Chapter 18
Economy--overview: With its long history of semifeudal social controls, dependence on mineral exports, and bouts of hyperinflation, Bolivia has remained one of the poorest and least developed Latin American countries. However, Bolivia has experienced generally improving economic conditions since the PAZ Estenssoro administration (1985-89) introduced market-oriented policies which reduced inflation from 11,700% in 1985 to about 20% in 1988. PAZ Estenssoro was followed as president by Jaime PAZ Zamora (1989-93) who continued the free-market policies of his predecessor, despite opposition from his own party and from Bolivia's once powerful labor movement. President SANCHEZ DE LOZADA (1993-1997) vowed to advance the market-oriented economic reforms he helped launch as PAZ Estenssoro's planning minister. His successes included the signing of a free trade agreement with Mexico and the Southern Cone Common Market (Mercosur) as well as the privatization of the state airline, telephone company, railroad, electric power company, and oil company. Hugo BANZER Suarez has tried to further improve the country's investment climate with an anticorruption campaign. With the scheduled completion of a $2 billion natural gas pipeline to Brazil in 1999, Bolivia hopes to become an energy hub in the region.
GDP: purchasing power parity--$23.4 billion (1998 est.)
GDP--real growth rate: 4.7% (1998 est.)
GDP--per capita: purchasing power parity?$3,000 (1998 est.)
GDP--composition by sector: agriculture: 17% industry: 26% services: 57% (1995 est.)
Population below poverty line: 66%
Household income or consumption by percentage share: lowest 10%: 2.3% highest 10%: 31.7% (1990)
Inflation rate (consumer prices): 4.4% (1998 est.)
Labor force: 2.5 million
Labor force--by occupation: agriculture NA%, services and utilities NA%, manufacturing, mining and construction NA%
Unemployment rate: 11.4% (1997) with widespread underemployment
Budget: revenues: $2.7 billion expenditures: $2.7 billion (1998)
Industries: mining, smelting, petroleum, food and beverages, tobacco, handicrafts, clothing
Industrial production growth rate: 4% (1995 est.)
Electricity--production: 2.95 billion kWh (1996)
Electricity--production by source: fossil fuel: 40.68% hydro: 59.32% nuclear: 0% other: 0% (1996)
Electricity--consumption: 2.948 billion kWh (1996)
Electricity--exports: 2 million kWh (1996)
Electricity--imports: 0 kWh (1996)
Agriculture--products: soybeans, coffee, coca, cotton, corn, sugarcane, rice, potatoes; timber
Exports: $1.1 billion (f.o.b., 1998 est.)
Exports--commodities: metals 34%, natural gas 9.4%, soybeans 8.4%, jewelry 11%, wood 6.9%
Exports--partners: US 22%, UK 9.3%, Colombia 8.7%, Peru 7.4%, Argentina 7.2%
Imports: $1.7 billion (c.i.f. 1998)
Imports--commodities: capital goods 48%, chemicals 11%, petroleum 5%, food 5% (1993 est.)
Imports--partners: US 20%, Japan 13%, Brazil 12, Chile 7.5% (1996)
Debt--external: $4.1 billion (1998)
Economic aid--recipient: $588 million (1997)
Currency: 1 boliviano ($B) = 100 centavos
Exchange rates: bolivianos ($B) per US$1--5.6491 (January 1999), 5.5101 (1998), 5.2543 (1997), 5.0746 (1996), 4.8003 (1995), 4.6205 (1994)
Fiscal year: calendar year
Communications
Telephones: 144,300 (1987 est.)
Telephone system: new subscribers face bureaucratic difficulties; most telephones are concentrated in La Paz and other cities domestic: microwave radio relay system being expanded international: satellite earth station--1 Intelsat (Atlantic Ocean)
Radio broadcast stations: AM 177, FM 68, shortwave 112 (1998)
Radios: NA
Television broadcast stations: 48 (1997)
Televisions: 500,000 (1993 est.)
