BOHAN PLAN

BOHAN PLAN

1.-HISTORICAL BACKGROUND
This plan was carried out by an economic mission from the United States to
Bolivia. Named after the name of the head of the mission, Merwin L. Bohan. It was
a work of aid from the North American government, to the recovery and to the
Bolivian economic and social development. It is a plan similar to the Marshal Plan,
which was made to recover post-war Europe. It is interesting to note that the
Bohan plan predates the Marshal Plan.
This work was done at a time when the Second Republic was mired in one of its
recurring crises, which even endangered the viability of the Nation. The Bohan plan
showed a real way out of our underdevelopment.
This plan set the tone for the beginning of the Third Republic; the need to
transform the east into the driving force and head of the country
2.-OBJECTIVES

2.1.- SPECIFIC OBJECTIVE

The objective of this Bohan plan was for the recovery and Bolivian economic and
social development since the country was mired in one of its recurring crises,
which even endangered the viability of the Nation.

2.2.-GENERAL OBJECTIVE
Thanks to the help and cooperation of this country, in case it would be the United
States, Bolivia was able to get out of the crisis it had in those years and the
Bolivian east became the economic engine of Bolivia.
3.-INTRODUCTION OF THE BOHAN PLAN
A new approach began with the interest on the
part of the United States towards Latin America
during the Second World War. The North
American government invited General. Enrique
Peñaranda, president of Bolivia, at the table of
the allies, with the interest of negotiating the
supply of tin to that country, strategic for the
production of weapons during that period.

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On August 1, 1941, the Bolivian ambassador Luis Fernando Guachalla signed the
memorandum of Economic Cooperation (Public Law 63). For his part, Washington
sent Merwin L. Bohan, head of the Mission who commanded a task force made up
of agricultural economist Ben H. Thibodeaux and 9 experts from the Department of
State (Office of the Coordinator of Inter-American Affairs), Department of
Agriculture, Department of Mines and the Public Roads Administration.
The mission arrived in Bolivia on December 17, 1941, began its work on May 21,
1942, and on August 15 presented its report to the US Secretary of State, stating:
“The fervent desire of all the members of the Mission is "that the economic
cooperation program to be promptly undertaken by the Governments of Bolivia and
the United States leads not only to a permanent realignment and strengthening of
the Bolivian national economy, but also to the material and social progress of the
Bolivian people."
On August 15, 1941, Mr. Bohan submitted his final report to the Secretary of State,
outlining a development program consisting of three major components.
The first component proposed the creation of a national highway system to make
possible the connection of production with consumption centers.
The second component of this development strategy concerned the agricultural
sector. A greater concern was to stimulate the production of rubber, cinchona, and
other products that were important in the war effort that the United States was
particularly interested in obtaining from Bolivia. It was also considered important to
increase the production of basic products such as rice, wheat, sugar and cotton.
The processing, marketing, and credit facilities required to increase agricultural
production were incorporated. The report recommended the creation of an
agricultural research and extension system that would be developed for these
areas where there was the greatest agricultural potential. A key dimension of the
agricultural strategy was the development of irrigated farm systems. The report
recognized the need to develop educational institutions where agriculture would be
taught as part of an educational program to promote the scientific and technical
improvement of agriculture. The East was the target geographic area with
development support radiating from Santa Cruz. This suggested that significant
increases in production would be possible by exploiting the lowlands where large-
scale commercial agriculture could be achieved.
The third component proposed a series of recommendations for investing in further
developments of the mining sector and possible domestic oil production.
The Bohan plan suggested: a road network; whose star was the Cochabamba
Santa Cruz paved road (at that time Bolivia did not have a single paved road).

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Promotion of agricultural and livestock production, establishment of agro-industrial

plants, credit agencies (Bank) and others necessary for agricultural and livestock
expansion (irrigation for Villa Montes), development of proven oil fields and
exploitation of new areas; even market development

As you can see, almost all of these investments would be made mainly in the
Bolivian East. At the request of this plan, institutions were created such as: the
Bolivian Development Corporation (CBF), Ingenio Azucarero Guabirá, CIAT,
Escuela Muyurina de Montero and others.

Special consideration deserves the CBF, whose statutes were created by the
Bohan plan; Even the Manager and Deputy General Manager of the CBF were
appointed by the Export-Import Bank (Gringo controlling bank).

