Cochabambinos

Cochabambinos
‘Born to migrate’
Master thesis
A governance perspective on
international migration
and local development
In Cochabamba, Bolivia
Irene van den Bogaardt
International Development Studies
Faculty of Geo sciences, University Utrecht
Supervisor Dr. Gery Nijenhuis
August 2009
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Master thesis
A governance perspective on international
migration and local development
Irene van den Bogaardt
Supervisor Dr. Gery Nijenhuis
Master International Development Studies
Faculty of Geo sciences University Utrecht
In cooperation with CEPLAG in Cochabamba, Bolivia.
August 2009
Copyright © Irene van den Bogaardt
International Development Studies, Faculty of Geosciences, University Utrecht.
All rights reserved. No reproduction in any form without the permission of the publisher.
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Preface
Doing research in the field, far a way from home, has been a very interesting and unforgettable
experience! It has been extremely instructive and useful for me to do research in Bolivia, I have learned a
lot about doing research all by myself. I have been working really hard in this self conducted research,
though I have never felt uncomfortable, on the contrary, I have indulged myself completely in the
research and in the Bolivian culture.
During my fieldwork the city of Cochabamba was my base, situated in a really beautiful with mountains
surrounded valley, with nice weather (although the first month sometimes it was impossible to do
research due to the tropical rainfall), and also a developed and entertaining city. My research that took
place in the other five more rural municipalities was completely different in comparison with the city of
Cochabamba; less developed, in these municipalities I have never seen any foreigner and sometimes the
habitants almost did not speak Spanish, only Quechua. Luckily these rural villages were easily accessible
by taxi trufi, a cheap. Therefore it was possible to travel various times to these villages and return by
night to my department in the city.
I should thank various persons that have helped me during my fieldwork, because without these people
this research would have been more difficult. CEPLAG has been my help during the whole period of
research. First of all Carmen Ledo, the director of CEPLAG, foremost in the beginning has created a
network of contacts that became my key informants. Besides the help about the content of the research,
Carmen Ledo has received me with open arms, in a way that I felt at home at the office of CEPLAG.
Also the secretary of CEPLAG Cynthia receives my gratitude because of her never ending patience with
my phone calls and the letters of acreditación. Besides that I had so much fun with her; we laughed a lot!
A special word to Juan Pablo Quiróz, because of the help with some (thematic) maps and also to the 4
supervisors of CEPLAG: Micaela Delgadillo, Patricia Ruiz, Antonio Salinas and Ivan Baldivieso. All
supported me in my research. They explained all the ins and outs about the institutional structures,
migration processes and clarified many more doubts I had during the research. Also, they helped me
finding presidents of OTBs in the field. And foremost we had a lot of fun together at the office.
Hopefully one day you fulfil your wish do a master in Europe!
At the University of Utrecht, I need to thank Gery Nijenhuis, my supervisor, to support choosing a
direction within the investigation topic while writing my proposal. Furthermore for the e-mails with
many tips you send while in the field. Besides that I have always felt the critique as positive and it
encouraged me to improve my work. Without you this experiences would not have been possible!
Utrecht, August 2009.
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Index
Preface
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Index
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Lists of tables, figures, maps and boxes
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Glossary and abbreviations
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Executive summary
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Introduction
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1. Theoretical framework: international migration and local development embedded
in governance structures
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1.1 Main trends in international migration
1.1.1 Facts and numbers about international migration
1.1.2 Types of international migrants
1.1.3 Development theories, programmes and international migration
1.1.4 Current debates about international migration
1.2 The socio-economic impact of international migration
1.2.1 Remittances
1.2.2 Relation between international migration and local development
1.3 A governance perspective on international migration and local development
1.3.1 Local governance and decentralization
1.3.2 Governments, international migration and local development
1.3.3 Civil society, international migration and local development
1.3.4 The private sector, international migration and local development
1.4 Summary and conclusion
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2. Thematic framework: international migration and local development in Bolivia
and Cochabamba
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2.1 Socio-economic context of Bolivia
2.1.1 Physical and political background
2.1.2 Poverty
2.1.3 Political administrative context
2.2 Migration in Bolivia
2.2.1 Internal migration
2.2.2 International migration
2.3 The socio-economic impact of international migration in Bolivia
2.3.1 Remittances
2.3.2 Impact of international migration on local development
2.3.3 Psycho-social impact of international migration
2.4 Socio-economic context and migration in Cochabamba
2.4.1 Physical and socio-economic context
2.4.2 International migration and its impact on Cochabamba
2.5 Summary and conclusion
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3. Methodology
3.1 Research objectives
3.2 Research questions
3.3 Conceptual model and operationalization of concepts
3.4 Selection of the research area
3.5 Research methodology
4. A characterization of the research municipalities: experiences and perceptions
on international migration
4.1 Main characteristics of the six research municipalities
4.1.1 Spatial context
4.1.2 Socio-economic context
4.1.3 Institutional context
4.2 Experiences with migratory processes
4.2.1 Population dynamics
4.2.2 Internal migration
4.2.3 International migration
4.3 Differentiated perceptions about international migration
4.3.1 International migration as a chance for local development
4.3.2 International migration as a constraint
4.3.3 Global economic crisis and return migration
4.4 Summary and conclusion
5. Plans and practices with regard to international migration and implications for
local development
5.1 Local governments: plans and practices
5.1.1 Local governments’ development plans
5.1.2 Factors that explain lack of embedding
5.2 OTBs: practices
5.3 NGOs: plans and practices
5.4 Financial institutions: plans and practices
5.5 Supra-local initiatives
5.6 Implications for local development
5.6.1 Outcomes of plans and practices local actors
5.6.2 Impact of remittances on local development
5.6.3 The construction ‘boom’
5.7 Summary and conclusion
6. Conclusion and discussion
6.1 Summary of the research background and objectives
6.2 The differentiated embedding of international migration in governance structures
6.3 Discussion and policy recommendations
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Bibliography
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Appendices
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Lists
Tables
1.1 Numbers and percentages of total population of migrants per region
1.2 Amounts of Euros to transfer with Western Union and corresponding fees
2.1 Human Development Report 2007/2008 Latin America
3.1 Composition of sample in the research municipalities
3.2 Composition of sample in the municipality of Cochabamba
4.1 Main geographical characteristics of the research municipalities
4.2 Development indicators: Bolivia and research municipalities in 2001
4.3 Relationship between an educational unit and the language(s) spoken in Totora
4.4 Number of authorities in 2009 per municipality
4.5 Composition of political preference in the research municipalities
4.6 Main characteristics of OTBs per municipality
4.7 Main characteristics of interviewed NGOs in the research municipalities
4.8 Characterization of interviewed financial institutions per municipality
4.9 Total population of Bolivia, the department of Cochabamba and the research
municipalities
4.10 Circular internal migration of totoreños
4.11 Destinations of internal migrants from the research municipalities
4.12 Main characteristics of migrants per municipality
4.13 Local actors’ positive perceptions about international migration
4.14 Local actors’ negative perceptions about international migration
4.15 Relationship between participation and relation changes in the surveyed OTBs
4.16 Summary main characteristics of the research municipalities, experiences and
perceptions of international migration
5.1 Focus areas per department described as in PDM, per municipality
5.2 Budget in Bolivians per department per municipality
5.3 Involvement of interviewed NGOs in migration issues
5.4 Financial institutions categorized by type in the research municipalities
5.5 Characteristics of remittances send to families in the research municipalities
5.6 Summary local actors’ best practices embedding international migration
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Figures
1.1 International migration net rates and numbers in world’s major regions 2000-2005
1.2 remittances as a percentage of GDP in 2003
1.3 remittances compared with international aid
1.4 remittances - development linkages
1.5 Relationship between good local governance and poverty reduction
1.6 Relationship governments, private sector and civil society
2.1 HDI index and GDP in US$ of countries in South America
2.2 Local versus central investment in Bolivia
2.3 Migration balances of the nine Bolivian departments
2.4 Remittances in US$ to Bolivia
2.5 The department of Cochabamba
3.1 The conceptual model
3.2 Net migration balances of the 45 municipalities in the department of Cochabamba
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3.3 The six research municipalities in the department of Cochabamba
4.1 Districts and sub-municipalities (Comunas) in the municipality of Cochabamba
4.2 A typical street in a rural village in Cochabamba with houses of adobe; this is Totora
4.3 Trade balances in the department of Cochabamba 2002-2006
4.4 Exportations per sector department of Cochabamba 2006
4.5 Percentages of economic active by sector 2001
4.6 Traditional handicraft productions for export; this is the workplace of doña Lucilda
in Totora
4.7 Languages spoken by population in percentage of the total population
4.8 Simplification of hierarchical structures of a municipality in the department of
Cochabamba
4.9 PRODEM in Cliza
4.10 Population dynamics per research municipality
4.11 Population pyramids Cliza (a), Punata (b) and Arani (c)
4.12 Start year and duration of emigration flows
4.13 Percentages of families that have a family member abroad in the research
municipalities
4.14 Presidents of OTBs’ perceived impact of international migration
4.15 Statue central plaza Tarata paid by American residents from the village
5.1 The programme Fortalecimiento Familiar aims at protecting children of migrants
families’ rights
5.2 Technical traineeships for recent graduate high school students in Cochabamba
5.3 Strategy for a productive rural economic development
5.4 Opinions of OTBs about PDMs and POAs
5.5 Folder of Centre Vicente Cañas about international migration and communal
development
5.6 Man-communities in the department of Cochabamba
5.7 A sharp contrast: A traditional house of adobe and a house of brick (still unfinished);
this is district 9
5.8 Observations of presidents of OTBs about the construction of houses since
international migration
5.9 Euro huasis along the highway to Cliza
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Boxes
2.1 History of Bolivian migration
5.1 OTBs prevent emigration
5.2 Rural financial institutions increase local development
5.3 Entrepreneurial migrants in places of origin
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Glossary and abbreviations
ACOBE
Asociación de Cooperación Bolivia España; Bolivian Spanish association of
cooperation, office in Madrid with the purpose to improve Bolivian migrant’s
situation in Spain.
AMIBE
Asociación de Migrantes Bolivia España; Bolivian Spain migrant
association, offices in La Paz, Cochabamba and Santa Cruz. Works in
cooperation with ACOBE.
Alcaldía
Town hall with local government’s offices.
Altiplano
The Andean plane highlands. The altiplano is a very dry climate zone and
the soils are hard to cultivate.
Bolvianos
National currency of Bolivia. 10 Bolivianos (Bs.) is approximately 1 Euro.
CDC
Consejo Departamental de Competitividad; departmental counsel fo
competition
Central campesino
Peasant community at municipal level, the most important peasant
organization.
CEPLAG
Centro de Planificación y Gestión; Centre of Planning and Management.
Investigation institute in the faculty of economic sciences in the U.M.S.S. in
Cochabamba.
Cocaleros
Coca farmers. Mainly based in the tropical province Chapare in department
of Cochabamba.
Cono Sur
South Eastern region of the department of Cochabamba, bordering the
departments of Sucre and Santa Cruz. The Cono Sur compasses various
climate zones. Research municipalities Arani (transition between Valle Alto
and Cono Sur) and Totora are situated in Cono Sur.
Cooperativo
Saving and lending association. Specialized in micro credits.
HDI
Human Development Index. A measure composed of life expectancy,
literacy, educational performance and the GDP per capita.
GDP
Gross Domestic Product.
Gini index
Disparity index that measures the income disparity of the population in a
country. The index indicates a number between 0 (perfect distribution) and
100 (imperfect distribution).
HTA
Home Town Organizations.
IDH
Impuesto directo a los Hydrocarburos; Law on Hydro carbonates. Taxes
raised over the national production hydro carbonates.
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ILVA
Industrías Lácteas Valle Alto; The largest industry in Valle Alto (fabric
Punata) dedicated to the fabrication of lacteal products.
MAS
Movimiento al Socialismo: political party of Evo Morales, the contemporary
president of Bolivia.
Mutual
Financial institute specialized in credits for housing.
MTO
Money Transfer Operator. Specialized in transnational giros used for the
sending of remittances.
NGO
Non Governmental Organization.
La Cancha
The largest open market in the city of Cochabamba where anything you want
to buy is offered. Located in district 11, just south of the old centre. La Cancha
attracts many small traders from the whole department offering their product.
LPP
Ley de Participación Popular; Law on Popular Participation, introduced in
1994.
OTB
Organización
Territorial
de
Base;
territorial base organizations.
Organization that are established by the LPP and represent directly the
population of the area of the OTB.
PDM
Plan de Desarrollo Municipal; municipal five year development strategy plan.
POA
Plan de Operaciones Anuales; annual investment plan of all projects that will
be implemented in a year. The plans are derived from the PDM.
Prefectura
The departmental government.
Taxi trufi
Shared taxi. Very cheap and fast (twice or even triple as fast as a bus) public
transport within the city of Cochabamba and between the city of Cochabamba
and provinces and municipalities.
Tienda de barrio
Small shop in the neighbourhood. One of the easiest micro enterprises to
initiate mostly opened when a family has obtained a small capital (remittances
and / or loans).
TNC
Trans National Company.
Tres por Uno
Three for One: a matching grant system of the Mexican government. 1 US$
remitted will be duplicated with 3 US$ that are for local projets.
U.M.S.S.
Universidad Mayor de San Simón; the public university in Cochabamba.
US$
American Dollars.
Valle Alto
The high valley in the department of Cochabamba, south of the city of
Cochabamba, in which are situated research municipalities Tarata, Cliza,
Punata and Arani.
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Executive summary
This study about the governance perspective on international migration is executed in the department of
Cochabamba in Bolivia.
International migration is a hot topic within the contemporary development debate. The last decades the
process of globalization has accelerated the process of international migration. The numbers of
international migrants, especially labour, have doubled and even tripled, particularly in a south-north
direction. One of the most discussed issues in the current debate about international migration is the
concept of transnationalism. Transnationalism refers to the ties that the migrant maintains with their
country of origin. The most important ties are the remittances. Remittances are the most substantial
north-south money flows that by the migrant directly are sent to their relatives in the place of origin.
Remittances can accelerate economic growth, raise income levels, create employment, are recognised as
a catalyst for poverty alleviation and can create multiplier effects. Nonetheless, remittances can also
cause financial dependency and negative psycho-social effects. Consequently the impact of international
migration on local development is context specific. In addition, the interference of actors also determines
the impact of international migration on local development. In decentralized countries in the south local
actors have obtained more influence in policy making that can result in good local governance. The
influence of local actors in governance structures can positively influence the international migration and
local development nexus. Examples are the Philippine and the Mexican governments that respectively
introduced special tax regimes for remittances and a matching grant programme (Tres por Uno). The
latter is a programme that triplicates collective remittances for local projects, sent by mostly Home Town
Associations (HTAs). These examples are successful tools for local development, but unfortunately not
free from corruption. Furthermore local governments can face problems with the participation within
development programmes, such as the Tres por Uno, because of administrative burdens. Despite of some
complications, the level of involvement of local actors (e.g. local governments, civil society, the private
sector) in international migration issues is important in enabling local development.
Bolivia, one of the poorest countries in Latin America, is a country in the south that experiences massive
outflows of international migrants that occupy low skilled economic activities in countries such as the
Argentina and Spain. The remittances contribute for almost 10 percent share of the national GDP. These
remittances create a more stable income source for households and also create opportunities for
development at the local level. However remittances in Bolivia are more used for consumption purposes
and create financial dependency and negative psycho-social effects.
So it cannot be ignored that international migration has an enormous impact on the country of Bolivia
and creates opportunities for development at the local level. Consequently it is very interesting to find out
if governance structures influence international migration and local development in Bolivia. Furthermore
Bolivia is a highly decentralized country and this context facilitates a research about the role of
governance structures in the process of international migration and local development.
The objective of this research is to explain and assess how Bolivian international migration is
embedded in governance structures and what its implications for local development are in the department
of Cochabamba. The research area consists of research six municipalities: Cochabamba, Tarata, Cliza,
Punata, Arani and Totora that experience high numbers of emigration to the exterior. To find out how
international migration is embedded in local governance structures, the experiences, perceptions, plans
and practices of the local actors on international migration and local development will be investigated.
The interviewed local actors in this research are the municipal governments, Organizaciones Territorial
de Base (OTBs), NGOs (in the civil society) and the private sector.
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The findings of this research are the experiences, perceptions, plans and practices that the four local
actors have about international migration and local development.
The experiences have measured to what extent the local actors are confronted with international
migration issues. The four local actors in the six research municipalities have different experiences with
international migration, albeit also similarities can be observed. Local governments experience
international migration as a loss of their population. In the municipality of Cochabamba the last decade
many inhabitants of the peripheral southern districts have immigrated to Spain. In Cliza, Punata and
Arani similar migration patterns are observed. From Tarata in the 1980s (educational) migration was
directed to the United States. The poor rural municipality of Totora experiences more circular internal
migration towards cities, because of lacking start capitals to migrate far away. The presidents of the
OTBs know about the number of families that have a family member abroad and how remittances are
spent and/ or invested in their neighbourhoods or communities. In the rural OTBs (e.g. Arani, Totora)
presidents experience an urban bias of the investments with remittances, because migrant families from
rural communities prefer to construct their house in the southern districts of the city of Cochabamba.
Among the NGOs in the research municipalities, two have international migration as their core business
(AMIBE and Centre Vicente Cañas) and other NGOs are in lesser extent confronted with international
migration. Financial institutions in Cochabamba, Punata and Cliza are concerned about capturing
remittances.
All local actors perceive international migration both as a positive and negative process. Both
perceptions are inextricably interlinked with each other. Families become disintegrated, though their
economic welfare is enhanced by the sending of remittances. Local governments are concerned about the
negative impact and attend the victims at the defence of children and adolescents. Local governments pay
less attention to the positive impact, because they are engaged in other activities, instead of intervening in
remittances spending. OTBs perceive international migration as an individual process, especially the
spending of remittances. OTBs see family disintegration as negative process, because in their
neighbourhoods this causes violence and alcohol and drug abuse among the abandoned children and
adolescents of migrant parents. Nevertheless, OTBs perceive the construction of houses as positive
process, since this increases the status and proud feelings among the population in the neighbourhood or
community. NGOs working with human rights and human development perceive international migration
as a negative phenomenon, because these NGOs attend the victims of mainly family disintegration.
NGOs focussing on economic development perceive international migration as positive, because these
NGOs intend to create awareness among migrant families and return migrants to invest remittances in an
entrepreneurial way. Financial institutions perceive the receiving of remittances as positive, because
these enhance their capitals. Though, recently the financial economic crisis directly decreases the
remittances flows, what is obviously seen as negative.
The perceptions of the local actors about international migration influence decision making of the
implementation of plans about international migration.
The perceived negative impact of local governments explains the practices to intend to prevent
emigration. An example is the television series of the defence of children and adolescents in Cliza that
won an international recognition of the World Bank. The perceived positive impact of local governments
about international migration has created programmes that impact positively on social and economic
development. Examples are the C2C cooperation, la casa del migrante and employment programmes in
the municipality of Cochabamba. OTBs do not aim at implementing plans; though neither do something
with emigration flows. The OTBs’ perception about international migration as an individual process
explains that OTBs do not take part in controlling migration issues. NGOs (CETM, the Pastoral for the
Humanity, migration platform) have the most developed plans and practices about decreasing the
negative impact of international migration with migrant relief centres. Some other NGOs (AMIBE,
Centre Vicente Cañas, Celim Bergamo) enhance the positive impact on local development with
workshops and trainings about investing remittances in entrepreneurial activities. Financial institutions
work together with MTOs to attract remittances. Financial institutions promote the saving of remittances
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and can utilize these savings for micro credits. Remittances and micro credits contribute to more capital
circulation within the financial institutions and among the clients and this finally results to local
development.
So between the six research municipalities are differences concerning plans and practices related to
international migration and local development. International migration is more embedded in local
governance structure of the city of Cochabamba, than in the rural municipalities. The differences in the
geographical context, socio-economic context and institutional framework explain that only some
municipalities (Cochabamba and less extent Cliza) have an enabling environment to embed migration
issues in plans. The most important constraint is that local actors still have to overcome basic service
delivery in poor rural municipalities (Tarata, Arani and Totora) and in the poor southern districts in the
city of Cochabamba. Moreover in the rural municipalities is less qualified staff to make for instance
adequate planning (e.g. PDMs and POAs). Furthermore the small number of NGOs in Cliza, Punata and
Arani and financial institutions in Tarata and Arani also explain the low levels of embedding. In addition
the political unstable municipalities of Tarata and Punata do not have an enabling environment to embed
international migration. Finally in the research municipalities is little cooperation between the four local
actors. This constraints interaction between the local actors what could positively influence the impact of
international migration on local development.
Conclusively, the embedding of international migration in local governance structures is in an initial
phase and has an urban biased character. NGOs and in lesser extent some local governments have several
plans and practices related to international migration, especially in the municipality of Cochabamba.
Other local actors almost completely lack planning about international migration and therefore the
embedding can be characterized as initial. The impact on local development is differentiated, because the
existing plans and practices aim at migrant families to invert remittances productively, however only a
small numbers of families is reached with these programmes. Besides, international migration impacts
directly on local development, without intervention of local actors. To conclude, in the urban areas
remittances contribute to local development, especially in the construction and transport sector, while
migrant families in the rural municipalities invest in urban environments.
In certain extend it is somehow odd that international migration is hardly embedded in
governance structures, because the phenomenon itself is completely embedded in the daily lives of
people in the department of Cochabamba. The reason why the embedding of international migration is an
initial phase can be explained with the perceptions of local actors, the stubborn character of bureaucracy,
the lack of human resources and the low levels of cooperation between the local actors. These limiting
factors are even more present in rural areas, hence the urban bias. The contextual differences between the
municipalities also explain the differentiated impact on local development. So in the urban areas the
impact on local development creates more externalities than in the rural municipalities.
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Introduction
Importance of governance in the international migration and local development nexus
In the ever globalizing world (Kalb et al., 2004) the numbers of international migrants increase
extremely. Nowadays all countries around the globe face migration processes (IOM, 2005, p. 15). The
international migrant is a key actor in the construction of the global network (Castells, 1996).
Contemporary migration has a global south - north direction that is dominated by labour migrants. The
impact of international migration in developing countries can be positive and negative. Maimbo and
Ratha (2005, p. 2) argue that ‘international migrant remittances are perhaps the largest source of external
finance in developing countries’. Remittances are the most substantial north-south money flows and
create transnational ties between the migrant and their families in the community of origin (Mazzucato,
2004). Remittances can accelerate economic growth, raise income levels and are recognised as a catalyst
for poverty alleviation (Newland and Patrick, 2004; Adams and Page, 2005; Acosta et al., 2008;
Okonkwo, 2007). In addition, remittances can create multiplier effects in the local economies. At national
level of developing countries, remittances contribute for an important share to the national Gross
Domestic Product (Maimbo and Ratha, 2005). Nevertheless, international migration can also cause
financial dependency and negative psycho-social effects (Portes and DeWind, 2006; VanWey et al,
2005).
So the impact of international migration on local development in countries in the south can both
be positive and negative. In order to make the negative impact more negligible and to reach a more
positive impact, institutional intervention is necessary. Institutional intervention can be done by actors in
local governance structures. Local actors are municipal governments, the civil society and the private
sector (van Lindert, 2006). Actors in the countries that cope with enormous emigration flows have the
ability to influence the impact of international migration on local development in a positive way.
Especially in decentralized countries, where these actors have an important role in decision making. In
the academic debate about the impact of international migration on local development, very few
information is available about local actors that influence this process. Only some examples are observed
in the decentralized countries of Mexico (García Zamora, 2007) and Philippines (Maimbo and Ratha,
2005). These governments introduced a matching grant system to triple remittances for local
development projects and special tax regimes for remittances. There are also examples of actors in the
civil society that influence the impact of international migration; the Home Town Associations (HTAs)
(Carling, 2004, p. 6; Fox and Bada, 2008). HTAs are migrant organizations at the place of destination
that send remittances to their communities in the country of origin. These examples illustrate that the
intervention of local actors - here governments and civil society organizations - make international
migration impact positively on local development. However, these are few examples in a world in which
all countries face migration and receive remittances that can contribute to the national and local
economy. The potential of international migration should be more acknowledged by actors in local
governance structures. Consequently, local actors should design policy about making international
migration create opportunities for local development.
Relevance of study in Cochabamba, Bolivia
Bolivia, one of the poorest countries in Latin America, has massive outflows of international migrants.
Bolivians occupy low skilled economic activities in developed countries, such as the United States and
Spain, and more nearby in Argentina and Brazil. Nowadays almost one fourth of the Bolivian population
lives abroad. These migrants have created substantial flows of remittances (almost 1 billion US$) that
contribute for almost 10 percent to the national GDP of Bolivia (BCB, 2007; Whitesell, 2008; Orozco,
2009). Therefore it cannot be ignored that international migration has an enormous impact on Bolivia and
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creates opportunities for development at the local level. Consequently it is very interesting to find out if
governance structures in Bolivia are aware of international migration issues and its possible impact on
local development. Furthermore Bolivia is a highly decentralized country (Nijenhuis, 2002) and this
context facilitates a research about the role of governance structures in the process of international
migration and local development.
In Bolivia already various studies about international migration and local development are
executed. However information lacks about the governance perspective of the impact of international
migration on local development. So this research has as the objective to explain and assess how Bolivian
international migration is embedded in governance structures and what its implications for local
development are. In the local governance structures in Bolivia are various actors institutionalized. The
most important actors are municipal governments, Organizaciones Territorial de Base (OTBs), NGOs
(in the civil society) and the private sector. To find out how international migration is embedded in local
governance structures, the experiences, perceptions, plans and practices of the local actors about
international migration and local development will be investigated.
To execute such a research in Bolivia, the department of Cochabamba is chosen to find out how
international migration is embedded in local governance structures, and what its complications for
development interventions are. According to Roncken and Forsberg (2007), INE (2001), de la Torre
(2006; 2007) and Hinojosa (2009) the department of Cochabamba experience significant migration
outflows. These high emigration net numbers impact consequently on the society and the populations left
behind. Therefore a research about the governance perspective on international development and its
implications for local development is extremely important. Furthermore to make policy
recommendations.
Structure of master thesis
This thesis is structured as follows. The first chapter is a theoretical framework in which academic
literature is analyzed about the international migration and local development nexus. The governance
perspective on international migration and its implication for local development are also discussed. The
second chapter is a thematic analysis of the case study Bolivia. The case study is about international
migration and the impact on local development in Bolivia and the department of Cochabamba. The third
chapter gives the research objectives, questions, conceptual model, operationalization, the selection of the
research area and methodology for the field research in the department of Cochabamba. In the fourth
chapter the empirical results are presented with the main characteristics of the research municipalities and
the local actors’ experiences and perception about international migration. In the fifth chapter in-depth
results are given about how international migration is embedded in governance structures in the research
municipalities. In additions the findings are presented about what kind of impact this has on local
development. The findings in chapter four and five are based on the interviews and surveys with
respondents of municipal governments, OTBs, NGOs and financial institutions in the research
municipalities. The findings are illustrated with quotes from the interviews. Some of these quotes are
written in Spanish, because of the value of the original formulation. The last chapter gives answers to the
research questions and discusses the findings in the context of the academic debate. This finally results in
policy recommendations.
15
1. Theoretical framework: international migration and
local development embedded in governance structures
Chapter one has the purpose to provide a theoretical framework about international migration patterns
and how international migration and local development are embedded in governance structures. The
chapter is structured as follows: first an overview of the main trends in international migration is given
(1.1). Second the academic debate about the socio-economic impact of international migration is
discussed (1.2). Third the governance perspective on the relationship between international migration and
local development is analyzed (1.3). At the end of this chapter a summary and conclusion are given (1.4).
1.1 Main trends in international migration
The main trends of international migration are introduced with a definition of international migration.
Then facts and numbers about international migration are given (1.1.1). This is followed with the
different types of migrants that can be distinguished (1.1.3). Furthermore an overview is given about
development theories that are a useful background to understand migration patterns (1.1.3). Finally the
current issues about international migration are discussed (1.1.4).
Academics, authors and institutions define the concept of migration. Boyle et al. (1998, p. 34) define
migration as follows: ‘Migration involves the movement of a person (a migrant) between two places for a
certain period of time’. In the definition of Boyle et al. migration over space is considered as the spatial
movement across the boundary of a certain area. Internal migration is when a boundary within the
country is crossed, for instance from one province to another. International migration is when the
boundary of a country is crossed. Migration over time includes different types: circulation is when a
move is not expected permanently but is repetitive. Longitudinal migration is when a person migrates for
a longer period of time to anther place. And return migration is when the migrant has the intention to
return to the place of origin after a certain period of time. The failure to complete the wish to return to the
place of origin is called the ‘myth of return’ (Boyle et al., 1998, p. 35). According to the United Nations
(2006, p.1) the definition is somewhat simplified: migration is consisted of the people ‘that live outside
their country of birth’, for a minimum period of one year. The DFID (2007, p. 4) defines migration in
similar way, but has another interpretation about time: ‘people migrate over varying distances for
different periods of time, that can be days, weeks and months (depending on seasonal or family needs)
and can be long-term or permanent. Also DFID makes distinction between the poor that usually move
within their own country, while other cross borders. UNESCO (2008, p.12-13) defines in the handbook
‘people on the move’ a migrant as ‘a person undergoing a (semi-)permanent change of residence’. In this
definition a distinction is made between a short term (<1 year) and long term (>1 year) international
migrant. The latter is ‘a person who changes his/her country of usual residence’. Holiday, business,
medical treatment or religious pilgrimage do not entail the change of residence. The IOM (2005, p. 13)
does not define migration as such, but indicates that it is a ‘multi-facetted and complex global issue,
which today touches every country in the world’. Albeit the definitions are different in formulation, all
embrace the facets ‘crossing borders’ and ‘for a certain period of time’.
Migration at all different levels of geographical scale can be measured quantitatively with the net
migration. This can be calculated with the gross in-migration minus the gross out-migration of a certain
geographical area. To compare net migration for different places: divide through total population of the
place (x 1000). Data about migrants mainly are derived from national censuses, population registers or
other (Boyle et al., 1998, p. 38-45). In various countries many problems arise while measuring exacts
migration numbers. Due to lack of national statistical data about migration and the irregularity of
16
migration flows. Therefore statistical data about international migration include mostly estimations about
irregular migrations.
1.1.1 Facts and numbers about international migration
In the 1960s an estimated 76 million international migrants were registered. At that time this was 2.5
percent of the world population. In 2000 the amount of migrants was more than doubled; 175 million
international migrants were registered. And was 2.9 percent of the total world population. In 2005 191
million international migrants live outside their country of origin (world population of 6.5 billion). In
2005 this represents 3 percent of total world population. The developed countries have relatively more
international migrants, representing 10 percent of its total population, while in less developed countries
this percentage is only 1.4 percent (UN, 2006). The total number of international migrants maintains
increasing; though it still is a small percentage of world’s population. Striking is the concentrated
migration directions towards the developed world to a small number of countries, such as the United
States. Therefore in this section the most important global migration flows are highlighted. These flows
are described in the World Migration Report (2005) of the International Migration Organisation and in
International Migration (2006) of the United Nations. In figure 1.1 an overview is given about current
global migration flows. Table 1.1 is composed of data from the annexes of the World Migration Report
of the IOM. This report gives information about the years 1970 and 2000. The information about the year
2005 is taken from the report of the UN about international migration.
Figure 1.1 International migration net rates and numbers in world’s major regions, 2000-2005.
Annual net migration rates
Annual net number of migrants
5
2000
1500
3
number (thousands)
rate (per 1,000 population)
4
2
1
0
-1
Northern
America
Europe
-2
Oceania
Africa
Latin
America and
Caribbean
1000
500
0
-500
Asia
-1000
Northern
America
Europe
Oceania
Africa
Latin
America
and
Caribbean
Asia
-1500
Source: UN, 2006.
The country that hosts the largest number of international migrants is the United States. Striking is that
one of five migrants worldwide in 2000 live in the United States. The international migrants that go to
the United States mainly originate from Latin America. Many of them entered illegally. Still a lot of the
Latinos do have an irregular status in the United States and work and live illegally (UNESCO, 2008, p.
14). Especially in the 1990s, when the north America economy boomed, even more Latin Americans
migrated to the United States. Mexicans form the largest immigration flows into the United States,
followed by other Central Americans from El Salvador, Guatemala and Nicaragua. From the Caribbean
islands flow also significant numbers of migrants to the United States, especially from Cuba, the
Dominican Republic, Jamaica and Haiti. And also from the South America countries many are
immigrated to the United States. In South America Venezuela and Argentina have been the most
important immigration countries. Venezuela has been popular because of employment opportunities in
the oil industries. Because of economic hardship especially in neighbouring countries of Bolivia and
Paraguay, many of them immigrated to Argentina. Other traditional immigration countries have been
Canada (Latinos), Australia and New Zealand (mainly Asians).
17
Table 1.1 Numbers and percentages of total population of migrants per region
Year
Europe
Asia
Africa
1970
19 million
28 million
10 million
4.1 %
1.3 %
2.8 %
2000
33 million
44 million
16 million
6.4 %
1.2 %
2%
2005
64 million
53 million
17 million
(majority are
refugees)
Source: IOM, 2005; UN, 2006.
Northern America
13 million
6%
41 million
13 %
45 million
(38 million United
States)
World
76 million (1960s)
2.5 %
175 million
2.9 %
191 million
3 % of total
population
Besides the United States, also Europe is a very important immigration macro region in the world. In the
1990s immigration in Europe came mainly from the former Soviet States, asylum seekers from the
Balkans and family reunification mainly from Southern Europe and Northern African countries (Zlotnik,
1998). A very recent influx are working migrants from East Europe which is made possible since the
expansion to Europe-25 in 2004 and in 2007 to Europe-27. Also within Asia significant labour migration
patterns can be distinguished. Especially the Gulf Cooperation Council (GCC: Bahrain, Kuwait, Oman,
Qatar, Saudi Arabia and the United Arab Emirates) experience high numbers immigration. These
booming economies attract many migrant workers. The migrants come mostly from poorer South East
Asian countries, such as the Philippines and Indonesia (IOM, 2005).
The dimension of international migrants that cross the globe, justifies the importance of research about
international migration.
1.1.2 Types of international migrants
Within international migration flows, different types of international migrants can be distinguished. In
this section the following types of migrants are discerned: labour migrants, refugees and educational
migrants (Boyle et al., 1998; Castles and Miller, 1998). These three types of migrants can have different
characteristics: temporary or permanent and regular or irregular. The various types of migrants have
different reasons to migrate.
A labour migrant by the UNESCO (2008, p. 13) is defined as ‘a person who is to become engaged, is
engaged or has been engaged in a remunerated activity in a state of which he or she is not a national’. A
labour migrant searches better job opportunities elsewhere. Mostly unemployment in the country of
origin is a push factor. In general countries that experience high numbers of unemployment have many
inhabitants working in the informal sector. The existence of the informal sector in countries in the south
is explained by Chant (2008). The informal sector refers to precarious, low productivity and poorly paid
work, especially in the cities in the south. The informal sector activities are mainly commerce and
services sector. And it also occurs in the manufacturing production. Informal work can be street vending,
converting the first room of the house in a little shop and the transport of goods. Women are more
occupied in informal entrepreneurial activities. Work in the informal sector is not necessarily criminal.
Though, it can be illegal, because informal workers avoid paying taxes. The last two decades the
informal sector has become extremely competitive. This is caused by unemployment in the formal sector,
due to economic hardship (e.g. economic crisis, restructuring programmes in the early 1980s). Since the
1980s government and academics see the informal sector more as an economic potential than the escape
sector (Chant, 2008, p. 221). Because both sectors that need each other. So the informal sector provides
employment and become more competitive. Though, still insecurity of being employed in the informal
sector causes emigration.
New types of labour migrants arise because of the new international division of labour. This has
created new job opportunities in different areas of the world. Technical innovations, rapid transport links
and electronic communication have facilitated the expansion of Trans National Companies (TNCs)
18
(Gilbert, 2008). With the outsourcing of services towards the south, the TNC need new workforces,
especially in industrial production work. This occurs for instance in South East Asia in the garment
industry. Here immigrant labour is cheapest workforce available. Unfortunately they work under poor
work circumstances. Dicken (2004) explains this phenomenon as the global shift. This has created new
centres of gravity in economic and employment terms. The world economy nowadays is concentrated in
a smaller number of global cities. Here is the high educated population concentrated. So, skilled
international labour migrants flow into these places, such as New York and London. High educated
migrants are contracted, while speculative migrants are dependent on family and / or friends. They have
to help them find a job in the place of destination. This is chain migration. All types of labour migrants
(e.g. skilled, unskilled, contracted, speculative) tend to send remittances to their families in the place of
origin.
The second type of migrants is the refugee. The most important distinction between a labour
migrant and a refugee is the voluntary versus forced character of the movement. A refugee can be
environmental (e.g. natural and man made disaster, environmental degradation) or political (e.g. war).
The official definition of a refugee was in 1951 formulated by the Geneva Convention on refugees: ‘A
person that has a well-founded fear of being persecuted for reasons of race, religion, nationality,
membership or particular social group or political opinion and is outside of the country of origin’ (Black,
2008, p. 454). The UNHCR (United Nations High Commissioner for Refugees) estimated in 2005 that
there were 8.4 million refugees in the world. These refugees search for asylum basically in neighbouring
countries.
Educational migrants are the third discerned type. Educational migrants mostly follow schooling
at higher tertiary education. International policies such as an Erasmus grant (paid by the European Union)
generate enormous flows of students. Educational migrants invest in human capital, because more skills
are obtained abroad (Boyle et al., 1998, p. 62).
The labour migrant, refugee and the educational migrant can be all temporary or permanent, and regular
or irregular. The temporary migrant can be short term (between three months and a year) or long term (at
least one year) (UNESCO, 2008, p. 12). A temporary migrant implies return or onward migrations that
can have a seasonal, circular or transit character (Potter et al., 2004, p. 321-324). For a long term migrant
the host country can become the new country of usual residence. Finally the migrant can become
permanent. Furthermore all types of migrants can be regular or irregular. A regular migrant is entering
and travelling through a host country with the necessary documents or permits (UNESCO, 2008, p. 45).
High skilled labour migrants normally are regular, while low skilled, speculative labour migrants can be
irregular. Refugees that get asylum obtain a regular status, while those that do not have asylum are
irregular.
1.1.3 Development theories and programmes and international migration
The existence of the different migration patterns and types of migrants (discussed in the previous
sections) can be elucidated with various development theories. So the purpose of this section is to explain
the existence of migration patterns in the light of theories in the development discourse. Although not all
theories specifically focus on international migration, these can make clear what factors propel migration.
In this section in chronological order theories and programmes are presented: macro level theories,
structuralism, liberalization programmes, micro level theories and postmodern theories.
After world war two macro neoclassical economic models were important within economic development
thinking. Some of these models also can explain the existence of migration patterns. One of these macro
level approaches focuses on the difference in wages world wide. This causes movement of people that
search better loan opportunities elsewhere (Boyle et al., 1998, p. 91). Another macro level theory is the
disguised labour model of Lewis (Cypher and Dietz, 2009, p. 275; Binns, 2008, p. 82). This model is
19
based on a dual economy. The rural, small-scale agricultural sector has much lower output than the
capitalist sector (e.g. industrial manufacturing). The underemployed farmers gradually move to the
capital sector (rural-urban migration). This will lead to more industrial production and also to
mechanization in the agricultural production. So finally both sectors will economically progress.
After the period of neoclassical theories, in the 1970s, structuralist approaches became important
(Cypher and Dietz, 2009). Structuralist theories have a holistic approach that can explain international
migration with push and pull factors. Push factors can be unemployment, economic hardship or natural
disasters in the place of origin. Pull factors can be better employment or educational opportunities in the
place of destination (Bogue, 1969). Furthermore Marxian structural dependency approaches can explain
international migration. Dependency theorist Frank’s theory ‘development of the underdevelopment’ can
explain migration. Uneven development is caused by capitalism and has made certain place in the world
more unattractive and attractive. People will flow from the unattractive to the attractive places. He called
to existence of more developed countries and less developed countries the metropolis-satellite model
(Conway and Heynen, 2008, p. 94). This model can exist in and between countries. Another Marxian
structuralist, Prebisch, called the developed and undeveloped areas in the world the core and periphery.
Wallerstein’s world system theory expands the idea of Prebisch. This theory divides the world in three
capital economical zones: the core, semi-periphery and the periphery (Klak, 2008, p. 101). Migrants flow
from the peripheral areas towards better developed areas.
In the 1980s the World Bank and the International Monetary Fund (IMF) implemented Structural
Adjustment Programmes (SAPs). The SAPs content economic liberalization, privatization, export
promotion and tax reductions (e.g. withdrawal from the state). SAPs aim at economic recovery of the
poor developed countries from the dept crisis (Simon, 2008a). Instead of Keynesians designed state
involvement for economic development, the market should solve the problems. These ideas originate
from neo-classical economics. The impact of the SAPs was quite controversial, because it worsened
inequality in the world. SAPs had only an economic element and completely neglected social
development. As a result of economic hardship, in the 1980s, massive migration flows from less
developed countries to more developed countries is observed. As reaction to the flopped SAPs in the
1990s the Poverty Reduction Strategy Papers were implemented. These papers emphasis more on social
poverty reduction, what has had somehow a more positive impact (Simon, 2008a).
During the implementation of the SAPs, in the academic world micro-level economic became
more important. These theories focus on individual decisions. Boyle et al. (1998, p. 92) found that
unemployed individuals take easier the decision migrate than employed individuals. From the 1990s
human capital theories became popular. In the light of these theories, Milne (1991) explains international
migration as follows: migration is an individual investment based on short-term and long-term benefits.
