For more than four centuries, Cochabamba existed as a peaceful city in central Bolivia largely focused on agricultural production. That all changed in 2000 when protests over the privatization of the city’s water supply rocked it to the core. By the time the disturbances subsided, four months after the initial uproar, at least six people were dead and the government had reversed its decision to outsource management of the city’s water supply to a foreign company.

The public outcry began in January of that year when, following the release of a report prepared by the World Bank decrying public subsidies for water, the Bolivian government signed a multimillion-dollar contract with Agua del Tunari, a subsidiary of multinational Bechtel Corp. formed for the express purpose of managing Cochabamba’s municipal water supply. Within weeks of acquiring the contract, the company imposed a substantial rate increase that according to some reports tripled the average water bill. By some accounts, the jump in the water rate meant an average monthly water bill of $20 in a country where minimum wage brings in about $70 per month.

Residents of Cochabamba banded together in an alliance helmed by labor, human rights and community leaders, effectively shutting down the city for four days — a move that forced the government to the negotiating table. It was a rocky road, but by April of 2000 the Bolivian government had reversed its decision. It revoked the contract and awarded control of Cochabamba’s municipal water supply to La Coordinadora, a grassroots organization led by union organizer and activist Oscar Olivera.

Although life in the Bolivian city located in a valley by the same name has returned to normal, its history forever will showcase the events that caused citizens to unite for a cause that had the power to dramatically alter their lives and livelihoods.

Founded in 1571 on the orders of Spanish Viceroy Francisco De Toledo, Cochabamba enjoys favorable placement on the shores of the River Rocha. In its early days, Cochabamba flourished in its role as a food source for miners prospecting for silver in Potosi, about 200 miles to the southwest. When the silver boom declined in the early 18th century, so too did demand for Cochabamba’s agricultural products, but the city regained its position as an important agricultural center — some reports refer to Cochabamba as “Bolivia’s granary” — by the mid 19th century.

With a climate considered one of the best in Bolivia, the city of Cochabamba lies in the fertile Cochabamba Valley about 8,400 feet above sea level. Known for its warm, sunny days and comfortably cool nights, the average winter temperature in Cochabamba is about 61 degrees. In summer, temperatures average a balmy 78 degrees.

The capital of Bolivia’s Cochabamba Department, Cochabamba is the country’s third-largest city with a population of more than 800,000. Dubbed the “Garden of Bolivia,” Cochabamba resembles a small Spanish city with tree-lined streets and colonial-era architecture. Its main plaza, surrounded by colonial buildings centered on a garden park, is a favorite gathering place among Cochabambinos.

A city of contrasts, Cochabamba tends toward a socially liberal agenda. Its downtown area is modern by Western standards, with bustling street traffic and ready access to such technology staples as the Internet, but that contemporary edge tends to diminish the further afield you venture. It’s common for outlying areas to lack electricity and indoor plumbing. In a throwback to its colonial heritage, Cochabamba is home to South America’s biggest open-air market. By way of contrast, it’s also the site of Unversidad Mayor de San Simon, one of Bolivia’s most prominent public universities.

According to the CIA World Factbook profile updated in January, Bolivia, long one of the poorest and least developed Latin American countries, reformed its economy after suffering a disastrous economic crisis in the early 1980s. The reforms spurred real GDP growth, which averaged 4 percent in the 1990s, and poverty rates fell. Economic growth, however, lagged again beginning in 1999 because of a global slowdown and homegrown factors such as political turmoil, civil unrest, and soaring fiscal deficits, all of which hurt investor confidence. In 2003, violent protests against the pro-foreign investment economic policies of President Sanchez de Lozada led to his resignation and the cancellation of plans to export Bolivia’s newly discovered natural gas reserves to large northern hemisphere markets. Foreign investment dried up as companies adopted a wait-and-see attitude regarding new President Carlos Mesa’s willingness to protect investor rights in the face of increased demands by radical groups that the government expropriate foreign-owned assets. Real GDP growth from 2003 to 2005 — helped by increased demand for natural gas in neighboring Brazil — was positive, but still below the levels seen during the 1990s. Bolivia remains dependent on foreign aid from multilateral lenders and foreign governments.

Entry Requirements

A valid U.S. passport is required to enter and depart Bolivia. U.S. citizen tourists do not need a visa for a stay of one month or less (that period can be extended up to 90 days upon application to the Bolivian immigration authorities). Visitors for other purposes must obtain a visa in advance. U.S. citizens whose passports are lost or stolen in Bolivia must obtain a new passport and present it, together with a police report of the loss or theft, to a Bolivian government immigration office in order to obtain permission to depart. An exit tax is charged when departing Bolivia by air. There is no requirement that an incoming traveler’s passport have at least six months of validity remaining from the time of entry into Bolivia; however, there have been instances in which airlines flying into Bolivia have refused to board passengers whose passports have a validity of less than six months. (Source: U.S. Department of State consular information sheet.)

More Information

Bolivian Embassy
3014 Massachusetts Ave. N.W.
Washington, D.C. 20008
tel 202 483 4410, fax 202 328 3712
www.bolivia-usa.org

Bolivian Consulate
211 East 43 St.
Suite 702
New York, NY 10017
tel 212 499 7401, fax 212 687 0532