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GUABIRA SUGAR MILL

BOHAN MISSION
As a direct effect of the economic agreement with the transnational company
Standard Oil New Jersey, in addition to the collaboration that Bolivia had provided
during the Second World War with the provision of low-cost tin, the US President
Franklin Rossevelt sent a North American commercial cooperation mission in
1941. by Marwin Bohan. The reason was to raise a national diagnosis and carry
out a long-term economic development plan.

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Bohan's mission lasted 6 months and carried out an in-depth diagnosis of the
economic situation in Bolivia and proposed creating the foundations of the
agricultural industry and integrating trunk roads at the national level.

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Regarding the oil industry, the Americans made a complete analysis and
recommended increasing oil production through the development of a greater
number of fields, especially in Camiri, increasing hydrocarbon reserves through the
exploration of new oil areas and building transportation facilities. for oil and its
derivatives in order to optimize the cost and viability of exports in conditions
favorable to the Bolivian state.

Other ideas outlined in the Bohan plan were that Bolivia could serve as an
emergency source of petroleum products for the important mining area.
In reality, the report responds more to the needs of the United States of America.
The United States, which in the midst of the world war sought to satisfy and resolve
its demands through a strategy of deploying to developing countries, should be
emphasized that Bolivia was the main source of tin in the western hemisphere in
addition to rubber and other raw materials.

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Regarding the highway system with an international view, it had a strategic mission
to coordinate with agents from other countries to give the green light to the
constructions where the PANAMERICAN highway was going to be integrated, in
charge of the paving construction company of Mexico SA, the negotiations. They
were not very convincing and ended up showing that the company did not have
financial solvency and the problems began slowly due to lack of planning and
external and internal capital.

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Regarding the state-owned YPFB, the Bohan Pon plan is under the supervision of
the Bolivian development corporation CBF, which was under the control of
Eximbank.
During the government of Gualberto Villarroel, he empowered YPFB with the
application of the Bohan plan, once the recommendations were received, YPFB
intensified work on exploring reserves, obtaining important credits from both the
World Bank and the International Monetary Fund, putting as collateral the reserve
found in each discovery.

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The central bank of Bolivia presided over the tin barons at that time and denied
YPFB any loans requested as it was inconceivable for the mining thread of oil
wealth.

Over time, YPFB became a wealth-generating company with its own assets and
subject to international credits that were covered by the marketing and exploration
of oil and its derivatives, reaching national self-sufficiency in 1954.
YPFB PLAN
Based on the Bohan plan, YPFB developed its own operations development plan,
which consisted of building Camiri-Santa Cruz oil pipelines to establish the Camiri
refinery and drill 45 wells in the three producing centers of Bolivia.
The Eximbank authorized plan, the assignment of a credit of 5500 billion US
dollars that was not fully executed due to a coup d'état in 1943 that brought
Gualberto Villarroel to power, it is estimated that only 2000 billion US dollars were
invested for drilling. made progress in the construction of oil pipelines or in the
construction of the refinery.

4.-MARCH TO THE EAST

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This new Bolivia, established with the Bohan plan, was: conceived, planned,
financed, executed, administered and supervised by the United States of North
America.
5.- BOHAN ROADS PLAN.
Regarding the roads, the report showed that there were no paved roads and those
that existed were in poor condition. Section B, Part V. of the Report of the United
States Economic Mission in Bolivia, addresses the issue and clearly indicates the
routes and their importance for the development of a Road System. The report
sent on August 19, 1942 by Harry P. Hart and Edward A. Willis to Commissioner
Public Roads Admin instruction, Mr. Thos. H. MacDonal proposed, in a first stage,
an economic program, the execution of the Cochabamba Santa Cruz route.
Recommendations are also made about which routes are considered the most
practicable and which meet the standards to justify their inclusion in the National
Road System for inclusion in a second cooperation program. The first stage of the
program totaled $26,125,000, of which $12,000,000 would be for the Cochabamba
Santa Cruz road and North and South connections, of the $2,6,125,000,
$10,500,000 would be provided by the Bolivian Government .

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THE IMMEDIATE ECONOMIC POLICY PLAN OF THE GOVERNMENT OF THE

NATIONAL REVOLUTION.