Transportation
Railways: total: 3,691 km (single track) narrow gauge: 3,652 km 1.000-m gauge; 39 km 0.760-m gauge (13 km electrified) (1995)
Highways: total: 52,216 km paved: 2,872 km (including 27 km of expressways) unpaved: 49,344 km (1995 est.)
Waterways: 10,000 km of commercially navigable waterways
Pipelines: crude oil 1,800 km; petroleum products 580 km; natural gas 1,495 km
Ports and harbors: none; however, Bolivia has free port privileges in the maritime ports of Argentina, Brazil, Chile, and Paraguay
Merchant marine: total: 6 ships (1,000 GRT or over) totaling 34,948 GRT/58,472 DWT ships by type: bulk 1, cargo 5 (1998 est.)
Airports: 1,130 (1998 est.)
Airports--with paved runways: total: 12 over 3,047 m: 4 2,438 to 3,047 m: 3 1,524 to 2,437 m: 4 914 to 1,523 m: 1 (1998 est.)
Airports--with unpaved runways: total: 1,118 2,438 to 3,047 m: 3 1,524 to 2,437 m: 70 914 to 1,523 m: 224 under 914 m: 821 (1998 est.)
Military
Military branches: Army (Ejercito Boliviano), Navy (Fuerza Naval Boliviana, includes Marines), Air Force (Fuerza Aerea Boliviana), National Police Force (Policia Nacional de Bolivia)
Military manpower--military age: 19 years of age
Military manpower--availability: males age 15-49: 1,908,454 (1999 est.)
Military manpower--fit for military service: males age 15-49: 1,241,311 (1999 est.)
Military manpower--reaching military age annually: males: 84,481 (1999 est.)
Military expenditures--dollar figure: $154 million (1998)
Military expenditures--percent of GDP: 1.8% (1998)
Transnational Issues
Disputes--international: has wanted a sovereign corridor to the South Pacific Ocean since the Atacama area was lost to Chile in 1884; dispute with Chile over Rio Lauca water rights
Illicit drugs: world's third-largest cultivator of coca (after Peru and Colombia) with an estimated 46,900 hectares under cultivation in 1997, a 2.5% decrease in overall cultivation of coca from 1996 levels; Bolivia, however, is the second-largest producer of coca leaf; even so, farmer abandonment and voluntary and forced eradication programs resulted in leaf production dropping from 75,100 metric tons in 1996 to 73,000 tons in 1997, a 3% decrease from 1996; government considers all but 12,000 hectares illicit; intermediate coca products and cocaine exported to or through Colombia, Brazil, Argentina, and Chile to the US and other international drug markets; alternative crop program aims to reduce illicit coca cultivation
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@Bosnia and Herzegovina ----------------------
Introduction
Background: On 21 November 1995, in Dayton, Ohio, the former Yugoslavia's three warring parties signed a peace agreement that brought to a halt over three years of interethnic civil strife in Bosnia and Herzegovina (the final agreement was signed in Paris on 14 December 1995). The Dayton Agreement, signed then by Bosnian President IZETBEGOVIC, Croatian President TUDJMAN, and Serbian President MILOSEVIC, divides Bosnia and Herzegovina roughly equally between the Muslim/Croat Federation and the Republika Srpska while maintaining Bosnia's currently recognized borders. In 1995-96, a NATO-led international peacekeeping force (IFOR) of 60,000 troops served in Bosnia to implement and monitor the military aspects of the agreement. IFOR was succeeded by a smaller, NATO-led Stabilization Force (SFOR) whose mission is to deter renewed hostilities. SFOR remains in place. A High Representative appointed by the UN Security Council is responsible for civilian implementation of the accord, including monitoring implementation, facilitating any difficulties arising in connection with civilian implementation, and coordinating activities of the civilian organizations and agencies in Bosnia. The Bosnian conflict began in the spring of 1992 when the government of Bosnia and Herzegovina held a referendum on independence and the Bosnian Serbs--supported by neighboring Serbia--responded with armed resistance aimed at partitioning the republic along ethnic lines and joining Serb-held areas to form a "greater Serbia." In March 1994, Bosnia's Muslims and Croats reduced the number of warring factions from three to two by signing an agreement in Washington creating their joint Muslim/Croat Federation of Bosnia and Herzegovina. The Federation, formed by the Muslims and Croats in March 1994, is one of two entities (the other being the Bosnian Serb-led Republika Srpska) that comprise Bosnia and Herzegovina.