And also from the 1990s behavioural approaches are used to explain international migration. These
behavioural theories concentrate on the psychological processes of cognition and decision making of
migration between the individual and its environment (Wolpert, 1964; Golledge, 1980). More recently
humanist approaches also state that individuals take all decisions (also about migration) (Boyle et al.,
1998, p. 71).
Despite of the explanations of migration in micro theories, other academics do not agree that only
individual decisions cause migration. Also colonial links between countries in the south and in the
developed world cause migration chains. Blunt and Willis (2000), Marshall (2008), Castles and Miller
(1998) and McEwan (2008) argue that links between countries based on, political, colonial, trade or
cultural ties explain better migration. Furthermore this is a type of post-colonialism is a new form of
dependency. Countries of origin depend on their Diasporas in the countries of the old colonizers.
Conclusively, there are many development theories that can be used to explain nowadays
international migration. Though, the critique is that independently these theories can not explain the
complex world. Therefore there is a call for integration of the different types of theories. A reaction is the
creation of postmodern theories. These theories form the most important scientific theoretical paradigm
during the 1990s and are the development impasse (Simon, 2008b).
20
The discussion of prominent development theories and programmes within this first chapter is useful to
better understand migration patterns. Here is explained what factors drive migrants to make decisions to
migrate from one place to another. Additionally the development theories are indispensable as underlying
foundation within this study about migration. It is necessary to get an overview about international
migration in the light of the academic theories through the time.
1.1.4 Current debates about international migration
Similar as the previous section, in order to get more insight in migration issues, also the current debates
about international migration are discussed. The purpose of this is section is to analyze various
phenomena that influence present-day international migration patterns. A discussion of the current
debates about international migration is necessary to understand context of a specific case studies. Within
the current debate about international migration, the following phenomena receive major attention: the
role of globalization in contemporary international migration, the feminization of migration flows, brain
drain, brain gain and brain circulation, irregular migration and the concept of transnationalism.
The process of globalization explains the existence of many current migration patterns. Due to
globalization the world becomes increasingly interconnected (Kalb et al., 2004). More countries become
affected by accelerated migratory movements. Globalisation improved communication technologies and
transport modalities. So nowadays there exist more links between countries and crossing borders
becomes easier than in the past. A global network is constructed by the increase of flows of information,
goods, money and people (Castells, 1996). Migrants are key players in the existence of this network
society. The tendency towards a more shrinking world is embraced by the concept of ‘time space
compression’. This concept explains the increased easiness of mobility over the world (Knox and
Marston, 2004, p. 24).
The feminization of international migration flows is a hot topic within the current debate about
international migration (Castles and Miller, 1998; Willis, 2008; Trotz, 2008). The feminization of
international migration started approximately in the 1960s. Balbuena (2003, p. 2) argues that in the
beginning decades, feminization was foremost reflected in rural-urban migration. The international
feminization of migration in the 1970-80 was foremost characterized by family reunification (IOM, 2005,
p. 275). From the 1990s and onwards female individual migration increased enormously. This can be
explained by the perception that women in developed countries nowadays have better employment
prospects than men. Another clarification is that women are increasingly trafficked. TNCs have created
large-scale employment in the industrial sector, especially for young females. Examples are the
maquiladora factories: a production plant of a TNC in the global south. In Central America (mainly
Mexico) maquiladoras and in South East Asia Export Processing Zones attract women. Striking is the
exploitation of women that work under poor working circumstance in TNCs (Cypher and Dietz, 2009, p.
477). Low qualified, irregular, female migrants are often victim. In 2000 almost 49 percent of all
international migrants were women. This percentage is still rising. In Latin America, Northern America
and Europe this has even exceeded the 50 percent. In Asia and Africa this percentage is much lower
(IOM, 2005). Additionally, the feminization of international migration flows increases social problems in
the country of origin (Volkskrant, 2009; Roncken and Forsberg, 2007). Children grow up with their
grandparents or even alone, which can lead to psycho-social problems.
Furthermore the processes of brain drain, brain gain and brain circulation are important terms in
academic literature about international migration. Brain drain is an old phenomenon, while brain gain and
brain circulation more recently appear in literature. Willis (2008), Faini (2007) and Portes (2009, p. 338339) indicate that migration mostly is seen as a positive strategy to diversify income for households in
the south. Though, simultaneously it creates a loss of human resources: brain drain. In many cases the
loss of human resources is caused because the more educated, skilled and professional population (e.g.
doctors, engineers) leave the places of origin. Brain drain refers to the negative effects of emigration. On
21
the other hand, brain gain is the immigration of skilled migrants that benefit a country. When a migrant
returns, he brings skills and experiences gained during the stay abroad. This contributes to the human
capital of the country of origin. The process of brain gain (Willis, 2008, p. 214) compensates a certain
level of the process of brain drain. In academic literature emerged recently the term brain circulation.
This describes the continuous movement of skilled persons that both benefit the place of origin and the
place of destination (UNESCO, 2008, p. 33).
Moreover irregular migration is a striking issue in nowadays international migration. Although
irregular migration and smuggling is as old migration itself, it deserves special note in the current debate.
Nowadays irregular migration and smuggling receives major attention, especially in media. Most of the
time clandestine migration is facilitated by criminal migration facilitators. These are called coyotes and
profit from human trafficking and smuggling. The migrants experiences high risk journeys that
sometimes does not even lead to the desired result (Conway, 2008, p. 231). Many do not survive
dangerous crossing. Examples are the many Cuban migrants that try to pass in self made boats to the
coast of Florida. Dangerous crossing of the Mexicans through the desert to the US border. Africans that
cross the Atlantic Ocean to the Canary Islands (Spain) or Lampedusa (Italy). For policy makers irregular
migration is the major newest challenge. Because there are tensions between human rights violations and
unwanted migrants in the places of destination.
Lastly the concept of transnationalism has become important in the debate about international
migration. Willis (2008) defines transnationalism as the ever ongoing interaction between the migrant
that lives in a host country and the country of origin. Mazzucato (2004, p. 131) also gives a definition:
‘transnationalism emphasizes on the institutions and identities that migrants create by being
simultaneously engaged in two or more countries’. The existence of transnationalism can be best
analyzed with the Diasporas. Diasporas already exist since migration started, but the concept
transnationalism gives renewed attention to Diasporas. Diasporas are ‘ethnic minority groups of migrant
origins residing and acting in host countries but maintaining strong sentimental and material links with
their countries of origin’ (Newland and Patrick, 2004, p. 1). From a development perspective the
Diasporas can individually or collectively contribute to the development of their country of origin. Portes
(2009, p. 335) argues that transnationalism is about social networks. Migrants not only are connected to
the social networks in the places of origin, also in the place of destination. Migrants are the mobile actors
in transnational networks. And migrants are engaged in continuous cross-border relationships (Faist,
2007). The migrant networks interact with the state and institutions with flows of financial remittances,
knowledge and political ideas. Portes and DeWind (2006) argue that remittances are the most visible
evidence of transnational ties between the migrants and country of origin. Altimirano (2004) from the
south (Peru) describes transnationalism as labour migration of migrants originating of the south that work
in the north. Migrants send remittance and socially and culturally keep in contact with the place of origin.
Transnationalism in its broadest sense is the remained ties of the migrant between the country origin and
the host country.
Globalization, feminization of migration flows, brain drain, gain and circulation, irregular migration and
transnationalism are important concepts to explain contemporary migration patterns. These concepts are
essential as background knowledge to understand case studies of international migration.
1.2 The socio-economic impact of international migration
International migration has consequences and implications for the host countries and countries of origin.
This section elaborates on the socio-economic impact of international migration in the countries of
origin. The most visible impact of international migration is remittances sending (1.2.1). Thereafter the
link between international migration and local development will be made (1.2.2).
22
1.2.1 Remittances
Remittances are defined by the World Bank (2008b) as follows: ‘transfers of money by foreign workers
to their home countries’. According to UNESCO (2008, p. 42) remittances are ‘private earnings and
material resources transferred by international migrants or refugees to recipients in their country of
origin’. The United Nations (2006, p. 1) in International Migrations has a similar definition: ‘total
remittances as reported by the World Bank include three types of transactions: workers’ remittances,
compensation of employees and migrants’ transfers. Workers’ remittances are all current transfers from
migrants staying in a country for a year or longer to households in another country. Remittances regularly
are transfers of members of the same family that reside in different countries that are reported in the US$.
In academic literature a lot is written about remittances, this illustrates the importance of these money
flows. Though the question rises if remittances are a hype or a cross cutting issue in migration and
development studies. Remittances are not necessarily a new phenomenon, but less developed countries
become more dependent on the inflow of remittances. This is because remittances contribute
substantially to the national GDP of less developed countries (Semyonov and Gorodzeisky, 2008;
Maimbo and Ratha, 2005). At household level remittances complement income (Portes and DeWind,
2006; VanWey et al., 2005). In this section will be elaborated on the implications and the important role
of remittances.
Remittances as % of GDP
The International Monetary Figure 1.2 Remittances as a percentage of GDP in 2003
3,3
Fund (IMF) and the World Bank
3,5
report official data about
3
remittances. However the real
2,5
amount of remittances is hard to
2
estimate, due to also irregular
1,3
1,3
1,5
money transfers. The World
1
Bank (2008b) reports 250 billion
US$ remittance in 2007 via
0,5
0,2
formal channels. The IOM
0
(2007) and Orozco and Ferro
low income
lower middle income
upper middle income
high income
countries
(2008) indicate that the amount
of remittance in 2007 was even Source: Maimbo and Ratha, 2005, p. 23.
318 billion US$. That averagely
contributes for 1.8 percent of the GDP. In absolute terms remittances flows have almost tripled since
2000. Remittances contribute in low income countries relatively more to the GDP than in high income
countries (see figure 1.2). In some less developed countries this percentage is even higher, as Semyonov
and Gorodzeisky (2008) and Maimbo and Ratha (2005) examined: for instance 40.6 percent of Tonga’s
GDP and 29.5 percent of Haiti’s GDP.
The United States with 42 billion US$ and Saudi Arabia with 15 billion US$ in 2006 (World
Bank, 2008b) are the most important sending countries of remittances. The countries that receive most
remittances in 2007 are India (US$ 27 billion), followed by China (US$ 25.7 billion), Mexico (US$ 25
billion) and the Philippines (US$ 17 billion). Latin America is the macro region that receives the largest
flows of remittances. In 2007 US$ 65.5 billion were send to Latin American countries (Acosta et al.,
2008 and Roncken and Forsberg, 2007).
Beside that remittances are voluminous flows of money; these are also a stable flow of money
towards less developed countries. More stable than Foreign Direct Investments (FDI), international
development aid and capital market flows (IOM, 2005; Maimbo and Ratha, 2005, p. 85). Remittances are
almost larger than the volume of FDI and surpass the volume of international development aid (figure
1.3). Willis (2008, p. 213) illustrates this with data about remittances send to developing countries in
2005: 167 billion US$. International development aid in the same year was only 106.48 billion US$.
Migrants continue remitting money to their families in periods of economic hardship, high inflations or
23
crisis (Maimbo and Ratha, 2005, p. 87). Although this has been truth in the past, the recent financial
crisis has decreased the remittances flows towards less developed countries. Still very few data about
remittances and the crisis are available. However Orozco and Ferro (2008) and de Volkskrant (2008)
indicate that the Central Mexican Bank has reported a negative remittance growth mainly originating for
the United States.
Figure 1.3 Remittances compared with international aid
-Remittances
-Development aid
In Billions of US$
Source: IOM, 2005.
There exist many different methods to do an international money transfer. Orozco (2006, p. 3)
distinguishes remittances as international deposits on bank accounts, non-bank financial intermediaries
(e.g. MTOs), financial depository institutions and lastly unofficial money transfers (that are extremely
difficult to measure). Maimbo and Ratha (2005, p. 161) observe that the World Council of Credit
Union’s facilitates the transfer of funds from credit unions in the United States to Latin America. These
money transfers are done through different channels, such as card-based systems and account-based
electronic transfers. The average rate of costs to remit money is 13 percent of total sum of money.
Sometimes it exceeds even 20 percent (IOM, 2005, p. 269-274). The transaction costs of sending
remittances exist of three components. The costs of the sending money, the foreign exchange
commission rate and the profit component of the bank or money transfer operator (IOM, 2005). Figure
1.2 shows that transferring money by MTOs is costly.
Unofficial flows of money are partly a result of the high transaction costs and the weakly
developed official financial institutions. Informal transfers of money are not necessarily bad, because it
can offer a cheap way to send money, though money is more vulnerable for money laundering (DFID,
2007). Another cause of the use of unofficial channels is the irregular status of the migrant. Being
undocumented limits the ability to make use of the formal financial channels (Page and Plaza, 2005).
Nevertheless MTOs facilitates opportunities for these ‘unbanked’ to transfer money.
Table 1.2 Amounts of Euros to transfer with Western Union and corresponding fees
Amount
Fee in €
50
9.50
95
12
185
17
275
20.50
365
23.50
455
28
545
32.50
685
34.50
910
40.50
1135
47.50
1365
52
1590
61
1820
65.50
2270
76
2500
80.50
Source: Western Union, 2008.
24
In the past banks and governments were not interested in workers’ remittances, but recently policies on
remittances are developed. It is a challenge for governments and banks is to cooperate and provide better
financial services. This will improve the use of remittances in home countries. This is further elaborated
in 1.3.
1.2.2 Relation between international migration and local development
International migration and remittances have implications for the countries of origin, mainly located in
the global South. In this section will be elaborated on the relation between international migration and
local development in the countries of origin. First a definition of local development is given.
Local development is a concept that is defined by many authors that can be divided roughly in two
groups. Local development, approached from an economic perspective and local development,
approached from a more endogenous perspective and the role of actors. Lathrop (1997, p. 95) defines
local development as ‘the strategy to improve people’s access to opportunities, such as income,
employment, or the consumption of public goods and services’. These opportunities are seen as an
economic question, though getting access is a political issue, as Blakely (1994, p. 50) identifies. He states
that ‘local economic development should emphasise on policies using the potential of local human,
institutional and physical resources’. Recently more attention is paid to the role of the actors in local
development processes. Desai (2008, p. 526) argues that NGOs are one of the most important actor that
can organize actions and activities that lead to progress, from the grass-roots level. There are two types of
NGOs. The NGOs that deliver (basic) services and the NGOs that influence (local) policy making and
advocate for democratization. Both types contribute to local development. Nijenhuis (2002, p. 37) adds
that also the local government is an important actor that facilitates and regulating the delivering of
service provision. She concludes (p. 19) that ‘local development includes both economic and social
development. Also access to these development opportunities should be equal for all groups in society’.
International migration has a broad impact on the country of origin that can both be positive and
negative. Remittances play an important role in creating a positive impact that can generate local
development. Studies of IOM (2008b), Adams and Page (2005), Acosta et al. (2008), Newland and
Patrick (2004) and Portes (2009) show the existence of a positive correlation between international
migration, remittances and poverty reduction in the country of origin. International migration and
remittances have a statistically significant positive impact on development in less developed countries
that can be supported with explanations about how remittances are spent in the country of origin. There
can be made a distinction between remittances that are used for consumption and for investments. The
analysis of Maimbo and Ratha (2005) indicates that the majority of remittances world wide are used for
consumption purposes that include education and health. Remittances are less invested in productive
economic activities. Consumption is a primary need, and only if these are fulfilled the remitted money is
used for investments. This can be explained by the fact that remittance’s spending in very low income
countries is used for consumption purposes. In middle income countries, remittances are more tend to be
investment in for instance entrepreneurial activities. Female headed households are more likely to spend
on consumption as a risk reduction strategy, while men invest more productively (Maimbo and Ratha,
2005, p. 93). Low educated migrants send in comparison with higher skilled migrants more remittances
back home. Low educated migrants do this with the idea and hope to return to the country of origin after
a period abroad with a better economic status (Portes and DeWind, 2006). The low educated migrant is
sent away by a family led by older relatives. The remittances are used for consumption purposes. The
low educated migrant is generally young, unmarried and likely the oldest son or daughter.
At national level the IOM (2005) and Acosta et al. (2008) prove that a 10 percent increase of
remittances sending to a country results to a 3.5 percent decline of all people that live in poverty. 10
25
percent increase in international migration results in a 2.1 percent decline in people living from 1US$ a
day. In Latin America Acosta et al. (2007; 2008) and Adams and Page (2005) have proven that
remittances contribute to the raise of income. This helps reducing poverty. However inequality can rise in
initial stages of remittance sending.
At household level remittances are an important source for income strategies. Remittances
increase income and the consumption level and give access to other and new assets. These assets improve
household’s vulnerability for financial shocks and secure a more sustainable household. Remittances that
are spent for consumption purposes help to improve household strategies on the short term. Remittances
used for education and health decrease vulnerability of households on the long term. These are
investments in human capital (DFID, 2007). These investments in human capital lead at the longer-term
to better job opportunities. Skilled and educated youngster in the future can contribute to create
employment. Investments in health services are also investments in human capital. A good and healthy
condition enhances the job opportunities. Additionally the increase of remittances spending has a positive
impact on the development of local employment (Onkonkwo, 2007).
At the local level, international migration and remittances can generate more capital circulation
and employment opportunities. If remittances are used for entrepreneurial activities (e.g. taxi, shop or
restaurant), this is promising for development at community level on the long run (Mazzucato, 2004, p.
155). Also employment arises in sectors that offer transnational businesses, such as travel agencies,
Internet cafés and MTOs (Portes and DeWind, 2006, p. 173). These entrepreneurial activities are
catalysers for new productive activities and increase welfare (de la Torre, 2007, p. 35-47). In those
regions where emigration has taken place from the lowest segments of the society, poverty reduction is
the most visible in the rise of the income per capita (Acosta, et al., 2008). Another positive impact is
when migration has a more circular character. This has a more positive impact on local development,
because capitals are saved abroad and it causes less negative impacts, such as family disintegration
(Portes, 2009, p.337).
In figure 1.4 possible linkages between remittances and development are presented, although it gives a
limited view on development. The impact of remittances is more complicated and does not only result in
consumption and development. For instance personal savings, as indicated in the figure, can probably
lead to more entrepreneurial
activities and spending in Figure 1.4 Remittances - development linkages
education. These are investments
in human capital that on the
longer term also leads to
development. Despite of the
simplicity of the model, it gives
an impression how remittances
can
contribute
to
local
development.
International migration can also
impact negatively on the place of
origin. This has a reverse effect
for local development. At
household level remittance can
make transnational families that
receive
remittances
‘lazy’.
Instead of a complementation to
their income, remittances are a
substitute for employment. This
creates an economic culture of
Source: Carling, 2004
26
dependence on remittances (Portes and DeWind, 2006, p. 173; VanWey et al., 2005, p. 101). Dependence
on remittance makes households vulnerable when changes occur in migration patterns. For instance if
economic hardship hits the migrant abroad and can not remit (so much) money anymore. Furthermore
families are torn apart, predominantly parents migrate. Children grow up without parents and become
more vulnerable (de la Torre, 2006). When remittances are used for educational purposes, brain drain can
be a negative effect, especially in less developed rural areas. There are few employment possibilities for
the higher educated. This causes outflows and the elderly and children stay behind.
At local level remittances can create negative social effects. Remittances tend to have an urban
bias (Portes, 2009, p. 333). Receivers of remittances are more likely to start entrepreneurial activities in
urban business environment. Urban bias of remittances creates inequality at local level, especially
between poor rural areas and urban areas. Also inequality increases when emigration initiates and only
some households receive remittances (Willis, 2008; Acosta et al, 2008). Another negative consequence is
analyzed by Portes (2009, p. 242). He argues that if in the place of origin are no institutionalized network
of industries, services and technologies, it is very probably that these professional migrants do not invert
in the place of origin. Okonkwo (2007) confirms this with a study about high educated migrants. These
types of migrants tend to spend and invest there their earned money in entrepreneurial activities in the
host country. This improves their economic and social status. The high educated migrant maintains less
their transnational ties with the country of origin. They have fewer aspirations to return, because of more
employment opportunities in the host country. This process of brain drain leads to negative effects of
international migration on the country of origin.
Moreover illegal and criminal activities within the process of international migration are negative.
As already explained before, many migrate illegally, because they do not have the convenient papers and
visas. Illegal migrants that intend to send remittances, but their illegal status can hinder money sending
through official channels (Adams and Page, 2005).
Weighting the positive and negative impact of international migration, the impact on local development
appears to be context specific. In different countries, international migration impacts more positive on
local development, because remittances are inverted in entrepreneurial activities. While in other countries
remittances are more used for consumption spending and create fewer opportunities for local
development. Also within countries these distinctions can be made. Generally in poorer countries and
regions within countries, remittances are more tend to be used for consumption spending. Therefore in
these regions, international migration contributes less to local development.
1.3 A governance perspective on international migration and local development
International migration has a direct impact on local development, as explained in the previous section.
Though also local actors, such as governments, the civil society and the private sector can influence how
international migration can impact on local development. These local actors are active in the governance
structures. The role that local actors can have in governance structures depends on the character on local
governance and on the level of decentralization in a country (1.3.1). Thereafter is analyzed how the local
actors can influence the process of international migration and local development. First is examined how
plans and programmes of local governments can influence the international migration and local
development nexus (1.3.2). Secondly, the same is done for the civil society (1.3.3). Finally the role
private sector in this process is discussed (1.3.4).
1.3.1 Local governance and decentralization
In this section is dealt with the concepts local governance, decentralization and the roles of local
governments, civil society and the private sector in governance structures.
27
The concept of local governance has been developed since the 1990s. Good local governance is defined
as ‘an enhanced involvement and cooperation of local governments, civil society and the private sector,
in order to arrive at participatory planning processes at the municipal level’ (van Lindert, 2006, p. 59).
The concepts of transparency, accountability (e.g. fight against corruption), equity, empowerment,
capacity building and ownership are important in good governance practices (van Lindert, 2006; Nuijten,
2004). Good local governance is also participation between local governments and all different other
actors. Participation is linked to the expectation that the lives of the poor will improve (figure 1.5)
(Buccus et al., 2008). This is also identified by Desai and Potter (2008). They argue that good
cooperation and a multi-stakeholder dialogue is a useful tool in development programming. Furthermore
good local governance is the groundwork for democracy. Nijenhuis (2006, p. 113) refers to good
governance as ‘a desired outcome of political decentralization’.
Figure 1.5 Relationship between good local governance and poverty reduction
Participation representation empowerment benefits for all poverty reduction
Source: Blair, 2000, p. 23.
Countries in the south since the 1980s - with some exceptions - introduced decentralization policies. The
call for decentralization in these countries is propelled by the desire to implement more participatory and
bottom-up development policies. The municipal governments and other local actors become more
important. As well McEwan (2003) does refer with decentralization to bring government to the people.
Decentralization creates more participatory democracy, a good local government policy and
empowerment of especially women. On the other hand it creates local socio-economic development.
Blair (2000) adds that poverty reduction and local socio-economic development can best be achieved at
local level. Local governments and civil society organizations are more concerned about citizen’s desires.
Within the concept of decentralization three types can be distinguished; fiscal, political and
administrative decentralization (Nijenhuis 2006, p. 112-113). Administrative decentralization is the
distribution of powers with delegating these to lower level governments. In addition it is transferring
decision making and responsibilities towards lower levelled governments. It decreases the authority of
national governments over economic policy. Political decentralization is the participation and
empowerment of local stakeholders in decision making. Decentralization is seen as an important element
of participatory democracy. The implementation of decentralization in countries in the south has a
differentiated impact. Many countries face problems, such as lack of human and financial resources. The
lack of these resources explains difficulties with management, budgeting, accountability and planning
(Nijenhuis, 2006, p. 123).
As explained above in decentralized countries local actors have
gotten a larger role in decision making. These actors at local level
are: local governments, civil society (e.g. NGOs, other grass-roots
organizations) and the private sector. The perfect relationship
between all these actors is presented in figure 1.6. The roles of these
three actors in local governance structures are discussed below.
Figure 1.6 Relationship governments,
private sector and civil
society
Governments
Private sector
The functioning of local governments in a decentralized context
Civil society
depends on administrative capacities, the human resources, the
financial capital and technology (Fiszbein, 1997, p. 1031-1032). In a
Source: van Rooy, 2008.
decentralized context local governments have more responsibility in
decision making. Though there are some complications identified in academic literature. For instance,
small rural municipalities have limited number of staff. Consequently human capacities in these
municipalities are related to the functioning of the mayor. This is confirmed by a study of Lippman and
Pranke (1998) in Honduras. They observed that good local governance is hindered by the poor education
of the mayor and other important municipal staff. Especially when the political structures are dominated
28
by traditional elites. In many cases they have status within the municipality and not necessarily an
education (Ishii et al., 2007, p. 361). Babajanian (2008) confirms the important role of the mayor in rural
communities with his study in Armenia. He found out that elected local mayors are key players in
effectively attracting development resources for their communities. Their responsiveness to local needs is
essential in local development. When a local mayor does not have these capacities, consequently this is a
threat for the functioning of the municipal government. Also is identified that the leadership of important
local staff is important in participatory mechanisms (USAID, 2000, p.11; Ishii et al., 2007, p. 361).
Though, leadership tends to miss many (rural) municipalities in developing countries.
Municipalities that want to improve their capacities can hire qualified personal. However this can
be too costly. In urban municipalities more qualified personal is available. Local governments that have a
tendency to towards participation that is centered on the mayor are a threat for good local governance. In
additions these local governments are inflexible, since they ignore the role of the civil society actors and
the private sector. Another problem is identified by Fiszbein (1997). He found out that small
municipalities do not have specific development plans, but work with priority lists. So training of local
staff is an essential facet in making municipal planning, as also cooperation with influential actors in the
civil society (Buccus, 2008). As a result, effective local governments have technical capacities,
accountable public servants, financial resources for service delivery and are able to get things done
(USAID, 2000, p. 12).
The role of the civil society also determines the success of good local governance. Here a definition of
the civil society is given. The civil society consists of groups that exclude the economic market and the
state. By van Rooy (2008, p. 521) defined as follows: ‘synonymous with the voluntary sector, and with
advocacy groups, non-governmental organization (NGOs), social movement agents, human rights
organizations and other actors explicitly involved in change work’. NGOs are ‘autonomous, nonmembership, relatively permanent or institutionalized intermediary organizations, staffed by
professionals or the educated elite, which work with grass-roots organization in a supportive capacity’
(Desai, 2008, p. 525). NGOs work in service delivery or policy advocacy. They are the link between the
local and global issues at stake. So the civil society is the space where many stakeholders and
organizations can undertake action. In developing countries the strengthening of the civil society and the
NGOs is important in the process of decentralization, democratization and the creation of good local
governance.
As explained above to achieve good local governance, local governments have to cooperate with
the civil society. Desai and Potter (2008, p. 500) argue that local governments need NGOs to know if
programming for local development is targeted and effective. Additionally NGOs can offer local
knowledge and are innovative, because they act at the grass-roots level. This is even more important for
local governments of small (rural) municipalities. These kinds of municipalities depend on the
redistribution of national funds and have difficulties to raise proper resources with national taxes
(Schuurman, 1996, p. 17). Involvement of NGOs and grass-roots social movements can help raising extra
funds. Furthermore NGOs can develop and implement planning and projects (Lippman and Pranke,
1998).
In order to create good local governance, also the role of the private sector cannot be ignored. Local
development depends on the relationship between the state and the private sector. The state provides
infrastructures and organizes private sector resource allocation with fiscal policies (Desai and Potter,
2008, p. 499). In addition the state provides an enabling environment for development by other agencies
and the private sector. The other way around, the state needs the private sector. Local governments’
funds usually are insufficient, especially in public services delivery. Therefore public private partnerships
(PPPs) will facilitate resources to realize service delivery to the poor (Loftus, 2008).
To conclude, good local governance is a result of decentralization in which local actors cooperate with
each other in order to achieve local development. This analysis of the roles of three local actors in this
29
section is necessary to understand their role in influencing the process of international migration and
local development. This is further addressed in the next three sections.
1.3.2 Governments, international migration and local development
Recently the importance of international migration and especially the impact of remittances on local
development are acknowledged among some national governments. Even more recently local
governments in Latin America and the Caribbean are become aware of the importance of international
migration and remittances and their impact on local economies (Orozco, 2009, p. 37). This recognition
can result in policies that influence positively the impact of international migration on local development.
The most frequent seen practices of governments influencing international migration is the management
of Diaspora (Carling, 2004, p. 6). Concrete examples of countries in the global south that directly
influence the positive linkages between international migration and local development are still rare. The
countries that have plans coincident with high numbers of migration and remittances: the Philippines and
Mexico, respectively the third and fourth largest recipient countries of remittance in the world. Both
national governments have created in the last 20 years different policies about international migration.
These plans have influenced the impact of international migration on local development.
In academic literature about the international migration and development nexus, Mexico is the most
frequent discussed country. Not only because of the high migration net numbers and enormous volumes
of remittances, but foremost because policies about international migration and local development.
Mexico has its Diaspora heavily concentrated in one country: the United States. In absolute numbers
Mexico is the second largest and the fastest growing receiver of remittances with 25 billion US$ in 2007
(World Bank, 2008). In 1995 this was only 3.7 billion US$ (Maimbo and Ratha, 2005, p. 24). An
estimated 35 percent of the Mexican population does have access to formal banking institutions (MIF,
2004). These numbers about international migrants and remittances have received major attention of the
Mexican government. Since the 1990s the government tries to influence the sending of remittances that
can contribute to development.
Two programmes of the government, the Paisano programme and the Programme for Mexican
Communities Living Abroad (PCMLA), aim at improving the treatment of Mexican migrants in US
border control. This is extremely necessary with the existence of the desert border between the two
countries, because illegal crossing have caused death. The PCMLA also support canalization of
remittances to local development projects in Mexico. The Mexican government tries to strengthen ties
between the Mexican emigrants and their communities of origin by calling them ‘heroes’, similar as in
the Philippines (Newland and Patrick, 2004, p. 13-15).
The most important programme of the Mexican government related to remittances is Iniciativa
Ciudadana Tres por Uno1. This is a matching grant programme in which three political administrative
levels are participating. Mexico is a highly decentralized country and therefore it was possible to design a
matching grant programme with the participation of three different levels of governments. Before this
programme was called Uno por Uno, secondly Dos por Uno programme and now Tres por Uno. This
corresponded to number of administrative governments participating in the programme. The matching
grant systems works as follows: the Mexican state, the federal governments and the local governments
contribute all 1 US$ for every remitted 1 US$ (in total 3 US$) for a designated development project
(García Zamora, 2007; Castles, 2007, p. 26; Newland and Patrick, 2004, p. 13-15; de la Torre and Alfaro,
2007, p. 69; de la Torre, 2008, p. 1 IOM, 2005, p. 280; Page and Plaza, 2005, p. 308). In 2005 the
programme expanded to Cuatro por Uno with the involvement of the MTO Western Union of the private
sector (Orozco, 2009, p. 37). The programme is administrated by the government’s secretary of social
development. Contracts with the remitters, especially from Hown Town Associations (HTAs) (see 1.3.2)
are signed about what kind of project they support. Together with the HTAs a plan is designed about the
1
Translation: citizen’s initiative three for one.
30
sum of money for the project and the tripling grant of the governments. These communal transfers,
tripled in amount, were used for projects, such as improving roads, drink water, electricity and sewage. In
2004 in Mexico over 50 million US$ were made available for the programme (Castles, 3007, p. 26).
Newland and Patrick (2004, p. 13-15) argue that the successful Tres por Uno programme also faces
problems. There have been problems with depleted state budgets. Fox and Bada (2008, p. 448) found out
that the local governments also faced problems with the selection of programmes that are supported with
the Tres por Uno funds. Many of the assigned programmes do not fit in their planned activities.
Additionally the projects increase municipal budget spending and administrative activities. Also Orozco
(2009, p. 37) finds that the participation of the local governments in the programmes is forced and
incomplete. Local governments do not have the capacities to anticipate on the intersection between
international migration, remittances and local development. Thus local governments are overwhelmed by
their daily activities and lack resource.
Another interesting example the programme adopta una comunidad (adopt a community). This
programme was initiated in the state of Guanajato (in that days Fox was Guanajuato’s governor). In 2002
the programme was expanded by the Mexican government by president Fox as el Padrino (the
Godfather). El Padrino focuses on the use of collective remittances. Besides the government also the
civil society (e.g. HTAs) and the private sector (e.g. businesses in the USA) are involved. The
programme aims at attracting remittances for community projects. And also at getting the remitters
involved in the project in Mexico. Especially the HTAs and the successful Mexican-American business
people. In 2002, the program raised over millions of US$ for more than 200 projects (Page and Plaza,
2005, p. 306). Newland and Patrick (2004, p. 13-15) identified even more than 1000 projects. The
‘Padrinos’ personally become in contact with projects, also to prevent corruption. The majority of the
budget was utilized in employment generating activities. Also for basic services delivery.
The Philippines is one of the most important migrant sending countries in the world with 10 percent of its
population living abroad. Semyonov and Gorodzeisky (2008) and the World Bank (2008) recorded 17
billion US$ remitted in 2007. This contributed for 10.2 percent to the national GDP (IOM, 2005, p. 240).
The Philippine Central Bank (BSP) monitors official remittances flows that recorded an estimated share
of 68 percent of all remittances flows to the Philippines (Maimbo and Ratha, 2005, p. 135). The
government of the Philippines has several policies on making international migration impact positive on
local development. In order to make their overseas workers continuously feel connected to the country,
the national government of the Philippines considers these migrants as ‘heroes’ (Willis, 2008, p. 214).
Policies of the Philippine government concentrate on improving the financial infrastructure of
money transfers. This is done by the Philippine Overseas Employment Administration that regulates the
activities of agencies recruiting overseas workers. Moreover important is improving the investment
climate by reducing tax rates. Also deposits on bank accounts has become more accessible (Newland and
Patrick, 2004). The law (republic act no. 9225, the dual nationality act, august 29, 2003) to maintain dual
citizenship (Willis, 2008, p. 215; Maimbo and Ratha, 2005, p. 139) makes it easier for Philippines abroad
to use Philippine bank institutions. These institutions offer financial advantages for overseas money
transfers. The Migrant Workers and Overseas Filipinos Act policy is made to protect migrants rights
(IOM, 2008a). The migrant can save their money in the Pag-IBIG fund (home development mutual fund)
that is used for assurance purposes (Page and Plaza, 2005, p. 305). In poor rural areas banks still have to
be opened, what make official money transfers accessible for the ‘unbanked’ poor. The government has
also initiated a programme to ensure the inflow of foreign currencies to the Philippines to improve its
trade deficits (Semyonov and Gorodzeisky, 2008). Furthermore Maimbo and Ratha (2005, p. 141)
investigated that in the Philippines also attention is paid to remittances and micro credits. Remittances
that are saved form a capital for micro credits. The Philippine worker capital in this way is inverted
productively.
Besides the ministry of foreign affairs has a special commission on Filipinos Overseas that
initiated the programme LINKAPIL (Maimbo and Ratha, 2005, p. 136; Newland and Patrick, 2004; the
IOM, 2008a). This organization collects money from the overseas workers and is used for various
31
community projects. Another programme called PHILNEED together with LINKAPUL have collected
2.5 million US$ for local projects in the Philippines.
Since 10 years the decentralization law makes it possible for municipal governments to influence
international migration issues. Special local government units (LGUs) attract overseas Filipinos to visit
the place of origin and make an inventory about the trade opportunities. In cooperation with NGOs and
private institutions many LGUs raised funds for local development activities such as trade, investment in
public markets, ports, wharves and tourist development (e.g. resorts) in their region of origin. In El
Salvador a similar involvement of local governments is identified by Orozco (2009, p. 38). He found out
that local governments interact with HTAs and operate in the place of origin in cooperation with an
agency called SALA. This agency coordinates together with local governments how to invest in
constructions, such as the San Juan port.
Mexico and the Philippines have interesting programmes to increase the positive impact of remittances,
although the programmes are still vulnerable for corruption, lack of expertise or insufficient budget.
Carling (2004, p. 5) identifies that remittances are private money flows. This explains why at global level
governments planning and programming about international migration is still in its infancy. In spite of
this, in the decentralized external environments, these programmes can be examples for other countries in
the global south.
1.3.3 Civil society, international migration and local development
In this section will be focussed on the civil society involved in international migration issues. The
organizations in the civil society here discussed are NGOs, migrant-led membership organizations, the
Home Town associations (HTAs) and public institutions. All these organizations can be related to the
international migration and local development nexus.
The best known Diaspora engagement in the areas of destination is the HTA. This is a grass-roots
migrant organization of residents of a municipality that commonly have migrated to the same place in the
host country (Carling, 2004, p. 6; Fox and Bada, 2008, p. 443). HTAs are formed by chain migration. In
the United States are many HTAs of Mexican migrants. Newland and Patrick (2004, p. 18) indicate that
the HTA has a double purpose: social support towards the migrants and economic support to the places
of origin. Examples are charitable contributions, educational and health projects, infrastructure
improvements and income improvements. Fox and Bada (2008, p. 442) add that HTAs operate at grassroots level what they call the ‘philanthropy from below’, especially when the remittances of Diaspora are
used for investment in microenterprises. Philanthropy among Diaspora that support charitable enterprises
directly aims at reducing poverty. Also Carling (2004) sees the advantages of the HTAs. He argues that
local governments have to make policy focussing on attracting collective remittances from the HTAs.
This will make HTAs more effective. The HTAs have been a successful example of sustainable
community development. In addition HTAs have been able to improve ownership of local stakeholders in
the bottom-up decision making process (IOM, 2005, p. 279-283). Nevertheless the formation and success
of HTAs depends on the maturity of the Diaspora. The example of many Mexican HTAs in the United
States is correlated to the long tradition of Mexican - US migration.
In Mexico, the implemented programme el Padrino (see 1.3.1) also has a pillar in the civil
society. The main goal of this programme is that HTAs and investors of the projects become involved in
their communities. The activities of the el Padrino programme are investments in by example the
construction of schools, health centres, infrastructure and potable water facilities. Concrete examples of
the programme are given by Page and Plaza (2005). The Mexican - American music group los Tigres
constructed a school in rural communities. An entrepreneur in Los Angeles offered his marketing skills
to a coffee cooperative in the state of Chiapas. The Tysons fast food chain donated over 31,000 US$ for
32
electrification of rural towns in the state of Oaxaca. In 2002 the programme raised millions of dollars that
funded for over 200 projects (Page and Plaza, 2005, p. 307).
Besides successful examples of HTAs in Mexico, also in the Philippines are HTAs. An interesting
initiative of a HTA is the community of Bohol. They invited many overseas Philippines to visit their
hometowns in order to make them invest in local projects (Maimbo and Ratha, 2005, p. 140-141). In
addition also migrant NGOs are active in the Philippines. Examples are the Asian migrant centre, Unlad
Kabayana and Atikha (Orozco, 2006). The most important part of their work is to promote the value of
saving and start entrepreneurial activities. They also help preparing migrants for an eventual return to the
Philippines (Orozco, 2006, p. 2). This will in the future have a positive effect on the development of the
Philippine economy.
Finally the Diaspora, HTAs and NGOs are enablers to make long term development with international
migration possible. Though, the real impact also depends on external factors. For instance, if the poorest
segments of the places of origin can take advantage of the multiplier effects of the Diasporas.
1.3.4 The private sector, international migration and local development
The private sector in various ways can be involved in making international migration impact positively
on local development. An important method of the private sector is making the money transfers systems
as profitable as possible for the place of origin. Improving money transfer systems is a challenging
process, since transaction costs can be extremely high and informal money transfers can be vulnerable for
money laundering. High transaction costs especially affect the poor, because they remit smaller amounts
of money with proportionally higher transaction costs. A good example of making remitting money more
accessible is the Citibank in the United States. This bank only charges 6.5 US$ per transaction to
Guatemala, El Salvador and Mexico (Maimbo and Ratha, 2005, p. 33-35). The Spanish bank La Caixa
Catalunya is another example. The bank works in cooperation with all mayor banks in Latin America
countries, Morocco and Romania. In this way the bank can offer lower interest rates. La Caixa Catalunya
also offers additional services such as insurances (Maimbo and Ratha, 2005, p. 200-207).
Governments have to improve the infrastructure of money transfers. Academic studies present
recommendation for improvements of the channelling of remittances. General recommendations are
given in the studies of the IOM (2005), Suki (2004), Portes and DeWind (2006), Carling (2004) and Page
and Plaza (2005). They suggest that governments have to modernize financial systems, offer special tax
regimes for remittances, make it possible to have a bank account in foreign currencies and promote
financial literacy for receiving households. Additionally, opening a branch bank of the most important
national banks in the important sending countries facilitates remittances sending. Technical assistance,
matching funds and financial services can contribute to a more transparent financial system. This will
finally lead to a more positive impact of remittances (Newland and Patrick, 2004). Furthermore Suki
(2004, p. 52) advocates to expand banking opportunities for the ‘unbanked’, mostly in rural areas.
Besides improving the financial remittances systems, another method of the private sector is to stimulate
productive investments with remittances. According to Carling (2004), this can be done to relate
remittances and savings with micro finances. Financial institutions give micro credits for entrepreneurial
activities. If financial institutions that give micro credits promote saving of remittances, likewise these
are invested in more productive activities. In the Philippines these practices are observed (as explained in
1.3.2). Furthermore the private businesses have to promote consumption of local goods and services. In
this way, also consumption spending of remittances contributes to local economic development.