In 1954, the Immediate Economic Policy Plan of the Government of the National
Revolution was presented to the Government of the United States, drafted by the
Ministry of Foreign Affairs and Worship of the Republic of Bolivia. This document shows
the panorama of the Bolivian economy and sets out an immediate plan to modify the
economic situation with the help of the American Government.
The panorama of the road network until 1954 reached 22,000 km. (13.8 00 miles), of
which no more than 3. 000 kms. (1,900 miles) provided services throughout the year.
Given this deficiency in the roads, which were mostly dirt, the aim was to improve four
trunk roads:
1. La Paz Puerto Acosta
2. Santa Cruz Camiri
3. Sucre Camiri
4. Tupiza Tarija Villamontes
These roads were of significant importance for the Bolivian economy, the first because it
connected the agricultural area of Lake Titicaca to La Paz; the second, connected the oil
company region with Santa Cruz; the third, important for the exchange of agricultural
products; The fourth connected the Chaco region to the railway system to promote the
development of agriculture and livestock.

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5.1-CONSTRUCTION OF THE TADA COCHABAMBA - SANTA CRUZ

ASPHAL ROAD
During the 17th and 18th centuries, livestock and agricultural activity was the main
source of income for the City of Santa Cruz. However, for the development of both,
the link between Santa Cruz and Charcas for the commercial exchange of products
was important because there the products of the land were brought to Potosí:
thread, various fabrics, canned sweet fruits, rice and, above all, sugar; On your
return, bring to Santa Cruz, fabrics from Castilla, tools, wine, wheat flour and some
other easily placed merchandise.
Once the Republic was established, there were few efforts by the State to develop the
Bolivian east, whose region had extensive fertile lands, the productive activity of
agriculture was not taken seriously by the governments that passed, neither by the
liberals nor by the businessmen. despite the fact that the population suffered droughts
and times of food shortage.
The economic deployment of silver mining (1856) and later, tin (1900) in the departments
of La Paz, Oruro, and Potosí left the Department of Santa Cruz still lagging behind.
When at the beginning of the Chaco War a narrow dirt road was built from
Cochabamba towards the East. While previously there were only bridle paths on
this route, the dirt road now allowed the transit of small trucks of up to 3 tons.
Regarding this highway, the Monograph of Bolivia, Oruro and Santa Cruz of 1975 points
out how fast the construction was, so much so that, in August 1932, the first trucks
arrived from Cochabamba. In time to use them in the first needs of the war.
Which means that the Cochabamba Santa Cruz route had already been passable
since 1932 and that the Bolivian Development Corporation (created in 1942) was in
charge of beginning the paving and maintenance of the road.
The Corporation began the construction of the Cochabamba Santa Cruz paved
highway in 1943 during the government of Gualberto Villarroel. Regarding the
progress of the paving work, in the Immediate Plan of 1954 we can rescue the
following data
The Cochabamba Santa Cruz Montero highway was paved only in an area of 51 km. (32
miles), all of them in the Cochabamba valley. The few kilometers that were also paved at
the exit from Santa Cruz are practically destroyed. Consequently, it is necessary to put
asphalt pavement at 5609 km. (320 miles) of that road.
The Government of Víctor Paz, upon assuming power in 1952, continued the work that it
inaugurated on September 26, 1954, inviting American personalities. Iowa State Senator
Bourke Hickenlooper; Rep. Clifford McIntire; Export-Import Bank executives Lyn
Stanbaug and Robert Mormom, and well-known columnist Drew Pearson

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However, it is worth clarifying that although this work was inaugurated in 1954, the
paving work was only completed in 1957 during the Government of Dr. Hernán Siles.

SOURCE: Own elaboration based on the Road Map of Bolivia, Military Geographic Institute
(2012)

Due to the economic importance of the highway, the Bolivian governments in power
made every effort to ensure that this work was not paralyzed. In this regard, the
government of Dr. Enrique Hertzog with its Supreme Decree N 986 of December 20,
1947 provides that the Central Bank grants him a loan of $2,000. 000 to the Bolivian
Development Corporation to avoid the stoppage of work, creating to service the debt
toll taxes for the transit of the existing road, a tax on gasoline consumed in the
Departments of Cochabamba and Santa Cruz.

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As demonstrated by the researcher Castro, all sectors contributed to the construction of

the highway through the tax of 20 cents on a small bottle consumed in the Department of
Cochabamba ( ). Later, on January 6, 1949 with Supreme Decree N In 1454, this same
government created a tax of one cent on a fine pound of tin exported to the
Cochabamba Santa Cruz highway, meaning that mining companies in western Bolivia
were also obliged by law to contribute to the execution of this project.