Geography
Location: Southeastern Europe, bordering the Adriatic Sea and Croatia
Geographic coordinates: 44 00 N, 18 00 E
Map references: Bosnia and Herzegovina, Europe
Area: total: 51,233 sq km land: 51,233 sq km water: 0 sq km
Area--comparative: slightly smaller than West Virginia
Land boundaries: total: 1,459 km border countries: Croatia 932 km, Serbia and Montenegro 527 km (312 km with Serbia, 215 km with Montenegro)
Coastline: 20 km
Maritime claims: NA
Climate: hot summers and cold winters; areas of high elevation have short, cool summers and long, severe winters; mild, rainy winters along coast
Terrain: mountains and valleys
Elevation extremes: lowest point: Adriatic Sea 0 m highest point: Maglic 2,386 m
Natural resources: coal, iron, bauxite, manganese, forests, copper, chromium, lead, zinc
Land use: arable land: 14% permanent crops: 5% permanent pastures: 20% forests and woodland: 39% other: 22% (1993 est.)
Irrigated land: 20 sq km (1993 est.)
Natural hazards: frequent and destructive earthquakes
Environment--current issues: air pollution from metallurgical plants; sites for disposing of urban waste are limited; widespread casualties, water shortages, and destruction of infrastructure because of the 1992-95 civil strife
Environment--international agreements: party to: Air Pollution, Law of the Sea, Marine Dumping, Marine Life Conservation, Nuclear Test Ban, Ozone Layer Protection signed, but not ratified: none of the selected agreements
Geography--note: within Bosnia and Herzegovina's recognized borders, the country is divided into a joint Muslim/Croat Federation (about 51% of the territory) and the Bosnian Serb-led Republika Herzegovina is contiguous to Croatia and traditionally has been settled by an ethnic Croat majority
People
Population: 3,482,495 (July 1999 est.) note: all data dealing with population is subject to considerable error because of the dislocations caused by military action and ethnic cleansing
Age structure: 0-14 years: 17% (male 310,430; female 294,298) 15-64 years: 71% (male 1,221,791; female 1,240,097) 65 years and over: 12% (male 166,876; female 249,003) (1999 est.)
Population growth rate: 3.2% (1999 est.)
Birth rate: 9.36 births/1,000 population (1999 est.)
Death rate: 10.81 deaths/1,000 population (1999 est.)
Net migration rate: 33.42 migrant(s)/1,000 population (1999 est.)
Sex ratio: at birth: 1.07 male(s)/female under 15 years: 1.05 male(s)/female 15-64 years: 0.99 male(s)/female 65 years and over: 0.67 male(s)/female total population: 0.95 male(s)/female (1999 est.)
Infant mortality rate: 24.52 deaths/1,000 live births (1999 est.)
Life expectancy at birth: total population: 66.98 years male: 62.55 years female: 71.71 years (1999 est.)
Total fertility rate: 1.21 children born/woman (1999 est.)