The establishment of public private partnerships (PPPs) will facilitate the cooperation of local
governments and the private sector. This increases Diasporas supporting their home communities. PPPs
are useful, because states in the south can not implement for instance a matching grant system, because
they lack resources. The PPP will bring in financial resources and competition. An example of a PPP is
33
the Haitian association of community development organizations (FIDEB). The association received
from financial institutions grants. These grants aim at involving the Haitian Diaspora in partnerships for
new projects in their home communities. The purpose of FIDEB is to link Haitian Diaspora in the United
States with counterpart organizations in Haiti (Newland and Patrick, 2004). Other examples of PPP are
the trade treatments between Diaspora and the place of origin.
Furthermore businesses that are related to international migration and remittances can have an influence
on local development. Here can be referred to the construction industries, especially for houses.
Businesses of merchant selling bricks, wood and other materials will increase more capital circulation in
the place of origin. Also construction activities will create new employment opportunities for
unemployed poor people (Adams, 2006). Businesses related to international migration can create positive
externalities for the place of origin.
To conclude, some national banks in developing countries recently have developed policies to make
money transfers impact positively on local development. Though banks have a commercial purpose and
for that reason the real impact on local development still can be questioned. Therefore at international
level, the IMF, the World Bank, the Department for International Development (DFID), the Inter Agency
Remittances Task Force (IARTF) and the World Council of Credit Unions (WOCCU) need to improve
research methods of the collection of remittances and the provision of data sources (Adams, 2006).
Reliable data about remittances are necessary to understand better their impact on development (DFID,
2007).
1.4 Summary and conclusion
This chapter has provided a theoretical framework about the academic debate on international migration
and its impact on local development. Also the governance perspective on international migration and
local development is discussed.
First of all the main trends of international migration are identified. Development theories explain the
existence of migration pattern, facts about international migration and current debates about the issue.
Europe and Northern America are the most important immigration regions that attract all sorts of
migrants (e.g. labour, educational, refugees, illegal). They search for better employment opportunities in
life. The last decades the process of globalization has accelerated international migration, because the
world becomes more interconnected. Numbers of international migrations have doubled and even tripled.
Labour migrants circulate around the globe, since TNCs offer jobs for international workers. In the less
developed countries, especially for low skilled women, employment opportunities arise. This causes the
feminization migration flows. Transnationalism is the tie between the migrant and the country of origin.
It is an over coupling concept to understand contemporary international migration.
Secondly the socio-economic impact of international migration on local development is
examined. The most visible part international migration and local development is the economic
transnational behaviour of remittances sending. Remittances are the most substantial north-south money
flows that by the migrant directly are sent to their relatives. Although remittances alone are unlikely
create local development, these are enablers, in combination with other economic, social, cultural factors.
Remittances are accelerating economic growth, raise income levels, create employment and also
recognised as a catalyst for poverty alleviation. Especially when remittances are used for investments,
multiplier effects are created in the local economies. Though, international migration can also cause
negative effects, such as economic dependency and negative psycho-social effects. Thus the impact of
international migration on local development is context specific.
Thirdly the governance structures in which local actors operate is analyzed. Good local
governance is a result of a successful operation of local actors in a decentralized context. The capacities
34
of local governments and other local actors determine how local planning is organized, similar as for the
embedding of international migration and local development in governance structures. Governance
structures in decentralized countries recently acknowledge the importance of international migration.
They have an increased interest in influencing remittances flows. The decentralized government of
Mexico has implemented the ambitious Tres por Uno programme that triplicates collective remittances
sent by HTAs. The success of the programme can be an example for other decentralized countries in the
south. This type of programming can make international migration a tool for local development. The
Philippine government focuses mainly on improving the financial infrastructure for international money
transfers. This has showed improvements in making remittance flow via official channels. HTAs and
other migrant NGOs can have an enormous influence on the international migration and local
development nexus. So the level of involvement of local actors in migration issues is essential in making
international migration a catalyst for local development.
The analysis in this chapter is necessary in order to understand case studies about the process of
international migration impacting on local development. Also to comprehend how governance structures
are involved in this process. The next chapter gives an introduction to the case study about international
migration, governance and local development in Cochabamba, Bolivia.
35
2. Thematic framework: international migration and local
development in Bolivia and Cochabamba
The previous chapter has provided a theoretical framework about international migration and local
development and the governance perspective in this process. In this second chapter is analyzed how
international migration and local development are embedded in the country of Bolivia. This thematic
framework provides information about the socioeconomic context of Bolivia (2.1), then the migratory
processes in Bolivia are described and analyzed (2.2) and the socio-economic impact of international
migration on Bolivia is investigated (2.3). Besides thematic information about international migration
about Bolivia and the same is done for the department of Cochabamba: the focus area of this study (2.4).
At the end of chapter this will be summarized and concluded (2.5).
2.1
Socio-economic context of Bolivia
In this section the socioeconomic context of Bolivia is described. First the physical and political
background of the country is given (2.1.1), second the poverty within the country is analyzed in order to
understand international migration pattern from Bolivia (2.1.2). Finally the political administrative
context of Bolivia is analyzed (2.1.3), in order to understand the eventual role of governments in the
process of international migration and local development.
2.1.1 Physical and political background
Bolivia is a very diverse country in the centre of the South American continent. Bolivia is a rich country
concerning natural resources, natural ecosystems and ethnic indigenous population, nevertheless Bolivia
is one of the poorest countries in Latin America. In 2008 Bolivia has 9.81 million inhabitants and another
couple of million Bolivians live abroad (UNDP, 2008). The official languages of Bolivia are Spanish and
the indigenous languages Quechua and Aymará. 62 percent of the Bolivian population is indigenous and
they are relatively the poorest groups in the country. Bolivia roughly can be divided in three zones that
also correspond with the dispersion of wealth. In the western Andean altiplano lives the poor indigenous
population with the capital city of La Paz as economic centre of gravity, the central valleys, with the
central city of Cochabamba, have a more moderate climate and the wealthiest part of the country are the
eastern tropical lowlands with the most important economic centre of the country: Santa Cruz.
Bolivia is know for its poor indigenous population, coca exportation and the first indigenous
president of Latin America; Evo Morales (Zoon, 2007; Domenech, 2009). Since decades Bolivia has
been politically unstable and many (military dictator) presidents succeeded each other, but in 2005 the
first indigenous president (worldwide) was elected. Since Evo Morales is president, left winged policies
blow over Bolivia. Morales is friends with the extremely left winged Chavez from Venezuela and Castro
from Cuba. Morales was the former president of the labour union of the cocaleros, what nowadays
influences Bolivian coca-plantation policies; their production is fomented by the national government.
Morales assumes that coca only is used for domestic coca consumption, though informal information
reveal that coca also is used for cocaine production and exportation. The most important policy measure
that Morales have taken since he was elected as president, is nationalization of the most important
combustibles companies that are located mostly in the eastern low lands. Another milestone under the
Morales hegemony is the approved (in Jaunary 2009) new political constitution that focuses on the better
distributions of wealth. The richer eastern departments do not agree and therefore voted against the new
constitution. The new constitution also increased autonomy of the nine departments, but despite of this
the richer departments, Santa Cruz, Tarija, Pando and Beni, want to have even more autonomy to decide
36
over their own resources. The ethnical, economical and political differences between the east (against
Morales) and the west (pro Morales) cause political unrest in Bolivia.
2.1.2 Poverty
Bolivia is one of the poorest countries of Latin America what can be seen in figure 2.1 and table 2.1
where all countries of South and Central America are listed based on their Human Development Index
(HDI) ranking (first column). In this table also other welfare indicators are listed and Bolivia ranks
among the lowest countries. With a Gross Domestic Products of 1,017 US$ per capita only Nicaragua
scores lower and the income disparity of Bolivia is the worst with a Gini index of 60.1. This means that
the rich (especially in Santa Cruz) possess relatively too much money and poor (in the west of Bolivia)
relatively few. A high Gini index has a negative correlation with poverty reduction (Adams and Page,
2004, p. 1649). Beside enormous disparities of income, also the percentage of the population that lives
below 1 US$ a day (extreme poor) and the percentage of the population that lives with 2 US$ a day
(poor) are considerable.
Figure 2.1 HDI index and GDP in US$ of countries in South America
Source: van den Bogaardt, 2009. Based on data of the UNDP, 2008.
Besides the comparison with the other countries in Latin America, internal factors also explain poverty in
Bolivia, shown with statistical data of the national census of 2001 in Bolivia (INE, 2001). Bolivia
traditionally has an agricultural economy; 39 percent of the total workforce is economically active in the
agricultural sector, 16 percent in the industrial sector, from which 2 percent in the mine industry (what
has been more in the past) and 32 percent in commercial activities (13 percent did not specify). The
UNDP (2008) gives an unemployment rate for the period of 1996-2005 of 5.5 percent. This percentage is
relatively low, though can be explained with employment rates in the informal sector. In the period of
1994-2000 an estimated percentage of the total non-agricultural employment in the informal sector was
for women 74 percent and men 55 percent (Chant, 2008, p. 219). These high numbers of informal
37
activities in Bolivia refer to economic unstable incomes, what proves for the presence of poverty.
Informal activities can become marginal during changes environment and probably en economic
hardship. A negative effect of poverty and unemployment is the limited access to credits which can be
used for investments and create opportunities for development. Roncken and Forsberg (2007) argue that
therefore Bolivia stays in a negative spiral of poverty and unemployment and low investment rates.
Table 2.1 Human Development Report 2007/2008 Latin America
HDI
HDI Country
value
GDP
2005
(US$) 2005
4,728
38
Argentina
0.869
0.867
7,073
40
Chile
0.852
4,848
46
Uruguay
0.846
4,627
48
Costa Rica
0.829
7,454
52
Mexico
0.812
4,786
62
Panama
0.800
4,271
70
Brazil
0.792
5,275
74
Venezuela
0.791
2,682
75
Colombia
0.778
3,786
80
Belize
0.774
2,986
85
Suriname
0.773
2,838
87
Peru
0.772
2,758
89
Ecuador
0.755
1,242
95
Paraguay
0.750
1,048
97
Guyana
0.735
2,467
103 El Salvador
0.710
954
110 Nicaragua
0.700
1,151
115 Honduras
0.695
1,017
117 Bolivia
0.689
2,517
118 Guatemala
Source: UNDP, 2008.
Gini
Index
2005
51.3
54.9
44.9
49.8
46.1
56.1
57.0
48.2
58.6
52.0
53.6
58.4
52.4
43.1
53.8
60.1
55.1
% below
$1 a day
1995-2005
6.6
<2
<2
3.3
3.0
7.4
7.5
18.5
7.0
10.5
17.7
13.6
19.0
45.1
14.9
23.2
13.5
% below
$2 a day
1995-2005
17.4
5.6
5.7
9.8
11.6
18.0
21.2
40.1
17.8
30.6
40.8
29.8
40.6
79.9
35.7
42.2
31.9
Moreover the economic indicators other social indicators show less development in Bolivia than other
Latin American countries. For instance the gender related development index (GDI) Bolivia is as low as
the HDI. And also on other basic indicators such as health, basic sanitation, education levels Bolivia
scores generally less than other Latin American countries (see UNDP, 2008). Bolivia is a so typical
‘donor darling’, which means that the countries receives relatively much official development
cooperation. According to the statistics of the UNDP (2008) 6.2 percent of the Bolivian GDP that was
consisted of official development aid (in 1990 this percentage was 11.5 percent). A possible decline in
development cooperation are the left winged policies of the president Morales, which are not supported
by the United States government that is in the absolute numbers the biggest aid donator. The total amount
of official development aid that was received in 2005 was US$ 582.9 million.
2.1.3 Political administrative context
To analyze the government’s plans and practices on international migration and its implications for local
development, it is necessary describe and analyze the political administrative context of Bolivia. The
character of political administrative context explains into which extent different administrative levels can
have influence in the process of international migration. The political administrative context of Bolivia is
highly decentralized.
38
Before decentralization, the Bolivian political and administrative structure was very centralized, in which
participation, especially from the rural population, was not recognized. In 1994 this highly centralized
institutional landscape of Bolivian politics changed with the implementation of the law on Popular
Participation (LPP) into a decentralized political administrative context to create more participation in
decision making in order to improve the living conditions of the people. This law has had ever since an
enormous impact on societal, political and economical process in Bolivia. In 1995 the decentralization
process continued with the implementation of the law of administrative decentralization. This
decentralization law in Bolivia focuses on the transfer of funds and responsibilities to lower levels of
political organization which included local, municipal communities and the institutionalisation of the
state and the civil society (República de Bolivia, 1994). Five main actors become powerful with the
decentralization laws: the local governments, the Organización Territorial de Base (OTBs) (Territorial
Base Organization), that both are controlled by the Comité de Vigilancia (Committee of Vigilance), the
private sector and NGOs (Nijenhuis, 2002, p. 78). To provide more participation among the population
20 percent of the national tax income is distributed among the newly defined 311 municipalities
depending on the number of habitants. In figure 2.2 is shown how funds for different sectors are
distributed over central and local Figure 2.2 Local versus central investment Bolivia
governments after the implementation of
the centralization laws. In the figure
education, urban development and water
services are highly decentralized over
which municipalities got with the
decentralization law the responsibilities.
This meant that also the indigenous
population has gotten more influence in
decision making by electing municipal and
departmental councils that indicate the
priorities and needs for investments in
their communities. The empowerment of
civil society is done at municipal level
with the creation of peasant and
indigenous
communities
and
neighbourhood organisations; territorial
y-axis:
sectoral
social organizations (Nijenhuis, 2002, p.
investments
Source:
Faguet,
2004.
54).
as percentage
of total
The decentralization law that Bolivia implemented in 1994 is a very ambitious policy that can be
categorized in the group of countries that have implemented decentralization with a high degree of
popular participation (Nijenhuis, 2006, p. 117). Bolivia has gained fame with its popular participation
policy. The LPP is meant to implement more participatory planning among the population. Therefore
Faguet (2004) argues that the decentralization of the Bolivian political landscape was necessary, because
local level preferences are the key to understand the needs from the populations themselves. The
decentralization has provided that local development now is driven by the small and poor municipalities
that will use the public funds for their highest priority projects for development, such as education, water
and sanitation services and general water management. Faguet (2004) also contradicts that local
governments have become corrupt with decentralization in Bolivia. Also Kaufmann (2003) argues that
decentralization in Bolivia is necessary to provide better public services adjusted to the needs of the local
communities.
Though, Nijenhuis (2002) gives several arguments to explain that decentralization did not
automatically lead to good governance and the total participation of the population; nonetheless it
provides more funds for local development. The national taxes that are allocated to the local governments
are a starting fund for local development projects, and co-financing in this process is essential, although
39
not at all local governments have the capacity to raise these funds from by example NGOs or local taxes.
For instance precaution is needed by the funds for health facilities for which the local governments
become responsible. Funds have to distribute fairly, because otherwise health services will not be
accessible for the poorest. Another problem is the inequality between municipalities remains present,
because to achieve full equalization of different regions in Bolivia the redistribution of funds has to be
allocated in favour of the poorest regions (Kaufmann, 2003), though the redistribution is according to
population numbers. Local governments fail to respond accurately to need of the funds from the central
governments to cover the local initiatives for development what has resulted in geographical disparities
in the quality of education, especially in the rural areas where there is a lack of financial funds and
teachers. Furthermore the top-down implementation of the law has also lead to several problems, such as
corruption and lack of experts that coordinate the local projects. Booth et al. (1998) and also Calla (2000)
observe still old power structures especially in the subtropical lowlands of Bolivia, where the impact of
decentralization on local governance and development is still limited, as a result of the dominant power
of elites, haciendas and latifundios. Institutional mechanisms still not always function adequately to the
local demand of public services. This is interesting for further research about the role local governance
structures play in local development related to international migration.
Despite of the practical problems with decentralization, it has empowered the Bolivian population
definitely, especially the rural, through the creation of the OTBs. The local municipalities have to inform
the local population with the five year Plan de Desarrollo Municipal (PDM) and with the Plan de
Operaciones Anuales (POA). These plans increase the transparency of the decision making process. The
development of basic services with the help of public private partnerships can lead to positive results;
however corruption can be a threat. Although decentralization is already 15 years in practice, the positive
impact of the law is still in its infancy, but is a good step forward towards good local governance. Since
the inauguration of the Bolivian left winged president Morales, there are some more tendencies towards
centralization.
2.2 Migration in Bolivia
In this section the internal migration (2.2.1) and international migratory (2.2.2) processes in Bolivia are
described and analyzed.
2.2.1 Internal migration
Number of migrants
Before describing internal migration in Bolivia a quick overview is given about internal migration. In
Latin America rural-urban migration is predominantly directed towards the primate city. This primate
city is mostly the capital city and is Figure 2.3 Migration balances of the nine Bolivian departments
disproportionate much bigger than the rest
500000
of the cities of that country. The primate
Immigration
400000
city
therefore
experiences
overEmigration
urbanisation. The largest complications of
300000
these enormous urbanisation flows is the
lack of employment, housing and
200000
educational possibilities (Potter et al.,
2004). Bolivia experiences the same
100000
urbanisation problems, but does not have
one primate city. Internal migration flows
0
Chuq. La Paz Cbba. Oruro Potosí Tarija S.Cr.
Beni Pando
are directed to La Paz and the satellite city
of El Alto, Cochabamba and Santa Cruz. Source: República de Bolivia Ministerio de Educación, 2004.
40
After the department of Santa Cruz, the department of Cochabamba is second largest receptor of internal
migrants (Roncken and Forsberg, 2007, p. 12). In the 1980s the economic crisis in Bolivia hit hard on the
industrial mine sector. The closure of many state mines due to privatization in the altiplano departments
of Oruro, Potosí and La Paz explains mostly the internal migration especially towards Cochabamba and
Santa Cruz (see also box 1) (Dulón, 2008). In figure 2.3 is shown that these departments have a positive
migration balance. The emigration departments are located at the altiplano; Chuquisaca, Oruro (-26
percent) and Potosí (-38 percent) (Roncken and Forsberg, 2007).
2.2.2 International migration
The high emigration numbers of the Bolivian population are explainable with the habitus migratorio
Andino2; people that live in the Andean traditionally are used to migrate. In the very past, the search for
fertile soils was the most important reason for massive movements, nowadays this is the search for a
better economic future. The most massive migration movements always have originated from the valley
of Cochabamba.
More recently Bolivia experiences gradual migration which starts with migration from the rural
areas to provincial capitals, then to departmental capitals and as final step to the exterior (Roncken and
Forsberg, 2007, p. 11). The pushing factors behind this migration are partly caused by the unfavourable
labour market conditions (as explained in 2.1.2). Roncken and Forsberg (2007) indicate that for 98
percent of the migrants high unemployment rates and low salaries, are the most important reasons for
emigration (ICBE, 2008, p. 14). The most important pull factor for Bolivians to emigrate is the high the
demand of lower skilled work in developed countries (Hinojosa, 2006; 2009, p. 161-163). Domenech
(2009, p. 262) shows his preoccupations about a probable increase of emigration, since MAS governs,
because of the absence of migration in national plans until 2007. Then a law was introduced that
Bolivians residents residing in the exterior are documented to vote during elections and referenda
(Domenech, 2009, p. 267-277).
The most important international migration flows from Bolivia are to Argentina, the United States
and Europe. In box 2.1 an overview is given of the history of the migration of Bolivians and in some
cases the specific migration of Cochabamba is indicated. Approximately 25 percent (3 millions
estimated) of Bolivian population lives abroad, from which 1 million emigrated since 2000 (ICBE, 2008,
p. 15). Nowadays the estimated amount of Bolivians that live in Argentina is 1.5 million, in Brazil
600.000 (Roncken and Forsberg, 2007), in the United States 300.000 (Whitesell, 2008) and 350.000
Bolivians in Spain (ACOBE, 2007). The Bolivians in Argentina mainly live in Buenos Aires, the
Bolivians in the United States in the states Washington, D.C., Baltimore and North Virginia where they
have build Home Town Associations (HTAs) of Bolivians who originate mostly from Cochabamba. The
Bolivians in Spain mostly live in the cities Madrid and Barcelona where they live together in several
districts of the cities and those that live in Italy (the second largest destination of Bolivians in Europe)
have immigrated to the city of Bergamo, with also the majority originating from Cochabamba (de la
Torre, 2006). For many migrants the presence of family and/ or friends that are already staying in these
places of destination, are an important pull factor to decide also to immigrate to places. Family of friends
in the beginning can them offer housing and inform about employment possibilities. This is chain
migration between Bolivia and for instance Barcelona and Bergamo.
2
A quoted from the interview with Hinojosa.
41
Box 2.1 History of Bolivian migration
Period
Migration flows
Pre-classical Inka-culture
Migration and trade in agricultural products in Tiwanaku civilization.
Aymará
Aymará population that nowadays lives on the altiplano of Peru and Bolivia were
introduced to the altiplano, mainly originating from the valleys (Cochabamba) and
the subtropical areas agricultural products to cultivate these on the altiplano.
1470
The Inkan Huayna Kapaj reallocates just before the discovery of America 14
thousand Aymará and 40 thousand Quechua Indians to the valley of Cochabamba
to cultivate maize. Before in the valleys only Ayamará was spoken, but since then
Quechua dominates over Aymará which is still the most important indigenous
language in the valley of Cochabamba.
Colonial
Farmers form the valley of Cochabamba in the colonial era trade agricultural
products with villages on the altiplano and the cost areas (temporary Chile and
Peru).
Begin 20th century
Exodus in the cost area of Iquique (Chile) due to a climatological disaster;
migration towards the valley of Cochabamba.
1940s and 1970s
In the 1940s Bolivian migrate to Argentina to work in the mines. And in the 1970s
again a migration flow to Argentina, mainly to Buenos Aires to occupy jobs in
construction and textile sector.
1970s and 1980s
Beside migration towards the neighbouring country of Argentina, also Venezuela
offered employment since oil was discovered and in Brazil Bolivians mainly work
in the garment industries.
1980s and 1990s
The economic magnet of the United States creates an enormous flow of Bolivians
(like all Latin American countries) that migrate to the United States. 70 percent of
Bolivians in the US are Cochabambinos that live in the mainly in the state of
Washington, D.C., Baltimore and North Virginia.
Since 1985
Internal migration in Bolivia due to closures of many mines (privatization) in
Potosí and Oruro towards the cities of predominantly Cochabamba and Santa
Cruz.
Since 2000
The increased difficulty of entering the United States (particularly due to the
terrorist attack on the WTC at 9/11) caused from many Latin American countries a
migration flow towards Spain. 2006 was a peak of emigration from Bolivian to
Spain
April 2007
Visa requirements for Bolivians to enter the Schengen countries, since the first of
April 2007 the migration flows to Spain slowed down.
Source: Los Tiempos, 2007.
Bolivians in Argentina
In box 2.1 can be seen that the emigration from Bolivians towards Argentina already started before world
war two, also Hinojosa (2006) indicates that Argentina has traditionally been the most important
destination for Bolivians. The emigration towards Argentina was directed to the Northern agricultural
regions Jujuy and Salta. Many Guaranís were politically displaced towards this area, because of an
economic crisis in Bolivia. In 1953 the government implemented an agricultural reform that resulted in
the property rights of land for the poor indigenous population that resulted in mass emigration, because
people could sell and buy lands what gave people income and freedom. An unstable political situation
42
from the 1960s onwards continued emigration (Whitesell, 2008). Bolivians in Argentina moved to
Buenos Aires during the industrialization and started working in the garment and manufacturing
industries and continued working in the northern rural areas close to the border of Bolivia where. In the
1980s another economic crisis caused more emigration; many Quechua and Aymará originating from the
altiplano (La Paz, Oruro and Potosí) migration to the capital Buenos Aires to work mainly in commerce,
construction and the garment industry. Bolivians in Argentina are called Bolitas and experience ethnical
discrimination that is also reflected in lower salaries, though todos salimos con la idea de volver3, but
only few Bolivians finally return (the myth of return). The exodus towards Argentina stopped at the end
of the 1990s when a financial and economic crisis hit Argentina due to the neo-liberal policies of
liberalization and privatization of the World Bank and the IMF (Dulón, 2008), what resulted in return
migration to the original communities of many Bolivians. Many of these return migrants some years later
took the decision to immigrate to Spain; these are the pioneer Bolivian migrants in Spain.
The migration towards Brazil shows similar patterns as the emigration towards Argentina
(Hinojosa, 2006). A significant Bolivian population of approximately 600,000 Bolivians lives in Brazil
(Roncken and Forsberg, 2007, p. 7). The Bolivian population in Brazil is concentrated in the city of São
Paulo and their occupations are similar to those in Buenos Aires. In the 1980s first professionals, such as
doctors and dentist, and secondly many Aymará from Oruro and La Paz migrated to work in commerce
(mainly textiles).
Bolivians in the United States
Migrants from Latin America work in the United States as cheap employers for different factories and
agricultural enterprises. The Bolivian migration towards the United States is not linear, because many
migrants that have lived in the United States probably also have lived for a period in the Argentina. Also
the migration towards the United States has been the idealized, partly due to the audio visualization of
the American dream, with movies such as American visa. Half of the Bolivians in the United States
reside in the metropolitan area of Washington D.C. (Hinojosa, 2006, p. 2). Orozco (2009, p. 32) found
out that the majority of the remittances that originate from the United States come from Washington D.C.
De la Torre (2006) studied the Bolivian communities and HTAs from the department of Cochabamba in
the United States. He found out that the city of Arlington in the state of Virginia has become the centre of
the in the United States. In Arlington is situated the HTA of the municipality of Arbieto (in the
department of Cochabamba). The transnational links between Bolivia and Arlington is caused by chain
migration and created a social transnational space.
Since the increased difficulty to enter the United States and border controls, Bolivian migration
patterns changed. Bolivians like many other South American countries experiences emigration towards
Europe, especially since terrorist attacks at World Trade Centre 11 September 2001.
Bolivians in Europe
From the 2000s the Bolivian migration changes from a paradigm of masculine, educated emigrants to the
United States, to a feminized and low educated migration to Europe, with Argentina as intermediate stop.
Bolivian women were the pioneers that firstly migrated to Spain and most of them departed from Buenos
Aires that became a node in the Bolivia - Spain nexus. Also the character of the place of origin changed,
while before 2000 the emigration to the exterior originated from the rural altiplano, since 2000 the
emigration was propelled mostly from urban centres, with highest expulsion numbers from Cochabamba
(Hinojosa, 2009). The peak of the Bolivian migration to Spain was in 2006 until March 2007. After the
required visa for Bolivians to enter in Spain family reunification is most frequent emigration to Europe.
Nowadays in Spain live between 350,000 and 380,000 Bolivians, these are estimations because only 30
percent of them have regular status (ACOBE, 2007; AMIBE, 2008), over 80 percent of the Bolivians
entered with a tourist visa that expires after three months and thereafter stayed illegally. Although a 80
percent of the Bolivians have an irregular status, a majority of them work without a contract.
3
Translation: we all leave with the idea to return.
43
The duration of the stay of Bolivians in Spain is approximately 1 until 3 years (AMIBE, 2008). Bolivians
that arrived first, mostly in 2003, stayed in Madrid, and today Bolivians are spread more over the
country, also into the agricultural areas. ACOBE studied (2007) the characteristics of Bolivians that live
in Spain. The motive for the emigration is economic; a better living, helping family economically and
finding a job. The Bolivians mostly indicate that they want to save the money that they earn in Spain. 25
percent of the Bolivians in Spain have finalized high school and 37 percent of them have a university
degree or professional skills, though Bolivians in Spain mainly occupy low skilled jobs. With an average
salary of €963 a month on an irregular basis, Bolivians face difficulties paying rent, but remit money to
family members in Bolivia.
In Italy reside approximately 35,000 Bolivians that demonstrate similar characteristics to those in
Spain (Marzadro, 2008). Bolivians (similar as Peruvians and Ecuadorians) are located in a small number
of urban areas. Bolivians foremost are located in Bergamo and some in Milan and Geneva. In Bergamo
live 20,000 Bolivians, mostly originating from Cochabamba that count for 10 percent of the total
population of Bergamo (250,000). 75 percent of these Bolivian immigrants have an irregular status; only
6,500 of the estimated 20,000 Bolivians in Bergamo are legal, occupying mostly non qualified work,
such as hostelry (18 percent), cleaning (15 percent) and construction (9 percent). The reason for the high
number of Bolivians in Bergamo is the existence of two churches from Bergamo in Cochabamba
(Marzadro, 2008, p. 3). This has provoked chain migration from Cochabamba to Bergamo already since
40 years. Furthermore significant Bolivian populations are found in Switzerland and United Kingdom.
In section 1.1.4 the relatively new process of the feminization of the international migration is explored.
Also for Bolivia the migration flows are dominated by women; the explaining factor is the international
labour market that offers especially jobs for women. Especially in Spain women fulfil domestic jobs,
such as babysitting, caring for the elderly, merchandize in the streets and markets and personal for bars
and restaurants (Balbuena, 2003; Dulón, 2008, p. 19). Also Hinojosa (2006; 2009, p. 168-170) proves the
feminization of international migration that is forced by the appearance of international networks in
which the demand for women that fulfil domestic jobs rises. Also the data of ACOBE (2007, p. 18)
support this: 33 percent of Bolivians in Spain do domestic services. 16 percent is construction worker and
10 percent personal services, jobs that migrants relatively less occupied in Bolivia. 55.5 percent of all
Bolivian migrants in Spain are women that occupy these jobs (Hinojosa, 2009, p. 170). Orozco (2009, p.
30) found out that 70 percent of all remittances are sent by women to Bolivia. Even more striking are the
data that Hinojosa (2007) presents about international migration of Bolivian women from Cochabamba.
From all emigrants of the department of Cochabamba 67 percent are women and from the migrants that
go to Italia even over 70 percent are women.
2.3
The socio-economic impact of international migration in Bolivia
In this section is analyzed how the Bolivian Diaspora can have an impact on the place of origin in
Bolivia. First the remittances sending to Bolivia (2.3.1) and then the impact of the international migration
on the Bolivian society (2.3.2) and finally also the psycho- social impact of this international migration
(2.3.3).
2.3.1 Remittances
Bolivia is with Colombia, after Ecuador, the largest recipient of remittances in the Andean countries.
These Bolivian migrants maintain ties with their families and home towns. Whitesell (2008) and
Roncken and Forsberg (2007) argue that Bolivian migrants sent remittances to support their families
financially and also to invest in housing and sometimes in entrepreneurial activities in Bolivia. These
migrants have mostly the aspiration to return to Bolivia after having earned enough money to have a
44
better economic standard when returning, what is also proved with the study of Jones and de la Torre
(2008). 80 percent of the families that have family member abroad indicated that migration has a
temporary character. 60 percent of all migrants aspire to have an own business when returning. Another
interesting fact is that women are more likely to remit money then men, which means their more
advanced ability to save money, though this fact is somewhat biased by the higher numbers of women
that recently have emigrated.
Roncken and Forsberg (2007) argue that remittances mainly flow to the poorest and the richest
strata of society: the poorest 20 percent of Bolivian population receives 29 percent of all remittance and
the richest 20 receives 25 percent of all remittances. Whitesell (2008), Roncken and Forsberg (2007) and
Hinojosa (2006, p. 3) indicate that 45 percent of the remittances are used for consumptions purposes.
Another 45 percent is inverted in mainly properties and housing, secondly in education for the children
and thirdly other businesses. The last 10 percent of the remittances are spent in other activities in the
place of origin. Correa Castro (2006) and de la Torre, 2006) give similar information about remittances;
first for daily spending, then they start paying off debts and thirdly allocate the money in the construction
of a (family) house with migradollars.
remittances in millions of US$
The amount of remittances that have been sent to Figure 2.4 Remittances in US$ to Bolivia
Bolivia in the last decade has increased in an
1200
exponential manner, what can be seen in figure
1000
2.4. Roncken and Forsberg (2007) indicates that
in 2006 the remittance sending is 1 milliard US
800
dollars, but according to the official statistical
600
data of the National Bank of Bolivia (BB, 2008)
400
884 million US$ and 452 million US$ in the
period January – June 2008 was remitted
200
through formal channels. Orozco (2009, p. 3)
0
found out 860 million US$. In academic
year 2001 year 2002 year 2003 year 2004 year 2005 year 2006
literature the estimated share of the contribution
of remittances to the Bolivian GDP varies. Source: Roncken and Forsberg, 2007.
Hinojosa (2009, p. 174) indicates 8.7, Whitesell
10 percent (2008, p. 307), though BCB (2008) only estimated a contribution of 6.7 percent in 2007. But
this percentage is probably higher taking into account the informal remittances. More recent information
of Orozco (2009, p. 30) indicates even 10.17 percent of the GDP.
The most important remittances flows come from Spain (36 percent), followed by the United
States (21 percent) and Argentina (18 percent). ACOBE (2007) specified that 35 percent of the salary
earned by Bolivians in Spain is used for savings, which is the highest expense of their salary. These
savings are for almost 75 percent used to remit to Bolivia. The remittances are for 50 percent send by
agency, such as money transfer operators, which is done by more than half of Bolivians once a month.
Deposits at bank accounts are less frequently used.
The high share of remittances that contribute to the national GDP shows a financial dependency,
what can result in economic hardship when remittance sending decreases. For example the nowadays
impact of the financial crisis is still uncertain, though at www.remesas.org is indicated a decrease in
remittances sending to several Latin America countries. This is also shown by Orozco and Ferro (2008,
p.1) and the Volkskrant (2008) that measured a negative growth of remittances sending to Mexico. In the
case of Bolivia the Newspaper La Razón (2008) reports about Bolivians that have to return from Spain,
because there is no adequate employment anymore and the prospects for 2009 are not very hopeful.
Newspaper El Deber (2008b) presents even with hard numbers and reports a decrease of 12 percent in
remittance since the last two years. Many families are negatively affected by the decrease of money
sending caused by the economic crisis. This economic dependency on remittances can have a negative
impact on Bolivian society.
45
2.3.2 Impact of international migration on local development
Bolivian international migration, especially remittances, has an important impact on its society. If
remittances are used for investments, these contribute to development, while simple consumption
spending of remittances generally does not create development in the longer term. Many Bolivian
families have a member abroad, but still the majority of the families does not have family member abroad
that sends remittances. Households that receive remittances have shown to make improvements in their
livelihood and in this section is analyzed if also non-migrant families can profit from the positive effects
of international migration.
Since international migration has such an enormous impact on the Bolivian society, the last
decade some studies have appeared about international migration and local development in Bolivia.
Different authors provide information about the link between international migration and local
development. Jones and de la Torre (2008, p. 6) argue that migrant remittances in Bolivia have improved
the national trade balance and reduced national income inequalities, what they call ‘transnationalism
from below’, because remittances are directly send to the families in the places of origin, mostly poor
places, what below has an increased impact on the families in the places of origin when the migrant
(frequently) returns to visit.
Roncken and Forsberg (2007) indicate that 11 percent of all Bolivian population receives
remittances. Orozco (2009, p. 30) identifies that 44 percent of these recipients has bank accounts. Other
recipients receive per MTO or unofficial channels. The remittances in Bolivia are used for
entrepreneurial activities and increases consume which have a stimulating effect on the local Bolivian
economy and can create local development, especially the construction sector. Furthermore the study of
Roncken and Forsberg focuses on physical construction of the public space that contributes to local
development, such as the construction of school, hospitals, churches and other public spaces.
Furthermore financial services sector, transportation and construction sectors benefit from the multiplier
effects of remittances.
Dulón (2008) studied the relationship between Bolivian emigration towards Argentina and the
local development in the municipalities of origin. She concludes that the emigration does not only have
an impact on the municipality of origin, but on the wider context. Emigration of Bolivians towards
Argentina is seen as a diversification of income, to complement the total income of a household.
Remittances are foremost used for alimentation, improvements for the house and education of children. If
these basic needs are fulfilled investments are done in enterprises; the latter very few. Dulón argues that
little money is used for investments in the communities of origin; the receivers of remittances prefer to
invert the money in urban areas in parcels to construct (new houses), due to better educational and
entrepreneurial opportunities. Though also in rural areas new agricultural cultivation methods, crops and
commercialization of agricultural activities have improved the living conditions of farmers. Still the
negative side of the emigration is that communities are left with the economic non productive population;
the elderly and children, as also Roncken and Forsberg (2007) observe: there is a loss of a part of the
labour force and in certain sectors qualified personnel is missing, especially in the construction sector,
since there is an enormous demand for construction in Spain. Dulón concludes that remittances from
Argentina towards Bolivia for households are a guarantee to survive economically, though at communal
level, remittances have poorly contributed to development.
Conclusively, international migration contributes to more well-being of Bolivian households.
Furthermore remittances have created more economic prosperity at local level. Though, remittances
create economic dependency, which at the longer run can turn out negatively during for instance
economic hardship in case when Bolivian family members abroad become unemployed. Another
implication is the urban bias of investments in entrepreneurial activities in the cities.
46
2.3.3 The psycho-social impact of international migration
International migration does not only have an economic impact on the Bolivian society and households,
but also a psycho-social impact; the effect of the social remittances. Mostly the impact of social
remittances is perceived negatively. This situation is described by Roncken (2008) as: ‘la migración
llena los bolsillos pero afecta el corazón’4.
Families that have a family member abroad are in great risk to disintegrate, especially when parents
migrate; children are left alone or are bread up by grandparents, what definitively has a negative
psychological impact. Especially nowadays because the international migration of Bolivians is
feminizing and mothers leave their children behind. Migrant families are also destroyed by divorces.
Loneliness of children makes them vulnerable for bad treatment by other family members or even abuse
(Roncken and Forsberg, 2007; Hinojosa, 2006). Roncken and Forsberg (2007, p. 28) even find out that
25 percent of all children left behind by emigrated parents are victim of violence, such as young girl’s
prostitution or pregnancies and young boys alcohol and drug abuse. Whitesell (2008) observes similar
practices. Besides also fathers suffer because they are left alone with the children.
Somehow nowadays new techniques provide communication between the migrants and the family
and friends in Bolivia. Bolivian migrants in Spain indicate to have an average frequency of
communication mainly by telephone with their family once a week (ACOBE, 2007). The maintenance of
contact with family at home makes it in the longer term easier for the migrants to return to Bolivia, for
instance if they investigate in setting up entrepreneurial activities while coming back to Bolivia (de la
Torre, 2006). Albeit the existence of modern communication techniques, the psycho-social impact of
international migration continues to be negative.
2.4 The socio-economic context and migration in Cochabamba
To know what Bolivian international migration and its impact on international development means for
the local level, the department of Cochabamba is used as case study. First of all the physical, political and
socio-economic background of the department of Cochabamba will be described (2.4.1) and secondly the
migration situation of the department will be described and its impact on local development in the local
the municipalities of the department of Cochabamba will be analyzed (2.4.2).
2.4.1 Physical and socio-economic context
Bolivia counts 9 departments and the department of Cochabamba is located in the centre of the country
(figure 2.5) that only occupies 5 percent of the national surface (OBD, 2009). The department of
Cochabamba encompasses three different climatologically zones, ranging from the altiplano (altitude
3,000-4,000 m.), the valleys (1,000-3,000 m.) to the subtropical lowlands in the eastern parts of the
department (300-1,000 m.). The altiplano is predominantly rural where due to climatological factors
internal migration is observed towards to the city of Cochabamba. The sub-tropical lowlands (Chapare)
are mostly immigration regions, because of the presence of lucrative coca and banana plantations.
4
Translation: migration increases income, but affects the heart.
47
The third most important city of Bolivia
in terms of population and economy is
Cochabamba the capital of the similar
named department. The name of
Cochabamba originates from two
Quechua words. Cocha is derived from
ghocha (lake) and bamba is derived from
pampa (open flat space), both words
correspond to the geographical location
of the city that is located in a valley and
surrounded by mountains and has a
lagoon Alalay in the south in the city.
Cochabamba is situated at 2550 meters
altitude, with a pleasant climate and
fertile soils and therefore the city is
known for the ‘city of eternal spring’.
The department of Cochabamba has 16
provinces and 45 municipalities. The city
of Cochabamba has become a
metropolitan area that also includes the
cities of Quillacollo and Sacaba.
Figure 2.5 The department of Cochabamba
The metropolitan5 area of Cochabamba
approximately counts for 85 percent of
1.45 million habitants that lives in the
department of Cochabamba (INE, 2001;
OBD, 2009). Half of the population in
the department speaks Spanish and is
almost half from Quechua origin and for Source: www.nationsonline.org, 2008
3 percent Aymará and the rest is mestizo
(a mixed Indian and European descent) (INE, 2001). The city in the ultimate century has grown
explosively. The centre of the city has commercial, business and residential areas. The north side of the
city (north of the river Rocha) is particularly a residential zone. From the 1960s and onwards the city has
experienced a very high and uncoordinated grow south wards due to rural-urban migration from the
western departments (closures of mines). The southern districts of the city of Cochabamba have an
annual growth of 9 percent per year due to rural-urban migration and natural population increase. The
peripheral southern zone of the city of Cochabamba can be typically characterised as a self help housing
zone that experiences many urban problems such as lack of basic infrastructure such as water and
sanitation supply services (Ledo Garcia, 2002).
The department of Cochabamba scores the third raking after the departments of Santa Cruz and La Paz in
various different development indicators (INE, 2001). The department of Cochabamba experiences the
same problems with poverty that are explained at the national level, such as unemployment. Nonetheless
poverty in Cochabamba is also caused by a striking example of a privatization policy in Cochabamba. In
the 1980s the World Bank and the IMF started implementing neo-liberal policy (SAPs). Also in Bolivia
the World Bank proposed liberalization and privatization of national services as an explicit condition of
development aid. In the 1990s this resulted in the privatization of water services. These neo-liberal
policies resulted in Bolivia in contradictory negative results. In the city of Cochabamba due to the
privatization of the water service from company Aguas de Tunari resulted in an increase of water prices
5
The metropolitan area of Cochabamba are the following municipalities: Cochabamba, Tiquipaya, Colcapirhua, Quillacollo
and Sacaba.
