment, most developed environmental policies, fewer years of education were required from their workers, etc.
The three proposed sectors in the study
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were mining, agricultural and energy (electric) sectors. They found that agricultural sector, although its great potential for social development has serious problems in terms of consistency between the laws, the vision held for development of the sector and what in reality happens. The mining and energy sectors are capital intensive but have a minimum contribution in number of jobs and should be taken into account that the production in this sector isn’t a result of domestic market demand, but depends on the global market demand and is mainly controlled by the multinationals. Although the government’s efforts made significant progress in this sector, this have not been enough to generate social development in the long run and neither has addressed environmental protection as it should, since it is a highly polluting sector.
The agricultural sector is administrated by a corporate state model that guided development, although its decline in the GDP contribution (32% to 15% in recent years), the authors acknowledge its importance when growth and development policies are proposed, since the food security depends on it. The sector represents high economic, environmental and social challenges.
According to Gamarra, these three sectors, despite the fact they have different characteristics, have common problems like the gap between policy and reality, in addition to the serious problems relating to economic, social and technological development, and unwillingness for cooperation and collaboration between actors involved in them.
In this sense, the main conclusion is that the formulation of new policies should be done in dialogue processes with a broader
participation of relevant actors from the beginning, because it is necessary to overcome the inconsistencies that exists in the laws at different levels, and their implementation, since there is a significant gap between the normative part (speech) and reality.
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Fourth Block: Other relevant perspectives
The concept of Green and Inclusive Growth has multiple perspectives, including productive and social development. In this sense, in the fourth and final block, although not exhaustively, contributions on these two issues were presented.Mr. Ivan Larrazabal, Manager of Industrial Promotion and Foreign Trade of the National Chamber of Industries, presented the situation of Bolivian industry and environmental pollution in the country, as well as the main features of the Environmental Regulation of Industrial Manufacturing Sector (RASIM) and concludes, in general terms, that the current regulation should be reviewed because it is outdated and has not evolved according to urban and industry growth.
For Larrazabal, environmental issues are complex, and as he indicated, after an audit made by the Bolivian competent authority, very critical issues were found regarding to environmental standards showing that maybe are not being implemented, including: not conducted efforts to build systems for water treatment, failure of the authorities control in critical areas, institutional weakness, etc.
What concern in this case is that if some actions don’t take place soon, costs will not only affect environment but people health, because contamination reaches production and then consumption due to the use of contaminated water. It is necessary to consider the low productive development of the country, which demonstrates that it is necessary to address industrialization incentives and support policies in order to support effectively a sustainable development in this field.
In addition, in order to conclude the presentations part, Inclusion of vulnerable populations in the process of integrated development and Green Growth, was presented by Mr. Javier Castro, Director of HelpAge International Bolivia.
Castro started with the phrase: “being indigenous, born in the rural area and being a woman today is a disadvantage, to get older in such circumstances is a very cruel situation.” And he added is the situation of most of the vulnerable population in the country. According to Castro, the vulnerability is the result of exposure to risks combined with the inability to face and to actively adapt them.
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The fact that vulnerable population is an important part of society can’t be ignored, according to the presented data, 62% of the population is identified with one of the country’s 36 ethnic groups, 41% identify themselves as indigenous, 49% live in extreme poverty and do not have enough income to feed themselves adequately, 1 in 3 indigenous children are malnourished and stunted, 70% of people living in extreme poverty are women, 9 out of 10 women are victims of some form of violence, 8.9% of the Bolivian population is over 60 years (older adult) and according to projections, by 2050 one of four Bolivian people will be elderly.
The data detailed above not only concern but also surprise, and are a sign that this reality needs to be changed, and as Castro indicated, there are advantages of including vulnerable sectors within Green Growth, for example the elderly (the vulnerable population from which Helpage is concerned) have a unique, extensive and historical local knowledge that needs to be rescued, combined with technology, also they are still a part of the productive and active population of Bolivian society.
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Results and Conclusions
The First National Dialogue on Green and Inclusive Growth in Bolivia was attended by actors who came from different backgrounds and regions, and it was conceived as an opportunity to enrich the dialogue and the conclusions that were reached, although the contrast of visions also represented a major challenge.
According to the participants’ conclusions, Bolivia is a country with great potential in the field of Green Growth because it is a country rich in natural resources, and the concept proposed, although it is a complex and interesting concept that can serve as a basis to build more concrete things, needs to go further, in the sense that is necessary to clarify the way in which it articulates its parts. However, they also expressed some opposed views, who claimed that the theoretical proposal has no future because of the position of the Bolivian state, which does not share the same vision.
Regarding the Case Study on Green and Inclusive Growth in Bolivia that was presented, it was clear that it is necessary to update the laws established, promote socialization and empowerment of the people in the development process of different environmental policies, and to find new effective mechanisms of
implementation laws. To strength the institutions in the country is essential to effectively implement what is written. Also strength regional autonomy could be a basis to use and get more specific productive potential of each area.
While some participants found that perhaps the approach of Green and Inclusive Growth is an opportunity to reach full development and could allow us to walk out of the primary export pattern, some opposed views stated that Bolivia is and it will always be an extractive country, but the important thing is that the benefits of such activity may be intended to encourage the production under a comprehensive development vision and to generate attitudinal changes in the population through the development of human capital.
In order to enrich the central block of the First National Dialogue, the PhD Gover Barja, Director of Master of Public Policy and Management Masters for Development of the Bolivian Catholic University, made an assessment of the contribution of the concept of Green and Inclusive Growth for the Bolivian context. He stated that, in first instance, to achieve effective protection of the environment, we must internalize the costs caused
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by production activities and their externalities. Once internalized the costs is through technological innovation that we can make proposals to reduce them.He also mentioned that there are two strategic ways to reduce inequality and poverty, one is to encourage economic growth (which in turn increases employment and income of the people) and the other is try to reduce the gaps by the transfers made to the most vulnerable groups with higher unmet needs. In Bolivia we have done both, and it is a fact that the strategy that contributed the most to the reduction of inequalities is economic growth, so it is clear where national policies should aim.
Barja remarked that the concept of Green and Inclusive Growth is interesting and innovative because it puts together relevant approaches that normally are handled separately. Combine the concern for the environment, the appropriate use of natural resources, and poverty and inequality; and its implementation should be based on an exhaustive treatment of individual subjects, in all its details.
From his perspective, while natural resources and the exploitation of these may be a growth strategy to get economic development for the country, it “can’t be eaten”; once sold and converted into capital, it should be invested so we can gain a profitability from its operation, otherwise we might fall into the curse of natural resources, which is the equivalent to “eat up capital.” The reality, he said, is that Bolivia can’t leave the primary export pattern, at least until the national industry is developed. In this sense, the problem of institutions is the first problem to be solved, as it involves serious organizational problems that hinder the capacity to solve problems and to fulfill established policies, and make public and private management processes poor.One thing that has become clear, after hearing all the contributions of the participants, is how important it is for them to feel they are being taken into account when the decisions are made. That’s the reason why the concept of “inclusion” must be central for public policies.