Nationality: noun: Bosnian(s), Herzegovinian(s) adjective: Bosnian, Herzegovinian
Ethnic groups: Serb 40%, Muslim 38%, Croat 22% (est.); note--the Croats claim they now make up only 17% of the total population
Religions: Muslim 40%, Orthodox 31%, Catholic 15%, Protestant 4%, other 10%
Languages: Croatian, Serbian, Bosnian
Literacy: NA
Government
Country name: conventional long form: none conventional short form: Bosnia and Herzegovina local long form: none local short form: Bosna i Hercegovina
Data code: BK
Government type: emerging democracy
Capital: Sarajevo
Administrative divisions: there are two first-order administrative divisions--the Muslim/Croat Federation of Bosnia and Herzegovina (Federacija Bosna i Hercegovina) and the Bosnian Serb-led Republika Srpska; note--the status of Brcko in north eastern Bosnia is to be determined by arbitration
Independence: NA April 1992 (from Yugoslavia)
National holiday: Republika Srpska--"Republic Day," 9 January; Independence Day, 1 March; Federation of Bosnia and Herzegovina--"Republic Day," 25 November
Constitution: the Dayton Agreement, signed 14 December 1995, included a new constitution now in force
Legal system: based on civil law system
Suffrage: 16 years of age, if employed; 18 years of age, universal
Executive branch: chief of state: Chairman of the Presidency Zivko RADISIC (since 13 October 1998--Serb); other members of the three-member rotating (every 8 months) presidency: Ante JELAVIC (since NA September 1998--Croat) and Alija IZETBEGOVIC (since 14 March 1996--Muslim) head of government: Cochairman of the Council of Ministers Haris SILAJDZIC (since NA January 1997); Cochairman of the Council of Ministers Suetozar MIHAJLOVIC (since 3 February 1999) cabinet: Council of Ministers nominated by the council chairmen note: President of the Muslim/Croat Federation of Bosnia and Herzegovina: Ivo ANDRIC-LUZANIC (since 1 January 1999); Vice President is Ejup GANIC; note--president and vice president rotate every 3 months; President of the Republika Srpska: Nikola POPLASEN (since 29 October 1998) elections: the three-person presidency members (one Muslim, one Croat, one Serb) are elected by popular vote for a four-year term; the president with the most votes becomes the chairman unless he was the incumbent chairman at the time of the election; election last held 12-13 September 1998 (next to be held September 2002); the cochairmen of the Council of Ministers are appointed by the presidency election results: percent of vote--Zivko RADISIC with 52% of the Serb vote was elected chairman of the collective presidency for the first 8 months; Ante JELAVIC with 52% of the Croat vote will follow RADISIC in the rotation; Alija IZEBEGOVIC with 87% of the Muslim vote won the highest number of votes in the election but was ineligible to serve consecutive terms as chairman
Legislative branch: bicameral Parliamentary Assembly or Skupstina consists of the National House of Representatives or Vijece Opcina (42 seats--14 Serb, 14 Croat, and 14 Muslim; members elected by popular vote to serve two-year terms) and the House of Peoples or Vijece Gradanstvo (15 seats--5 Muslim, 5 Croat, 5 Serb; members elected by the Muslim/Croat Federation's House of Representatives and the Republika Srpska's National Assembly to serve two-year terms) elections: National House of Representatives--elections last held 12-13 September 1998 (next to be held in the fall 2000); House of Peoples--last held NA (next to be held NA) election results: National House of Representatives--percent of vote by party/coalition--NA; seats by party/coalition--KCD 17, HDZ-BiH 6, SDP 4, Sloga 4, SDS 4, SDBIH 2, SRS-RS 2, DNZ 1, NHI 1, RSRS 1; House of Peoples--percent of vote by party/coalition--NA; seats by party/coalition--NA note: the Muslim/Croat Federation has a House of Representatives (140 seats; members elected by popular vote to serve NA year terms); elections last held NA (next to be held NA); percent of vote by party--NA; seats by party/coalition--KCD 68, HDZ-BiH 28, SDP 19, SDBIH 6, NHI 4, DNZ 3, DSP 2, BPS 2, HSP 2, SPRS 2, BSP 1, KC 1, BOSS 1, HSS 1; the Republika Srpska has a National Assembly (83 seats; members elected by popular vote to serve NA year terms); elections last held NA (next to be held NA); percent of vote by party--NA; seats by party/coalition--SDS 19, KCD 15, SNS 12, SRS-RS 11, SPRS 10, SNSD 6, RSRS 3, SKRS 2, SDP 2, KKO 1, HDZ-BiH 1, NHI 1