48
with 35 percent. This resulted in massive social unrest, because the increased water prices impoverished
especially the poor people. In 2000 the situation escalated completely and turned out in the ‘water war’.
The water war resulted in the end of the former government of the department of Cochabamba (Esteban
Castro, 2005). The Bolivian experience with the forced water privatization of the World Bank is a
striking example of the theoretical gap between the World Bank theory and practice in the real world for
the poor families who have to live with the - in the case of Cochabamba - negative results.
Although the water war in the department of Cochabamba is over, the department faces still
violence, which is related with the poverty and political unrest. This is related to conflicts between pro
and contra MASistas (supporters of MAS). Furthermore political unrest is caused because the department
of Cochabamba is the centre of the country and is situated in the corridor between the two most
important economic nodes; La Paz and Santa Cruz. The principal highway between La Paz and Santa
Cruz crosses Cochabamba and already many times happened that this road was blocked. Especially if the
cocaleros are dissatisfied with the economic and or political decisions they start blocking this important
highway. The blockades at this highway and around the metropolitan area of the city of Cochabamba
paralyze the local and also national economy.
2.4.2 International migration and its impact on Cochabamba
The migration processes in the department are driven by two processes; first the internal migration in the
country of Cochabamba and within the department and secondly by international migration.
The department of Cochabamba has a positive migration balance due to internal migration. The
department of Cochabamba counts 16 provinces that four of these have a positive migration: Cercado,
Quillacollo and the tropical provinces Carrasco and Chapare (OBD, 2009) (per municipality the net
migration is indicated in figure 3.2). This can be explained by urbanisation towards the city of
Cochabamba (province of Cercado) and its satellite city of Quillacollo and the coca plantations in the
tropical provinces attract employment possibilities (Ledo Garcia, 2002; Roncken and Forsberg, 2007;
Dulón, 2008).
The other municipalities experience emigration towards the city of Cochabamba or to the exterior:
the unfavourable economic context also makes cochabambinos decide to emigrate. The quote of ICBE
(2008, p. 16) illustrates this: ‘la gente de Cochabamba se va del país por falta de esperanza en el
futuro’6. Roncken and Forsberg (2007, p. 12) indicate that the department of Cochabamba is the second
department, after La Paz, of expulsing international migrants in absolute numbers. In relative numbers
Cochabamba is the first department, as also confirmed by the study of Jones and de la Torre (2008, p. 12)
in the rural municipalities San Benito, Punata and Tarata. Jones and de la Torre investigated that 46
percent of the respondents in the three municipalities have at least one family member abroad, what they
call transnational families, and another 14 percent have a returned migrant member in the family.
Measured by latest place of residency 36 percent of all Bolivians in Spain come from Cochabamba, while
the departments of La Paz (21 percent) and Santa Cruz (19 percent) have relatively less representatives in
Spain (ACOBE, 2007) (but higher absolute numbers of inhabitants). The massive outflow of
cochabambinos justifies the importance of migration studies in the department of Cochabamba.
Cochabambinos son nacidos para migrar7 (de la Torre, 2006).
At the national level is explained how international migration can create opportunities for local
development. The role of remittance is crucial in this process. The department of Cochabamba has
relatively the most migrants abroad, though not the same percentages remittance, only 14 percent at
national level (ICBE, 2008, p. 9). The families that receive remittances in the place of origin are
financially highly dependent on remittances, as the study of Jones and de la Torre (2008, p. 16) in the
6
7
Translation: people in Cochabamba emigrate because they do not have hope for the future.
Translation: Cochabambinos are born to migrate (title of thesis).
49
municipalities of San Benito, Punata and Tarata confirms. 58 percent of the household income was
constituted of remittances. Those families perceive a more improved economic situation.
De la Torre and Alfaro (2007, p. 35-47) studied in the municipalities of Arbieto and Toko the
international migration and local development nexus. They analyzed how remittances are spent in the
municipality of Arbieto. They conclude that the construction of houses is most important allocation of
the received money. Migrants have the dream to construct their own house for their parents or that they
selves in the future can return to their hometowns. Furthermore luxury goods as furniture and cars are
also included in this category, though this is not a very sustainable investment for development in the
longer term. Nevertheless, in the construction sector, appear employment possibilities and externalities
for economic development.
The best example of a positive impact on the community in Cochabamba is the diversification of
agricultural production. De la Torre (2006) found out that in the municipality of Arbieto, where
traditionally only maize and potatoes were cultivated, irrigations systems were improved with
remittances. With new irrigation systems the cultivation of duraznos (peaches) could be started. In
Arbieto migrants also have contributed in the construction of streets, main roads, squares and other
infrastructural constructions. De la Torre (2006) also indicates that in the municipality of Arbieto the
mayor played an important role in the communication between the migrants in the United States and their
investments in local development in Arbieto. The mayor of Arbieto visited many of them in Arlington. In
the municipality of Arbieto the cooperation between the municipality of Arbieto, the political
participation of the OTBs, the committee of vigilance and the counsel enhances. In Arbieto where
international migration impacts positively on local development, also some difficulties are observed. De
la Torre (2009, p. 12) observes that the prices of terrains are much higher than in the surrounding
municipalities.
The programme of irrigation systems is called Asproagrok that won a World Bank award. Similar as
the programme la Asociación de Adultos Mayores del Municipio de Arbieto (AAMMA) that focuses on
improving social capital, with organizing weekly activities for elderly (el Remesero, 2008; el Deber
2008a; World Bank 2008a). Furthermore, organizations of Bolivians abroad, such as the Institute of
Cooperation for the Province of Estaban Arze (includes the municipalities of Arbieto and Tarata) in
Virginia, support projects, such as sports stadiums, plazas, and church improvements (de la Torre and
Alfaro, 2007). These projects also increase the transnational ties between the Bolivians abroad in the
places of origin. This enhances the positive impact of international migration on local development.
2.5
Summary and conclusion
The factors that cause international migration in Bolivia can be explained by the socio-economic context
of the country. Poverty and high unemployment rates are propelling emigration towards Argentina,
Brazil, the United States and more recently towards Spain. The impact of the international migration on
Bolivia is enormous. Remittances create opportunities for development at the local level, especially in the
construction sector. But also create financial dependency and negative psycho-social effects, especially
for children that grow up without parents. The remittances create a more stable income source for
households. However remittances still contribute in a limited extent to local development, since only a
low percentage of the remittance is used for entrepreneurial activities. The current economic crisis can
impact negatively on the national and local economies. In the department of Cochabamba international
migrants creates differentiated results for local development.
50
While recently several studies are conducted about international migration, local development and the
psycho-social impact on households in Bolivia, still studies lack about the governance influence on
international migration. Only information is available about the civil society initiatives that were priced
by the World Bank, these projects in Bolivia (and also in Ecuador) have received 1 million US$ as an
extra financial injection.
Since Bolivia is highly decentralized, the role, behaviours and plans and practices of local governments
and other local actors, such as the private sector and the civil society, concerning international migration
and local developments, is interesting to investigate in the department of Cochabamba.
51
3. Methodology
The raised issues in the first chapter about the influence of actors in local governance structure and
international migration and migration on local development and the second chapter about international
migration, local development in Bolivia, lead to the formulation of a research plan, presented in this third
chapter. First the research objectives are given (3.1), then the research questions are presented (3.2), the
conceptual model and the operationalization of the concepts for actual questioning in the field (3.3), the
selection of the research municipalities is explained (3.4) and finally the research methodology is
proposed (3.4).
3.1
Research objectives
In the previous chapter several studies give information about the impact of international migration and
remittances in Bolivian on the well-being of households and local development. These studies
concentrate on the socio-economic and psycho-social impact of international migration on households
and local development. Albeit the presence of several studies about the link between international
migration, local community development and households well-being, investigations lacks about the role
of the local governance in the process of international migration and its implications on local
development. Therefore this research will be explorative study about the embeddedness of the process of
international migration in governance structures and its implications for local development. The research
objectives in this study are defined in the following way:
General research objective
To explain and assess how Bolivian international migration is embedded in local governance structures
and what its implications for local development are.
Specific research objectives
1. To assess what the main characteristics of the local actors in governance structures in the department
of Cochabamba are.
2. To understand what the perceptions and experiences of local governments in the department of
Cochabamba are towards Bolivian emigration and what these local governments do with the
existence of these emigration flows.
3. To understand how the Organización Territorial de Base (OTBs) in the department of Cochabamba
cope with international migration flows and what its implications for local development are.
4. To understand what the perceptions and experiences of NGOs and migrant organizations in the
department of Cochabamba are towards Bolivian emigration and what these NGOs and migration
organizations do with the existence of these emigration flows in order to create opportunities for local
development.
5. To understand what the role of financial institutions in the department of Cochabamba is within the
process of international migration and the sending of remittances.
6. To investigate and explain the differences between the experiences, perceptions, plans and practices
of the municipalities within the department of Cochabamba in the process of international migration
and its implications for local development.
52
3.2
Research questions
The general and specific research objectives of this study results in the formulation of the central research
question and six sub research questions.
Central research question:
How is international migration embedded in local governance structures and what are the implications
for local development in de department of Cochabamba in Bolivia?
This central question can be divided in six sub research questions:
1. What are the main characteristics of the local actors in governance structures in the department of
Cochabamba?
2. What are the experiences, perceptions, plans and practices of local governments in the department of
Cochabamba with regard to international migration and local development?
3. What are the experiences, perceptions and practices of the OTBs in the department of Cochabamba
with regard to international migration and local development?
4. What are the experiences, perceptions, plans and practices of NGOs in the department of
Cochabamba with regard to international migration and local development?
5. What are the experiences, perceptions, plans and practices of financial institutions in the department
of Cochabamba with regard to remittances and local development?
6. What are the differences between the municipalities in the department of Cochabamba concerning the
international migration and local development? And how can these differences be explained?
53
3.3
Conceptual model and the operationalization of concepts
The conceptual model visualizes and summarizes the concepts that are presented in the previous chapters
and are issues for this research on the embeddedness of international migration in governance structures
and its implications for local development.
Figure 3.1 The conceptual model
International scale
International migration
Main characteristics:
-
Local
scale
Labour migrants
Numbers of migrants
Financial remittances
Social remittances
Main actors in governance structures:
-
Local governments
Experiences with international migration
Perceptions of international migration
Plans and practices about international migration and
local development
Territorial Base Organization (OTB)
-
Experiences with international migration
Perceptions of international migration
How to cope with international migration
-
NGOs
Experiences with international migration
Perceptions of international migration
Plans and projects about international migration and
local development
Financial institutions
-
Experiences with international remittances
Perception of financial remittances
Plans and practices on attracting transnational clients
Creation of opportunities for local development
54
The concepts used in the conceptual model are operationalized:
International migration
International migration is the flow of migrants that have emigrated from their country of origin. In the
case of Bolivia the bulk has emigrated to Argentina, Brazil, the United States and recently to Spain.
Financial remittances
Financial remittances are money transfers from migrants sent back to their families and communities of
origin. These remittances contribute in the case of Bolivia for a considerable share to the GDP and an
income rise of Bolivian households.
Local development
Local development is the strategy to improve people’s access to opportunities, such as income,
employment, or the consumption of public goods and services at community level. In Bolivia this is the
development of basic services, such as water and sanitation systems, electricity and the presence of
public services, such as education and medical posts and / or hospitals. In the decentralized context of
Bolivia local actors are asked to indicate if since international migration with the sending of remittances
at local level opportunities for local development have increased.
Decentralization
Decentralization is the redistribution of power and decision making to lower political administrative
levels. Decentralization is fiscal (taxes), political (participation and empowerment of local stakeholders
in decision making) and administrative (distribution of powers with delegating these to lower level
governments). Decentralization is seen as an important element of participatory democracy. Bolivia is
highly decentralized, thus local governments have many responsibilities.
Good local governance
Good local governance is an enhanced involvement and cooperation of local governments, civil society
and the private sector, in order to arrive at participatory planning processes at the municipal level.
Transparency, accountability, equity, empowerment, capacity building and ownership are key concepts in
good governance practices. Good local governance can be seen as a desired outcome of political
decentralization.
Local governance structures
In local governance structures act all local actors that operate in the political administrative context.
Local actors
The actors in this research are the departmental and local governments, OTBs, NGOs and financial
institutions.
Local governments
In Cochabamba is a departmental government, 16 provincial governments and 45 municipal
governments. The departmental and municipal governments are included in this research. These
governments are asked about their experiences, perceptions and their plans and practices about
international migration, in order to understand their influence on migration issue and local development.
Organización Territorial de Base
The Territorial Base Organizations (OTBs) are founded with the implementation of the decentralization
law in 1994. All municipalities have many OTBs. These OTBs operate at the grass-roots level and know
about local issues. The perceptions, experiences and practices of OTBs are necessary to know in order to
55
understand the embeddedness of international migration in local governance structures. Furthermore is
assessed how international migration can contribute at the grass-roots level to local development.
Civil society
Civil society includes all actors that are active outside of governmental and market structures. In this
research only NGOs are included. The experiences, perceptions, plans and practices of local NGOs and
migrant organisations are useful what their involvement is in migration issues.
Financial institutions
Financial institutions include banks, other financial institutions and MTOs. These financial institutions
are asked about the experiences, perceptions and practices with remittances and their ability to attract
clients.
Experiences
In this research the local actors explain what their experiences are with international migration in their
personal environment, in their neighbourhood and in other contexts. The experiences measure to what
extent the local actors are confronted with international migration issues. Furthermore the character (e.g.
who, when, how) of the experiences with international migration are important.
Perceptions
Local actors indicate how they percept international migration. International migration and its
implications for local development can either be perceived as a positive or negative process. The
experiences with international migration influence the perceptions.
Plans
The existence of plans related to international migration depends on the perceptions local actors have
about international migration. The policies and plans on international migration and local development
indicate whether international migration and its implications for local development are embedded in
governance structures. If policies and plans of the various local actors have changed since international
migration has started to be an issue at local level, migration is can be seen as embedded in governance
structures.
Practices
Practices can be activities of local actors with international migrants. Practices also can be the
implementations of plans about international migration that can have implications for local development.
3.4
Selection of the research area
The research about the embeddedness of international migration and local development in governance
structures was chosen to take place in the department of Cochabamba, because of the high emigration
balances. The department of Cochabamba has an annual population growth of 2.75 percent, caused by
growth in the metropolitan area and the tropical lowlands. Those municipalities that do not experience
population growth8, due to international migration, are selected in this research as case studies.
First of all the municipality of Cochabamba is included, the most important urban centre of the
department. Thereafter five other rural municipalities are selected. The criteria to select the other five
research municipalities is based on net migration balances of the census 2001 (figure 3.2) and on
interviews with the key informants that called various municipalities in Cochabamba ‘emigration
municipalities’. The data of the census 2001 is an indication of the emigration situation in the
8
Many municipalities on the altiplano in the department of Cochabamba also experience negative population growth. Though
this is foremost caused by internal migration directed towards the cities.
56
municipalities, though these data are somewhat outdated, mostly because of high outflows of
international migrants in the 2000s to Europe. Consequently the information that the key informants
facilitate is necessary to select five municipalities. The selection criteria in these orientation interviews
were if international migration is an important issue in a municipality, if the international migration has
an obvious socio-economic impact on the municipality and if international migration is a political issue.
The perception and experiences of the key informant about topic also indicate the importance of
international migration in the various municipalities in the department of Cochabamba.
Figure 3.2 Net migration balances of the 45 municipalities in the
department of Cochabamba
Source: van den Bogaardt, 2009. Based on data of INE, 2001; OBD, 2009.
Also the accessibility and characteristics of the institutional context were selection criteria. In the
municipalities preferably are financial institutions and NGOs. Also is taken into account which
municipalities experiences negative or a slow population growth (figure 4.10). This has lead to the
selection of the municipalities of Tarata, Cliza, Punata, Arani and Totora, figure 3.3. These five
municipalities plus the municipality of Cochabamba represent migratory municipalities in the department
of Cochabamba.
57
Figure 3.3 The six research municipalities in the department of Cochabamba
Source: van den Bogaardt, fieldwork, 2009.
3.5
Research methodology
The counterpart of this research is the research institute Centro de Planificación y Gestión (CEPLAG).
CEPLAG is directed by Carmen Ledo García and is located in the faculty of economic sciences of the
Universidad Mayor de San Simon. CEPLAG has the goal to contribute to academic research in
Cochabamba with local researchers.
The applied research methodology to find answers to the research questions consists of three major
techniques:
Qualitative data gathering
The qualitative part of this research consist of in-depth semi-structured interviews with 103 key
informants of the municipalities, NGOs and financial institutions, with respect to their experiences with
international migration, their perception of migration and their plans and practices about international
migration and local development.
In the city of Cochabamba it was not possible to interview all NGOs and financial institutions,
because there are too many. Maria Sucre (researcher of CEPLAG; doctoral thesis about financial
institutions) helped selecting the most interesting financial institutions in Cochabamba; all with different
58
characteristics. The NGOs are selected in the following way: key informants of the municipality of
Cochabamba and also the researchers of CEPLAG formed a network of contacts. The snowball method is
applied to obtain more contacts. Before visiting a NGO a phone call was necessary to make an
appointment, and sometimes these phone calls were a filter to exclude a NGO of the research.
Furthermore during the qualitative part of the research is tried to interview a key informants with
all financial institutions in the five rural research municipalities. In Tarata and Arani it has been possible
to interview all NGOs and financial institutions. In Cliza and Punata all NGOs are interviewed, however
some financial institutions were excluded. This is done because of repetition of financial institutions in
Cochabamba, Punata and Cliza. In Totora one financial institution was not willing to participate and
some NGOs were hard to contact9.
Data analysis
At the same time of the qualitative data gathering a data analysis of municipal plans is necessary to get
additional information. To get insight in the plans and practices of the local governments of the
municipalities in the department of Cochabamba, the five year Plan de Desarrollo Municipal (PDM) and
the Planes Operativos Anuales (POA) are consulted. The PDM is a five year plan that is written by the
municipality itself and gives an overview of all development plans in the municipality. The PAO is an
annual report with the results of the planned activities of the PDMs.
Quantitative data gathering
The quantitative part of the research during the fieldwork is done with surveys among 172 presidents of
the OTBs in the six research municipalities. The presidents of the OTBs are selected as the key
informants to survey of the OTBs, because the presidents are chosen by the population of the OTB as a
person that knows about all ins and outs of the OTB. Therefore the president of the OTB is the
designated person to survey, because the president knows about issues in the OTB and is acquainted with
all neighbours in the OTB. The sample was determined in the following way: 25 percent of all OTBs
were randomly surveyed and rural and urban OTBs are included in the survey. The surveys were held
while visiting the neighbourhoods in the urban areas and visiting the rural communities. Also surveys
were held on local markets in the urban centres of the municipalities. Taking surveys at local markets
was done with help of a municipal staff member of the municipality (in Cliza, Arani and Totora) that
personally knows and recognizes the presidents of the OTBs. This municipal staff member searched on
the market for presidents, and those were surveyed, until 25 percent of the total number of OTBs in the
corresponding municipality was surveyed. In the municipalities of Cliza, Arani and Totora this technique
was applied and the non-response was zero. Due to conflicts within the municipality of Punata no
assistance was given to take surveys among the presidents, finally only few (6) surveys were taken. In
Tarata also due to little collaboration of municipal staff the survey resulted into a high non-response. The
local staff in members in Tarata only identified the existence of only six OTBs, which during the
fieldwork seemed to be very few in comparison with the other research municipalities. Finally with the
Economic Development Strategy man-community el Caine10 2007-2011 the number of 41 communities
in Tarata was identified, but no names of the corresponding OTBs were indicated. In the municipality of
Cochabamba due to the high number of OTBs (438) a cluster sample was taken among the 14 districts in
the city. The southern districts experiences more emigration, therefore the districts in the Southern part of
the city were selected: districts 14, 6, 5, 9 and 8 and district 11 in the centre/ northern part of the city was
selected as a control district (figure 4.1). There is chosen to take surveys in more than 25 percent of the
9
When visiting the municipality of Totora, unfortunately two NGOs had their offices closed. Key informants of the
municipality were asked when these NGOs opened their offices and it appeared that these NGOs had irregular opening hours,
due to field work. Later with phone calls was tried to contact directors/ employees of the two NGOs, but unfortunately they
were unreachable.
10
The following municipalities belong to the man-community el Caine: Capinota, Tarata, Arbieto, Anzaldo, Sacabamba
(department Cochabamba), Poroma (department Chuquisaca), Toro Toro, Arampampa, Acasio, Sacaca and San Pedro de
Buena Vista (department Potosí).
59
districts (what would have been only 3.5 districts), due to the non-response among some OTBs. An
overview of the complete samples is given in the tables 3.1 and 3.2. The surveys were held during visits
to the districts and during assemblies of the various districts.
The survey consisted of three parts (complete Spanish survey OTBs in appendix 2). First the main
characteristics of the OTB were questioned, such as the number of households in the OTB, the way of
participation, the level of education and the economic activities. The second part consisted of questions
about internal, international migration, remittances, the use of financial services and its impact on the
OTB. The third part is about the political preference and the opinion over the work of the municipality
and NGOs. Data of the survey were analyzed with the programme SPSS.
Table 3.1 Composition of sample in the research municipalities
Municipalities
Total number of OTBs Number of surveyed OTBs
Cochabamba
438
106
Tarata
47
4
Cliza
55
14
Punata
102
6
Arani
68
18
Totora
108
24
Total
820
172
Source: Survey OTBs, fieldwork, 2009.
Percentage of interviewed OTBs
24 %
9%
25 %
6%
26 %
22 %
21 %
Table 3.2 Composition of sample in the municipality of Cochabamba
District Sub-municipality
Number of OTBs
Number of surveyed OTBs
5
Aleja Calatayud
26
19
6
Valle Hermoso
26
15
8
Aleja Calatayud
63
16
9
Itocta
87
32
11
Adela Zamudio
12
10
14
Valle Hermoso
22
14
Total
Sub-municipality
438
106
Source: Survey OTBs, fieldwork, 2009.
Percentage of OTBs
73 %
58 %
25 %
37 %
83 %
64 %
24 %
60
4. A characterization of the research municipalities:
experiences and perceptions on international migration
In this fourth chapter, empirical findings are presented about the experiences and perceptions on
international migration of the four local actors - municipal governments, OTBs, NGOs and financial
institutions - in the six research municipalities Cochabamba, Tarata, Cliza, Punata, Arani and Totora.
First the characteristics of the six research municipalities are presented in order to compare and
distinguish spatial, socio-cultural and institutional differences (4.1) and to understand the underlying
factors that explain the experiences and perceptions about international migration. The experiences of the
local actors with international migration (4.2) influence their perceptions, either positive or negative
(4.3). At the end of this chapter, the characteristics are summarized and conclusions are drawn (4.4).
4.1
Main characteristics of the six research municipalities
To analyze and compare the six municipalities on the experiences and perceptions about international
migration, first the characteristics of these municipalities are described. The characteristics of the
municipalities in this section are the spatial context (4.1.1), the socio-economic context (4.1.2) and the
institutional context, i.e. the structure and activities of local municipal governments, OTBs, NGOs and
financial institutions (4.1.3).
4.1.1 Spatial context
The research municipalities all are situated in the valleys of the department, the main geographical
characteristics of the research municipalities are depicted in table 4.1. The five rural research
municipalities are rather easy to access from the city of Cochabamba, with travelling hours ranging from
40 minutes to almost three hours. All rural municipalities have at least one taxi trufi line connexion with
the city of Cochabamba; departing from the avenue 6 de Agosto and avenue Republica, just south of the
central market la Cancha.
Table 4.1 Main geographical characteristics of the research municipalities
Municipality
Climate zone
Kilometres from
Cochabamba
Cochabamba
Valley
Tarata
Valley
40 km.
Cliza
Valley
37 km.
Punata
Valley
45 km.
Arani
Valley and altiplano
56 km.
Totora
Altiplano, valley and sub-tropical lowland 140 km.
Source: PDMs municipalities.
Minutes/ hours travelling from
Cochabamba11
40 minutes
45 minutes
1 hour
1 hour and 20 minutes
2 hours and 45 minutes
The city of Cochabamba is a very pleasant city, situated in the mountains and offering everything you
aspect in a medium/ large city. The panoramic view from the Cristo de la Concordia, the largest Christ
image in the world that sky scrapes over the city of ‘eternal spring’, is spectacular. The beautiful northern
residential neighbourhoods differ strongly from the poor self-constructed, mostly illegally occupied,
urban settlements in the south. Cochabamba is a dual, unequal city. For instance, in district 1, the
neighbourhood las Lomas is a gated community, inaccessible for unauthorized persons. District 8, on the
other hand is one of the most deprived and marginalized areas of the city, because of political problems
11
Travelling time with motorized private transport or taxi trufi.
61
with water service delivery. These southern districts were not planned as occupation area. The large
districts 13 (on the mountain slopes) and 9 are rather rural although agriculture is still an important
economic activity. The districts 5, 6, 8, 9, 11 and 14, predominantly situated in the south, are included in
the survey among presidents of OTBs, see figure 4.1.
The metropolitan area of Cochabamba is
situated in the central valley of the
department and is separated from the Valle
Alto (high valley) by mountains and the
artificial lake la Angostura. Valle Alto can
be accessed by the avenue Petrolera; the
start of the old Cochabamba-Santa Cruz
highway. Valle Alto is characterised by
agriculture, especially the fruit plantations
(peaches), milk industries and drought. 85
percent of the precipitation falls during the
raining season between November and
March. The rest of the year is extremely dry.
The lack of water makes the soils in Valle
Alto dry and salty and complicates life of
farmers. The unbalanced distribution of
rainfall during the year makes the
agricultural production dependent on
irrigation systems. Arani is situated in a
transition climate of valley and altiplano.
The communities situated in the high
mountain climate are the most deprived
areas. The municipality of Totora, situated in
the Cono Sur, has by far the largest surface
and covers all climate zones of the
department.
The
majority
of
the
communities are located in the rather dry
valley of Totora, which has a pretty good
network of irrigation systems. In the
northern, tropical part the continuous rainfall
Source: van den Bogaardt, fieldwork, 2009.
facilitates the cultivation of coca. The
southern altiplano zone is particularly deprived. The access to rural communities in Arani and Totora
occasionally is limited due to the mountainous character of the landscape; some can only be reached by
donkey or foot. In 1998 Totora was hit by an earthquake of 5.8 (scale Richter) that had a devastating
effect on the urban centre of Totora and some other communities. Because of the earthquake many
habitants of the urban centre were forced to emigrate, because of destroyed houses and working places.
Today some houses still show damage. The earthquake has lead to the highest net migration balance in
the department (-20.7) (INE, 2001). Furthermore climatological factors in the rural municipalities can be
a threat for the agricultural production and can therefore cause emigration.
Figure 4.1
The urban centres of Tarata, Arani and Totora are colonial heritages and they all have a beautiful central
plaza surrounded by cathedrals. The majority of the houses are constructed with traditional adobe (a
natural building material made from sand, clay, organic material and water) (figure 4.2). With exception
of the weekly markets, the urban centres of Tarata, Arani and Totora look rather deserted. A municipal
staff member of Totora comments: ‘durante la semana las casas están vacías. Los dueños viven en la
62
ciudad de Cochabamba o en Santa Cruz y solamente vienen en los fines de la semana’12. Punata and
Cliza have urban centres where the facades of the central plaza are dominated by (financial) service
agencies. Both urban centres become more urban than rural, especially Punata, (the largest urban centre
not situated in the metropolitan area) that serves as logistical and commercial centre in Valle Alto.
Figure 4.2 A typical street in a rural village in Cochabamba with houses of adobe; this is Totora
Source: van den Bogaardt, fieldwork 2009.
The spatial context of the research municipalities is one of several factors that determine how the local
actors experience international migration.
4.1.2 Socio-economic context
The socio-economic context of the six research municipalities is another underlying factor that influences
experiences and perceptions on international migration. The director of the CDC (Consejo
Departamental de Competitividad) explains that the department of Cochabamba was the granary of
Bolivia. Agriculture was the most important economic activity in the department that generated
employment. In the 1990s the industrial sector could develop because of rural-urban migration. Since
2000 services, commerce and trade have become most important economic sector. The development of
these sectors is supported by public policy. Nowadays international trade in Bolivia and also the
department of Cochabamba have reached the highest positive trade balance in history (figure 4.3). This is
a result of the increased demand of combustibles (hydro carbonates) in Argentina and Brazil, the increase
in prices of combustibles and the unstable position of the US dollar. Cochabamba (after La Paz and Santa
Cruz) is the most important exporter of hydro carbonates, bananas and palmito (palm trunk) (figure 4.4).
Recently the department of Cochabamba contributes 18.43 percent to the national economy, with an
annual growth of 7 percent (Chamber of commerce, 2006).
The city of Cochabamba is situated in the La Paz-Cochabamba-Santa Cruz axis and is the third most
important department and city in terms of population, economy and welfare indicators. The research
municipalities are tested on several development indicators: the illiteracy rate, percentage of population
living below the poverty line, purchasing power parity (PPP) per capita, the HDI and the overall national
ranking per municipality (table 4.2).
12
Translation: during the week the houses are empty, the owners of these houses live in the city of Cochabamba or in Santa
Cruz and only come in the weekends.
63
Figure 4.3 Trade balance in the department of Cochabamba
2002-2006
department of Cochabamba 2006
Figure 4.4 Exportations per sector
4%
350
20%
hydro carbonates
millions of US$
300
manufacture
250
49%
200
Export
150
Import
minerals
agriculture
27%
100
50
0
year 2002
year 2003
year 2004
year 2005
year 2006
Source (both figures): Chamber of Commerce and Service, 2006.
Table 4.2 Development indicators: Bolivia and research municipalities in 2001
Municipality
Illiteracy among population
Below poverty
PPP per capita $us
in % >15 years
line in %
2001
Bolivia
87
59
(2003) 2.587
Cochabamba (city)
95
34
2.565
Tarata
76
69
952
Cliza
83
47
1.223
Punata
84
45
1.459
Arani
76
68
928
Totora
68
93
447
Source: INE, 2001.
HDI
0.687
0.741
0.592
0.642
0.652
0.544
0.469
Ranking HDI
national level13
1
88
34
26
180
268
The city of Cochabamba is positioned at the highest ranking, because of its advantageous geographical
position within the country. The director of the chamber of commerce and services remarks: ‘as city of
Cochabamba, we have to exploit the possibilities as central node in the Bolivian economy’. The city has
developed services and commerce sectors and both sectors create (informal) employment opportunities
and decrease the number of those living below the poverty line. La Cancha is the centre of these
commercial activities, while services delivered by professionals and public institutions are located in
centre and the northern district, as can be observed in the city. In the southern districts independent
technical workers are occupied with construction, carpentry, a small shop or a small restaurant,
depending on what the labour market offers. According to the surveyed presidents of OTBs in these
southern districts, many informally employed men want to become independent taxi drivers and women
want to have a small commercial enterprise.
Comparing the five rural municipalities, Punata, followed by Cliza, are performing best. This can
be explained by high population numbers (table 4.10), a rather developed service and commercial sector,
the presence of tertiary education (Poli-technic institute Punata of U.M.S.S.) and the large company
Industrías de Lácteos Valle Alto (ILVA) in Punata. Tarata, Arani and Totora have rather undiversified
rural economies and as a result score lower.
As elucidated above, in Cochabamba, Cliza and Punata commerce and services are important economic
activities (figure 4.5), while in the other rural municipalities agriculture and stock keeping are more
important. The agricultural and stock production in Valle Alto is dominated by the cultivation of the
following crops: potatoes, wheat, corn, cereals and fruit (peaches). Livestock is predominantly used for
milk industries, whereas in Totora (similar to other municipalities in Cono Sur) stock is principally kept
13
A total of 314 municipalities.
64
for meat. Furthermore in Valle Alto the 4.5 Percentages of economic active by sector 2001
production of chicha (an alcoholic corn drink) is
an important economic activity, in particular
among women. Chicha is primary produced for
auto consumption or sold at minor scale in
chicherías (recognizable with a white flag). Only
few producers, primarily in Punata and Cliza,
commercialize their production for the market in
the city of Cochabamba. However, chicherías
cause problems; such as drunkenness,
inconveniences and violence, according to
presidents of OTBs and neighbours.
In the rural municipalities, nonSource: INE, 2001.
agricultural activities are related to the
commercialization of agricultural products that in Tarata, Arani and especially Totora is poorly
developed in comparison with Punata and Cliza. The low levels of commercialization can be explicated
by the fact that agriculture is based on the old mini-fundio system (small, labour intensive farms). In
addition the farmers lack of knowledge about new production techniques. A municipal staff member in
Arani explains: ‘there is no specialization of crops and the traditional farmers lack a vision on trade’. The
respondent of the man-community Andina adds: ‘farmers in the rural areas in the department of
Cochabamba do not know about modern agricultural technologies and the municipal staff lacks
leadership to implement programmes to enhance knowledge about new techniques’. The respondent of
AMDECO is concerned about the low levels of commercialization and mentions: ‘municipalities do not
participate at all in the commercialization of crops; they should be searching external markets’. Other
explaining factors for the low levels of commercialization are the exploitation of soils, erosion and
drought. Milk and quesillo (young cheese) are most commercialized in Valle Alto because of the
presence of ILVA (Punata) and Planta Industrializadora de Leche (PIL) (Cochabamba). Municipal staff
members in Punata argue that ‘the milk industry is the most important productive sector in Punata,
because of ILVA’. Other municipalities in Valle Alto also acknowledge the importance of ILVA. A
municipal staff member of Tarata confirms: ‘farmers in Tarata sell their milk to ILVA’. The respondent
of the NGO Global Humanitaria in Tarata observes: ‘in order to increase agricultural production and
commercialize products, we foment the milk industry and work in cooperation with ILVA’.
Commercialization is promoted by the municipalities with fairs of a special crop14 to increase economic
agricultural productivity. A municipal staff member in Punata remarks: ‘las ferias dan una inyección a la
economía y incrementan la productividad’15. Other non-agricultural commercial activities are handicraft
production (figure 4.6) and commercial activities such as tiendas de barrio, small restaurants and
financial services.
Figure 4.6 Traditional handicraft productions for export; this is the workplace of doña Lucilda in Totora
Source: van den Bogaardt, fieldwork 2009.
14
15
Examples of these fairs are: the tenth fair of peaches in Punata or the second fair of apples in Cliza.
Translation: Fairs give are an injection to the economy and increase the productivity.
65
Interesting are the observations of the presidents of the OTBs in the city of Cochabamba that indicate the
high levels of unemployment, while in the rural municipalities these levels are much lower. The informal
and uncertain character of work in the commercial and services sector in Cochabamba and independent
auto-employed farmers in the rural municipalities expound these observations about unemployment.
In the city of Cochabamba the dominant ethnical group is mestizo and in lesser extent Quechua, while in
the rural municipalities this is predominantly Quechua (figure 4.7). In the city many young people are
losing the ability to speak Quechua. Furthermore in the southern districts a high percentage of the
population originates from La Paz and Oruro and speaks Aymará.
The illiteracy rate of the populations Figure 4.7 Languages spoken by population in percentage of the total
can be related with the levels of population
school enrolment and with the
percentages
of
mono-linguistic
Quechua speakers. The relative
distance to a school, education only
until a certain level, the character of
the schools (private education is
better than public) and the lack of
teachers, cause low school enrolment
rates. For instance in Totora there
are only 42 primary and 3 secondary
public education units for 108
communities. The director of
education in Totora explicates: ‘la Source: PDMs municipalities; Survey OTBs, fieldwork, 2009.
cantidad de unidades educativas en
Totora es muy poco’16. In Totora exists a relationship between those communities that have an education
unit and the population that has the ability to speak also Spanish, besides Quechua. In table 4.3 this
relationship is shown: in the second column can be seen that in the communities where people dominate
also the Spanish language (besides Quechua), because in 6 of the 7 OTBs is an educational unit. In the
communities where predominantly Quechua is spoken, many do not have an educational unit (first
column).
Table 4.3 Relationship between an educational unit and the language(s) spoken in Totora17
Language
Educational unit Quechua Quechua and Spanish Total
Yes
5
6
11
No
12
1
13
Total count
17
7
24
Source: Survey OTBs, fieldwork 2009.
4.1.3 Institutional context
To understand the different experiences and perceptions about international migration of the four local
actors, the institutional context in which these actors are active is described. This assessment of the
institutional context in the six research municipalities is necessary to find out to which extent various
institutions have created plans and practices about international migration that have implications for local
16
Translation: The number of schools in Totora is very few.
The relationship has a significance of 0.018 with a confidence level of 95 percent and the relationship strength is strong:
Cramer’s V = 0.514.
17
66
development (further discussed in chapter 5). In this section the following actors are discerned within the
institutional context of Cochabamba: municipal governments, the departmental government,
Organizaciones Territoriales de Base (OTBs), non-governmental organizations (NGOs) and financial
institutions.
Municipal governments
Municipal governments have a budget that is composed of four sources: the law on popular participation
(LPP), the law on Hydro carbonates (IDH), HIPC 11 (international cooperation from the World Bank)
and proper resources (see appendix 3, tables 111.1-6). The resources from the LPP are distributed among
all 314 municipalities in Bolivia according to the population number. Resources from the IDH com from
taxes charged over the production of national combustibles, from which 50 percent of the taxes are added
to the national resources and the other 50 percent are divided over the departmental governments,
municipal governments and institutions, such as public schools and universities. Since the
implementation of the law on IDH in 2005 by the former national president Mesa, according to the
respondent of CEADESC, in the years 2006, 2007 and 2008 the municipal government’s budget in the
whole country increased with 200 percent. The IDH funds that municipalities receive are designated for
the purpose of education, infrastructure and health. Also the HIPC II funds have to be invested in health,
education and productive investments. How the municipal budget has to be inverted is depicted and
proposed in the five year municipal development plan (PDM) and the annual operative plan (POA) (see
5.1.1).
The organizational structure of all municipalities is as follows: the municipal government consists
of secretaries, directories and other units (figure 4.8), in accordance with the requirements of the LPP
since 1994. The municipal government is controlled by the committee of vigilance that supervises the
actions of local government. The municipalities are subdivided in districts and OTBs that both have their
own directives. In the municipality of Cochabamba there is also a subdivision of sub municipalities
(comunas) (figure 4.1). Another important institution within the rural municipalities is the Central
Campesino that is the most important farmer organization. In the reunion of the Central Campesino the
presidents of OTBs assemble.
Figure 4.8 Simplification of the structures of the local government in the department of Cochabamba
Council
Mayor
Secretaries (of areas)
Head officer(s) (of areas)
Sub municipalities (comunas)
(only in Cochabamba)
Directors of departments
managers of units
Source: POAs municipalities 2008 and 2009.
The municipal staff that works in the local governments generally consists of the head officer (oficialia
mayor) that is responsible for overall management, an advisory board, secretaries, various departments
and supporting staff. Although not all data are available, observations indicate that the number of staff is
much higher Cochabamba than the rural municipalities. This observation seems to be supported by the
high population number and the budget. The available data are shown in table 4.4. The length of the
mayor in his position varies between the municipalities. In Tarata and Punata due to political instability
the last couple of years, many mayors were appointed and also quickly sacked. Presidents of OTBs
confirm political instability and distrust in the capacities of the current mayors. Furthermore institutional
67
instability is caused by frequent take-over by new staff, especially when mayors change; other personnel
is replaced as well, what is a threat for progress.
Table 4.4 Number of municipal staff in 2009 per municipality
Municipality
Mayor
Mayor in position
Head officers
Cochabamba
Gonzalo Terceros
4 years
Tarata
Benjamin Zurita
6 months
Cliza
Freddy Vargas
4 years
Punata
Tito Rodriguez
1 years
Arani
Vicente Rojas
4 years
Totora
Nicolas Rosas
5 years
Source: POAs municipalities 2008 and 2009.
Secretaries
5
1
1
1
1
1
9
1
1
1
1
1
Departments
No data
3
5
4
No data
2
During the interviews all respondents were asked about their educational background. Interviews with
municipal staff of the local governments and presidents of OTBs designate that their educational level is
particularly low, except from the municipal staff in Cochabamba. Some of the directors of departments in
the rural municipalities have a bachelor’s degree and these are mostly external acquisitions. For instance
in Arani and Totora the directors of the department of productive economic development live and study
in the city of Cochabamba. Furthermore, in all rural municipalities the directors of the department of
productive economic development have at least a university degree, except from Punata. In contrast, the
mayors in Tarata, Cliza, Arani and Totora are only farmers or transporters. An educational qualification
is a subordinate requirement to become an important municipal staff member or mayor is. However,
those that have been president of an OTB, district, Central Campesino etcetera have more opportunities
to become mayor than someone with a significant educational background. In Arani these hierarchical
structures are less important and vacancies are filled with external qualified personnel.
In the department of Cochabamba the political landscape is dominated by the national party MAS, except
from Cochabamba where the local party CIU18 governs since four years. However, only 14 percent of the
surveyed OTBs in Cochabamba are satisfied with the municipal government and more than half of the
presidents state that the plans (e.g. POA and PDM) are not fulfilled. Therefore the southern districts
prefer MAS, while the richer parts of the city (e.g. the northern districts) are ‘against’ CIU and ‘against’
Morales, but do not indicate to have an alternative to support. In Cliza the local political party OCUC19
has been governing rather stable for four year. Nevertheless, in Cliza the popularity of MAS also
increases, as is analyzed in table 4.5. The satisfaction of the presidents of the OTBs in Arani and Totora
about the work of the municipalities can be related to the fact that these presidents did not seem to be
well-informed about the contents of municipal planning, especially the PDM, and rather preferred to
answer that they were content with municipal planning.
