AGRICULTURE MINISTER FOCUSES ON LAND TITLING

UNCLAS LA PAZ 000680 SIPDIS SIPDIS STATE FOR WHA/AND TREASURY FOR SGOOCH ENERGY FOR CDAY AND SLADISLAW E.O. 12958: N/A TAGS: EAGR ECON ETRD PINR PGOV PREL EAID BL SUBJECT: AGRICULTURE MINISTER FOCUSES ON LAND TITLING REF: LA PAZ 598 ¶1. (SBU) Summary: In a March 8 meeting with the Ambassador, Minister of Agriculture Hugo Salvatierra explained that the new Ministry of Rural Development and Agriculture had taken over the tasks of two and a half ministries, and was currently consulting with civil groups for their input into the National Development Plan. Salvatierra said the Agriculture Ministry would work on four themes: land redistribution and titling, production stimulation, expanding markets, and improving access to financing. Salvatierra, with a background in law, human rights, and indigenous issues, is clearly focused on resolving Bolivia's land conflict. In this context, he emphasized the need for implementing expedited titling procedures, particularly in the eastern lowlands. While Salvatierra hopes to defuse social tensions by pursuing land reform, others believe this will only spread altiplano-type poverty to other parts of the country. Salvatierra also expressed concern that small soy producers would lack the infrastructure to compete with U.S. companies in Colombia after the U.S.-Colombia Free Trade Agreement (FTA) entered into effect. The Ambassador noted the importance of alternative development in counternarcotics efforts. End summary. New Ministry Structure and Goals -------------- ¶2. (SBU) In a meeting with the Ambassador on March 8, Minister of Agriculture Hugo Salvatierra explained that the new Ministry of Rural Development and Agriculture had taken over the tasks of two and a half ministries, i.e., the former Agriculture Ministry, the Ministry of Indigenous Affairs, and land/biodiversity/forestry/coca issues from the Ministry of Sustainable Development. His ministry was currently consulting with civil groups, including businesses, farmers, fishermen, and owners of cattle and camelids, to obtain their input into the National Development Plan, due to be presented by the GOB at the end of April. Salvatierra said that his ministry would work on four themes: land redistribution and titling, production stimulation, expanding markets, and improving access to financing. Focus on Land Redistribution and Titling -------------- ¶3. (SBU) Throughout the conversation, Salvatierra, with a background in law, human rights, and indigenous issues, ;emphasized his focus on resolving Bolivia's land conflict. He stressed the need for implementing expedited titling procedures, particularly in the eastern and northern parts of the country, "where cattle have more land than human beings." According to Salvatierra, land redistribution and titling has been going on for the past ten years, but even though USD 87 million has been spent on the process only 14% of the national land had been titled. He explained that the current titling procedure requires 704 days on average if there is no opposition, and that the law provides for an expedited procedure that has never been used. He said the government would implement an expedited procedure, focusing on conflictive areas with large, unproductive land holdings, particularly Santa Cruz, the Beni, and the Chaco, and that this would help achieve a "legal, economic, and social solution" to Bolivia's land conflicts. Concern for Small Soy Farmers -------------- ¶4. (SBU) Salvatierra mentioned that Bolivian soy producers were alarmed by the announcement that once the FTA went into effect, U.S. soy beans and soy meal would gain immediate duty-free access to the Colombian market -- one of Bolivian soy producers' main export destinations (reftel). He said that Bolivia needed to open discussions with the U.S. and other Andean nations on trade issues, as well as to seek alternative markets. He said the Agriculture ministry planned to discuss options with company associations and small producers organizations, expressing particular concern about small producers, whom he said produced 40% of Bolivia's soy products and whose lack of infrastructure and diversified markets would cause them to suffer the most harm from the U.S.-Colombia FTA. Alternative Development -------------- ¶5. (SBU) The Ambassador noted the importance of alternative development in counternarcotics efforts. The Director of USAID described the success of alternative development projects, including the promotion of pineapple, palm heart, and banana exports (2.5 million boxes of bananas in 2005). The Polecon Councilor mentioned that the U.S. Department of Agriculture opened an APHIS (Animal and Plant Health Inspection Service) office in Santa Cruz last year, which had successfully collaborated with the Bolivian equivalent organization (SENASAG) to combat hoof and mouth disease and implement other animal health surveillance programs. Comment: -------------- ¶6. (SBU) Even though he hails from Santa Cruz, Bolivia's most productive agricultural region, Salvatierra has little background in agriculture. After he placed third as the MAS candidate in the Santa Cruz prefect election, syndicates and campesino organizations reportedly recommended him for the Minister of Agriculture slot. In this position, Salvatierra wants to bring to the eastern lowlands of Bolivia the kind of land reform that occurred in the western highlands in the 1950s. While he apparently feels such reform might defuse social tension, large landholders and cattle ranchers in Santa Cruz and the Beni who have much to lose disagree. So do independent analysts who believe that the 1950s land reform effort, by subdividing land into ever smaller individual plots good only for subsistence farming, only guaranteed the poverty of altiplano peasants. It did this, they say, by preventing the kind of large-scale farming that has enabled the eastern lowlands to prosper. End comment. GREENLEE