Judicial branch: Constitutional Court, consists of nine members: four members are selected by the Muslim/Croat Federation's House of Representatives, two members by the Republika Srpska National Assembly, and three non-Bosnian members by the president of the European Court of Human Rights
Political parties and leaders: Bosnian Party of Rights or BSP IZETBEGOVIC; includes SDA, SBH, GDS, LS]; Croatian Democratic Union BIH or SDP (formerly the Democratic Party of Socialists or DSS) note: note--SDP and SDBIH announced a merger in 1999
Political pressure groups and leaders: NA
International organization participation: CE (guest), CEI, EBRD, ECE, FAO, G-77, IAEA, IBRD, ICAO, IDA, IFAD, IFC, ILO, IMF, IMO, Intelsat, Interpol, IOC, IOM (observer), ISO, ITU, NAM (guest), OAS (observer), OIC (observer), OPCW, OSCE, UN, UNCTAD, UNESCO, UNIDO, UPU, WHO, WIPO, WMO, WToO
Diplomatic representation in the US: chief of mission: Ambassador Dragan BOZANIC chancery: 2109 E Street NW, Washington, DC 20037 consulate(s) general: New York
Diplomatic representation from the US: chief of mission: Ambassador Richard D. KAUZLARICH embassy: Alipasina 43, 71000 Sarajevo mailing address: use street address
Flag description: a wide medium blue vertical band on the fly side with a yellow isosceles triangle abutting the band and the top of the flag; the remainder of the flag is medium blue with seven full five-pointed white stars and two half stars top and bottom along the hypotenuse of the triangle
Government--note: Until declaring independence in spring 1992, Bosnia and Herzegovina existed as a republic in the former Yugoslavia. Bosnia was partitioned by fighting during 1992-95 and governed by competing ethnic factions. Bosnia's current governing structures were created by the Dayton Agreement, the 1995 peace agreement which was officially signed in Paris on 14 December 1995 by then Bosnian President IZETBEGOVIC, Croatian President TUDJMAN, and then Serbian President MILOSEVIC. This agreement retained Bosnia's exterior border and created a joint multi-ethnic and democratic government. This national government--based on proportional representation similar to that which existed in the former socialist regime--is charged with conducting foreign, economic, and fiscal policy. The Dayton Agreement also recognized a second tier of government, comprised of two entities--a joint Muslim/Croat Federation and the Bosnian Serb Republika Srpska (RS)--each presiding over roughly one-half the territory. The Federation and RS governments are charged with overseeing internal functions.
Economy
Economy--overview: Bosnia and Herzegovina ranked next to The Former Yugoslav Republic of Macedonia as the poorest republic in the old Yugoslav federation. Although agriculture has been almost all in private hands, farms have been small and inefficient, and the republic traditionally has been a net importer of food. Industry has been greatly overstaffed, one reflection of the rigidities of communist central planning and management. TITO had pushed the development of military industries in the republic with the result that Bosnia hosted a large share of Yugoslavia's defense plants. The bitter interethnic warfare in Bosnia caused production to plummet by 80% from 1990 to 1995, unemployment to soar, and human misery to multiply. With an uneasy peace in place, output has recovered in 1996-98 at high percentage rates on a low base, but remains far below the 1990 level. Key achievements in 1998 included approval of privatization legislation, the introduction of a national currency--the convertible mark, agreement with the Paris Club to reschedule official debt, and the conclusion of a Standby Agreement with the IMF. Economic data are of limited use because, although both entities issue figures, national-level statistics are not available. Moreover, official data do not capture the large share of activity that occurs on the black market. The country receives substantial amounts of reconstruction assistance and humanitarian aid from the international community. Wide regional differences in war damage and access to the outside world have resulted in substantial variations in living conditions among local areas and individual families. In 1999, Bosnia's major goals are to implement privatization and make progress in fiscal reform and management. In addition, Bosnia will have to prepare for an era of declining assistance from the international community.