Table 4.5 Composition of political preference in the research municipalities
Municipality
Most important political
Popularity of MAS in
party (mayor)
surveyed OTBs in %
Cochabamba
CIU
48 (southern districts)
Tarata
MAS
50
Cliza
OCUC
93
Punata
MAS
100
Arani
MAS
100
Totora
MAS
80
Source: Survey OTBs, fieldwork 2009; OBD, 2009.
Opinion of OTBs about work of municipality
(e.g. PDM and POA)
No good plans and do not fulfil
Do not fulfil plans
Do not fulfil plans
No good plans and do not fulfil
Good plans
Good plans
Departmental governments
18
19
CIU Ciudadanos Unidos; local political party of Gonzalo Terceros.
OCUC Organización Cívica Unidad Por Cliza; local political party of Freddy Vargas.
68
The most significant political party in the departmental government in Cochabamba is MAS. According
to the interviewed staff (two chiefs in secretary of productive development and a professional in planning
department) of the departmental government, the eight secretaries20 have a lower budget in total than the
municipal government of Cochabamba. The secretaries therefore focus more on rural development,
especially the construction of inter-provincial roads and electrification. Another important activity of the
departmental government is giving technical assistance to foment rural entrepreneurship. A respondent of
the departmental government makes clear: ‘we give technical assistance, create business plans to
commercialize agricultural production and cooperate with various chambers, NGOs (that realize
projects), financial institutions (to make use of micro credits) and the Productive Development Bank
(BDP) that gives funds’.
Organizaciones Territoriales de Base
As defined with the LPP, an OTB is the lowest administrative institution in Bolivia. According to the
number of habitants, the OTBs receive funds from the LPP to execute the plans pre-described in the
municipal POA. Table 4.6 gives an overview of the main characteristics of the OTBs that were surveyed
during the fieldwork. The number of communities (basically reflecting the number of OTBs) varies
between the municipalities. The more rural a community, less families live within a community. On
average, OTBs have a monthly reunion with their inhabitants; however in the city of Cochabamba in the
more developed districts, such as 11 and 5, this is less frequent. Reunions in OTBs are nearly always the
same day of the month or are organized by mouth to mouth advertisement, the megaphone and/ or
pamphlets.
Table 4.6 Main characteristics of OTBs per municipality
Munici Number
Average number of Character of
palities of OTBs
families per OTB
surveyed OTBs
Cocha
438
545 Urban: 90 %
bamba
Place of birth of bulk
population OTB
Provinces Cbba and
altiplano (La Paz,
Oruro, Potosí)
In OTB itself
Dominant
population group
Families
Tarata
47
137
Cliza
55
143
Urban:
100 %
Rural: 93 %
Punata
102
107
Rural: 83 %
In OTB itself
Arani
68
91
Rural: 94 %
In OTB itself
Children and
elderly
Children and
elderly
Elderly
Totora
108
49
Source: Survey OTBs, fieldwork 2009.
Rural: 92 %
In OTB itself
Families
In OTB itself
Elderly
Ethnicity
Mestizo,
Quechua,
Aymará
Quechua,
mestizo
Quechua,
mestizo
Quechua,
mestizo
Quechua,
Mestizo
Quechua
The OTBs that are surveyed in the city of Cochabamba are located in the southern districts (5, 6, 8, 9 and
14) and in the centre (district 11). The ethnicity of the population living in these distritcs is mestizo,
Quechua and Aymará; the latter are internal migrants from the departments Oruro and La Paz. The
surveyed OTBs are predominantly poor neighbourhoods where many people work informally at la
Cancha or as independent manual workers. Following from the results of the survey, the most important
demographic group living in the OTB are families. In the other five municipalities, the OTBs that are
surveyed are predominantly rural, except from Tarata21 (see fourth column22 of table 4.6). The surveyed
OTBs are rural communities the population is from Quechua origin. In the rural OTBs the presidents
20
The eight secretaries are: general (sub-prefectura), planning, housing, productive development, IDH, human development,
legal and infrastructure.
21
The urban character of the surveyed OTBs in Tarata is explained by the fact that municipal staff identified the existence of
only six OTBs. Later appeared that this were only the urban OTBs.
22
During the survey was observed where the OTB was located: in a rural or urban area. In the fourth column is calculated how
many of the total amount of surveyed OTBs is rural or urban. The conspicuous high percentage of rural OTBs in the city of
Cochabamba (10 percent) are the OTBs that are situated in district 9 and have a rather rural character.
69
reported that the communities depopulate. Many parents leave the rural communities to work in the city
or in the exterior and leave their children with the grandparents. So in many rural communities the
elderly are the only group staying behind.
In almost all municipalities the presidents of OTBs and its neighbours are considerably
dissatisfied with the work of the local government, except from Arani and Totora, where the realization
of ‘visible works’ (e.g. construction of roads) satisfies its population. This has complications for the
further implementation of plans and practices about migration (see 5.1.2).
Non-governmental organizations
Over the last decade NGOs have been an important player within the provision of basic services and
human and economic development in the department of Cochabamba. An overview of the character and
the sector, in which the NGOs work, is given in table 4.7. The majority of the NGOs are dedicated to
human and economic development and advocate for human rights. International migration is the core
business of two NGOs: Centre Vicente Cañas and AMIBE. The latter works in cooperation with
ACOBE. Almost all other NGOs work indirectly with migration. CODERTA for instance gives technical
assistance to rural migrant families and the Pastoral for the Humanity organizes relief for victims of
migration. Some NGOs explicitly state to do nothing with international migration, but further in-depth
questions during interviews made clear that some of these NGOs do work with migrants, but are not
aware of this. This has consequences for embedding international migration in plans and practices what
will be further addressed in 5.3.
In the rural municipalities the relative absence of NGOs can be related to the presence of regional
agencies of national and international NGOs in the city of Cochabamba. These regional agencies choose
the poorest municipalities within the department as focus areas of these NGOs, such as Tarata and
Totora. The relative ‘advanced’ municipalities of Cliza and Punata are left out. The interviewed
municipal staff in Cliza and Punata explains that both municipalities are rather advanced and therefore
NGOs choose to work in other municipalities. According to the survey, the presidents of OTBs in Cliza,
Punata and Arani appear to have a poor conscience about NGOs working in their neighbourhood or
community. In the southern districts of Cochabamba, in Tarata and in Totora several NGOs are active
and the presidents perceive their presence as positive and useful, although sometimes their rather short
stay for a programme is experienced as negative.
Table 4.7 Main characteristics of interviewed NGOs in the research municipalities
Municipality
NGO
Origin
Sector
Cochabamba
1. SNV23
International
-Institutional strengthening
2. Somos Sur
Local
-Alternative information platform
3. Acción Andina
Local
-Human rights
4. AMIBE24
National
-International migration
5. APDHC25
National
-Human rights
6. Pastoral for the Humanity
Local
-Church based human rights
7. Global Humanitaria
International
-Human and economic development
8. CEADESC26
Local
-Human rights
9. Centre Vicente Cañas
Local
-Church based human and economic development
10. SOSFAIM27
International
-Economic development
11. CIPCA28
National
-Rural development
Table continues on the next page.
23
SNV: Netherlands Development Organization.
AMIBE: Bolivian Spain Migrant Association.
25
APDHC: Permanent Assembly of Human Rights Cochabamba.
26
CEADESC: Centre of Applied Studies of Economic, Social and Cultural Rights
27
SOSFAIM: S.O.S. Hunger.
28
CIPCA: Centre of Investigation and Promotion of Farmers and Agriculture.
24
70
Municipality
Tarata
NGO
1. CODERTA29
2. Global Humanitaria
3. CETM30
4. Medicos Mundi
Cliza
1. Celim Bergamo
2. SOSFAIM
3. CIPCA
Punata
1. Celim Bergamo
Arani
1. PDA31
2. IFFI32
Totora
1. CESAT
2. Kaypacha
3. PCI
4. DESEC33
Source: Fieldwork, 2009.
Origin
Local
International
Local
International
International
International
National
International
Local
National
International
Local
National
National
Sector
-Rural development
-Human and economic development
-Human rights
-Economic development and institutional strengthening
-Rural development
-Economic development
-Rural development
-Rural development
-Human and economic development
-Women empowerment
-Natural resources
-Rural development
-Basic services
-Socio-economic development
Financial institutions
Financial institutions are involved in remittance sending. In Bolivia a large diversity of financial
institutions exists and the majority of these financial institutions have at least one agency in
Cochabamba. In table 4.8 a characterisation is given of the financial institutes. Included in this research
are: banks, private financial funds, MTOs, saving and lending association and mutual34.
Table 4.8 Characterization of interviewed financial institutions per municipality
Municipali Financial
CharacteriSpecialized in
Works together
ties
institution
zation (size)
with MTO35
Cochabam Mercantil de
Bank (large)
ba
Santa Cruz
Cochabam Banco Union
Bank (large)
ba
Cochabam Banco Nacional Bank (large)
ba
Bolivia
Cochabam Banco Ganadero Bank
ba
(intermediate)
Cochabam Banco Sol
Bank (large)
ba and
Punata
Cochabam Banco de los
Bank (large)
ba, Cliza
Andes ProCredit
and Punata
Cochabam Cooperativo
SLA37
ba
Inca Huasi
(intermediate)
Table continues on the next page.
Large
enterprises
Large
enterprises
Large
enterprises
Credits for rural
production.
Micro credits,
receiving
remittances
Micro credits
Micro credits
(housing)
Since when
-
Remittance
(order of
importance)
USA and Spain
Western Union
Spain and USA
Many decades
Money Gram
Spain, USA,
Argentina, Italy
Spain, Italy,
UK, USA
Spain (70%),
USA,
Argentina, Italy
Spain, Italy,
other Europe
Oldest bank of
Bolivia
1994
-
No data
see36
Money Gram,
DOLEX, Exact
Transfer, Caixa
(USA) Standard
Chartered Bank,
Western Union
-
Many decades
1992 in
Cochabamba
2003 in Cliza
and Punata
29
CODERTA: Comité of Rural Development Tarata.
CETM: Centre of Study and Work of Women.
31
PDA: Development Programme Arani.
32
IFFI: Institute for Integral Feminine Formation.
33
DESEC: Centre for Social and Economic Development.
34
A mutual is a special credit institution that gives credits for housing.
35
MTO: Money Transfer Operator (see glossary).
36
Bolivia More, Ria envíos de dinero, Telefiros, Exact Change, Latino Envíos, Bolivia Express, Efex, Gol, Unigiros and
MoneyGram. Special deposists in Euros by La Caixa Catalunya.
37
SLA: saving and lending association. The translation of a saving en lending association in Bolivia is cooperativo.
30
71
Municipali
ties
Financial
institution
Characterization (size)
Specialized in
Works together
with MTO38
Cochabam
ba
Cbba
All, except
Arani
All
Cooperativo
CACEF
Promotora
Money Gram
SLA (small)
Money Gram
Mutual (small)
MTO (large)
Micro credits,
remittances
Credits housing
Giros
Western Union
and DHL
Bolivia MORE
MTO (large)
Giros
-
MTO (small)
Giros
-
Fie s.a.39
PFF40
(intermediate)
PRODEM
PFF (large)
Micro credits,
pay basic
services
Micro credits,
pay basic
services
Money Gram,
Envía Bolivia and
Bolivia More
Latin Express
(Spain Argentina)
GirosExpress,
FinCentre (USA)
Western Union
and Money Gram
Western Union
Cbba,
Cliza, Pu.
Cochabam
ba
Cbba,
Tarata,
Cliza and
Punata
Punata and
Cliza
Cochabam
ba and
Arani
Totora
Coop.San José
de Punata
Cooperative San
Carlos
Borromeo
Cooperativo
Concordia
Source: Fieldwork, 2009.
SLA (small)
Micro credits
SLA
(intermediate)
Micro credits,
pay basic
services
Micro credits,
pay b. services
SLA (small)
-
Money Gram
Remittance
(order of
importance)
Spain, Italy and
other Europe
USA and any
other country
USA and any
other country
Spain, Italy,
USA
Spain, Italy and
other Europe
Spain, Italy,
Argentina, USA
and other
Europe
Spain, Italy,
USA
Spain, Italy and
other Europe
Spain and Santa
Cruz
Since when
No data
1970
No data
No data
2007
2000
2007 Tarata,
2003 Cliza
and Punata
1998 Punata,
2000 Cliza
2004 in Arani
1965
Between the five types of financial institutions many differences can be distinguished. Banks capture
large amounts of capital from large firms, while saving and lending associations and private financial
funds originate from rural areas and aim at the medium poor. These financial institutions are basically
specialized in micro credits, pay basic services (e.g. light and electricity) and receive remittances. In the
rural municipalities financial institutions give (micro) credits that sometimes exceed triple interest rates
in comparison with banks, because these financial institutions calculate that some of the (medium) poor
will not be able to pay back the loans and interest. The micro credits are linked to the commercial and
agricultural sectors and an increased number of clients open savings accounts what increases capital
accumulation (see also 5.4).
MTOs transfer money by giros that only need the identification of the sender and the recipient. In
this way MTOs are accessible to migrants with an irregular status that cannot open a bank account in the
host country. Receiving giros through MTOs in Cochabamba is accessible, because MTOs can be found
at almost every street corner in the city. During the interviews with the key informants of financial
institutions was asked what the average amount is of a giro send to Bolivia. These averages vary between
the research municipalities. The regular amount send by a giro to Cochabamba, Punata and Cliza is much
lower than to Tarata, what can be explained by the more mature character of the migrants from Tarata in
the United States.
The six research municipalities differ in terms of financial institutions. In table 4.9 is shown that in
Cochabamba, Cliza and Punata are many financial institutions, while in Tarata, Arani and Totora are less.
In the north and centre of the city of Cochabamba people have more access to financial institutions than
the southern districts. Only since approximately 5 years banks have established an agency or cash
machine in some of these southern districts and the network continues expanding. The recent expansion
38
MTO: Money Transfer Operator (see glossary).
Fie s.a.: Fomentos a las iniciativas económicas, sociedad anónima.
40
PFF: private financial fund.
39
72
of financial institutions in the city of Cochabamba, Cliza and Punata is elucidated by increase of
remittances (see also 5.4).
In Cliza and Punata as visitors you will be surprised by all the financial institutions that are
established at the central plaza of the rather small urban centres. This means that there is something going
on in these municipalities; the high competition between financial institutions and a very high demand of
financial services has facilitated the establishment of many financial institutions. PRODEM opened as
first financial institution an agency in Cliza and savings and lending association San José de Punata in
Punata approximately ten years ago. Banks were introduced about five years ago, because banks became
aware of the increased remittances flows and the interest in micro credits in Cliza and Punata.
In Tarata since one year and several months an agency of PRODEM is opened at the central
plaza. In Arani five years ago saving and lending association San Carlos Borromeo opened its doors. The
almost complete absence of financial institutions in Tarata and Arani was discussed with economists that
work at CEPLAG. In both municipalities financial institutions fear that clients can not pay back loans
and interest. In addition the interviewed director of the only financial institute in Arani San Carlos
Borromeo explains why other financial institutions do not want to open an agency in Arani: ‘habitants in
Arani also make use of financial institutions in Punata, because the urban centre of Punata can be reached
in only 15 minutes’. In the case of Tarata, many tarateños use financial institutions in Cochabamba.
In Totora is another financial context is observed; two MTOs (Western Union and Money Gram)
work in cooperation with two savings and lending associations; quite a number of financial institutions in
such a rural municipality. The reason is that saving and lending association Concordia was already
established 46 years ago in the urban centre of Totora. The respondent of saving and lending association
Concordia explains: ‘before the saving and lending association became a financial institution, it delivered
water services’. Thereafter Concordia started to give small loans for water services that finally
transformed Concordia in a saving and lending association.
Figure 4.9 PRODEM in Cliza
Source: van den Bogaardt, fieldwork 2009.
73
To conclude this section, during interviews is observed that the local actors between themselves
cooperate few. Some municipal staff remark that municipalities search for NGOs that can execute
programmes, especially in service delivery. This is seen in Tarata and Totora. The departmental
government mentions to work in cooperation with NGOs and various chambers. On the other hand,
financial institutions seem to be working independently and do not cooperate with other local actors. A
reason is their commercial character.
4.2
Experiences with migratory processes
The presence of migration cannot be ignored in the department of Cochabamba, because migration is
interwoven in daily practices and cochabambinos are ‘born to migrate’. Population dynamics (4.2.1) in
the research municipalities support explanations of the migratory processes. In this section the
experiences with migration are depicted and compared between the different local actors. First internal
migration (4.2.2) is discussed and secondly international migration (4.2.3). The process of internal
migration cannot be ignored in this section, because internal and international migration are interwoven
and influence each other.
4.2.1 Population dynamics
The municipality of Cochabamba, similar as the department, experiences a positive population growth;
what is reflected in the rapid growth of the southern districts. In these districts the dominant demographic
groups are families and secondly children, adolescents and students. The other municipalities face a
slower population growth (Tarata and Cliza) or even a negative growth (figure 4.10 and table 4.9). These
municipalities depopulate due to emigration. Various respondents in the rural municipalities, especially
those of NGOs in Tarata and Arani, talk about ‘deruralización’, ‘descampesinación’41. They also tell:
‘some of the rural communities in Arani are almost deserted’. Also in other rural municipalities,
especially in the communities, depopulation is observed. Despite of slight population growth in Cliza and
Tarata, with the high fertility rates42 (INE, 2001) is shown that emigration is relatively important in all
municipalities.
Figure 4.10 Population dynamics per reserach municipality
Source: INE, 2001; PDMs municipalities.
41
Translation: depopulation from rural areas.
The fertility rate is the number of children born per women. In Cochabamba this rate is 3.1 children per women, in Tarata
5.1, in Cliza 4, in Arani 5 and in Totora 7.8 (INE, 2001; PDMs municipalities).
42
74
Table 4.9 Total population of Bolivia, the department of Cochabamba and the research municipalities
Municipalities
Census 200143
Estimations 2005
Estimations 2010
Bolivia
8,274,325
9,427,219
10,426,154
Department of Cochabamba
1,520,794
1,671,860
1,861,924
Cochabamba
540,779
578,219
618,384
Tarata
9,020
9,051
9,105
Cliza
20,953
21,482
21,735
Punata
27,484
26,075
23,725
Arani
12,158
11,066
9,609
Totora
13,642
12,555
10,963
Source: INE, 2009; PDMs municipalities.
Dynamics
↑↑
↑
↑↑
↑
↓↓
↓↓
↓↓
Presidents of OTBs and other key informants in the rural municipalities observe that in their rural
communities live a relative young and a relative old population. Some president of OTBs in rural
communities literally state: ‘in our communities only old people stay behind, adolescents prefer to work
in the city or abroad and leave their children with their grandparents’. This can be illustrated with figure
4.11 that shows relatively few persons in the population cohorts between 15 and 35 years (the economic
actives) in comparison with the cohorts of children under 15 years and adults and elderly above 40 years.
In Cliza, Punata and Arani, the relative small number of persons between 15 and 35 years is caused by
emigration.
Figure 4.11 Population pyramids Cliza (a), Punata (b) and Arani (c)
a
b
Source: PDMs Cliza, Punata and Arani.
c
4.2.2 Internal migration
The southern districts of the city of Cochabamba grow rapidly due to the inflow of internal migrants and
natural population growth. These internal migrants are relative young and mainly originate from the
occidental departments La Paz, Oruro and Potosí (also re-location of mine workers) and from provinces
of Cochabamba, especially Valle Alto. The respondent of the chamber of mining explicates: ‘the crisis in
the mine industries in 1984 caused massive movements from mining zones at the altiplano towards the
cities of Cochabamba and Santa Cruz’. Internal migrants that originate from certain regions of the
altiplano are clustered together. In district 14 many originate from mining zones in Oruro and in district
8 from Valle Alto, as the presidents of OTBs indicate. The city of Cochabamba has a conspicuous young
population. This is explainable by free education of the U.M.S.S. that attracts many students from the
rural provinces, altiplano and even the exterior (e.g. Brazil, Peru and Chile). For Totora internal
migration is more an issue than international migration. Internal migration from Totora is directed to the
city of Cochabamba and the department of Santa Cruz and has a temporary circular character, based on
the dry season (table 4.10).
43
The National Institute for Statistics (INE) gives the exact data about the population of the census 2001, the ultimate years
the population numbers are estimations.
75
Table 4.10 Circular internal migration of totoreños
Place of immigration
Season
Santa Cruz
May, June and July
Cochabamba
Various seasons
La Paz
Various seasons
Source: PDM Totora.
Occupation
Sugar and cotton plantations and domestic work.
Construction and domestic work.
Construction and domestic work.
The mayor of Totora is concerned about rural depopulation and therefore to avoid too much emigration.
He intends to displace its rural population towards the urban centre of Totora, from where emigration
numbers are lower than from the rural areas. From Arani a minor percentage travels daily to Punata,
because of better educational opportunities. The director of the department of economic development and
the respondent of the NGO PDA illustrate the low levels of school enrolment with the following
information: ‘this year (2009) only 85 students will finish secondary education in Arani’.
Besides cities, also the tropical lowlands (Chapare and Chimoré) are an important destination of
farmers from Valle Alto and Cono Sur to cultivate coca, bananas or palmito. The respondent of the mancommunity of the tropics clarifies: ‘the national government gives every family that wants to cultivate
coca 4200 square meters for free’. The respondent adds: ‘one coca plant costs approximately 0.10 € and
can be harvested four times a year, which means there does not exist the necessity to have much capital
to invert in a coca plantation’. So the cultivation of coca is more lucrative than farming in the valley. An
overview of all internal migration patterns is given in table 4.11.
Table 4.11 Destinations of internal migrants from the research municipalities
Municipality
Internal migration towards
Cochabamba
Receives internal migrants from: La Paz, Oruro, Potosí and rural provinces Cochabamba
Tarata
Cochabamba, Chapare
Cliza
Cochabamba, Chapare
Punata
Cochabamba, Chapare
Arani
Cochabamba, Santa Cruz, Punata, Chapare
Totora
Cochabamba, Santa Cruz, Chimoré
Source: Interviews and surveys OTBs, fieldwork 2009.
4.2.3 International migration
The department of Cochabamba, after La Paz, expulses most international migrants (Roncken and
Forsberg, 2007, p. 12). Several decades ago significant migration flows were directed towards Argentina
and in the 1980s and 90s also to the United States. The real massive outflows from the department of
Cochabamba started in the new millennium, from the 2000s and onwards, when many left to Spain and
other European destinations (e.g. Italy and United Kingdom). During interviews became clear that the
majority of the Bolivians working in Europe are active in the construction sector (men) and in the
domestic sector (women). Some respondents in rural municipalities argue that the rural population is
used to work hard. As a result, farmers abroad are willing to work in whatever the market demands.
Emigration is driven to complement a decent income. Nevertheless the presidents of district 11 explain
that youngsters from the northern residential areas are an exception and emigrate for study purposes, to
do for instance a master.
The internal and international migration patterns are interwoven with each other; for instance the
majority of the international migrants that emigrated from the southern districts were first internal
migrants. Also international migration can be step-wise: Buenos Aires is used as a node to finally arrive
in Spain or elsewhere in Europe. An overview of the main characteristics of the international migrants is
given in table 4.12.
In Tarata interviews with municipal staff, NGOs and the financial institutions show that migration
patterns from Tarata differ from the other municipalities. Rural bourgeoisie possessed large terrains and
could send their children to the United States for study purposes. The municipal staff clarifies that
76
especially in the 1980s this has caused brain drain. Nowadays the majority of all migrants from Tarata
have a permanent residence in the United States. More recently the poor and rural tatareños have
immigrated to Spain, but in less magnitude than the flows to the United States. When entering Spain due
to visa requirements in 2007 has become increasingly difficult, some tarateños immigrate to Argentina.
Table 4.12 Main characteristics of migrants per municipality
Munici
First
Second country
Third
pality
country44
country
Cocha
Spain
Other destinations
Argentina
bamba
in Europe
Tarata
USA
Spain
Argentina
Cliza
Spain
USA
Argentina
Punata
Spain
Argentina
Other
Arani
Spain
Argentina
USA
Totora
Argentina
Spain
USA
Demographic
characteristics
Young working force45,
relatively more women
Adolescents
Young working force,
relatively more women
Young working force,
relatively more women
Young working force,
relatively more women
Working force
Reason for emigration
Complementary income
household, study purposes
Study purposes
Complementary income
household
Complementary income
household
Complementary income
household
Complementary income
household
Source: Survey OTBs, fieldwork 2009.
Figure 4.12 shows per municipality Figure 4.12 Box plot of starting years and duration of emigration flows
when massive emigration started
(years at y-axis). The coloured box
plots show when the majority of the
migrants left per corresponding
municipality. The box plot (blue) of
the city of Cochabamba confirms
that the majority of the international
migration left between 2001 and
2003. The dots above the box plot
are outliers and indicate that
emigration started before, but not
massively. In Tarata can be seen
that emigration started already years
ago (the beige box plot). Also the
emigration from Cliza is older
(green box plot), similar as in
Punata46. This is confirmed by the
main officer in Punata. He states:
‘since 25 years emigration has
started from Punata, mainly to the
United States and ultimately to
Spain’. In Arani (yellow box plot)
massive outflows started more Source: survey OTBs, fieldwork, 2009
recently, as in Cochabamba. The
starting years of massive emigration flows are related to the destination of international migration. Older
migration flows, as from Tarata, and also Cliza and Punata is directed to the United States and Argentina,
44
The most popular destinations of the international migrants indicated by the presidents of OTBs, classified with first, second
and third country.
45
Young working force: between 20 and 35 years.
46
Unfortunately due to few surveys with presidents of OTBs in Punata, the data of Punata can not be seen very clearly in
figure 4.12. Nevertheless, emigration patterns in Punata are similar to those in Cliza, and consequently also the start of
emigration.
77
while new migrant flows are directed to Europe; in the case of Cochabamba and Arani. Presidents of
OTBs argue that relatively more women immigrated to Europe and obtained credits from banks to buy a
ticket. They left their houses hypothecated, so the majority emigrated with enormous debts. In addition
these women leave behind their children what has a negative impact on these households and the place of
origin (see 4.3.2). In the 1990s totoreños emigrated to the exterior (red box plot) mainly to Argentina, but
in lesser extent as from the other research municipalities.
The map in figure 4.13 presents percentages of families that have a family member abroad, as
designated by presidents of OTBs and key informants of the local governments. This data compared with
official data in the PDMs47 are somewhat higher. An explanation of the exaggerated percentages of key
informants is the inevitable presence of international migration in their daily lives and neighbourhoods or
communities.
Figure 4.13 Percentages of families that have a family member abroad in the research municipalities48
Source: van den Bogaardt, fieldwork 2009.
Better work opportunities abroad is the most frequent indicated reason of key informants why habitants
of the department of Cochabamba decide to emigrate. Consequently could be expected that the most
impoverished areas (e.g. Arani and Totora) would present the highest emigration outflows, however the
contrary is observed. Municipal staff member in Totora remark: ‘start capital in poor areas is much lower
and therefore totoreños only can migrate internally or to Argentina, instead to Spain’. In some surveyed
47
Data in the PDMs about percentages of international migration are outdated, so the real percentages are higher, caused by
international emigration the last couple of years.
48
These percentages are indicated by the surveyed presidents of OTBs (so only 25 percent of all OTBs), combined with
observations of municipal staff. Thus the results are approximations and for that reason presented in percentage categories of 4
and 3 (see legend).
78
rural communities (6 OTBs) in Totora are no families with a member abroad. So chain migration also
expounds lower levels of international migrants in Totora. In Totora and Arani the presidents of OTBs
state that internal migration is more important in comparison with international migration, while in all
other municipalities international migration is stated as more important49.
The experiences that local actors have with international migration form perceptions about international
migration and local development, what is elaborated in the next section.
4.3
Differentiated perceptions about international migration
In this section the perceptions of local actors about international migration are discussed. First the
perceptions of international migration as a chance for development are presented (4.3.1). Secondly is
analyzed how international migration is perceived as a constraint (4.3.2). Third the perceptions about the
current global economic crisis are addressed (4.3.3). The perceptions of this global economic crisis are
submitted as a sub-section, because this economic crisis impacts on the contemporary Bolivian migration
flows and can influence policy making. Every sub-section is structured as follows: First the perceptions
of the local governments are presented, second of the OTBs, third of the NGOs and last of the financial
institutions.
Before differentiating the positive and negative
perceptions about international migration, it
appeared during the fieldwork that many
presidents of the OTBs perceive international
migration both as a positive or negative (figure
4.14). Also according to other actors
international migration can be both seen as
positive and negative. This can be illustrated
with a quote from a municipal staff member in
Cliza: ‘international migration causes family
disintegration and migrant children are out of
control, though remittances contribute to the
welfare of families’.
The perception of the local actors about
international migration has consequences for
further policy making, on what is further
elaborated in chapter 5.
Figure 4.14 Presidents of OTBs’ perceived impact
of international migration
Source: Survey OTBs, fieldwork, 2009.
4.3.1 International migration as a chance for local development
International migration as a chance for local development is related to the sending of remittances and
entrepreneurial investment, as shown in table 4.13.
Various staff members of the municipal government of Cochabamba see that international migration and
remittances have the potential to increases entrepreneurial activities and enhance the construction sector.
This generates (auto) employment and is positive for the overall development of the neighbourhoods (see
also 5.6.2 and 5.6.3).
49
In Cochabamba 60 % of presidents of OTBs indicate that international migration is more important than internal migration.
In the other municipalities these percentage are in Tarata 100%, Cliza 85%, Punata 50%, Arani 45% and Totora 5%.
79
Table 4.13 Local actors’ positive perceptions about international migration
Municipality
Local governments
OTBs
Cochabamba
-Modest increase
-More resources for migrant
entrepreneurship
families
-Create auto employment -Create employment for
-Construction sector
neighbours
-Construction
Tarata
-Donations from
-Residents in USA pay for
residents in USA
celebrations
Cliza
-Modest increase
-Construction
entrepreneurship
-Transport
-Construction sector
Punata
-Modest increase
-Construction
entrepreneurship
-Transport
-Construction sector
Arani
-Rural development
-Transport sector
-Commercialization
Totora
-Rural development
-Transport sector
-Donations from USA
-Commercialization
Source: fieldwork, 2009.
NGOs
-Canalization of
remittances
Financial institutions
-Remittances increase
capital accumulation
-
-Modest impact remittances
-Return
migrants new
working force
-Return
migrants new
working force
-
-Remittances increase
capital accumulation
-
-Increase use of micro
credits
-Remittances increase
capital accumulation
-Modest impact remittances
In Tarata the local government is proud about the construction of the football stadium, toilets for the
touristic centre of Mariano Melgarejo, street lightning and a statue at the central plaza (figure 4.15).
These constructions are paid by residents of HTAs in Tarata in the United States with earnings in the liga
tarateña de fútbol. These constructions increases status, proud feelings and by the local governments are
seen as development. The mayor of Tarata confirms: ‘la estatua de la plaza nos hace sentir orgullosos,
porque nuestros ciudadanos en los Estados Unidos no nos olviden’50. Additionally the respondent of
NGO Global Humanitaria mentions: ‘the people are happy that the tarateños in the United States send
money for local celebrations, what not necessarily increases local development, but enhances proud
feelings’. In Totora similar as Tarata, the municipal staff tells about the residents that live in the United
States and donate for celebrations: ‘los totoreños en los Estados Unidos siempre mandan plata para que
podamos celebrar día del niño, Navidad, festividades religiosas, etcétera’51. Also in other municipalities
similar stories are addressed: ‘many migrants return and Figure 4.15 Statue central plaza Tarata paid by
bring remittances to celebrate in August Urkupiña and American residents from the village
in November Todos los Santos’ (remembering the ones
who have died).
In Punata and Cliza the municipal staff indicates
that remittances have the potential to increases
entrepreneurial activities and enhance the construction
sector. Furthermore municipal staff members in all rural
municipalities argue that remittances make more
investments possible in agricultural production.
Families that receive remittances buy agricultural
terrains, tractors, seeds, fertilizers and/ or stock.
In all research municipalities, the positive perceptions of
the presidents of OTBs are related to increased welfare
of the families that receive remittances. Several
presidents of OTBs in the city of Cochabamba note that
families that construct houses and in lesser extent
Source: van den Bogaardt, fieldwork 2009.
50
Translation: The statue at the central plaza makes us feel proud, because the totoreños in the United States do not forget us.
Translation: the totoreños in the United States always send money in order to celebrate children’s day, Christmas and
religious celebrations, etcetera.
51
80
initiate some entrepreneurial activities. The construction of houses increases the level and status of the
OTBs. ‘El vecino está mandando plata, porque yo no?52’ is an illustrative quote from one of the
presidents why international migration is perceived as a chance for local development. Also others want
to save money to return and buy or construct a house and pay education for the children. A collective
image is constructed: neighbours also want to migrate, and recently Spain is the preferred destination.
In the rural municipalities the presidents of the OTBs mention an increase in transport modalities
since the presence of international migration. This increase in especially taxis and minibuses enhance
public and good transport between the rural communities, the urban centres and the city. A president of
an OTB in Totora tells: ‘todos que vuelven de España compran un taxi53’. The increase in taxis enhances
the commercialization of especially agricultural products for sale, what is further discussed in 5.6.2.
Among the NGOs the economic impact of international migration is seen as a positive phenomenon.
AMIBE and Centre Vicente Cañas work directly with international migration and are aware of the
potential of canalizing remittances. The director of AMIBE designates that an approximate 80 percent of
families in the city of Cochabamba that have a family member abroad, experience an improved quality of
life since they receive remittances (between €100 and €300 a month). Now they can pay more easily
basic services, improve their properties and invest in education. Also Centre Vicente Cañas sees
economic potentials in remittances that are inverted in micro enterprises. The policies of both NGOs are
further elaborated in 5.3. Somos Sur is an alternative information platform. During radio shows, public
discussions and in publications also international migration matters get attention in order to create
awareness about the topic. NGO Celim Bergamo in Punata and Cliza (and Toko) focuses on improving
the cooperation between milk farmers and ILVA. The NGO argues that return migrants from Italy are
potentials to develop this sector (see also 5.3).
Another positive prospect, especially seen from the perspective of AMIBE, Centre Vicente Cañas
and the municipal government of Cochabamba, are the migration trajectories of Bolivians in the past. In
the last decade Europe has been the most important destination. Also the highest remittances flows come
from Spain, while in the past these came from the United States and Argentina. These flows in certain
extent can be taken as an example for the recent character of the Spain-Bolivia connection. When
remittances were sent from the United States and Argentina first the money were used to pay of debts,
secondly were utilized to improve housing, thirdly served for investments (for instance education), and
lastly remittances are invested in micro enterprises or to improve the community. According to the
respondents this information is important to take into account, in order to understand the recent
migration. However, the situation is more complex. The recent remittances flows from Europe (Spain)
can hypothetically follow the same trajectory of investments, but families in Spain before have been in
also Argentina and/ or the United States. In this way, remittances can be invested differently.
Financial institutions perceive remittances positively. The majority of money transfers to Bolivia are
done by giros. Therefore banks, the private financial funds and saving and lending association recently
start to work together with a MTO(s). In this way these financial institutes get in contact with people that
receive remittances and give information about the services (e.g. savings accounts, micro credits) they
offer (see also 5.4).
4.3.2 International migration as a constraint
International migration is also perceived as a constraint for local development. A respondent refers to ‘los
frutos duros de la emigración’. The negative perceptions about international migration are presented in
table 4.14.
52
53
Translation: the neighbour sends money, why can not I send/ receive any?
Translation: All return migrants from Spain buy a taxi.
81
Table 4.14 Local actors’ negative perceptions about international migration
Munici Local governments
OTBs
pality
Cocha
-Family disintegration
-Increased violence and abuse
bamba -More work defence of children
migration children/
and adolescents
adolescents
-Deficit of manual workers
-Individualization
Tarata
-Family disintegration
-Family disintegration
-Drought cause emigration
-Few productive investments
Cliza
-Drought causes emigration
-Family disintegration
-Macro problem, should be solved -Few productive investments
by national government
Punata -Family disintegration
-Family disintegration
-Drought causes emigration
-Few productive investments
Arani
-Family disintegration
-No return rural communities
-Drought causes emigration
-Urban bias of investments
Totora -Family disintegration
-No return rural communities
-Drought causes emigration
-Urban bias of investments
Source: fieldwork, 2009.
NGOs
-Human rights
violation
-Non productive
investments
-Human rights
violation
-
Financial
institutions
-Crisis decrease
remittances
(see 4.3.3)
-Crisis decrease
remittances
-Crisis decrease
remittances
-
-Crisis decrease
remittances
-Human rights
violation
-Human rights
violation
-Crisis decrease
remittances
The negative perceptions of international migration are structured per local actor. First municipal
governments, second OTBs and third NGOs. Financial institutions are addressed in the section 4.3.3.
Municipal staff members indicate that the feminization of migration flows is the most important
explanation of family disintegration. In Bolivia gender tasks are still traditionally divided. When mothers
emigrate, sometimes men are not able to raise the children or still work and do not have time. All
municipalities have a defence of children and adolescents that gives social and psychological supports to
victims of international migration (see also 5.1.1). Municipal staff members in Cochabamba are
concerned about abandoned migrant children. Nevertheless in many cases these children and adolescents
do receive remittances. But are the extra dollars or Euros to buy for instance the newest cell phone, worth
it, when children grow up without parent affection? This question can even be strengthened with
observations of non-productive investments. A municipal staff member expresses his concerns: ‘the
access that adolescents have to technical products is striking, because all of them have super mobiles’. He
adds: ‘these kinds of luxury goods enhance their status symbol’. Luxury goods, such as play stations, cars
and brand clothes are prime destination of the Euros send from abroad. Although luxury goods increase
social status, the remittances cause financial dependency. AMIBE has a special programme to suppress
non-productive spending of remittances at schools (see 5.3).
Furthermore the municipal staff members of the municipality of Cochabamba are concerned
about the deficit of manual workers, caused by emigration. Export of primary materials and services
nowadays are the most important economic activity in Cochabamba. However production levels are low
especially compared with import. These low levels of productivity are caused by the deficit of manual
workers. Construction workers, carpenters and mechanics have emigrated. Small and medium sized
enterprises, especially in the labour intensive textile, wood and leather sectors, have problems to contract
(qualified) manual workers. As a result labour costs have risen. A municipal staff member explicates:
‘antes los albañiles ganaron 35 Bs por día ahora 120 Bs, porque hay muy pocos’54. The director of CDC
(Consejo Departamental de Competitividad) shares the preoccupation of the municipal staff members
about the deficit of manual workers: ‘the low levels of productivity paradoxically have caused a rise in
salaries of unqualified manual workers, because the qualified workers emigrated’. The director of
CADEPIA (chamber of small and medium sized enterprises) adds: ‘the small en medium sized
companies have enormous problems to contract qualified workers’. Also the mining sector in
Cochabamba has difficulties in contracting mine workers, because mineworkers emigrated to the exterior
and to Oruro and Potosí where wages are higher. The respondent of the chamber of mining in
54
Translation: Before construction workers gained €3.5 a day now €12, because there very few construction workers.
82
Cochabamba explains: ‘ahora solamente los bajos cualificados se quedan en Cochabamba’55. The
municipal government of Cochabamba and the respondent of CADEXO (chamber of export) hope that
return migrants start working in the services sector (e.g. auto mechanics, construction). And also in the
industrial sector, in the industrial park of Santivañez (neighbouring municipality of the city). The director
of the chamber of commerce and services sees the return migrants as a labour force potential for the
services sector: ‘they will start working as auto- and electric mechanics, financial service agents and in
the commercial production of textiles, leather, alimentation and construction material, such as cement
and iron’.
Additionally not only the deficit of manual workers is a problem, also emigration of high
educated adolescents that prefer to do a study abroad, from the northern residential zones are losses for
the economy. The director of the chamber of industries makes clear: ‘education in Bolivia is for free,
what is an enormous investment of the national government’. He concludes: ‘when bachilleres leave
Bolivia after having finished their high school, there are no any gains for the Bolivian economy’. A
respondent of SNV adds: ‘adolescents prefer to become academically qualified instead of a becoming a
technical professional’. This is another explanation for the lack of manual workers.
In all rural municipalities respondents do not identify the lack of manual workers as such a big problem.
Although also some municipal staff members in Cliza and Punata comment: ‘hay muy pocos albañiles’56.
On the other hand in all the rural municipalities municipal staff members complain that drought and the
lack of irrigation systems hinder agricultural activities and cause emigration. The mayor of Totora
comments: ‘cuando no hay agua, la gente emigra’57. The mayor of Cliza states something similar: ‘si
hubiera riego, nadie migraría desde el Valle Alto58’. As well the director of productive economic
development in Arani recognizes problems: ‘la falta del agua es el problema principal para la
producción agropecuaria’59. All rural municipalities work in the construction and extension of the
irrigation systems.
Moreover international migration also decreases the number of habitants of a municipality, what
is a concern of the rural municipal staff of the depopulating municipalities. With the new census in 2010,
the municipalities will probably receive fewer funds from the LPP that corresponds with the population
number. The director of planning in Cliza expresses his preoccupations: ‘international migration is
experienced as negative, because we will loose resources from the participación popular (LPP)’.
Besides the municipalities, also almost all surveyed presidents of OTBs in all research municipalities see
family disintegration and human rights violation as the negative side of international migration. In the
city of Cochabamba the presidents argue that family disintegration has a direct impact on the security
within a neighbourhood. Increased violence, drug and alcohol abuse are observed especially in the
southern districts of Cochabamba. The presidents of OTBs observe: ‘children of migrant parents are
those that abuse drug and alcohol, because they are not controlled and get involved in criminal activities’.
