Report No. 38721 Public Disclosure Authorized Bolivia Towards a New Social Contract Options for the Constituent Assembly December 2006 Public Disclosure Authorized Bolivia, Ecuador, Peru, Venezuela Country Management Unit ESSD Sector Management Unit Latin America and the Caribbean Region Public Disclosure Authorized World Bank Document Public Disclosure Authorized 1 CURRENCY EQUIVALENTS Currency Unit – Bolivian Boliviano (BOB) EXCHANGE RATE 2005 BOB 8.0661 = US$ 1 WEIGHTS AND MEASURES Metric System FISCAL YEAR January 1 – December 31 ABBREVIATIONS AND ACRONYMS APG Asociación de Pueblos Guarani-Association of Guarani Peoples CIRABO Central Indígena de la Región Amazónica de Bolivia-Indigenous Central Union of the Amazon Region of Bolivia COB Central Obrera Boliviana—Bolivian Central Workers’ Union CSA Country Social Analysis DfID UK Department for International Development FEGABENI Federación de Ganaderos del Beni-Federation of Livestok Producers of Beni GDP Gross Domestic Product HCL Hydrocarbons Law of 2005 IADB Inter-American Development Bank ILO International Labor Organization INE Instituto Nacional de Estadísticas-National Statistics Institute INRA Instituto Nacional de Reforma Agraria—National Agrarian Reform Institute JICA Japanese International Cooperation Agency LAC Latin America and the Caribbean MACPIO Ministerio de Asuntos Campesinos, Pueblos Indígenas y Originarios—Ministry of Peasant Affairs, Indigenous and First Peoples MSD Ministerio de Salud y Deporte- Ministry of Health and Sports NGO Non Governmental Organization OTB Organización Territorial de Base—Basic Territorial Organization SIDA Swedish International Development Agency TCOs Tierras Comunitarias de Origen—Original Community Lands UDAPE Unidad de Análisis de Políticas Económicas y Sociales-Economic and Social Plicy Analysis Unit UK United Kingdom of Great Britain and Northern Ireland VIPFE Viceministerio de Inversión Pública y Financiamiento Externo-Viceministry of Public Investment and External Financing Vice President LCR: Pamela Cox Director LCC6C: Marcelo Giugale Director LCSES: Laura Tuck Sector Manager LCSEO: McDonald Benjamin Task Team Leader LCSEO: McDonald Benjamin Bolivia: Towards a New Social Contract Table of Contents EXECUTIVE SUMMARY................................................................................................i 1. INTRODUCTION..................................................................................................... 1 2. INDIGENOUS RIGHTS .......................................................................................... 5 INTRODUCTION ..................................................................................................................................... 5 INDIGENOUS RIGHTS IN BOLIVIA ..................................................................................................... 6 INTERNATIONAL EXPERIENCE REGARDING INDIGENOUS RIGHTS......................................... 8 CONSTITUTIONAL PRINCIPLES AND OPTIONS FOR THE CONSTITUENT ASSEMBLY......... 10 CONSIDERATIONS BEYOND THE CONSTITUENT ASSEMBLY .................................................. 11 3. LAND AND TERRITORY..................................................................................... 13 INTRODUCTION ................................................................................................................................... 13 LAND ...................................................................................................................................................... 13 TERRITORY ........................................................................................................................................... 18 CONSTITUTIONAL PRINCIPLES AND OPTIONS FOR THE CONSTITUTIONAL ASSEMBLY.. 20 CONSIDERATIONS BEYOND THE CONSTITUENT ASSEMBLY .................................................. 21 4. DECENTRALIZATION WITH INCLUSION .................................................... 23 INTRODUCTION ................................................................................................................................... 23 DECENTRALIZATION IN BOLIVIA ................................................................................................... 23 INTERNATIONAL EXPERIENCE AND DECISIONS ON DECENTRALIZATION ......................... 27 CONSTITUTIONAL PRINCIPLES AND OPTIONS FOR THE CONSTITUENT ASSEMBLY......... 29 CONSIDERATIONS BEYOND THE CONSTITUENT ASSEMBLY .................................................. 31 5. EQUITABLE ACCESS TO JUSTICE.................................................................. 33 INTRODUCTION ................................................................................................................................... 