GDP: purchasing power parity--$5.8 billion (1998 est.)
GDP--real growth rate: 30% (1998 est.)
GDP--per capita: purchasing power parity?$1,720 (1998 est.)
GDP--composition by sector: agriculture: 19% industry: 23% services: 58% (1996 est.)
Population below poverty line: NA%
Household income or consumption by percentage share: lowest 10%: NA% highest 10%: NA%
Inflation rate (consumer prices): NA%
Labor force: 1,026,254
Labor force--by occupation: NA%
Unemployment rate: 40%-50% (1996 est.)
Budget: revenues: $NA expenditures: $NA, including capital expenditures of $NA
Industries: steel, coal, iron ore, lead, zinc, manganese, bauxite, vehicle assembly, textiles, tobacco products, wooden furniture, tank and aircraft assembly, domestic appliances, oil refining (much of capacity damaged or shut down) (1995)
Industrial production growth rate: 35% (1998 est.)
Electricity--production: 2.3 billion kWh (1996)
Electricity--production by source: fossil fuel: 34.78% hydro: 65.22% nuclear: 0% other: 0% (1996)
Electricity--consumption: 2.504 billion kWh (1996)
Electricity--exports: 182 million kWh (1996)
Electricity--imports: 386 million kWh (1996)
Agriculture--products: wheat, corn, fruits, vegetables; livestock
Exports: $152 million (1995 est.)
Exports--commodities: NA
Exports--partners: NA
Imports: $1.1 billion (1995 est.)
Imports--commodities: NA
Imports--partners: NA
Debt--external: $3.5 billion (yearend 1995 est.)
Economic aid--recipient: $1.2 billion (1997 pledged)
Currency: 1 convertible marka (KM) = 100 convertible pfenniga
Exchange rates: NA
Fiscal year: calendar year
Communications
Telephones: 727,000
Telephone system: telephone and telegraph network is in need of modernization and expansion; many urban areas are below average when compared with services in other former Yugoslav republics domestic: NA international: no satellite earth stations
Radio broadcast stations: AM 8, FM 16, shortwave 1 (1998)
Radios: 840,000
Television broadcast stations: 21 (1997)
Televisions: 1,012,094
Transportation
Railways: total: 1,021 km (electrified 795 km; operating as diesel or steam until grids are repaired) standard gauge: 1,021 km 1.435-m gauge (1995); note--some segments still need repair and/or reconstruction
Highways: total: 21,846 km paved: 11,425 km unpaved: 10,421 km (1996 est.) note: roads need maintenance and repair
Waterways: NA km; large sections of Sava blocked by downed bridges, silt, and debris
Pipelines: crude oil 174 km; natural gas 90 km (1992); note--pipelines now disrupted
Ports and harbors: Bosanska Gradiska, Bosanski Brod, Bosanski Samac, and Brcko (all inland waterway ports on the Sava none of which are fully operational), Orasje
Merchant marine: none
Airports: 25 (1998 est.)
Airports--with paved runways: total: 9 2,438 to 3,047 m: 4 1,524 to 2,437 m: 2 914 to 1,523 m: 1 under 914 m: 2 (1998 est.)
Airports--with unpaved runways: total: 16 1,524 to 2,437 m: 1 914 to 1,523 m: 7 under 914 m: 8 (1998 est.)
Heliports: 3 (1998 est.)
Military
Military branches: Federation Army or VF (composed of both Croatian and Bosnian Muslim elements), Army of the Serb Republic (composed of Bosnian Serb elements); note--within both of these forces air and air defense are subordinate commands
Military manpower--military age: 19 years of age
Military manpower--availability: males age 15-49: 951,541 (1999 est.)