Among the majority of the presidents of the OTBs in the city of Cochabamba the construction of
houses also has a negative side: individualization. More than half of the interviewed OTBs indicate that
relations within the OTB change towards less participation in for instance the OTB’s assemblies, as
proved by table 4.15. In the second column can be seen that in OTBs where relations change, more
migrant families do not participate. Presidents of OTBs clarify that migrant families want to show their
new status with the construction of a house, a big car or other luxury goods. Many migrant families
construct a house but are not physically present. When migrants return frequently they are less interested
in the development of their neighbourhood and are more concerned about finishing the construction of
their property. The families that receive remittances and return migrants that have saved capital are the
55
Translation: Only the low qualified stay in Cochabamba.
Translation: There are very few construction workers.
57
Translation: When there is no water, people emigrate.
58
Translation: If there was irrigation, no one would emigrate.
59
Translation: Water deficits are the principal threat for agricultural production.
56
83
‘new rich’ in their neighbourhood. The NGO Centre Vicente Cañas adds: ‘participation in the
neighbourhoods is normally very high in Cochabamba (and Bolivia), but due to the emigration an
individualisation process takes places’.
Table 4.15 Relationship between participation and relation changes in the surveyed OTBs60
Migrant families participate
Total
Yes
no
Relations OTB
Change
44
26
71
Do not change
53
10
62
Total
97
36
133
Source: survey OTBs, fieldwork 2009.
This process of individualization in the rural municipalities is related to little return of migrants to their
original communities. Instead, they establish in the southern districts of Cochabamba. There many of
them construct houses. Also in the rural municipalities presidents of OTBs find the families that receive
remittances ‘individualistic’. Especially since return migrants prefer to invert in their proper housing,
instead of in productive investments that can create employment opportunities. According to a president
of an OTB in Totora that visited several times his daughters that live in the United States,
individualization is caused because in other countries the people are ‘cold’, while in Bolivia the people
are more social and ‘warm’. He illustrates this with a quote: ‘ni pagando voy a vivir en los Estados
Unidos, porque solamente te saludan ‘hi’, y yo quiero saludar alguien bien, con un beso al cachete’61.
The presidents of OTBs in the rural municipalities indentify individualization and urban biased
investments as mayor problem for their rural communities. A municipal staff in Arani member remarks:
‘la gente que retornan van a la ciudad y ya no se importan por sus comunidades’62. He adds: ‘the
altiplano regions are the most deprived, no any investments of migrants are observed. All investments
are done in the city of Cochabamba’. In Cliza the director of productive economic development is
concerned about a similar development in his municipality: ‘return migrants after having inverted in a
house prefer to invest in an entrepreneurial activity in an urban centre of Cliza or even the city of
Cochabamba’. In Tarata the respondent of NGO CODERTA and the director of Central Campesino note
exactly the same: ‘la gente prefiere invertir en la ciudad’63. A respondent of the departmental
government that has an overview over all municipalities in the department of Cochabamba confirms:
‘from the Valle Alto a majority does not return anymore to their original communities, but prefer to
construct a house in the city’. The outflow of the relatively young population from rural areas in
combination with low levels of return migration towards the rural communities is a major problem for
the agricultural productivity. Another municipal staff member of Arani tells: ‘elderly are left behind and
cannot cope with the agricultural production anymore. This results in a contra productive process of
agricultural productivity’.
The third actor in this research, the NGOs, that are involved in alleviating the harmful impact of family
disintegration, perceive international migration negatively. A study from AMIBE (2008) confirms that
more than in half of families that have a family member abroad the psycho-social situation has worsened.
And even an approximate 10 percent experiences violence. Centre Vicente Cañas and CETM organize
relief for children of migrant parents and give psychological support. Pastoral for the Humanity works
together with churched based schools of fe y alegría (hope and happiness).
60
The relationship has a significance of 0.005 with a confidence level of 95 percent and the relationship strength is rather
moderate: Cramer’s V = 0.24. Non response is left out.
61
Translation: Eeven if they would pay me, I won’t immigrate to the United States. They only say ‘hi’ when they greet, I like
to greet someone with a kiss on the cheek.
62
Translation: the people that return from the exterior go to the city (of Cochabamba) and are not concerned about their (rural)
communities.
63
Translation: the people prefer to invert in the city.
84
Lastly another negative perception of many respondents in various research municipalities is that
international migration is perceived as a macro problem. For instance the mayor of Cliza mentions: ‘at
municipal level it is hard to solve the problems with international migration, because it is macro process
with external forces that influence the personal decisions of the migrants, such as demand for low
qualified work in Europe’. So he concludes: ‘the national government should implement more policies to
prevent more problems’. Also in the municipality of Cochabamba a municipal staff member mentions:
‘our municipality has very little influence in the process of international migration and local
development, because the country is very municipalizado (decentralized)’. He continues: ‘an umbrella
vision lacks to cure the macro problems with for instance unemployment’
To conclude, municipal governments, OTBs and NGOs perceive international migration negative, when
they discuss issues, such as family disintegration, the lack of manual workers, draught and the lack of
irrigation systems that cause emigration and individualization.
4.3.3 Global economic crisis and return migration
The recent global economic crisis has changed migration patterns and remittances flows. This has
consequence for the perception of the local actors about international migration.
The last decade, and especially the last couple of years, financial institutes in Cochabamba received an
exponential increase in remittances sending. Remittances from the United States and Argentina are
already for several decades stable money flows. Recently remittances originating from Europe, especially
from Spain, have caused an enormous increase of the total remittances volume send to Bolivia. In
September 2008 this increase was immediately halted by global economic crisis, so financial institutions
since September 2008 perceive the decreases in remittances flows as negative. In Spain the sectors (e.g.
construction and domestic) in which many immigrants work (illegally) are hit hard by the global
financial crisis. This results in decreased volumes of remittances what also is felt in the place of origin.
The ultimate years the amount of remittances received by the BNB was annually US$ 2 millions, but the
respondent of BNB in Cochabamba explains that due to the economic crisis last year only 80 percent of
this amount was received.
Financial institutions fear that the national economic crisis of 1997-98, which hit hard on the
construction sector, probably will be repeated. Furthermore dependency on the production of hydro
carbonates can be another risk. Albeit Bolivian exports are highest in history, precaution, investments
and diversification of exportations are needed. The director of the chamber of commerce and services
elucidates: ‘the Dutch disease can be a threat of the successful Bolivian export nowadays’.
The global economic crisis, in combination with the visa requirements to enter Europe since March 2007
(and already before to the United States), have restrained emigration. The president of AMIBE is
concerned: ‘emigrants abroad have become unemployed and do not send remittances anymore to their
families that are financially depend on their family member in Spain’. However she also expresses hope
for the future: ‘the migrants that have become unemployed abroad return, and even though this is still a
new phenomenon in Cochabamba, these migrants come to Bolivia with a more entrepreneurial spirit’.
AMIBE and ACOBE see opportunities for return migrants and therefore implemented a programme of
voluntary return. This programme aims at preparing return migrants for the Bolivian labour market. The
Spanish government has an implemented plan de ayuda al retorno voluntario64 for several Latin
American countries. Until now Spain still has not signed an agreement with the Bolivian government,
though ACOBE organizes similar activities for the most vulnerable migrants. ACOBE prepares the
migrants with trainings and gives workshops about auto-employment and productive investments with
saved capital. Return migrants that have ideas about initiating a micro enterprise, get support to make a
64
Translation: help for voluntary return.
85
business. The business plans is requisite to get paid the return ticket to return to Bolivia, co-financed by
the municipality of Madrid. AMIBE in Cochabamba continues with the implementation of the business
plan and the micro enterprises.
Albeit these plans in theory can be successful, it can be doubted if the Bolivian migrants want to
return to Bolivia. Many migrants do not see any perspective in employment or other economic activities
in Bolivia. Those that want to return probably did not have any success and did not save too much capital
abroad. Though prefer to return with few concrete plans about employment opportunities back home.
Another problem is the above discussed issue of international migrants that originate from rural areas do
not return anymore to their original communities.
Also the local government of Cochabamba perceives return migration as a chance for development in the
places of origin. Return migrants can give a creative injection to commercial sector. For instance return
migrants invert in a taxi or a supermarket and implement the services and rules they have experienced
abroad. These perceptions about return migration can be interpreted as brain gain. The lack of
employment possibilities can create auto-employment among the return migrants. A municipal staff
members notes: ‘the people that return and cannot find work are creative enough to auto-employ’ and
another interviewed municipal staff member in Cochabamba is convinced that return migrants are an
important source of manual workers for in textiles, leather and alimentation sectors. Furthermore for the
services, such as auto mechanics, financial, domestic electric and construction sectors (as explained in
4.3.2). The respondent of the NGO Centre Vicente Cañas is not too optimistic: ‘return migrants from
Spain worked in babysitting, caring children, elderly and properties and have not specifically learned
something new’. She concludes: ‘these return migrant are not so creative and probably will not autoemploy’.
4.4
Summary and conclusion
In this chapter main characteristics of the research municipalities are analyzed. The empirical results
about the experiences and perceptions that the four local actors, local governments, OTBs, NGOs and
financial institutions in the six research municipalities have about international migration are summarized
in table 4.16.
The most important distinctions between the research municipalities concerning the main characteristics
is the quite urban character of Cliza and Punata that have a rather developed (financial) services and
commercial sector, similar as in Cochabamba. While Tarata, Arani and Totora are predominantly rural
with traditional agricultural systems. The poorer municipalities still have to develop basic service
delivery, expand education and health services. Logically NGOs working in these municipalities focus on
human and economic development.
86
Table 4.16 Summary main characteristics of the research municipalities, experiences and perceptions of international
migration
Munici Main characteristics
Experiences with
Perceptions of migration
pality
migration
Socio-economic
Institutional
Cocha
-Services
-Many NGOs
-Receives internal
-Modest increase entrepreneurial activities
bamba -Commerce
-Many financial
migrants
-Construction
institutions
-Towards Spain
-More capital accumulation
-Financial crisis: decrease remittances
-Family disintegration
-Individualization
Tarata
-Agriculture
-Politically unstable -Relative old migration -Drought causes emigration among
-Many NGOs
flows towards USA
farmers (all rural municipalities)
-Lack financial
-Urban bias investments
institutions
Cliza
-Agriculture
-Many financial
-Slow population
-See Cochabamba
-Commerce
institutions
growth
-Transport increases commercialization
-(Financial)
-Lack NGOs
-Relative new
-Urban bias investments
services
migration to Spain
Punata -Agriculture
-Politically unstable -Negative population
-See Cochabamba
-Commerce
-Many financial
growth
-Transport increases commercialization
-(Financial)
institutions
-Relative new
-Urban bias investments
services
-Lack NGOs
migration to Spain
Arani
-Agriculture
-Lack financial
-Negative population
-Transport increases commercialization
-Low school
institutions
growth
-Urban bias investments
enrolment
-Relative new
migration to Spain
Totora -Agriculture
-Many NGOs
-Negative population
-Transport increases commercialization
-Low school
growth
-Urban bias investments
enrolment
-Internal migration
Source: fieldwork, 2009.
The five rural municipalities present some similar migration patterns; slow or negative population growth
caused by emigration. The majority of the local actors have a rather complete picture about international
migration. This is illustrated by the presidents of the OTBs that know about the number of migrant
families and how remittances spend and/ or invested. However, many of them perceive international
migration and the spending of remittances as an individual process. International migration is as
inevitable step for youngster in Valle Alto, because staying the whole life in the valley is perceived by
several respondents as ‘missing an opportunity in life’.
International migration is perceived both as a positive and negative process. Both perceptions are
inextricably interlinked with each other, because families become disintegrated, though their economic
situation is enhanced by the sending of remittances. Local governments are concerned about the negative
impact, and the positive impact is still underexposed. NGOs are the actors that most aware of the positive
impact of international migration, while OTBs at the grass-roots level see principally the negative impact
of family disintegration. Urban biased investment of rural migration families are perceived as a problem
for the rural agricultural production in the place of origin. Financial institutions recently perceive the
negative impact of the financial economic crisis with decreases in remittances flows. A respondent
summarizes whether you perceive international migration as positive or negative: ‘siempre hay que creer
en este país’65.
The perceptions of the various local actors about international migration have consequences for decision
making by the implementation of plans about international migration. Migration perceived as a negative
process can be followed by a preventing emigration policy. When migration is perceived as positive,
policy making can be about canalization of remittances and the promotion of entrepreneurial activities.
This is further analyzed in chapter five.
65
Translation: people always have to believe in this country (Bolivia).
87
5. Plans and practices with regard to international
migration and implications for local development
In the fifth chapter empirical results are presented about the plans and practices of the four types of actors
with regard to international migration and local development. The perceptions of the local actors
(discussed in chapter 4) about international migration have consequences for policy making. The plans
and practices of the four local actors are discussed: local governments (5.1), OTBs (5.2), NGOs (5.3) and
financial institutions (5.4). During the fieldwork has become clear that also at higher administrative
levels are plans and practices about migration. Therefore the supra-local initiatives related to
international migration are discussed (5.5). The outcomes of the plans and practices have implications for
local development (5.6). At the end of this chapter a summary and conclusion of the plans and practices
that impact on local development are given (5.7).
5.1
Local governments: plans and practices
In this section is analyzed if in the municipal development plans (PDMs) are any plans related to
international migration and local development. Additionally is investigated if the municipal governments
have other practices that are related with migration (5.1.1). During the fieldwork it became clear that
within planning very little attention is paid to international migration issues. The underlying factors that
explain this lack of embedding international migration in plans is analyzed (5.1.2).
5.1.1 Local governments’ development plans
With the implementation of the decentralization law, participatory planning has become an important
instrument for the municipalities to organize planning and development. This central element herein is
the Plan de Desarrollo Municipal (PDM). This PDM is a municipal five year development strategy plan.
In table 5.1 per research municipality the planned activities are presented. The six research municipalities
have the same departments. These departments are: human development, institutional development,
economic and productive development66 and natural resource management. Therefore in table 5.1 is
chosen to present the activities in planning in four columns that represent these departments.
Inherent to the planned activities are the investment budgets. The budgets are presented in table 5.2 and
in tables 111.7-12 (appendix 3). In the municipality of Cochabamba social development is more
fomented than economic development (table 5.2 and 111.7), while in the rural municipalities economic
(rural) development is more important (table 5.2 and 111.9-12). The initiatives that are related to
international migration are structured per social and economic and employment related planning.
66
Within the economic and production-oriented development the following kind of activities are considered as such: the
construction of irrigation systems, commercialization, seed supply, stock keeping, forest management and handicraft
production. While the construction of roads, educational units, health centers and sports fields are considered as nonproductive projects.
88
Table 5.1 Focus areas per department described as in PDM, per municipality
Munici
Human
Institutional
Economic and productive
pality
development
development
development
Cochaba -Health
-New technologies
-Strengthen CDC
-Education
mba67
-Training staff
-Production chain
-Basic services68
-Technical assistance
-Transport
-Security
-Strengthening ties
-Industrial park
-Territorial
with civil society
-FEICOBOL: new markets
planning
-C2C Bergamo
-Micro and small enterprises
-PROMUEVE
-Further
-Handicraft (e.g. textiles, leather)
implementation of
-Gastronomy (e.g. alimentation)
decentralization
-Tourism
-Infrastructure69
Tarata
-Health
-Agriculture and stock
-Education
-Irrigation systems
-Basic services
-Productive chain
-Mechanization
-Producer organizations
-Tourism
-Infrastructure
Cliza
-Health
-Institutional
-Economic promotion
-Education
strengthening
-Innovation
-Basic services
-Networking
-Technical financial assistance
-Social capital
-Infrastructure
Punata
-See Tarata
-Training staff
-Agriculture, stock70 and forest
-Sport
-Institutional
-Transport
-Urban planning
coordination
-Tourism
Arani
-Health
-Training staff and
-Agriculture and stock
-Education
counsel
-Irrigation systems
-Basic services
-Organizational
-Productive chain
-Entrepreneurial
development
-Producer organizations
culture
-Active OTBs
-Tourism
-Handicraft
-Services
-Chicha
-Transport
Totora
-See Tarata
-Strengthen municipal
-Technical assistances
-Sport
staff
-Irrigation systems
-Culture
-Strengthen defence
-Energy
-Gender
children and women
-Infrastructure
-Producer organizations
Source: Cochabamba: strategic development plan 2002-2007, Tarata: economic development
Caine 2007-2001, Cliza, Punata and Totora: PDMs 2007-2011, Arani: PDM 2009-2013.
Natural resource
management
-Green areas
-Sustainable use of natural
resources
-Preservation natural
environment
-Natural resource
management education
-Sustainable use of natural
resources
-Natural resource
management education
-Sustainable use energy
and hydro resources
-Sustainable use of natural
resources
-Management water, rivers
and soils
-Natural resource
management education
-Conservation
-Prevent natural hazards
and disasters
strategy man-community El
The proposed plans presented in table 5.1 that can be related to international migration are discussed
here. In the municipalities of Tarata, Punata and Totora there are no any plans and practices directly
related to international migration, except from the defence of the children and adolescents. Thus only the
municipalities Cochabamba, Cliza and Arani are discussed in this section.
67
In the strategic development plan of Cochabamba (2001-2007; the most recent plan available) are more than four
departments described. Though in table 5.1 is chosen to present also the activities of Cochabamba within these four
departments. In order to compare the six research municipalities.
68
Basic services: potable water, electrification, sewer, gas and sanitation.
69
Infrastructure is not considered as productive economic development, though in plans always indicated as such. Thus in
table 5.1 and 5.2 located in the column economic and productive development.
70
In Valle Alto corn, potato, wheat, milk, meat and fruit are the most important fomented crops within the agriculture and
stock sector.
89
Table 5.2 Budget in Euros per department per municipality
Municipality Period of
Human
Institutional
investment development
development
Cochabamba 200971
27,600,000
Tarata
2004-2008
504,881
Cliza
No data72
Punata
2007-2011
6,542,657
Arani
2009-2013
141,830
Totora
2007-2011
24,928
Source: PDMs and POAs municipalities.
1,300,000
3,195
363,299
61,300
229,500
Economic and Natural
productive
resource
development
management
26,800,000
3,588,051
84,259
7,156,272
784,430
193,000
366,029
103,000
4,960
Total
55,700,000
4,190,386
14,428,257
924,430
452,388
Social plans and practices related to international migration
The negative perception of family disintegration (discussed in 4.3.2) is directly related to relief for
victims by the defence of children and adolescents. The defence gives children and adolescents of
migrant families psychological, legal and social support. In the municipality of Cochabamba the defence
of children and adolescents initiated the programme Fortalecimiento Familiar (family strengthening) that
aims at support for abandoned children (figure 5.1). The director of the defence in the city of
Cochabamba explains: ‘children that are abandoned by their parents get from us an official document that
legalizes which family member will become responsible for the child’. The municipal programme Yo sí
puedo (yes I can) focuses on making elderly literate (Los Tiempos, 2007). Grandparents can help their
abandoned grandchildren for instance with homework.
In Cliza defence of children and adolescents works together with the local private television
channel. Mini series about international migration with local actors from Cliza are broadcasted. The
programme aims at making the population of Cliza aware of the negative and impact of family
disintegration. Furthermore problems with drug and alcohol abuse are discussed. And also the positive
impact of international migration
is exposed with examples of Figure 5.1 The programme Fortalecimiento Familiar aims at protecting
productive investments with children of migrants families’ rights
remittances.
The
television
programme won an award of the
World Bank. Recently in Cliza
another television programme is
made with trainings and special
courses that endeavours to make
their population aware of
productive investments with
remittances and micro credits.
Other
social
related
practices of the municipality of
Cochabamba are the attention
centres for migrant families. La
casa del migrante Sumaj
Punchay is one of these centres
and organizes the programmes
Pronto volveré (I will come back
soon) and la Pastoral Social
Caritas de Cochabamba (both
won a price of the World Bank).
Both programmes intend to Source: Defence of children and adolescents, municipality of Cochabamba.
71
The budget information available is from the POA 2009. Therefore this budget is not comparable with the other
municipalities that present four year budget investment plans.
72
In the PDM of Cliza the tables of the planned activities were drawn, but not filled with the proposed budgets.
90
strengthen ties between migrants in Spain, Italy, the United States and their families in Cochabamba.
Economic plans and practices related to international migration
The casa del migrante Sumaj Punchay moreover has economic related practices. The migrant centre
facilitates in cooperation with the private sector in Cochabamba a database for migrant organizations in
Bergamo, Barcelona and Virginia. This database gives information about companies in different
economic sectors that need employees. This prepares return migrants for the labour market. Also
information is given about the possibilities to get (micro) credits to initiate a micro or small enterprise.
This policy can directly be related to the City to City cooperation (C2C) between Cochabamba and
Bergamo and the universities U.M.S.S., Venetia and Bergamo. Since March 2009 the municipality of
Cochabamba receives resources form the municipality of Bergamo for migrant centres and investigation
at the U.M.S.S. The faculty of architecture gets funds73 to execute a study about the cooperation. The
bridge between Bergamo and Cochabamba also serves for the reinstallation of return migrants. A
municipal staff member of Cochabamba makes clear: ‘return migrants get informed by CADEPIA74 and
CADEXO75 that give information about micro enterprise’.
Economic plans and practices related to international migration are also about employment creating
activities. Among the municipal staff in Cochabamba exists a negative perception about the deficit of
manual workers caused by international migration (as discussed in 4.3.2). This can be related to
employment creating activities. Interviewed municipal of staff elucidates that it is very important to focus
on educating new technical manual workers. In the municipality of Cochabamba exits only one tertiary
(private) educational institute (Infocal) with technical carriers, such as auto mechanics. The programmes
PROMUEVE76 and Ingresa al Mundo del Trabajo77 aim at tackling the deficit of manual workers and
public training centres (figure 5.2). Both programmes work in cooperation with the private sector.
PROMUEVE is originally designed for internal migrants to get informed about low qualified
entrepreneurial activities in the city of Cochabamba. A municipal staff member explains that nowadays
also return migrants attend the programme.
The chamber of commerce
and services has a similar Figure 5.2 Technical traineeships for recent graduate high school students
programme ‘Bachiller perrito’. This in Cochabamba
programme is for last years students
of secondary education. The
programme is annually attended by
300 students of private schools and 5
public school students (scholarship is
paid). The director of the chamber of
commerce and services explicates
the importance: ‘it is extremely
essential that high school students
already get in touch with labour
market, in order to keep the levels of
unemployment as low as possible’.
He continues with: ‘and also to
prevent that they emigrate’.
Additionally
the
municipal
government of Cochabamba focuses
Source: Municipality of Cochabamba
73
Unfortunately respondents did not indicate the volume of the cooperation.
CADEPIA: Chamber of small and medium sized enterprises.
75
CADEXO: Chamber of exports.
76
PROMUEVE: Programa Empleo Temporal y Vecinal.
77
Translation: Enter the labour market.
74
91
on becoming a productive and competitive municipality. During the interviews with municipal staff
members were asked how municipal planning can be related to international migration. The negative
perception about unemployment (4.3.2) is caused by emigration. This is one of the reasons why in
municipal planning is focussed on fomenting economic development and the creation of employment.
Fomenting economic development is done with the promotion of new information and communication
technologies, a good transport system and the production chain. Moreover the municipal government of
Cochabamba strengthens the CDC (Consejo Departamental de Competitividad). The CDC supports the
development of such a competitive and entrepreneurial culture. The CDC implemented the programme
‘promotion of entrepreneurship and productive innovations’. And also a concourse: ‘Are you an
entrepreneur o innovator?’ Workshops and trainings are given to make a business plan for an enterprise.
Micro and small enterprises are most important. According to CDC these create most (auto) employment
and count for 63 percent of all companies in the city. Medium and large sized enterprises on the other
hand are promoted on the international fair of Cochabamba FEICOBOL.
Also Arani has plans and activities to become an entrepreneurial municipality. In Arani all
municipal staff members indicate that the prevention of further depopulation (figure 4.9) is the most
important municipal duty. In the new PDM 2009-2013, the most important activity is plan de agentes de
cambio para una cultura emprendedora78. This plan aims at increasing entrepreneurship among
adolescents and young adults, enhance commercial activities among women and to diversify agricultural
productive activities among men. The director of the department of economic development explains: ‘we
expect that this programme will enhance self esteem of the adolescents, what will support them to initiate
micro enterprises and/ or become leaders’. He concludes: ‘finally they will decide to stay in Arani’.
Furthermore fomenting rural development in Arani is essential in order to create employment
opportunities for entrepreneurs. The ideal way to enhance rural activities is depicted in the PDM (figure
5.3). Interviewed staff members in Arani remark: ‘we are proud of the new PDM, but the challenge will
be the successful implementation’. At the grass-roots level producer organizations are fomented. These
organizations know about the necessities of farmers, such as the construction of irrigation systems and
storage of agricultural products. The municipality supports these producer organizations with technical
assistance. The plans of Arani are also supported by the departmental government that as well encourages
producer organizations to create their business plan. Departmental staff members tell: ‘business plans are
necessary to commercialize the sectors of leather, textiles, wood, seeds and activate export’. Interesting is
that the departmental government is establishing a technical milk industry school in Valle Alto and a
technical tropics fruit education in Chapare. These specific schools can educate farmers to increase
specialization and the commercialization of special crops. Furthermore, the conservation and protection
of natural resources is supported by natural resource education. The negative perception of the rural
municipalities, that drought and other climatological threats cause emigration, is tried to prevent in this
way.
Figure 5.3 Strategy for a productive rural economic development
Producer organizations
Traning and
technical
assistence
Source: PDM Arani.
Productive chain
Stock
Milk
industries
Promotion municipal economy
Crops
Find markets:
commercialization
Municipal
production
Moreover in Cliza depopulation is indirectly tried to halter with economic productive planning. This is
negative perception about depopulation is caused by international migration. The mayor of Cliza
mentions: ‘as municipality we have the obligation to generate employment, because unemployment is the
principal reason why people emigrate’. He continues: ‘the construction of public projects generates
78
Translation: plan to create an entrepreneurial culture.
92
employment what we see as the solution to avoid emigration’. With public projects he refers to the
construction of schools, bridges, pavements of roads and irrigation systems.
The examples of plans and practices in Cochabamba, Cliza and Arani that are related to international
migration also face problems. For instance the defence of children and adolescents only gives legal
assistance and psychological support to victims. The defence has more contact with migrant families than
any other organization. So the defence of children and adolescent could work together with other
organizations. These organizations can give information about remittances and the creation of
possibilities for local development. The educational programmes for migrants in the municipality of
Cochabamba are an example for other municipalities.
5.1.2 Factors that explain lack of embedding
As analyzed in the previous section there are only some plans directly related to international migration.
In this section the factors that expound the lack of embedding international migration in plans and
practices are discussed.
The most important explaining factor is that municipalities, especially the rural, are concerned with basic
service delivery. Basic services delivery refers mainly to education and health. Rural municipalities are
concerned with basic service delivery to overcome high levels of analphabetism and school absenteeism
of the mono-linguistic Quechua population. Furthermore infrastructure and agricultural equipments are
constructed. So there is almost no room for new initiatives, because prescribed plans in the PDM and
POA have to be realized. This elucidates that international migration is a step too far on the agenda.
A second important explaining factor are the shortcomings of the human and technical capabilities of the
municipal staff. This has consequences for planning. Municipal staff indicates to be concerned about
international migration issues (as defined in 4.3). This gives the idea that in the research municipalities
exist plans or at least practices related to international migration. Though, there are still very few plans.
The low levels of education and the lack of technical knowledge explicate that the capabilities of the
municipal staff members are insufficient. During the interviews with municipal staff of the local
governments appeared that their educational level is particularly low (as already discussed in 4.1.3). In
the rural research municipalities this problem is even more alarming than in the city of Cochabamba. In
city is at least attention paid to ‘training staff’ and ‘institutional development’ (see table 5.1). An
illustrative example of lacking human capacities and leadership in the rural municipalities is the mayor of
Totora. He hardly speaks Spanish what limits external communication. Also the respondent of the mancommunity Andina observes that missing leadership of municipal staff members and mayors is main
problem within the development of a municipal government.
Additionally the missing human capabilities also have consequences for the design of the PDM.
In the rural municipalities is observed that the PDMs are written by consultants, and as a result the
content of these plans is rather similar. The respondent of AMDECO states: ‘yo leí todos los PDMs de
los municipios en el departamento de Cochabamba y casi todos tienen los mismos elementos’. He
concludes: ‘esto es un gran problema para garantizar el local desarrollo, especificado por cada
municipio’79. The PDMs are a blue print, because the municipal staff lacks the capacities to write a
unique municipal plan.
A third explanation is the bureaucracy in governance structures hampers the implementation of planning.
For instance the director of economic development and the interviewed head officer in the municipality
of Cochabamba recognize that international migrant can contribute significantly to the local economy.
79
Translation: I read all PDMs of all municipalities in the department of Cochabamba and almost all PDMs have the same
elements. This is a great problem to guarantee local development, specified for each municipality.
93
Both interviewed municipal staff members opinion that the municipality should train and counsel
migrants. But they also explicate that these kinds of activities are hard to organization, because the
municipal staff is constrained by the bureaucratic framework. The head officer remarks: ‘it is almost
impossible to take the bureaucratic hurdle’. Due to other obligations in daily work, he admits that it is
very difficult to initiate this sort of policy making.
The last constraint for all municipalities in planning is the designated non-productive investments of
‘visible’ constructions in PDMs and POAs. With visible construction is referred to infrastructure,
bridges, sport fields, school building etcetera (also indicated in 4.1.3). The mayor of Tarata is not aware
of this constraint. He tells: ‘the primary goal of the municipality is to realize visible constructions,
especially basic services, such as irrigation systems and potable water’. The president of the Central
Campesino in Tarata adds: ‘the most important projects are the construction of a bridge and
improvements in infrastructure’. Also a municipal staff member in Cliza argued something similar: ‘the
perforation of water puts, irrigation systems, construction of schools, health posts and sports fields are
very important in Cliza’. So the majority of the municipal staff considers the construction of roads,
highways and irrigation as productive economic development. The construction of visible works satisfies
their support among the electorate. A respondent of the departmental government is concerned that
municipalities only construct roads. And forget to facilitate the whole package of agricultural products,
business plans and the search for markets. The director of economic development in Totora mentions:
‘roads are constructed in order to open up remote areas, but we still do not give enough technical
assistance about commercialization’. This director is the only staff member in Totora that has a high
university degree and she admits: ‘among the municipal staff exists very little conscience that the
municipality should be promoter of local economic development’. The respondent of AMDECO is
concerned about the lack of vision about productive development. He calls the visible constructions
‘elefantes blancos’ (white elephants). He adds: ‘municipalities themselves do not have legal tools to
implement new policies, such as migration policies, because bureaucratic restrictions difficult these
procedures’.
To conclude, an agenda full with service delivering activities, lacking human and technical capacities,
bureaucracy and the designated non-productive investments pre-described in PDMs and POAs explain
that the implementation of international migration in governance structures is still in an initial phase.
5.2
OTBs: practices
An OTB is the lowest administrative level. The OTBs know about the ins and outs at the grass-roots
level. The OTBs are acquainted with migrant families and notice that these invest in their
neighbourhoods and communities. The presidents of the OTBs are informed about international
migration and about how this has effects for their neighbourhoods and communities. Therefore it can be
expected that OTBs have practice that are related to international migration. During the fieldwork the
presidents of the OTBs were asked what they do with emigration followed by depopulation. In
approximately 80 percent of the OTBs, the answer is nothing.
The lack of practices about international migration of the OTBs can be clarified with the following
reasons. International migration is perceived as an individual phenomenon (as discussed in 4.3.2).
Therefore the OTBs do not feel responsible to undertake many actions. The OTBs receive resources for
designated investments (e.g. street pavements, water put) in their neighbourhood or community, as
shown in the POA. The presidents of OTBs designate that this budget is insufficient for other activities.
An illustrative quote of several presidents of OTBs in Cochabamba: ‘necesitamos más recourses para las
94
obras’80. In the city a municipal staff member of the sub-municipality Valle Hermoso (districts 6, 7 and
14) states: ‘albeit the budgets that OTBs receive are low, also laziness is created among the directives of
OTBs’ She continues: ‘they prefer to wait for (international) cooperation that can provide extra
resources’. A president of an OTB comments: ‘we cannot realize the planned activities in the POA with
the designated resources, we need more’.
Furthermore the presidents of OTBs Figure 5.4 Opinions of OTBs about PDMs and POAs
have a very negative opinion about the
plans that are designed for their
neighbourhoods and communities, as
shown in figure 5.4. Presidents also
state that the municipal government
does not listen to the necessities of the
population. The negative opinion of the
presidents about the plans81 creates
complications with possible plans and
programmes
about
international
migration. One of the surveyed
presidents of an OTB in a southern
district of Cochabamba is convinced
Source: Survey OTBs, fieldwork, 2009.
that he will become a better mayor than
the contemporary. He delivers a speech: ‘yo debo ser alcalde, porque el Charlie no sabe nada’. He
continues: ‘ustedes académicos deben ayudarme en mi campaña’82.
Another explication for limited plans and practices about international migration are the lacking
human capacities of the presidents, similar as among the municipal staff. There are few presidents that
know how to manage bureaucratic procedures, in order to implement new ideas. A minority of the
presidents do not know about the contents of the POA and about the existence of the PDM, what is quite
alarming. So the municipal government should be the promoter to support OTBs. Especially awareness
has to be created that OTBs have the potential to inform their population about the advantages and
constraints of international migration.
Nevertheless in Cochabamba and Cliza a very small percentage of the presidents specify to have some
practices with international migration. Victims of migrant families are sent to the defence of children and
adolescents and emigration is discouraged in the assemblies of the OTBs. Some of these presidents
explain that in their assemblies information is given about working circumstance and the human rights
violation abroad. Interesting examples about the prevention of emigration in some OTBs in district 9 and
Cliza are discussed in box 5.1.
80
Translation: We need more budget for the realization of our activities.
Only in Arani and Totora presidents are rather satisfied with the municipal plans. This can be explained by their low levels
of knowledge about the PDMs and POAs. Therefore they prefer to say that they are satisfied with the plans.
82
Translation: I should become mayor, because Charlie (Gonzalo Terceros: the contemporary mayor of Cochabamba) does
not know anything. You (and the other researchers of CEPLAG) have to help me with my campaign (to become mayor).
81
95
Box 5.1 OTBs prevent emigration
In district 9 the OTB Maria Auxiliadora is a rather poor, inhabited by internal migrants, neighbourhood at the hills of the
southern mountain range. These mountains separate the central valley of Cochabamba with Valle Alto. Albeit the
neighbourhood still does not have all basic services, the directives of the OTB have created a rather developed system of
rules to promote social coherence. According to the president of the OTB this is necessary to prevent adolescents getting
involved in criminal activities. The unwritten rules within the OTB are: children cannot be abandoned. At no place
alcohol can be sold. All women will have to pay attention to prevent violence in any family of the OTB. And men that
violate their women will be eliminated from the neighbourhood. In the OTBs is a committee that gives support to those
families that suffer from violence. The committee also tries to re-educate the youngsters that suffer from alcohol and drug
abuse. The president of the OTB explains that only 5 families in the neighbourhood have a family member abroad. This
number is a much lower number than other OTBs in the southern districts. This is proved with the survey among OTBs.
The OTB K’ara k’ara (district 9) is situated close to the (similar named) largest garbage dump of Cochabamba.
This OTB has as well an uncompleted basic services system. The directive of the OTB is composed of women that focus
on human development. The OTB stimulates educational attendance with special educational projects. The OTB also
takes care of children and adolescents that are abandoned by their parents that emigrated. 32 percent of all families have
member abroad. The OTB also focuses on entrepreneurial activities with the canalization of remittances into tiendas de
barrio, alimentation services (small restaurants), confection studios, taxi’s and also houses. Though, this is in an initial
stage, because many families still not have overcome paying the first basic needs.
In Cliza during surveys with presidents of rural OTBs, migration was indicated as a major issue that causes
depopulation. Interesting examples to prevent emigration are the rural communities Jhochi Champa Rancho, Jhochi
Lavallen and Jhochi Lasero. These communities are inhabited by predominantly milk famers. All communities are located
close to the factory of ILVA (in Punata). The directives of these OTBs actively try to promote the commercialization of
milk with the establishment of milk producer organizations. Milk production is rather lucrative. This indirectly
discourages emigration, according to the presidents of the corresponding OTBs.
5.3
NGOs: plans and practices
In this section the plans and practices of NGOs related to international migration are discussed. In table
5.3 the involvement of the interviewed NGOs in migration issues are listed. During the interviews with
the personnel of the NGOs was asked how their plans and practices can be related to international
migration. When the respondents of the NGOs expounded that their plans and practices not directly are
related to international migration, was asked if they work with migrants and how. With these in-depth
questions it appeared that many NGOs work (indirectly) with migration issues. So it can be stated that
several NGOs work with international migrants or have plans and practices with international migration.
Table 5.3 Involvement of interviewed NGOs in migration issues
Municipality
NGO
Involvement in migration issues
Cochabamba
12. SNV
-Institutionalize ‘hot’ topics in departmental planning, among these
migration
13. Somos Sur
-Creating awareness about international migration
14. Acción Andina
-Research about migration
15. AMIBE
-Bolivian Spain connection
16. APDHC
-Legal mediation violation human rights migrants
17. Pastoral for the Humanity
-Relief for children of migrant parents
18. Global Humanitaria
19. CEADESC
20. Centre Vicente Cañas
-Relief centre for children of migrant parents, research about migration
and training canalization remittances
21. SOSFAIM
22. CIPCA
-Research about migration
Tarata
5. CODERTA
-Support investments remittances in rural development
6. Global Humanitaria
7. CETM
Relief centre for children of migrant parents
8. Medicos Mundi
The table continues on the next page.
96
Municipality
Cliza
NGO
4. Celim Bergamo
5. SOSFAIM
6. CIPCA
Punata
2. Celim Bergamo
Arani
3. PDA
4. IFFI
Totora
5. CESAT
6. Kaypacha
7. PCI
8. DESEC
Source: Fieldwork, 2009.
Involvement in migration issues
-Reintegration return migrants from Italy in milk industries
-Research about migration
-Reintegration return migrants from Italy in milk industries
-Creating entrepreneurial culture to avoid migration
-Integration of women migrants in development
-
In the table can be seen that more than half of all NGOs are involved in migration issues. In the city of
Cochabamba almost all NGOs are have activities related to international migration. For AMIBE, Centre
Vicente Cañas and CETM international migration is their core business. In the rural municipalities NGOs
their activities are more related to service delivery, human and rural development. Therefore these NGOs
have less room within their activities for migration issues. In 4.3 is analyzed that NGOs have positive and
negative perceptions about international migration. NGOs that perceive international migration as a
negative phenomenon have social relief programmes for victims. When it is perceived as positive NGOs
have more economic orientated programmes. So the initiatives that are related to international migration
are divided in social and economic planning and practices. Furthermore plans and practices in
cooperation with other local actors are discussed.
Social plans and practices related to international
migration
In the city of Cochabamba APDHC, Centre
Vicente Cañas, AMIBE and Pastoral for the
Humanity give legal mediation when human
rights of migrants are violated. APDHC works
with declarations of migrants or their families
that are maltreated abroad. APDHC’s negotiation
of Bolivian migrants in Russia that got exploited
was needed to make return to Bolivia possible.
The director of APDHC explains that is
necessary to lobby with the (inefficient working)
embassies and consulates for instance in Spain.
This in order to improve their capacities and
guarantee migrants’ rights abroad. APDHC
works in cooperation with the defence of
children and adolescents. Centre Vicente Cañas
organizes workshop with habitants from the
southern districts about international migration
and communal development. This is necessary to
make them aware of the negative and positive
side of international migration. In figure 5.5
neighbours act their experiences with
international migration in a workshop. From
these kind of workshops all neighbours can learn.
A programme of AMIBE aims at suppressing
non-productive spending of remittances of
adolescents (see 4.3.2). It appeared that migrant
Figure 5.5 Folder of Centre Vicente Cañas about international
migration and communal development
Source: Centre Vicente Cañas, 2009.
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children that use remittance to buy luxury goods leads to attitude problems. Especially between
remittances receivers and those that do not. The director of AMIBE mentions: ‘schools in the southern
districts asked us for help. Now we are working together with these schools to educate students to save
their received remittances’.
Also in Tarata the NGO CETM is directly involved in migration issues. CETM has a migrant
relief centre for children of migrant parents. Here children can be distracted from their miserable home
situation and do for instance their homework. CETM in addition gives legal assistance to organize family
reunification.
Economic plans and practices related to international migration
When international migration is perceived positively, NGOs have plans that are related to enhance the
positive economic impact. In 2008 AMIBE initiated a department for productive development and
remittances. AMIBE supports families that receive remittances and want to invert in Bolivia in a small
enterprise. Trainings and workshops are given to increase the productive capacities. These families are
assisted in formal and juridical procedures to initiate micro or small enterprises. A migrant family can get
support from AMIBE to make a business plan. Before they get support, with an interview is tested if the
family is a family that receives remittances. The input for a business plan and idea of a micro enterprise
comes from the migrant families themselves and is further developed with the support of AMIBE.
AMIBE in Cochabamba has organized already several seminars dedicated to productive development and
remittances. One of the seminars is called Autoempleo y creación de empresas con la utilización de tus
remesas83. These seminars are also a space to exchange experiences and ideas about micro enterprises.
Although AMIBE focuses on the Spain Bolivia connexion, also return migrants from other countries are
welcome.
Another programme of AMIBE are the temporary migrations to the fruit plantations in Cataluña
(in Spain). Every year 16 persons are contracted that leave Bolivia only for 5 or 6 months. The advantage
of this programme is the limited family disintegration and the savings. The temporary migrants that with
this programme have worked in Spain have for instance opened a chicken farm in Cochabamba.