33 ACCESS TO JUSTICE IN BOLIVIA ..................................................................................................... 33 INTERNATIONAL EXPERIENCE IN RELATON TO ACCESS TO JUSTICE .................................. 37 CONSTITUTIONAL PRINCIPLES AND OPTIONS FOR THE CONSTITUENT ASSEMBLY......... 39 CONSIDERATIONS BEYOND THE CONSTITUTIONAL ASSEMBLY ........................................... 40 6. CLOSING CONSIDERATIONS........................................................................... 43 BIBLIOGRAPHY ........................................................................................................... 82 List of Annexes ANNEX 1.1 - SOCIOECONOMIC INEQUALITIES IN BOLIVIA ........................................................... 47 ANNEX 2.1 – FOUR DEFINITIONS OF INDIGENOUS PEOPLES......................................................... 56 ANNEX 2.2 – RELEVANT ARTICLES OF THE PRESENT CONSTITUTION ON THE INDIGENOUS PEOPLES ISSUE ......................................................................................................................................... 58 ANNEX 2.3 – INCORPORATION OF INDIGENOUS RIGHTS IN BOLIVIAN LEGISLATION........... 65 ANNEX 2.4 THE SPREAD OF MULTICULTURALISM IN LATIN AMERICA SINCE 1986............... 66 ANNEX 2.5 IADB: ASPECTS OF THE TERRITORIAL RIGHTS OF INDIGENOUS PEOPLES .......... 68 ANNEX 3.1 – INTERNATIONAL EXPERIENCES IN RELATION TO INDIGENOUS TERRITORIES ...................................................................................................................................................................... 69 ANNEX 3.2 – DIMENSIONS OF TERRITORIAL RIGHTS IN LATIN AMERICA ................................ 73 ANNEX 4.1 – OIL REVENUE VOLATILITY IN SELECTED COUNTRIES, 1997-2000...................... 76 ANNEX 4.2. DECENTRALIZATION STRATEGY: POLICY OPTIONS BEYOND THE CONSTITUTION ......................................................................................................................................... 78 ANNEX 5.1. CONSTITUTIONAL ACKNOWLEDGEMENT OF COMMUNITY JUSTICE IN BOLIVIA, PERU, ECUADOR, VENEZUELA AND COLOMBIA ........................................................... 79 ANNEX 5.2 – GENDER RIGHTS DIMENSIONS IN LATIN AMERICAN CONSTITUTIONS............. 80 List of Boxes BOX 2.1 FUNDAMENTAL CARACTERISTICS OF INDIGENOUS JUSTICE ....................................... 8 BOX 2.2. CONSTITUTIONAL PRINCIPLES RELATED TO INDIGENOUS TERRITORY, BASED ON INTERNATIONAL EXPERIENCE............................................................................................................... 9 BOX 3.1. ALTERNATIVE LAND ACCESS METHODS ......................................................................... 16 BOX 3.2. CONFLICT AND FORESTRY MANAGEMENT SINCE THE 1996 FORESTRY LAW........ 17 BOX 4.1. LESSONS LEARNED OF THE FIRST PHASE OF DECENTRALIZATION (1994-2004) ..... 24 BOX 4.2 WHAT ARE AUTONOMIES ........................................................................................................ 25 BOX 4.3. INTERGOVERNMENTAL TRANSFERS: THE LATIN AMERICAN EXPERIENCE............ 28 List of Tables TABLE 1.1. INCIDENCE OF POVERTY AND EXTREME POVERTY BY INCOME............................ 2 TABLE 3.1. THE STATUS OF THE PROCESS OF LAND REGULARIZATION.................................. 14 TABLE 4.1. SUB-NATIONAL TAXES AS A SHARE OF TOTAL TAXES IN SELECTED COUNTRIES IN LAC.................................................................................................................................. 25 TABLE 4.2. INCREASE IN DISPARITIES IN INTERREGIONAL TRANSFERS PRODUCED BY THE HYDROCARBONS LAW OF 2005 ............................................................................................................ 26 TABLE 4.4. CONSTITUTIONAL PRINCIPLES AND OPTIONS FOR CONSIDERATION.................. 30 TABLE 5.1. CONSTITUTIONAL PRINCIPLES RELATED TO ACCESS TO JUSTICE, FOR CONSIDERATION BY THE CONSTITUENT ASSEMBLY .................................................................... 39 TABLE A1.1 CATEGORIES OF MUNICIPALITIES ACCORDING TO POVERTY.............................. 48 TABLE 5.13. PROGRESSIVITY AND SEXUAL AND REPRODUCTIVE RIGHTS ............................. 81 List of Figures FIGURE 2.1 LOCATION OF INDIGENOUS PEOPLES IN BOLIVIA....................................................... 5 FIGURE 5.1. PERCEPTION OF LEGAL COMPLIANCE (2005) ............................................................ 36 FIGURE 5.2. SURVEY QUESTION: DO COURTS ACT TRANSPARENTLY AND IMPARTIALLY?36 FOREWORD This Country Social Analysis (CSA) is the product of a multi-sectoral team of Bolivian, regional and international specialists. The team was led by McDonald Benjamin and included Gregor Barié and Jorge Uquillas (indigenous rights), Malcolm Childress (land and territory), Rémy Prud’homme