In the rural municipalities also NGOs have economic plans and practices that are related to international
migration. In Tarata Global Humanitaria focuses on primary education, security of alimentation and
socio-economic development. To improve the socio-economic development, the production of corn,
corncobs and onion are fomented. To reach higher productions trainings are given about the preparation
of agricultural terrains and to commercialization. The respondent of Global Humanitaria comments not to
work with directly with international migration, though wants to improve the lives of the people in Tarata
and among these are migrant families.
The NGO CODERTA gives technical assistances to rural communities in Tarata via radio channel
Wiñay Kallpachaj. The NGO reaches 6022 families. Trainings are given about different topics, such as
irrigation, improvement of potable water systems and also (reproductive) health. CODERTA supports the
implementation of new technological agricultural systems. CODERTA signalizes a positive bias of
investments towards urban centres, especially since international migration has caused massive outflows
from the rural communities. The director of CODERTA notes: ‘we do not plan anything related directly
to international migration, though we try to influence migrant families to invert their remittances in
innovative systems for rural development’. The director of CODERTA sees that return migrants have
obtained more knowledge and sometimes implement innovative systems.
In Cliza and Punata (and Toko) recently works the NGO Celim Bergamo that positively perceives
international migration. The NGO supports the process of reinstallation of international migrants from
Bergamo. The support is given with workshops and trainings about micro enterprises. Celim Bergamo
works together with the (returned migrant) milk farmers and the company ILVA. Already some of the
return migrants are introduced to milk production. To reach more migrants in Cochabamba and Bergamo,
83
Translation: auto-employment and the creation of companies with the use of your remittances.
98
the chamber of commerce and services in both cities, have signed a convention to offer trainings and
workshops. The plans of Celim Bergamo are related to the C2C, but are still in an initial phase.
In Arani the NGO PDA works on making the economy productive and entrepreneurial. About
plans and practices with international migration, the respondent of PDA mentions the following: ‘when
we work on improving the quality of life of the habitants in Arani, we will indirectly prevent emigration’.
The activities of PDA that are related to create an entrepreneurial culture are interwoven with the
municipal plan de agents de cambio para una culura emprendedora. PDA works closely with the
municipal government, because the director of economic development also works at PDA.
Plans and practices in cooperation with other local actors
Some activities of NGOs related to international migration are in cooperation with local governments.
AMIBE, also the Pastoral for the Humanity and SNV intend to strengthen the implementation of
international migration in departmental municipal planning. A respondent of SNV explains: ‘we try to
strengthen institutional ties between the departmental public and private sector’. He adds: ‘this is
necessary to create more agricultural productivity that impact positively on local (economic)
development’.
Besides the municipal governments, also the private sector plays a role in the programmes of
NGOS. AMIBE in La Paz (that cooperates with AMIBE Cochabamba) works on signing a convenience
with a financial institution. PRODEM is most likely. This is useful, because migrant families can be
offered micro credits, especially when they have saved insufficient capital to start their micro enterprises.
Centre Vicente Cañas organizes workshops for migrant families (and others) about micro enterprises.
This is facilitated with the opening of many financial institutions in the southern districts, such as
PRODEM and Fie s.a. in Villa Pagador. This has lead to a more overall local economic development and
has created employment.
The NGOs CIPCA and Acción Andina (in cooperation with Centre Vicente Cañas) in the city of
Cochabamba have a research department and both started recently research about international migration
issues, in order to map international migrants in Bolivia. In addition the alternative information platform
Somos Sur intends to create awareness among policy makers, academics and inhabitants about
international migration in Cochabamba.
To conclude, the plans and practices also face problems, as indicated by the NGOs themselves. The
majority of the NGOs are dependent on external resources and work with internationally defined policies,
as for example Global Humanitaria. The respondent in Tarata comments: ‘by ourselves we cannot
introduce planning about international migration’. Furthermore AMIBE, SNV and PDA argue that it is
necessary to work in cooperation with municipal and departmental governments. But the three NGOs
explicate that there does not exist an ideal relationships between NGOs, governments and the private
sector. AMIBE designates another hinder: reaching the migrant families. The municipal governments
should promote the work of AMIBE, especially because governments have a wider reach. In this way,
migrants and their families can make easier use of their services.
5.4
Financial institutions: plans and practices
The plans and practices of financial institutions related to international migration are about remittances.
During the interviews with the respondents of the financial institutions were asked what they do with
remittances flows. In addition was questioned how these remittances contribute to their capital and how
they see remittances impact positively in local development. Interesting is to see if these financial
institutions intervene in remittances spending. During the fieldwork it appeared that financial institutions
influence international migration in other way than the other three actors, because financial institutions
have lucrative ends. The financial institutions are interested in capturing remittances. There are only
99
sporadic examples of financial institutes that try to influence the spending of remittances. In table 5.4 an
overview is given of the interviewed financial institutions categorized by type.
Table 5.4 Financial institutions categorized by type in the research municipalities
Type of financial institution Name
Municipalities
Bank
-Mercantil de Santa Cruz
-Cochabamba
-Banco Union
-Cochabamba
-Banco Nacional Bolivia
-Cochabamba
-Banco Ganadero
-Cochabamba
-Banco Sol
-Cochabamba, Punata
-Banco de los Andes ProCredit
-Cochabamba, Cliza, Punata
Saving and lending
-Cooperativo Inca Huasi
-Cochabamba
association
-Cooperativo CACEF
-Cochabamba
-Coop.San José de Punata
-Cliza and Punata
-Cooperative San Carlos Borromeo
-Cochabamba, Arani
-Cooperativo Concordia
-Totora
Private financial fund
-Fie s.a.
-Cochabamba
-PRODEM
-Cochabamba, Tarata, Cliza, Punata
Money transfer operator
-Money Gram
-Cochabamba, Tarata, Cliza, Punata , Totora
-Western Union and DHL
-Cochabamba, Tarata, Cliza, Punata Arani, Totora
-Bolivia MORE
-Cochabamba, Cliza, Punata
Mutual
-Promotora
-Cochabamba
Source: fieldwork, 2009.
Between the five types of financial institutions (table 5.4) the receiving of remittances differ in
importance. Large financial institutions depend less on the sending of remittances than intermediate and
small financial institutes. For instance 50 percent of the capital of saving and lending association CACEF
is constituted of remittances, while this is only approximate five percent of Mercantil de Santa Cruz.
Banco Sol notices variations between the behaviour of the clients in the city and Punata. For instance
those that receive remittance and live in Cochabamba prefer to save their money, while in Punata the
receivers of remittances are more tend to pick up their money directly. This causes differentiations of the
percentage of remittances contributing to the total capital of Banco Sol in Cochabamba and Punata.
Banks are the only financial institutions that can receive remittances by deposits with the SWIFT84 code.
To do an international money transfer both users need to have a bank account. Many Bolivians abroad
have an irregular status, so relatively few international money transfers via banks are made. Some
examples are the Banco Ganadero that receives deposits in Euros, mainly from Caixa Catalunya in Spain.
This bank charges low commission rates. Similar as deposits from the Standard Chartered Bank (US) on
savings accounts from Banco de los Andes. The latter obligates to open a saving account when an
international deposit is received.
Because of the importance of remittance in total purchase of the financial institutions, they started
working together with a MTO. A respondent of the CEPLAG confirms: ‘recently financial institutions
have observed the advantages of working together with a MTO, because of enormous remittances flows
send by giros’. Financial institutions ever since experience an increased capital accumulation, as already
explained in 4.3.1. Giros that are sent via a financial institution do contribute to an increased circulation
of capital. Beside the majority of the clients that receive a giro via an intermediating financial institution
open a savings account. So the financial institutions can offer more (micro) credits. Micro credits boost
the economy and create opportunities for local development (see box 5.2).
Many financial institutes indicate that due to the increase of remittances flows more capital
circulation is notable. In addition there is more trust in financial institutions. According to the respondent
of PRODEM in Punata before this was different: ‘people distrusted banks, due to the financial crisis with
hyperinflation of 33.000 percent in the 1980s’. The respondent adds: ‘recently more trust is created
because many financial institutions are opened in the urban centre of Punata. People prefer to save their
84
A SWIFT code is the international code of a bank and with a corresponding bank account number. This code is needed
when an international money transfer is done from one bank to another in different countries.
100
money in a bank instead of saving the money in their houses’. PRODEM experiences an increase in the
opening of saving accounts.
Interesting plans from Banco Union and Western Union that stimulate remittances sending have a
positive impact on the local economy. Since 2005 Banco Union offers the receivers of remittances
special credits for housing. The MTO Western Union attracts clients to improve its bargaining position
that was decreased by competition. The fees that are charged for money transfers from the United States
and Spain are twice as low as the fees of money transfers from another country. In August 2008 Western
Union started a lottery: all people that send remittances by Western Union, automatically participated in
the weekly lottery of 10.000 Bs and the same clients also participate in the monthly lottery of 50.000 Bs.
The respondent of Western Union in the city of Cochabamba remarks: ‘nuevamente vemos un incremento
en el numero de clientes que utilizan nuestros servicios’85. To prevent that the employees of Western
Union get unemployed due to the decreased amount of money transfers, they work together with DHL.
DHL is responsible for the money sending itself. The employees of the two companies can switch during
economic hardship.
Box 5.2 Rural financial institutions facilitate local development
Rural financial institutions have lucrative ends, though some of them contribute with their vision, planning and practices
to local development. The private financial fund PRODEM is always the first financial institution that opens an agency in
unbanked areas in Bolivia. As well in the research municipalities in Cliza and Tarata PRODEM was first. PRODEM has
the vision ´solamente cuando el cliente crece, PRODEM crece´ (only when the clients grows, PRODEM can grow). This
means that PRODEM, that first was an NGO, tries to attract clients to open a savings account and use micro credits.
Furthermore the key informant of PRODEM in Cliza indicated that ‘people in rural Bolivia feel fear to enter a bank and
therefore the personnel speaks Quechua. It is proved that this increases confidence among the rural population’.
Remittances contribute enormously to the increased capital accumulation of PRODEM. Therefore PRODEM has been
able to open more agencies in rural areas and probably will become a bank in December 2009. This can have consequence
for the role of PRODEM what most likely will become more lucrative.
Saving and lending association San José de Punata has the vision ´rico no es el que gana más; sino el que
ahorra´ (who saves is rich, not the one who earns most). This verifies that savings increase capital accumulation. The
clients of San José de Punata that receive remittances also save. These savings are used for credits for six purposes:
commerce, construction, transport, agricultural production, milk industries and payments of basic services. Long term
deposits are for retirement. Nowadays there is an increased interest in credits among the agricultural traders. They invest
in agricultural production, commerce, services and the construction of houses. This all contributes to local development in
Cliza and Punata.
Conclusively, the lucrative ends make clear why financial institutions could promote more
entrepreneurial investments with remittances, what might have caused more positive implications for
local development. Nevertheless these remittances have increased capital accumulation within the
financial institution. This has resulted in more utilization of micro credits that contributes to local
development.
5.5
Supra-local initiatives
During the fieldwork respondents of the departmental government and man-communities observed
several initiatives related to international migration at supra-local level. Although this study is not
specifically focussed on the higher administrative levels, the information that these informants gave is
worth to mention in this chapter. So the plans and practices at national, departmental and regional level
about international migration are elucidated in this section.
85
Translation: Newly we see an increase in the number of clients that use Western Union.
101
At national level the Central Bank of Bolivia (BCB) introduced in October 2007 a financial law about
remittances. A 1 percent tax is charged over an international money transfer larger than 1000 US$. This
law caused a reduction of remittances send by official financial channels. The respondent of the Banco
Nacional de Bolivia (BNB) in Cochabamba explicates that because of the decline of remittances BCB
decreased the tax percentage to 0.6 percent in January 2009. The reduction of the tax percentage has
newly enhanced remittances sending, as confirmed by the respondent of the BNB.
Furthermore at national level, the new political constitution of Bolivia was approved by a national
referendum in January 2009. The constitution is designed by MAS. This new political constitution has
the potential that to embed local economic development and probably also international migration. The
most eye-catching new content are more ethnical and territorial rights for the indigenous and original
farmers. Moreover the new constitution creates more autonomy for the nine departments and regions in
Bolivia. This means that the department of Cochabamba and the man-communities (figure 5.6) gets more
influence in policy making. According to the respondent of AMDECO ‘the man-communities are an
interesting example of bundling powers’. The respondent of the man-community el Caine explains: ‘as
mancomunidad we can tackle climatological threats, because we construct inter-municipal irrigation
systems’. The director of man-community Andina states something similar: ‘we prevent the degradation
of soils along the river Arque that flows trough all municipalities of the man-community’. The
municipalities in Valle Alto face a problem that could be solved by a supra-local institution or
government. The construction of irrigation systems is extremely necessary in Valle Alto, but financial
budget lacks (see tables 111.2-6, appendix 3). For one municipality the costs are between US$ 500.000800.000, according to the mayor of Cliza. He mentions that it is a less expensive solution to construct of
a dam to create an artificial lake in the municipality of Toko. This lake can serve as a water reservoir that
can be used by farmers in Valle Alto, especially in Cliza, Toko y Tolata. But the plan of the construction
of the dam still has to be approved by the national government, because supra-local budget is necessary.
The man-communities have more financial recourses available. Though the director of the mancommunity Cono Sur comments: ‘we receive more resources, but it is still not enough to complete all
activities in our development plan’.
Furthermore the new constitutions facilitates that municipal governments are able to raise taxes,
what will increase their budgets. Municipal governments are enabled to establish Centres for trainings,
workshops and investigation. The formation of public private partnerships (PPP) is supported. The
respondent of AMDECO explains: ‘these PPPs make it easier for municipalities to create an attractive
bargain position in the market for private initiatives’. A municipal staff member in Cliza enthusiastically
tells: ‘with the new constitution, we are permitted to establish companies. In Cliza this will creates
opportunities to set up more meat and fruit companies’. The director of AMIBE adds: ‘PPPs are needed
to create an entrepreneurial culture’. These PPPs will lead to mutual wins for the municipalities and for
the private initiatives. This will finally generate more economic development.
On the other hand also some negative aspects can be identified with the implementation of the new
political constitution, according to various respondents. The new constitution still needs to get approved
its approximately 300 laws. Due to bureaucracy the average time to approve a law is two years. The
respondent of NGO CEADESC explains: ‘it will take at least several years until the constitution will
function well in practice’. If MAS can obtain 2/3 of the votes in the national election of December 2009,
it will be easier to approve these new laws. Another problem can be that the new constitution can
increase the polarization of the country. Polarization between the four occidental departments (Santa
Cruz, Beni, Pando and Tarija) that voted against the new constitution and the other department that voted
in favour.
Despite of the several negative aspects, the new political constitution has the potentials. The
departmental government, the man-communities and the municipal government will take more initiatives
and responsibilities over their budget and their planning. International migration is an issue and likewise
can be easier be implemented in planning and programming.
102
Figure 5.6
Source: van den Bogaardt, fieldwork, 2009.
Moreover, at national level from the civil society also initiatives are taken related to international
migration. In Bolivia, also in Cochabamba, AMIBE organized the first feria de migraciones in December
2008. The director of AMIBE called the first feria de migraciones a success. Many persons got informed
about the economic opportunities with the use of remittances and also about human rights of migrants
abroad. The feria de migraciones is organized because 18 December is the ‘day of the international
migrant’ that is established by the United Nations.
Another interesting example of embedding international migration at national level is the mesa
técnica de migraciones (migration platform). Productive economic development is discussed, but social
and juridical issues are the hot topics. This platform does exist because of cooperation and assemblies of
various institutions that discuss migration issues. According to the respondent of Acción Andina this
migration platform has an important stake in juridical issues at the national level. He hopes that the
influence of the platform soon will expand to remittances and local development policies at national
level.
Furthermore international migration recently gets embedded in the academic world. In
Cochabamba CESU, CEPLAG, CEP, Hinojosa and de la Torre are an important lobby within policy
recommendations about international migration. Hinojosa comments: ‘the cochabambinos belong to the
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habitus migratorio Andino’. He adds: ‘therefore international migration should be implemented in policy
making’. De la Torre has a similar remark: ‘we as academics have to make policy makers aware of the
importance of international migration in daily lives of habitants in the department of Cochabamba’.
To conclude also at national and regional level several plans and practices can be related to international
migration. The tax over the remittances send to Bolivia paradoxically has resulted in a reverse effect,
though recently the lowering of the tax seems to have a positive impact. The new political constitutions
still has to function adequately, however has the potential to embed more competitive economic plans.
This creates a prospective for productive economic development plans related to remittances, especially
at the regional level of man-communities. In addition the migration platform and the feria de
migraciones create opportunities for local development.
5.6
Implications for local development
The plans and best practices of international migration embedded in governance structures have
implications for local development. In this section the outcomes of these plans and practices that impact
on local development are analyzed (5.6.1). Also the implications for local development are analyzed with
the use of financial remittances (5.6.2). At the end of this section the ‘boom’ in the construction sector is
portrayed (5.6.3).
5.6.1 Outcomes of plans and practices local actors
Here the most important positive outcomes of the plans and practices are presented. Only the most
important outcomes are presented in this section, because during the presentation of these plans and
practices (5.1-5.5) already some outcomes were given. Though there are some outcomes of the plans and
practices that have specific implications for local development. These outcomes are structured per social
and economic impact on local development.
Social impact on local development
The defence of children and adolescents has planning that aims at preventing the negative impact of
international migration. According to municipal staff and presidents of OTBs in Cliza it is proven that the
two television programmes (see 5.1.1) have a significant impact on local development. A municipal staff
member proudly comments: ‘cliceños are more aware of the negative consequences of international
migration’. He adds: ‘and more conscience is created about productive investments’.
NGOs that work with migrants that suffer from family disintegration, can improve victims’
situations in the relief centres of CETM, Centre Vicente Cañas and the Pastoral for the Humanity. This
positive impact is hard to measure, but respondents state that these centres support migrant families. The
respondent of CETM notes: ‘the children that visit the centre again have hope to see their parents soon’.
Economic impact on local development
AMIBE is a pioneer in the field of giving support to migrant families to invert remittances into a micro
enterprise. In the year 2008 the programme attracted 615 families that attend workshops and trainings, 50
persons asked for support of AMIBE and 20 business plans were made. The director of the department
for productive development proudly tells: ‘in the first year of the programme is has been a success to help
migrant families with business plans’. She continues: ‘in the first months of 2009 we see already an
increase of migrant families that get informed about productive development’. AMIBE and ACOBE are
editing the Guía de Inversión Productiva (Guide for Productive Investments) that will be released
December 2009.
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The employment generating activities of the municipality of Cochabamba and Cliza (see 5.1.1) also
impact positively on local development. The C2C cooperation between Cochabamba and Bergamo and
the activities of the NGO Celim Bergamo are still in an initial phase. Though, according to the
respondent of Celim Bergamo, is measured that more return migrants have become aware of autoemployment, instead of working in the informal commercial sector. Also the programme Ingresa al
mundo del trabajo has created employment opportunities. Since the introduction in 2006 the programme
has presented over 6000 recent graduated high school students to a company to do technical traineeships.
83 percent of these recent graduated got offered a job in the company where they did their practical
traineeship. In addition also the international fair of Cochabamba, FEICOBOL generates employment.
The fair every year grows in numbers of international participants and visitors. At the fair companies can
negotiate, firm convents, form strategic alliance and create a network of clients. The director of the
chamber of commerce and services comments: ‘the organization of fairs is extremely important for the
departmental economy. FEICOBOL generates annually between 1000 and 1500 jobs’. He adds:
‘companies can at the fair search for new internal and external markets’.
In Cliza the construction of public projects generates employment. For instance the perforation of
water puts in the rural communities in Cliza increases the harvest frequency. Now, instead of once, twice
a year can be harvested. Another interesting example is the plantation of 1000 apple trees in 2007. Valle
Alto is traditionally the region of peaches. But the peaches are more vulnerable for insects than apple
trees that need fewer pesticides. The apples from Cliza are cheaper than the import apples from
Argentina and Chile. So apples have increased the economic welfare among farmers in Cliza. The mayor
of Cliza proudly comments: ‘in this second year of harvest, many farmers in Cliza could improve their
living’. He adds: ‘so it can be concluded that the apple business is lucrative’. Additionally the promotion
of the use of micro credits gives an extra impulse to agricultural production. This is done by the
municipality of Cliza and should be an example for other municipalities.
Financial institutions work together with MTOs in order to receive more giros that contribute to capital
circulation. This process has facilitated financial institutions to offer more (micro) credits that create
opportunities for local development. The respondent of Banco de los Andes explains: ‘the receiving of
remittances and the migrant families that open savings accounts have increased capital capitulation in
Banco de los Andes’. About Punata he tells the following: ‘the increase in the number of saving accounts
facilitated us to given more micro credits to families that want to start a small enterprise’. He continues:
‘this has helped developing the local economy of Punata, because there is a high demand of credits for
especially agricultural production’.
To conclude, there are several plans that have positive implications for local development. The
programmes of AMIBE, the employment creating activities of local governments and financial
institutions create opportunities for local development.
5.6.2 Impact of remittances on local development
In this section is analyzed how remittances actually are inverted and if remittances contribute to the
creation of possibilities for local development. In table 5.5 an overview is given about the characteristics
of remittances send to the families in the research municipalities. The table is based on the information
that the presidents of the OTBs gave during the survey.
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Table 5.5 Characteristics of remittances send to families in the research municipalities
Municipality
Families receive Use financial
Rise economic
What kind of economic activities?
remittances
institutions
activities observed
Cochabamba
80 %
76 %
35 % Micro enterprises, construction, terrains
Tarata
100 %
25 %
50 % Construction, terrains
Cliza
93 %
58 %
50 % Micro enterprises, construction, terrains
Punata
100 %
60 %
17 % Micro enterprises, construction, terrains
Arani
94 %
35 %
22 % Agriculture, terrains
Totora
67 %
63 %
44 % Agriculture, terrains
Source: Survey OTBs, fieldwork, 2009.
The presidents of the surveyed OTBs in the municipality of Cochabamba identify that approximately 80
percent of the families that have a family member abroad receive remittances. 75 percent of these
families that receive remittance make use of financial services, as shown in table 5.4. Probably this
percentage is higher, but immeasurable because of unofficial money transfers. This is prospected by
presidents of OTBs and the staff of financial institutions. According to key informants of municipal
governments, presidents of OTBs, NGOs and financial institutions remittances are primarily used for
basic needs and daily expenditure, such as alimentation. Secondly, remittances are utilized for the
construction of a house and a vehicle and thirdly for education.
Productive investments in micro enterprises are poorly observed and even worse in basic services,
according to the survey. Micro enterprises opened with remittances in the urban areas are mostly small
restaurants or a tienda de barrio. Examples of returned migrants that initiated micro enterprises are in
district 14, 8 and in some rural communities (see box 5.3). Several municipal staff members in the rural
municipalities comment about the investments with remittances. These are used to invert in vehicles,
terrains, housing and agricultural activities (e.g. seeds, fertilizers, stock, tractors). A municipal staff
member in Cliza adds: ‘terrains are preferably acquired along a main road, to facilitate commercialization
of the agricultural products’.
Interesting is that gender distinguishes spending what is culturally determined, as all respondents
observe. Women prefer to invert in daily spending, alimentation, education of children, cultural
celebrations and health. Men are more tended to invert in the construction of a house and productive
investments, such as a micro enterprise.
The last decade and specifically the last couple of year the enormous increase in transport modalities
deserves special attention. The development of the transport sector is a focus areas of many local
governments (see table 5.1). But the recent increase is foremost caused by the migrant families that invest
in a taxi, micro bus, bus, truck or tractor. In the city of Cochabamba the increase is observed in new
founded taxi trufi lines between neighbourhoods within the city. The impact in all rural municipalities is
even more obvious. For instance Cliza today counts ten different transport syndicates (type of
organization). All have over 150 taxis affiliated. These taxis drive between Cliza and Cochabamba,
Punata, other surrounding municipalities and its rural communities. In the other municipalities similar
patterns are observed. In Totora in May 2009 the second transport syndicate was opened (both more than
100 taxis affiliated). These taxis drive all day, at all times between Totora and Cochabamba. These taxis
have decreased the relative time with public transport of only 2 hours and 45 minutes for only 15 Bs.
Before the existence of these taxi lines farmers had to walk or travel with trucks to the urban
centres to sell their products at the local markets. The director of the man-community Cono Sur observes
that: ‘migrant families are inverting in tractors to improve their agricultural production or buy a bus or a
truck for large distance transport’. In Tarata a municipal staff member is proud about the increase of
transportation modalities: ‘gracias al incremento de los taxis; así los campesinos pueden vender sus
productos en las ferias semanales de Punata, Cliza y Arani’86. The transport modalities increase
accessibility and commercialization of agricultural production. The NGO CESAT in Totora remarks that
86
Translation: Thanks to the increase of transport modalities (mainly taxis) farmers can sell their products at the weekly
markets in Punata, Cliza and Arani.
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transport for many farming families has become economic activity number one: ‘families that have
bought a taxi earn more with transport than with agricultural activities’. Some taxi drivers comment that
the competition has increased between the various transport syndicates. And taxi drivers in Punata are
frustrated with the taxi drivers of Arani that ‘steal’ Punata’s passengers. To reach Arani, Punata is
crossed.
Besides taxis also an increase in tractors is observed. Owners of tractors rent their services to
other farmers what costs 80 Bs. per hour, according to presidents of rural OTBs in various municipalities.
Thus farmers can profit more of their soils, what enhances agricultural production and incomes.
Box 5.3 Entrepreneurial migrants in places of origin
District 14, by its habitants called Villa Sabastian Pegador, does not look like a neighbourhood of the city of Cochabamba.
It looks more as a village on the southern slopes of the city. From this place you have an incredible panoramic view over
the city. In Villa Pegador the people speak Ayamará and originate from the mining centers in Oruro. A respondent of the
U.M.S.S. that did anthropological research in district 14 explains: ‘many children forget how to speak the original
language of the altiplano, because they are the second generation’. Many of the inhabitants later immigrated to Buenos
Aires. They worked in confection industries and learned a new profession; sewing and designing. Today this can be
observed in the district where many return migrants have opened confection studios. The return migrants have saved
capital to initiate entrepreneurial activities in their places of origin. Recently conflicts exist between the Bolivian
confection manufacturers and the imported second hand clothes from the United States. The national manufactured
products can not compete against the cheap second hand clothes. Consequently the confection studios experience fewer
sales. Albeit the problems between the in Bolivia manufactured goods and the second hand imported products, the
municipal government of Cochabamba foments textile and leather sectors (as well wood and alimentation).
OTB Nueva Veracruz is a very poor developed neighbourhood in the poorest district 8. Here have 15 percent of
all families a member abroad. Nonetheless some neighbours have managed to open tiendas de barrio, technical
workplaces and small companies that produce construction materials (wood and metal). This has created employment for
the population living in the OTB. The opening of a financial agency in the neighbourhood has accelerated the process.
This is a lowered threshold to receive remittances and the use of micro credits. In Nueva Veracruz, micro enterprises and
communal development are promoted by the directives. In OTB Mineros de San Juan (district 8) 24 percent of all families
have family members abroad. Here the directives of the OTB support the construction of basic services. Principally
women in this neighbourhood creatively constructed the sewer in working shifts. In OTB Lomas de Santa Barbara (district
8) another process is observed: circularly migration between the OTB and the rural original areas. Remittances are used
for investments in the construction of houses, but also to buy terrains in the rural areas of origin.
Many rural families that receive remittance prefer to invest in the city (as explained in 4.3.2). Though, some
positive examples are seen in common investments in rural communities in Cliza, Punata and Arani. This is observed by
presidents of the corresponding OTBs. In OTB Santa Lucía (Cliza) migrants have sent money to construct a school and
bought writing machines. In the urban centre of Punata, migrants from the United States donated computers, a public clock
for the central plaza and medical equipments for the hospital in Punata. In OTB Villa Carmen (Arani) a family with an
abroad saved capital initiated a large pork farm. This has become the most important pork centre in the region. In OTB
Catachilla (Arani) farmers that receive remittances have boosted the production of Tara (used for the preparation of
leather).
International migration, remittances, plans about international migration and the presence of financial
institutions have propelled more economic movement, primary in construction, transport and agriculture.
Nonetheless, the rural municipalities face, as already indicated in 4.3.2, an urban bias in investments.
Also the lack of financial institutions explains the low levels of entrepreneurial activities that can create
opportunities for development.
5.6.3 The construction ‘boom’
The construction of houses by families that receive remittances is a frequent practiced phenomenon.
Observations in the city of Cochabamba and Valle Alto, interviews and surveys with key informants
confirm the ‘boom’. Many respondents mention that all emigrants leave with the idea to earn and save
money abroad for the construction of a house. The director of AMIBE notes: ‘the immediate mind setting
107
of many cochabambinos explains that the construction of a house is the first interest’. She adds: ‘thinking
about employment opportunities (guarantee for the longer term) is poorly considered’.
In the rural communities it striking to see the sharp differences between the traditional one-floor
adobe houses and the large houses constructed with remittances. These chalets are constructed with brick
and are similar to the South European terracotta painted houses (figure 5.7). The increase of the
construction of houses impacts both positive and negative.
Figure 5.7 A sharp contrast: A traditional house of adobe and a house of brick (still unfinished); this is district 9
Source: van den Bogaardt, fieldwork, 2009.
The positive impact is the generated employment in the construction sector. New construction material
businesses emerge rapidly. These companies produce and work for instance with iron, cement and other
construction materials. This has caused major economic movement in the production chain of
construction materials. The respondent of the chamber of construction observes: ‘the prices of houses,
construction materials and terrains the last three years have increased 400 percent, due to the high
demand’. The mutual Promotora gives for 80 percent credits to housing confirms the growth of the
sector. Its capital increased the last seven years from US$ 10 million to US$ 32 million. This is caused by
international migration, according to the respondent of the Promotora. Also the municipal incomes have
increased by taxes raise (e.g. patents, authorizations and legalizations of terrains and constructions).
Besides the positive impacts on the construction sector there are also negative effects. Inequality
increases between those that can and cannot afford a house. By example in Arani and Totora in
comparison with other municipalities, the construction sector has not experienced a similar development
(figure 5.8). In the urban centre of Totora constructions with brick of various floors is prohibited, because
of its patrimonial cultural heritage. Only in some urbanizations that surround the urban centre, nontraditional houses are constructed.
The director of the department of Figure 5.8 Observations of presidents of OTBs about
economic development in Arani is the construction of houses since international migration*
concerned about the rapid increase of the
construction of houses: ‘farmers that
construct a houses on fertile agricultural
soils’. This also shows that families that
receive remittances prefer to invest in the
construction of a house, instead of
entrepreneurial activities. The director of
productive economic development and
natural resource management in Cliza adds:
‘Another problem with the construction of
houses along the old highway to Santa Cruz
in Valle Alto (figure 5.9) is the lack of
construction of basic services, such as a
sewer, potable water and telephone lines’. In Source: Survey OTBs, fieldwork, 2009. *Non-response left out.
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the southern districts of the city of Cochabamba the same problems are identified, according to presidents
of OTBs. Only during an interview with a staff member of sub-municipality Valle Hermoso is identified
that very few persons also think about improvements around the constructed houses. This can be
pavements that can benefit the neighbours. Presidents of OTBs observe that the migrant families argue
that the construction of basic services should be realized with the funds of the LPP. Thus these families
are somewhat individualistic and do not feel responsible to realize basic services in their neighbourhood.
Figure 5.9 Euro huasis87 along the highway to Cliza
Source: van den Bogaardt, fieldwork, 2009.
The recent construction ‘boom’ is explainable with the migrant families that construct houses. Although
these families are not the only ones that give impulses to the sector, also drug traffickers. Several key
informants spoke openly about the issue. The respondent of the chamber of construction remarks: ‘no
solamente las familias de migrantes construyen casas, también los narcotraficantes’88. The respondent of
the Promotora emphasizes that in the construction sector: ‘no tenemos que ignorer los
narcotraficantes’89. Also the researchers at CEPLAG acknowledge that besides international migration
also drug trafficking has increased the construction of houses. The increase of drug trafficking is
explainable by the recently renewed attention for the production of coca of MAS. Simultaneously also
the underground production of cocaine gets a new impulse. The municipal counsellor of Cochabamba
mentions: ‘in Cochabamba employment opportunities nowadays are find in commerce and drug
trafficking’. The respondent of the man-community of the tropics confirms: ‘los últimos años el gobierno
fomenta la cultivación de la hoja de coca. Es para la comercialización de varios tipos de productos que
contienen coca (por ejemplo alimentación). Pero no olvidamos que el narcotráfico de la cocaína es más
lucrativo’90.
5.7
Summary and conclusion
In this chapter the embeddedness of international migration is analyzed. In table 5.6 the plans and
practices of the four local actors are characterized with plusses and minus.
87
Houses constructed with European remittances. Huasi means house in Quechua.
Translation: Not only migrant families construct houses, also drug traffickers.
89
Translation: We cannot ignore the drug traffickers.
90
Translation: The last couple of years the national government foments the cultivation of coca. This is for the
commercialization of various products that contain coca (e.g. alimentation). But we should not forget that the production and
drug trafficking of cocaine is more lucrative.
88
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Table 5.6 Summary local actors’ best practices embedding international migration
Municipality
Local governments
OTBs
NGOs
Cochabamba
+
+/++
Tarata
+
Cliza
+
+/+
Punata
+
Arani
+/+/Totora
Source: fieldwork, 2009.
Financial institutions
+
+
+
-
Looking at the table in one glance the urban bias of plans and practices of international migration can be
observed. Furthermore in the table clearly can be seen that NGOs have the most developed plans and
practices. The municipality of Totora completely lacks embedding of international migration in
governance structures. The absence of this embedding can be elucidated with the importance of basic
service delivery in the rural municipalities, bureaucratic constraints and low levels of human capacities.
The plusses in column of the municipalities refer to the activities of the municipal government in
Cochabamba and Cliza. The municipal government of Cochabamba positively influences the impact of
international migration on local development with the C2C cooperation, la casa del migrante, the
defence of children and adolescents and employment programmes. In Cliza the awarded mini-series of
the defence of children and adolescents impact positively on social development. The plus/minus symbol
in the table for Arani denotes to creation of the entrepreneurial culture that can generate employment
opportunities. In the other municipalities the staff has not designed any plans about international
migration.
The two plus/minus symbols in the OTB column consign to the few OTBs in Cochabamba and
Cliza that try to prevent emigration. In the other municipalities are no any OTBs that have practices with
international migration.
The column of the NGOs shows many plusses that indicate a successful embedding of
international migration in the civil society structures. The two plusses in Cochabamba consign to AMIBE
and Centre Vicente Cañas that consider international migration as their core business. Furthermore many
other NGOs are (indirectly) related to international migration issues, such as Pastoral for the Humanity,
Somos Sur, APDHC, Acción Andina and CIPCA. In the other municipalities the plus refers in Tarata to
CETM and in Cliza and Punata to Celim Bergamo. The plus/minus symbol in Arani refers to PDA, that
similar as the municipal government, intends to create an entrepreneurial culture.
The plusses in the column of the financial institutions denote to remittances sending that
contributes to more capital circulation in Cochabamba, Cliza and Punata.
Several plans and practices of the local actors have a positive impact for local development. These are the
productive department of AMIBE, the employment generating activities and the financial institutions that
with the receiving of remittances have created more capital accumulation. However, the impact on local
development is best measured with the ‘boom’ in the construction and transport sectors. So it is striking
that international migration and local development have a rather direct causal relationship, instead of the
plans and practices that intervene in the international migration and local development nexus.
Though, local actors slowly get more influence on international migration issues that can create
opportunities for local development, especially in the urban areas. For instance the new political
constitution is a framework wherein local actors get more room for initiatives. The new political
constitution creates opportunities to make migrant families aware of remittances as a potential to generate
local economic development. The most important challenge is the cooperation between all local actors, in
order to create an entrepreneurial culture. The interviews with municipal staff members in Cochabamba
prove that they have the desire to create an entrepreneurial culture. Nevertheless, this is only possible
when all local actors should stop arguing that other actors (e.g. the national government) are responsible
for migration issues.
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6. Conclusion and discussion
This study analyzes how plans and practices about international migration are embedded in governance
structures and what kind of implication this has for local development. This last concluding chapter has
the purpose to first give a summary of background and research objectives (6.1). Then the main research
findings are discussed (6.2). At the end of this final chapter, the results of this study are discussed in the
light of academic debate. Finally the relevant findings result in policy recommendations for embedding
international migration in plans and practices of local actors (6.3).
6.1
Summary of the research background and objectives
International migration is a hot topic within the contemporary development debate. The last decades the
process of globalization has accelerated the process of international migration. The numbers of
international migrants, especially labour, have doubled and even tripled, particularly in a south-north
direction. One of the most discussed issues in the current debate about international migration is the
concept of transnationalism. Transnationalism refers to the ties that the migrant maintains with their
country of origin. The most important ties are the remittances. Remittances are the most substantial
north-south money flows that by the migrant directly are sent to their relatives in the place of origin.
Remittances can accelerate economic growth, raise income levels, create employment, are recognised as
a catalyst for poverty alleviation and can create multiplier effects. Nonetheless, remittances can also
cause financial dependency and negative psycho-social effects. Consequently the impact of international
migration on local development is context specific. In addition, the interference of actors also determines
the impact of international migration on local development. In decentralized countries in the south local
actors have obtained more influence in policy making that can result in good local governance. The
influence of local actors in governance structures can positively influence the international migration and
local development nexus. Examples are the Philippine and the Mexican governments that respectively
introduced special tax regimes for remittances and a matching grant programme (Tres por Uno). The
latter is a programme that triplicates collective remittances for local projects, sent by mostly Home Town
Associations (HTAs). These examples are successful tools for local development, but unfortunately not
free from corruption. Furthermore local governments can face problems with the participation within
development programmes, such as the Tres por Uno, because of administrative burdens. Despite of some
complications, the level of involvement of local actors (e.g. local governments, civil society, the private
sector) in international migration issues is important in enabling local development - as discussed in
chapter 1.
Bolivia, one of the poorest countries in Latin America, is one of these countries in the south that
has massive outflows of international migrants that occupy low skilled economic activities in countries
such as the Argentina and Spain. These international migrants send remittances to Bolivia that contribute
for almost 10 percent share of the national GDP. These remittances create a more stable income source
for households and also create opportunities for development at the local level. However, remittances
send to Bolivia are more used for consumption purposes and create financial dependency and negative
psycho-social effects. The department of Cochabamba experiences one of the highest outflows of
international migrants. International migration in Cochabamba has both a positive impact (e.g.
construction of irrigation systems with remittances) and a negative impact (e.g. economic crisis) - as
analyzed in chapter 2.
Bolivia is highly decentralized and this context facilitates a research about the experiences, perceptions,
plans and practices of local actors with international migration department Cochabamba. The local actors
included in this research are the local governments, Organizaciones Territorial de Base (OTBs), NGOs
and the private sector. In chapter 3 the research objectives are formulated in order to understand the
111
embedding of plans and practices and its implications for local development in the department of
Cochabamba. Therefore a central research question and six sub research questions were formulated:
How is international migration embedded in local governance structures and what are the implications
for local development in de department of Cochabamba in Bolivia?
7. What are the main characteristics of the local actors in governance structures in the department of
Cochabamba?
8. What are the experiences, perceptions, plans and practices of local governments in the department of
Cochabamba with regard to international migration and local development?
9. What are the experiences, perceptions and practices of the OTBs in the department of Cochabamba
with regard to international migration and local development?
10. What are the experiences, perceptions, plans and practices of NGOs in the department of
Cochabamba with regard to international migration and local development?
11. What are the experiences, perceptions, plans and practices of financial institutions in the department
of Cochabamba with regard to remittances and local development?
12. What are the differences between the municipalities in the department of Cochabamba concerning the
international migration and local development? And how can these differences be explained?
To find answers to the research questions, the study was carried out in six municipalities: Cochabamba,
Tarata, Cliza, Punata, Arani and Totora. All municipalities have in common that international migration
is embedded in daily life. The research municipalities are compared on their spatial and geographical and
socio-economic context. The city of Cochabamba, as capital of the department, has a quite flourishing
services and commerce sector, but also high social and economic inequality rates. This study is focussed
on the poorer southern districts in the city. The rural municipalities are more depended on agricultural
activities, although Cliza and Punata have a quite diversified economy (services and commerce).
During the fieldwork the four main actors in governance structures were asked about their experiences
and perceptions about international migration. Furthermore was discussed of the existing plans and
practices of these actors have elements about international migration, and if these plans create
opportunities for local development.
6.2 The differentiated embedding of international migration in governance
structures
The first sub research question gives an overview of the main characteristics of the local actors in
governance structures - discussed in section 4.1. The six research municipalities have different
institutional frameworks. The municipal government in the city of Cochabamba has more human,
financial and technical capacities than the rural municipalities. The municipalities of Tarata and Punata
are politically unstable with mayors that frequently succeed each other. The OTBs in the six
municipalities show similar characteristics, because all are concerned with the execution of plans predescribed in the POA. The presence and activities of NGOs differ per research municipality. NGOs are
more concentrated in the city of Cochabamba, where they have their main offices. Furthermore NGOs
are active in the poor rural municipalities, as observed in Tarata, Arani and Totora, where the NGOs
work in service delivery and rural development. This explains the small number of NGOs in Cliza and
Punata that are rather developed rural municipalities. Financial institutions, conversely, are established in
the more developed municipalities; Cochabamba, Cliza and Punata. Financial institutions have lucrative
ends and in the rather developed municipalities are more opportunities to attract clients, while in the poor
rural municipalities these possibilities lack, as in Tarata and Arani.
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The second until fifth sub research questions are about the experiences, perceptions, plans and practices
of the four local actors with regard to international migration, remittances and local development. The
answers to these four questions are divided over chapter 4 and 5: the experiences and perceptions are
discussed in sections 4.2 and 4.3. The plans and practices are analyzed in chapter 5.
The experiences have measured to what extent the local actors are confronted with international
migration issues. The four local actors in the six research municipalities have different experiences with
international migration, albeit also similarities can be observed. Local governments experience
international migration as a loss of their population. In the municipality of Cochabamba the last decade
many inhabitants of the peripheral southern districts have immigrated to Spain. In Cliza, Punata and
Arani similar migration patterns are observed. From Tarata in the 1980s (educational) migration was
directed to the United States. The poor rural municipality of Totora experiences more circular internal
migration towards cities, because of lacking start capitals to migrate far away. The presidents of the
OTBs know about the number of families that have a family member abroad and how remittances are
spent and/ or invested in their neighbourhoods or communities. In the rural OTBs (e.g. Arani, Totora)
presidents experience an urban bias of the investments with remittances, because migrant families from
rural communities prefer to construct their house in the southern districts of the city of Cochabamba.
Among the NGOs in the research municipalities, two have international migration as their core business
(AMIBE and Centre Vicente Cañas) and other NGOs are in lesser extent confronted with international
migration. Financial institutions in Cochabamba, Punata and Cliza are concerned about capturing
remittances.
All local actors perceive international migration both as a positive and negative process. Both perceptions
are inextricably interlinked with each other. Families become disintegrated, though their economic
welfare is enhanced by the sending of remittances. Local governments are concerned about the negative
impact and attend the victims at the defence of children and adolescents. Local governments pay less
attention to the positive impact, because they are engaged in other activities, instead of intervening in
remittances spending. OTBs perceive international migration as an individual process, especially the
spending of remittances. OTBs see family disintegration as negative process, because in their
neighbourhoods this causes violence and alcohol and drug abuse among the abandoned children and
adolescents of migrant parents. Nevertheless, OTBs perceive the construction of houses as positive
process, since this increases the status and proud feelings among the population in the neighbourhood or
community. NGOs working with human rights and human development perceive international migration
as a negative phenomenon, because these NGOs attend the victims of mainly family disintegration.
NGOs focussing on economic development perceive international migration as positive, because these
NGOs intend to create awareness among migrant families and return migrants to invest remittances in an
entrepreneurial way. Financial institutions perceive the receiving of remittances as positive, because
these enhance their capitals. Though, recently the financial economic crisis directly decreases the
remittances flows, what is obviously seen as negative.
The perceptions of the local actors about international migration influence decision making of the
implementation of plans about international migration.
The perceived negative impact of local governments explains the practices to intend to prevent
emigration. An example is the television series of the defence of children and adolescents in Cliza that
won an international recognition of the World Bank. The perceived positive impact of local governments
about international migration has created programmes that impact positively on social and economic
development. Examples are the C2C cooperation, la casa del migrante and employment programmes in
the municipality of Cochabamba. OTBs do not aim at implementing plans; though neither do something
with emigration flows. The OTBs’ perception about international migration as an individual process
explains that OTBs do not take part in controlling migration issues. NGOs (CETM, the Pastoral for the
Humanity, migration platform) have the most developed plans and practices about decreasing the
113
negative impact of international migration with migrant relief centres. Some other NGOs (AMIBE,
Centre Vicente Cañas, Celim Bergamo) enhance the positive impact on local development with
workshops and trainings about investing remittances in entrepreneurial activities. Financial institutions
work together with MTOs to attract remittances. Financial institutions promote the saving of remittances
and can utilize these savings for micro credits. Remittances and micro credits contribute to more capital
circulation within the financial institutions and among the clients and this finally results to local
development.
The last sub research question is about the differences between the six research municipalities,
concerning international migration and local development. International migration is more embedded in
local governance structure of the city of Cochabamba, than in the rural municipalities. The differences in
the geographical context, socio-economic context and institutional framework explain that only some
municipalities (Cochabamba and less extent Cliza) have an enabling environment to embed migration
issues in plans. The most important constraint is that local actors still have to overcome basic service
delivery in poor rural municipalities (Tarata, Arani and Totora) and in the poor southern districts in the
city of Cochabamba. Moreover in the rural municipalities is less qualified staff to make for instance
adequate planning (e.g. PDMs and POAs). Furthermore the small number of NGOs in Cliza, Punata and
Arani and financial institutions in Tarata and Arani also explain the low levels of embedding. In addition
the political unstable municipalities of Tarata and Punata do not have an enabling environment to embed
international migration. Finally in the research municipalities is little cooperation between the four local
actors. This constraints interaction between the local actors what could positively influence the impact of
international migration on local development.
Finally the central research question can be answered: the embedding of international migration in local
governance structures is in an initial phase and has an urban biased character. NGOs and in lesser extent
some local governments have several plans and practices related to international migration, especially in
the municipality of Cochabamba. Other local actors almost completely lack planning about international
migration and therefore the embedding can be characterized as initial. The impact on local development
is differentiated, because the existing plans and practices aim at migrant families to invert remittances
productively, however only a small numbers of families is reached with these programmes. Besides,
international migration impacts directly on local development, without intervention of local actors. To
conclude, in the urban areas remittances contribute to local development, especially in the construction
and transport sector, while migrant families in the rural municipalities invest in urban environments.
In certain extend it is somehow odd that international migration is hardly embedded in
governance structures, because the phenomenon itself is completely embedded in the daily lives of
people in the department of Cochabamba. The reason why the embedding of international migration is an
initial phase can be explained with the perceptions of local actors, the stubborn character of bureaucracy,
the lack of human resources and the low levels of cooperation between the local actors. These limiting
factors are even more present in rural areas, hence the urban bias. The contextual differences between the
municipalities also explain the differentiated impact on local development. So in the urban areas the
impact on local development creates more externalities than in the rural municipalities.
6.3
Discussion and policy recommendations
The most important explaining factors that support the findings of this study will be discussed in the
context of the academic debate. These explaining factors will be addressed after a discussion about other
findings of this study that correspond to information given in the theoretic and thematic debate. At the
end of this section the findings of this study result in policy recommendations for local actors.
114
Similar findings academic literature and study Cochabamba
Many findings of this study correspond with information presented in the theoretical and thematic
framework. The city of Cochabamba is an important destination for internal migrants, and is the second
most important department that expulses international migrants (Roncken and Forsberg, 2007). In the
rural municipalities in Valle Alto between 30 to 40 percent of the families have a member abroad. This is
confirmed by the study of Jones the la Torre (2008) in Punata, Tarata and San Benito and with the study
of Roncken and Forsberg (2007). So Cochabambinos are ‘born to migrate’. The reasons for
cochabambinos to emigrate - similar as discussed in academic literature - are poverty, unemployment and
better job opportunities elsewhere (Chant, 2008; Gilbert, 2008; Castles and Miller, 1998). The majority
of the cochabambinos emigrates with the idea to return. This is the ‘myth of return’ (Boyle et al., 1998).
Additionally the global economic labour market demands women (Willis, 2008; Balbuena, 2003). Also
from the department of Cochabamba the migration flows are highly feminized. This has caused psychosocial problems (family disintegration) (Roncken and Forsberg, 2007; Hinojosa, 2006; Whitesell, 2008)
in the neighbourhoods and communities in the department of Cochabamba.
In literature is analyzed that remittances first are used for basic needs and when these are
overcome more remittances are used for the construction of a house. Thereafter remittances are invested
in entrepreneurial activities (Roncken and Forsberg, 2007; Hinojosa, 2006; Correa Castro, 2006; de la
Torre, 2006). In Cochabamba similar patterns of investments with remittances are observed. In poor
countries and regions, also in the department of Cochabamba, remittances are foremost used for basic
spending and have an urban bias (Portes, 2009; Dulón, 2008). This explains why these remittances have a
very modest impact on local development, especially on rural municipalities (in this study Arani, Tarata
and Totora). Recently the global economic crisis decreases remittances flows (Orozco and Ferro, 2008).
In the academic debate is stated that remittances flows are more stable north-south flows during
economic hardship in comparison with FDI and development aid (IOM, 2005; Maimbo and Ratha, 2005).
Nonetheless many respondents of this study confirmed that the current decrease in remittances flows,
caused by the global economic crisis, has a devastating impact on households in Cochabamba that
economically have become dependent on the remittances. The findings of this study also confirm that the
global economic crisis propels return migration of the unemployed migrants abroad. Due to the economic
crisis many cochabambinos that live and work with an irregular status abroad return especially from
Spain. These return migrants can become potential enablers for local development, because of brain gain
(Willis, 2008). Among the local government return migrants are also seen as potential manual workers
and entrepreneurs. These return migrants can solve the problems with the deficits of manual workers,
especially in the construction and service sector (Roncken and Forsberg, 2007).
From a governance perspective the national government in Bolivia has a law that is comparable to
special remittances tax regimes in the Philippines (Newland and Patrick, 2004). In 2007 the national
government and the Central Bank of Bolivia (BCB) introduced a 1 percent (later lowered to 0.6 percent)
tax law over remitted transfers over 1000 US$. Furthermore in the Philippines also the combination of
remittances and micro credits is identified as a tool for local development (Maimbo and Ratha, 2005).
Financial institutions in Cochabamba have similar practices.
Also civil society initiatives are observed in the department of Cochabamba. There are several
HTAs of the municipalities in Valle Alto in the United States, especially in Washington D.C. These
HTAs contribute to projects in the communities of origin (Carling, 2004; Fox and Bada, 2008; Newland
and Patrick, 2004). The HTAs in Tarata and Totora have contributed to enhanced proud feelings among
the municipal government and inhabitants. The HTAs of Arbieto in the United State have contributed
even more to local development (de la Torre, 2006; de la Torre and Alfaro, 2007). This can be explained
by the influential role of the mayor in Arbieto. This is something that in Totora and Tarata completely
lack, in the latter is even political instability.
Explaining factors that support main findings
In this study the most important explaining factor is that international migration is step too far on the
municipal agenda. Small rural municipalities are working on basic service delivery. In addition local
115
government lack the tools that could integrate plans about international migration into a municipal
development plan (Orozco, 2009).
Furthermore with this study is proved that the lack of human resources, political instability and
corruption complicate the embedding of international migration in plans. Fiszbein (1997), Orozco (2009)
and Lippman and Pranke (1998) argue that the capacities of local staff determine the functioning of local
governments. The lack of resources and technical assistance hinder local governments to adapt to the
reality of international migration. The role of the mayor, especially in rural municipalities is dominant in
decision making (Babajanian, 2008; Ishii et al., 2007). In addition Orozco (2009, p. 37) explains that
responsiveness of local governments on remittances can be in two different stages. First local
governments have to understand the impact of remittances. And second local governments need to create
awareness to develop plans and practices to control migration and remittances flows and investigate their
impact. The capacities of the mayor and other municipal staff determine the stage. In this study is seen
that mayors in the rural municipalities (Tarata, Punata and Totora) lack the capacities to cope with the
migration flows and remittances. To compare the study of Orozco (2009) with especially Tarata, Punata
and Totora, the mayor and his municipal staff is not concerned about creating a policy towards migration
and migrant families. So these local governments consider international migration as an issue outside
their daily planning and activities. Fox and Bada (2008) found that local governments in Mexico face
similar constraints with the selection of Tres por Uno projects. Many of the assigned projects do not fit in
their planned activities. The Tres por Uno matching grant programme could be an example for Bolivia,
because of a similar decentralized context. Nevertheless the Tres por Uno projects in Mexico increase
municipal budget spending and administrative activities. In this study international migration issues on
the agendas of the local governments in the department of Cochabamba probably also will cause an
administrative burden.
Moreover in academic literature is explained when local actors cooperate successfully this will
result in good local governance (Nijenhuis, 2002; van Rooy, 2008; Buccus et al., 2008). In decentralized
countries good local governance can create an enabling environment for the design of policies about
international migration. In this study is seen that the local actors in the department of Cochabamba hardly
cooperate. So Orozco (2009) explains when not all social forces, such as chambers, NGOs, financial
institutions, migrant associations and governments identify the importance of remittances and
international migration, it is very unlikely that international migration does occur in plans and practices.
Policy recommendations
An important challenge of the municipal governments in cooperation with financial institutions and
NGOs is to create an entrepreneurial culture, because public private partnerships are needed. PPP have
the potential to generate funds for development programmes and projects (Loftus, 2008). Orozco (2009)
identifies the importance of engaging local governments and the private sector to promote increase
productive investment. To create a culture as such, all institutions need to work together in order to
inform target groups about entrepreneurship, markets and productive chains. The most important hinder
in creating an entrepreneurial culture is bureaucratic apparatus that is not adjusted to micro enterprises.
To initiate a micro enterprise in the department of Cochabamba, the bureaucratic steps are the same as for
the establishment of a large company. This discourages cochabambinos to initiate a (legal) micro
enterprise. Buying a taxi is an easy solution. So a multidisciplinary approach of socio-economic planning
between all actors in local governance structures is needed to work more efficiently and learn mutually.
Furthermore the municipal government is responsible to solve the problems with the deficit of
manual workers. Policy makers should anticipate on the return of migrants that can fill in the gap of
manual workers that are needed in the services sector. There are still many challenges to tackle. A major
problem is the lack of public institutions with technical careers. In the city of Cochabamba exists only
one technical institute of higher education: Infocal, what is a private tertiary institute. This means that for
many, technical education is too expensive. Primary education, secondary education and tertiary
education at the university at public institutions (U.M.S.S.) is for free, while technical tertiary education
116
only is offered in private institutes. The national government and the municipal government of
Cochabamba should invert in technical public tertiary education.
Another recommendation is related to overcome difficulties with the embedding of international
migration in municipal plans. Albeit the PDM is the perfect framework to implement international
migration in plans, municipal staff lacks the capacities to write PDMs. So when consultants write a PDM,
municipalities have to be aware of repetition in PDMs of different municipalities. However this
recommendation is somewhat unrealistic, though at least local municipalities should endeavour.
Recommendations for further research are larger scale investigation on the topic, especially in countries
with more established migration flows. Ideas for research can take in the countries of origin, such as
Morocco, Ecuador, Nigeria and Ghana. Learning from positive experiences in other countries can be a
practical example for Bolivia. Furthermore it is interesting to know how the cooperation between the
local actors can be improved. This is necessary to enable mutual learning for an enhanced embedding of
planning about international migration in the governance structures. Moreover it is interesting to know
how academic institutions can be involved in implementing public policies about international migration.
117
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125
Appendix 1 Interviews, plans and surveys
Interviews
Departmental government of Cochabamba
Ruben Paichucama, chief of area in secretary productive development
Edgar Vidal, chief of area in secretary productive development
Hazzel Rojas, professional 1 of planning
Municipality of Cochabamba
Gonzalo Rema, municipal councillor
Alfonso Serrano, secretary of planning
Alberto Soria, head officer of economic development and environmental management
Marco Aguino, director of economic development
Cira Castro, director of the defence of children and adolescents
Isaac Maldonado, director of territorial planning
Freddy Quintón, sociologist in territorial planning
Edgar Callejas, director of productive strengthening
Osvaldo Jiménez, director of economic promotion
Yerko Aneyba, director of institutional relations
Nancy Rodríguez, director of planning of sub municipality of Valle Hermoso
Nelson Arrellano, architect of planning of sub municipality of Valle Hermoso
Municipality of Tarata
Benjamin Zurita, mayor
Juan Schery Rosales, director of productive and human development
Nazario Flores, director of finance
Fermin Vargas, director of Central Campesino
Municipality of Cliza
Freddy Vargas Terceros, mayor
Emigdio Aguilar, municipal councillor
Limbert Vallejas, head officer
René Fernandez, director of planning
Humberto Vargas, director of productive development
Municipality of Punata
Rodolfo Siñani, head officer
Benito Rojas, director of human development
Ernesto Cruz, director of finance
Omar Torrico, responsible for agriculture and green areas
Edwin Jaimes, director of committee of vigilance and director irrigation
Municipality of Arani
Vladimir Paniagua, director of productive economic development
Carmen Maiza, responsible for business promotion
Nicolas Camacho, responsible for parks and environmental management
Wilfredo Vidal, responsible for the productive chain
126
Municipality of Totora
Nicolás Rosas, mayor
Anicieto Laime, municipal councillor
Angelica González, director of productive economic development and natural environment
Anonymous, director of education
Severo Flores, director of Central Campesino
Man-communities
Susana Torrico, director of office of man-community Trópico in Cochabamba
Armiro Chacoú, chief of institutional strengthening of man-community Cuenca del Caine in
Cochabamba
René Achavarria, coordinator of the vice ministry of Coca and Integral Development of man-community
Cuenca del Caine in Cochabamba
Rimer Quisbert, responsible for infrastructure of man-community Andina
Hector Arze, director of the man-community Cono Sur
Non-governmental Organizations
Lourdes Maldonado, director of the Association of Migrants Spain Bolivia (AMIBE) Cochabamba
Katiusca Salinas, responsible for productive development in AMIBE Cochabamba
Pamela Ledesma, director of the Permanent Assembly of Human Rights Cochabamba (APDHC)
Gualberto Ticona, director of Pastoral for the Humanity in Cochabamba
Juan Mercado, director the Comité of Rural Development Tarata (CODERTA) in Tarata
Javier Roque, director of Global Humanitaria in Tarata
Marco Vargas, pedagogic of Centre of Study and Work of Women (CETM) in Tarata
Anonymous, director of Medicus Mundi Tarata
Jorge Kamodima, president of Centre of Applied Studies of Economic, Social and Cultural Rights
(CEADESC) and professor at the U.M.S.S in Cochabamba
Yeshid Serudo, coordinator of the program attention for migrant families of Centre Vicente Cañas in
Cochabamba
Enrique Gúzman, coordinator of projects of S.O.S. Hunger (SOSFAIM) in Cochabamba and Cliza
Fernando Galinda, investigator of Centre of Investigation and Promotion of Farmers and
Agriculture (CIPCA) in Cochabamba and Cliza
Sergio Claros, assessor of education in Netherlands Development Organization (SNV) in Cochabamba
Luis Boyan, assessor of public relations Netherlands Development Organization (SNV) in Cochabamba
Maria Lohman, director Somos Sur in Cochabamba
Theo Roncken, director Acción Andina in Cochabamba
Marco Aresi, coordinator of projects Celim Bergamo in Cliza and Punata
Vladimir Paniagua, economic development of Development Programme of the Area of Arani (PDA)
Roberto García, coordinator of natural resource projects of Centre of Services and Technical
Accompaniment (CESAT) in Totora (office in Cochabamba)
Banks, private financial funds, saving and lending associations, MTOs and mutual
Carla Meneses, client services main office Banco Sol in Cochabamba
Carolina Pelaez, director of credits main office Banco Union in Cochabamba
Fabiola Fuentes, supervisor of sales main office Bolivia MORE in Cochabamba
Monica Alcoba, director main office Western Union and DHL in Cochabamba
Roxana Choque, administrator main office saving and lending association ‘CACEF’ in Cochabamba
Ernesto Franco, director main office Prodem in Tarata
Marco A. Montaño, director main office saving and lending association ‘San José de Punata’ in Cliza
Ruben Aranibar, director main office Banco de los Andes ProCredit in Cliza
Esther Minerva, client services main office Prodem in Cliza
127
Luis Portillo, responsible for operations main office Banco Sol in Punata
Hugo Choquetopa, supervisor main office Banco de los Andes ProCredit in Punata
Gladis Villarroel, client services main office Prodem in Punata
Freddy Villarroel, director main office Prodem in Cochabamba
Rosario Zapata, client services main office Mercantil de Santa Cruz in Cochabamba
Santi Paniagua, cashier in main office Money Gram in Cochabamba
Jorge Sevilla, director main office saving and lending association Inca Huasi in Cochabamba
Gabriella Sietes, supervisor main office Fie s.a. in Cochabamba
Vladimir Revollo, assistance credits for companies in main office Banco Nacional Bolivia in
Cochabamba
Dania Flores, executive of operative platform of main office Banco Ganadero in Cochabamba
Pablo Rodriguez Salazar, director of credits main office mutual Promotora in Cochabamba
Oscar Senteno, director of saving and lending association ‘San Carlos Borromeo’ in Arani
Victor Maquira, director of saving and lending association Concordía in Totora
Chambers
Daniel Santiesteban, president of the Chamber of Small and Artesian Enterprises (CADEPIA) in
Cochabamba
Marcelo Vargas Roca, president of the Chamber of Construction Cochabamba
Mauricio Rojas, client services of the Chamber of Exportations Cochabamba (CADEXO)
Anonymous, director of office Chamber of Mining Industry Cochabamba
Josué Rodriguez del Valle, president of the Chamber of Commerce and Services in Cochabamba
Pedro Tocabado, assessor of the natural environment of the Chamber of Industries
Marcello Vargas, director of the Chamber of Industries
Carola Sembrana, executive board of Association of Small Leather Producers (APECCO) in
Cochabamba
Other
Carmen Ledo García, director of the Centre of Planning and Management (CEPLAG)
María Sucre, investigator of the Centre of Planning and Management (CEPLAG)
Rosemary Irsuta, director of organization María Auxiladora in Cochabamba
Rodrigo Paniagua Tapia, director of the Counsel of Departmental Competition
Fernando Pérez Gonzáles, director of planning and territorial development of the Association of
Municipalities of Cochabamba (AMDECO)
Lourdes Saavedra, master student of social sciences U.M.S.S.
Estefano Locatelli, independent investigator from Bergamo, Italy
Alberto Hinojosa, associated investigator of the Centre of Social University Studies (CESU) in
Cochabamba
Mirko Marzadro, UNESCO chair researcher, university of Venetia, Italy
Hernand Quesada, director of departmental migration services in Cochabamba
Leonardo de la Torre, investigator of Centre of Superior University Studies (CESU) and author of No
llores prenda, pronto volveré and La Chequanchada and producer of film Un día más.
128
Municipal Development Plans (PDM) and Annual Operative Plans (POA)
Table 1.4 Analyzed PDMs and POAs per municipalities
Municipality
PDM
Cochabamba
Strategic Development Plan 2002-2007 (There
does not exist a new version of PDM)
Tarata
Economic development strategy man-community
El Caine 2007-2011
Cliza
PDM 2007-2011
Punata
PDM 2007-2011
Arani
PDM 2009-2013
Totora
PDM 2007-2011
POA
Executed 2008 and proposed 2009
Executed 2008 and proposed 2009
Executed 2008 and proposed 2009
Proposed 2009
Proposed 2009
Proposed 2009
Surveyed OTBs per district and municipality
Table 1.5 19 Surveyed OTBs in district 5 Cochabamba
Surveyed OTBs
Loreto Sud
San Luis Copacabana
Santa Barbara Norte Sanitario Tercera Villa Norte
Villa Armonia
Guilllermo Killman
Canata
Jorge Wilsterman
Plaza Libertad Marcelo
Pampa Ticti
Quiroja Santa Cruz
Independencia
Barrio Universitario
Stanta Barbara Sud Este
Barrio el Jardín
6 de Agosto
San Juan Bosco
Jaihuayco
Fuerza Area
San Joaquin
Table 1.6 15 surveyed OTBs in district 6 Cochabamba
Surveyed OTBs
Barrio Obrero
14 de Septiembre
Villa Progreso
Barrio Minero Alalay
La Esperanza
San Miguel Piscina
Villa Santa Cruz
Barrio Libertador
Villa Potosí
San Carlos
Villa Salvador
Villa Jerusalem
Huayra K’hasa
Parque Pirahí
Cerro Verde Central
Table 1.7 16 surveyed OTBs in district 8 Cochabamba
Surveyed OTBs
Junta Vecinal Ticti Sud
La Serena Calicanto
Las Rocas
Villa San Miguel Km. 4
Junta Vecinal Los
El Salvador
Olivos
San Fransisco
Valle Hermoso Central
Concordia Central
San Miguel
14 de Abril
Ushpa Ushpa
Lomas de Santa Bárbara
Rumi Cerco
Nueva Vera Cruz
Mineros San Juan
129
Table 1.8 32 surveyed OTBs in district 9 Cochabamba
Surveyed OTBs
Bolívar
Pampa San Miguel Lomas del Sud
Tamborada A
San Marcos
Copacabana
Maria
Encañada Integral
Magisterio Plan 40
Auxiladora
Buena Vista
Senac
San Simon
Kasa Huasa
Ferroviario
Maica chica
Chaquimayu
Tamborada
Villa Israel
Mejillones
1ro de Mayo
La Cabaña
Tajra
Tamborada
K’ara K’ara
Tamborada B
Pampitas
San Jose
Mejillones
Tamborada
Arrumani
Alto Mirador
Mario Tejeda
Villa Victoria
Achumani
21 de Septiembre
Candelaria Sud
San Jorge B
Table 1.9 10 surveyed OTBs in district 11 Cochabamba
Surveyed OTBs
Irlandés
San Pedro
General Roman
Martin Cardenas
Incacollo Muyurina
Seminaro de San Luis
9 de Abril
Parque de Maestro
Solterito Alto
Parque Universitario
Table 1.10 14 surveyed OTBs in district 14 Cochabamba
Surveyed OTBs
Alto de la Alianza
Lomas del Pagador
Barrios Unidos
Bello Horizonte
Alto Porvenir
Trafalgar
S.P.R. Nor Este
Villa Luz Urkupiña
Bella Vista
Santa Fé
12 de Octubre
Alto Mirador
Integración
Alto Pagador
Table 1.11 4 surveyed OTBs in Tarata
Surveyed OTBs
San Lorenzo
Zona Convento
Zona Ladera
Jarcapampa
130
Table 1.12 14 surveyed OTBs in Cliza
Surveyed OTBs
Capilla
Huasa Calle Bajo
Banda Arriba
Poza Rancho
Villa San Marcos
Chullpa Pata
Santa Lucia
San Isidro
Huallpero Bajo
Villa Concepción
Santa Clara
Jhochi Champa Rancho
Jhochi Lavallen
Jhochi Lasero
Table 1.13 6 surveyed OTBs in Punata
Surveyed OTBs
Villa Carmen 1
Kolque Rancho
Huayra Punku
Cursani
Junta Vecinal 6
Villa Rosario
Table 1.14 18 surveyed OTBs in Arani
Surveyed OTBs
Villa Evita
Villa Carmen
Janchillani
Villa Flores
Puka Orko
Cuchillera
Pajchapata
Cuesta Pujru
Molle Molle Laguna
Saga Saga
Chaupi Rancho
Ortega Grande
Ortega Chico
Ortega Khasa
Jutulaya
Serano Alto
Laguna
K’umu Khewiña
Table 1.15 24 surveyed OTBs in Totora
Surveyed OTBs
Antawaghana
Rodeo Chico
Pabellón
Pampa Grande
Ladislao Cabrera
Killa Orko
Coluyo Chico
Kollpana
Waran Wareal
Coluyo Grande
Estancillas
Tipas kuchu
Lagunillas
Junta Vecinal
Pucara
Molle Molle
Buena Vista
Rodeo Grande
Chaupiloma Alto
Loko Loko
Laime Toro
Rial
Tipas
Moya pampa
131
Appendix 2 Survey OTBs
Encuesta Organizaciones Territorial de Base (OTB)
Acreditación que la señorita Universitaria IRENE VAN DEN BOGAARDT auxiliar de investigación de
intercambio con la universidad de Utrecht de Holanda y el Centro de Planificación y Gestión CEPLAG
de Universidad de San Simón está acreditada para realizar un estudio sobre la migración internacional y
el desarrollo local. Por lo ruego ustedes brindarle rellenar esta encuesta.
Sección 1: información básica de la OTB
Provincia
Municipio
Distrito
Nombre de la OTB
Profesión del presidente de la OTB
Nombre del presidente de la OTB
1. Cuantas familias pertenecen a la OTB?
2. Cual es el idioma mayormente hablado por la población de la OTB?
3. Cuál es el grupo demográfico que mayormente vive en el área de la OTB?
4. Cuál es la frecuencia de reuniones con la población de la OTB?
5. Cuales son las actividades básicas de la OTB?
Sección 3: Educación y economía
1. Hay escuelas en el área de la OTB? (si hay, indica cuantas)
2. Indica el estimado porcentaje de la población que tiene educación secundaria en la OTB.
3. Indica el estimado porcentaje de la población que tiene educación terciaria (universidad o instituto) en la OTB
4. Cuál es el sector económicamente activa de la población de la OTB?
5. Existen empresas en el área de la OTB?
6. (Solamente para OTBs rurales) Existe comercialización de actividades rurales? (discriba como)
Sección 5: Migración
1. De dónde origina (dónde nació) la mayoría de la población que vive ahora en el área del OTB?
2. Existe migración interna (rural – urbano) en el área de la OTB?
3a. Existe migración internacional en el área de la OTB? (en el caso de no, pase a sección 6)
3b. Cuál flujo es más importante la migración interna o hacia el exterior?
4. Indica el porcentaje estimado de familias que tiene familiares en el exterior
5. Adónde (qué país) ha emigrado la población mayormente?
(si son varios países, indica en orden de importancia)
6. Hace cuanto tiempo (en años) empezó la migración internacional? Y cómo duró la migración?
7. Cuál es la razón mas importante porque emigraron sus vecinos?
78a. De las personas que ha emigrado, entre ellos; la mayor parte es población económicamente activa?
8b. Y qué hace la OTB con esta pérdida de población?
132
9. Las personas que emigraron todavía tienen derecho para participar (en la asamblea) de la OTB?
10. Qué pasa con las relaciones sociales en la OTB después la migración internacional?
11a. La ausencia de personas que emigró tiene un impacto positivo o negativo en la OTB?
11b. Explicar su repuesta de 10a:
12a. Hay un flujo de remesas que llega a las familias en la OTB?
12b. Para que son las remesas utilizados?
13. Las familias que reciben remesas utilizan servicios financieros (bancos, giros, cuentas de ahorra, otro)?
14. Desde la presencia de la migración internacional han aumentado las actividades económicas en el área de la
OTB? (en el caso de sí, indica qué tipo de actividades)
15. Desde la presencia de la migración internacional ha aumentado el desarrollo de servicios básicos en el área de
la OTB? (en el caso de sí, indica qué tipo de servicios básicos)
16. Desde la presencia de la migración internacional ha aumentado la construcción de viviendas / casas?
17a. Desde la presencia de migración internacional la situación económica en general ha mejorado en el área de la
OTB?
17b: Explicar su repuesta de 16a:
Sección 6: Política
1. Cual es el partido político que tiene el mayor apoyo de la población de la OTB?
2. Cual es su opinión sobre las políticas en general del Alcaldía?
3a. Existen ONGs que trabajan en el área de la OTB? (indica cuales son)
3b. Cual es su opinión sobre el trabajo de las ONGs?
4. Cuál es opinión sobre el Plan Desarrollo Municipal (PDM)?
5. Cuál es su opinión sobre el Plan Operativo Anual (POA)?
Otras observaciones: ……………………………………………………….
Gracias por su colaboración!
133
Appendix 3 Tables
Table 111.1 Composition of the budget by source in Bs. municipality of Cochabamba, 2004-2009
Type of
municipal
2004
2005
2006
2007
2008
resources
Proper resources 400.026.004
301.658.809
430.141.093
448.628.703
379.227.640
PP
106.444.067
115.970.414
143.429.153
174.991.304
182.818.597
HIPC II
8.954.728
7.051.356
6.557.530
5.782.578
4.522.471
IDH
0
9.835.309
59.186.156
69.324.457
153.139.042
Total
515.424.799
434.515.888
639.313.932
689.727.042
683.707.750
Source: POA Cochabamba 2009, OBD, 2009.
Table 111.2 Composition of the budget by source in Bs. municipality of Tarata, 2004-2009
Type of
municipal
2004
2005
2006
2007
2008
resources
Proper resources
3.670.110
4.304.089
7.133.403
8.620.024
4.682.044
PP
1.794.230
1.954.807
2.417.654
2.949.668
3.081.606
HIPC II
531.047
418.171
388.885
342.928
268.199
IDH
0
161.637
997.473
1.168.376
1.974.505
Total
8.483.175
9.662.003
15.391.209
9.788.400
16.496.702
Source: OBD, 2009.
Table 111.3 Composition of the budget by source in Bs. municipality of Cliza, 2004-2009
Type of
municipal
2004
2005
2006
2007
2008
resources
Proper resources
9.435.839
13.090.158
18.252.757
21.760.761
13.171.233
PP
4.099.981
4.429.326
5.478.074
6.683.545
6.982.498
HIPC II
713.083
558.499
519.386
458.006
358.200
IDH
0
370.089
2.260.347
2.647.565
4.473.960
Total
14.248.904
18.448.072
26.510.563
31.549.877
24.985.981
Source: OBD, 2009.
Table 111.4 Composition of the budget by source in Bs. municipality of Punata, 2004-2009
Type of
municipal
2004
2005
2006
2007
2008
resources
Proper resources
13.940.608
13.816.383
20.575.875
28.555.109
22.598.296
PP
5.381.661
5.863.300
7.251.574
8.847.312
9.243.049
HIPC II
912.194
718.303
667.998
589.056
460.692
IDH
0
491.698
2.992.170
3.504.759
5.922.384
Total
13.946.901
20.889.683
31.487.617
32.059.868
38.224.421
Source: OBD, 2009.
Table 111.5 Composition of the budget by source in Bs. municipality of Arani, 2004-2009
Type of
municipal
2004
2005
2006
2007
2008
resources
Proper resources
4.392.592
5.360.144
9.381.415
19.416.491
8.479.794
PP
2.376.248
2.588.914
3.201.900
3.906.491
4.081.227
HIPC II
587.134
462.336
429.957
379.146
296.525
IDH
0
215.415
1.321.095
1.547.432
2.615.001
Total
7.355.974
8.896.808
14.334.367
20.963.923
15.472.547
Source: OBD, 2009.
2009
373.567.534
250.456.026
7.133.843
137.853.968
737.011.371
2009
No data
4.221.708
423.062
1.784.284
14.173.788
2009
No data
9.565.813
565.032
4.042.943
14.173.788
2009
No data
12.662.701
726.705
5.351.826
18.741.232
2009
No data
5.591.159
467.745
2.363.075
8.421.979
134
Table 111.6 Composition of the budget by source in Bs. municipality of Totora, 2004-2009
Type of
municipal
2004
2005
2006
2007
2008
resources
Proper resources
9.832.579
7.455.614
8.628.225
11.255.253
8.053.009
PP
2.668.390
2.907.201
3.595.549
4.386.764
4.582.982
HIPC II
1.116.023
878.807
817.261
720.680
563.633
IDH
0
242.409
1.483.535
1.737.698
2.936.496
Total
13.616.992
11.484.030
10.111.760
12.992.951
16.136.120
Source: OBD, 2009.
Table 111.7 Investments per sector in Bs. municipality of Cochabamba, 2004-2008
Sector
2004
2005
2006
2007
Productive
2.293.556
633.360
480.823
4.557.691
Agriculture and stock
822.560
633.360
304.423
4.557.691
Hydrocarbonates
0
0
0
0
Industry and tourism
1.470.996
0
176.400
0
Minery
0
0
0
0
Social
15.707.185 25.951.898 15.316.293
9.138.786
Education and culture
4.757.406
1.584.004
1.285.631
2.344.371
Health and social security
2.471.464
495.720
4.933.309
4.554.235
Basic sanitary
0
2.033.166
0
1.304.296
Urbanism and housing
8.478.315 21.839.008
9.097.354
935.884
Infrastructure
1.705.680
4.402.278 17.021.104 13.589.556
Communications
0
0
0
0
Energy
0
0
0
1.658.561
Hydrical resources
1.509.663
3.884.463 14.686.414
7.125.103
Transport
196.017
517.815
2.334.690
4.805.892
Other
1.969.960
1.773.017
7.555.542
3.533.363
Total
41.382.802 63.748.089 73.191.983 58.105.429
Source: OBD, 2009.
Table 111.8 Investments per sector in Bs. municipality of Tarata, 2004-2008
Sector
2004
2005
2006
2007
Productive
278.037
806.610
441.586
445.997
Agriculture and stock
278.037
806.610
441.586
445.997
Hydrocarbonates
0
0
0
0
Industry and tourism
0
0
0
0
Minery
0
0
0
0
Social
1.008.046
538.784
683.043
317.032
Education and culture
521.358
80.273
683.043
50.413
Health and social security
0
0
0
266.619
Basic sanitary
467.906
199.133
0
0
Urbanism and housing
18.782
259.378
0
0
Infrastructure
408.416
2.438.948
9.470.399
3.177.401
Communications
0
0
0
0
Energy
0
0
0
842.591
Hydrical resources
0
0
0
0
Transport
408.416
2.438.948
9.470.399
2.334.810
Other
0
0
10.967
20.984
Total
3.388.998
7.568.684
21.201.023 7.901.844
Source: OBD, 2009.
2009
No data
6.278.549
889.088
2.653.598
9.821.235
2008
3.925.071
3.925.071
0
0
0
3.119.886
663.506
1.938.108
464.495
53.777
5.126.776
0
0
2.299.532
2.827.244
1.547.368
25.890.834
2008
0
0
0
0
0
0
0
0
0
0
1.171.916
0
0
0
1.171.916
0
2.343.832
135
Table 111.9 Investments per sector in Bs. municipality of Cliza, 2004-2008
Sector
2004
2005
2006
2007
Productive
315.433
1.473.278
2.083.017
752.939
Agriculture and stock
315.433
1.473.278
2.083.017
752.939
Hydrocarbonates
0
0
0
0
Industry and tourism
0
0
0
0
Minery
0
0
0
0
Social
97.767
350.391
847.359
1.330.685
Education and culture
0
0
672.704
822.221
Health and social security
0
0
0
442.609
Basic sanitary
0
122.608
18.386
12.000
Urbanism and housing
97.767
227.783
156.269
53.855
Infrastructure
1.990.702
2.261.748 10.005.572
7.322.604
Communications
0
0
0
0
Energy
0
0
0
746.528
Hydrical resources
0
0
0
0
Transport
1.990.702
2.261.748 10.005.572
6.576.076
Other
0
0
282.449
95.000
Total
4.807.804
8.170.834
26.154.345 18.907.456
Source: OBD, 2009.
Table 111.10 Investments per sector in Bs. municipality of Punata, 2004-2008
Sector
2004
2005
2006
2007
Productive
146.004
1.541.434
4.119.692
2.821.267
Agriculture and stock
146.004
1.541.434
4.119.692
2.821.267
Hydrocarbonates
0
0
0
0
Industry and tourism
0
0
0
0
Minery
0
0
0
0
Social
1.658.856
633.599
4.477.533
2.635.925
Education and culture
930.402
0
1.945.377
2.345.101
Health and social security
728.454
9.853
0
0
Basic sanitary
0
459.336
777.261
65.323
Urbanism and housing
0
164.410
1.754.895
225.501
Infrastructure
1.153.194
322.439
4.781.238
3.781.532
Communications
0
0
0
0
Energy
0
0
0
2.106.477
Hydrical resources
0
0
0
0
Transport
1.153.194
322.439
4.781.238
1.675.055
Other
0
0
285.201
0
Total
5.916.108
4.994.944
27.042.127 18.477.448
Source: OBD, 2009.
2008
0
0
0
0
0
789.404
789.404
0
0
0
887.294
0
0
0
887.294
0
3.353.396
2008
282.548
282.548
0
0
0
1.671.916
0
0
0
1.671.916
181.849
0
0
0
181.849
0
4.272.626
136
Table 111.11 Investments per sector in Bs. municipality of Arani, 2004-2008
Sector
2004
2005
2006
2007
Productive
3.187.997
839.147
2.014.973
2.652.697
Agriculture and stock
3.187.997
839.147
2.014.973
2.652.697
Hydrocarbonates
0
0
0
0
Industry and tourism
0
0
0
0
Minery
0
0
0
0
Social
127.896
691.638
119.823
597.793
Education and culture
127.896
691.638
20.200
34.080
Health and social security
0
0
0
458.138
Basic sanitary
0
0
0
0
Urbanism and housing
0
0
99.623
105.575
Infrastructure
1.594.441
4.548.223
8.892.414
2.680.144
Communications
0
0
0
0
Energy
0
0
0
1.658.561
Hydrical resources
0
0
0
0
Transport
1.594.441
4.548.223
8.892.414
1.021.584
Other
0
0
150.534
204.011
Total
9.820.668
12.158.016 22.204.954 12.065.280
Source: OBD, 2009.
2008
683.890
683.890
0
0
0
0
0
0
0
0
174.360
0
0
0
174.360
0
1.716.500
Table 111.12 Investments per sector in Bs. municipality of Totora, 2004-2008
Sector
2004
2005
2006
2007
Productive
4.458.903
2.127.810
593.251
1.539.622
Agriculture and stock
4.458.903
2.127.810
593.251
1.539.622
Hydrocarbonates
0
0
0
0
Industry and tourism
0
0
0
0
Minery
0
0
0
0
Social
591.828
525.194
1.184.664
487.919
Education and culture
157.402
183.318
56.382
104.708
Health and social security
0
0
481.444
377.449
Basic sanitary
337.388
188.750
592.650
0
Urbanism and housing
97.038
153.126
54.188
5.762
Infrastructure
1.638.892
4.368.743
6.399.823 13.652.783
Communications
0
0
0
0
Energy
0
0
0
1.114.581
Hydrical resources
0
0
152.217
78.388
Transport
1.638.892
4.368.743
6.247.606 12.459.814
Other
0
0
26.577
34.716
Total
13.379.246 14.043.494 16.382.053 31.395.364
Source: OBD, 2009.
2008
166.789
166.789
0
0
0
0
0
0
0
0
153.540
0
0
0
153.540
0
640.658
137