The Bolivian Development Corporation administered the funds for the construction of
the highway. In July 1955, $4,700.000 was allocated from a new Eximarán loan for
the paving of the Santa Cruz Montero highway and the construction of a bridge over
the Pirai River, funds that were to be administered by the CBF (DS. 4110).
Sixty years later one can see that the bases formulated by the Bohan Plan have meant a

true transformation of the country; the economy of the department of Santa Cruz, which
in 1950 represented 6 percent of Bolivian production and had a population of 417,000
inhabitants. Today Santa Cruz, a product of the march towards the East, has a
population of 1,343. 727 with 822,287 inhabitants in the capital, and its contribution to
agricultural exports was US$ 2,046 million on 20 13, out of a total of US$ 1 2,200 million,
16.7 percent, a clear response to what was the proposal of said Plan.

It can be concluded that the Bohan Plan was one of the most extraordinary proposals in
the History of our country, whose application laid the foundations of what Bolivia is today.

6.- BOHAN AGRICULTURE PLAN

This plan was the product of a mission sent by the United States Government to
Bolivia by the economist and professor Mervin Bohan, during the days of the

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Second World War. The report was prepared and delivered to the government of
Bolivia in 1942. It is a diagnosis of the country's economy and constitutes the first
precedent of a strategy for national agricultural development, at a time when
imports of agricultural products
They represented 28.5 percent of the country's total imports.
This report presented the following strategies
 Replace imports of products of agricultural origin, especially food, increasing the
population's consumption rates to enable scale production.
 Release foreign currency for the import of capital goods and manufactures.
 Raise the purchasing power of the population to incorporate it into the market.
The development strategy concerned the agricultural sector. A greater concern
was to stimulate the production of rubber, cinchona, and other products that were
important in the war effort that the United States was particularly interested in
obtaining from Bolivia. It was also considered important to increase the production
of basic products such as rice, wheat, sugar and cotton. The report recommended
the creation of an agricultural research and extension system that would be
developed for these areas where there was the greatest agricultural potential.

The Bohan report presented in 1942 proposed a more diversified and stable
economy through:
 The layout of a highway system that would allow the economic
development of the regions crossed by the system and the connection of
producing and consumer centers
 Promotion of agricultural production and the establishment of industrial
process plants, market facilities, credit agencies.
 Studies and construction of works in connection with the development of
irrigated crops in selected areas.
 Boosting the production of sugar, rice and wood
 Creation of sugar mills especially in eastern Bolivia: Guabirá, Belgium, San
Aurelio and Unagro.
 Irrigation of areas of the department of Tarija such as: Villa montes bermejo
(creation of the bermejo sugar mill)
On the agricultural issue, the Report identified few possibilities for Bolivia to place
its products in the external market. For this reason, he proposed the adaptation of
agricultural production to the internal context for its expansion based on the
gradual increase in population, to then achieve an increase in per capita
consumption.

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On the subject of agriculture, he proposed that production should be adapted to the

internal context (as a dependent variable), proposing that for its expansion the
gradual increase in population should be expected and then an increase in per
capita consumption should be achieved. In relation to the primary export model
that Bolivia had at that time, it proposed as an alternative the implementation of the
inward growth model, based on industrialization with import substitution, within the
framework of the theory of modernization. He also saw the United States' long-term
economic cooperation program as an instrument for creating a more diversified
and stable economy.
Promotion program:
 Promotion of agricultural production
 Agricultural research stations
 Development of irrigated crops

6.1.-CULTIVATION OF TUBERS AND ROOTS IN BOL IVIA

Potato: The potato in Bolivia grows at all altitudes from 300 to 4,000 m. with a
vegetative cycle of around 150 days. Sowing takes place between October and
November. Frost in some areas of Bolivia constitutes a limiting factor in tuber
production. It seems that factors such as periods of drought, intense solar radiation
and the consequent high values of evapotranspiration may be associated with
frost. The highland farmers base their experience on traditional observations made
and transmitted from generation to generation, thus they are aware of the cyclical
succession of droughts and frosts and have a pre-established rule; In a six-year
term, one year is good, two are average and three are bad.

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Cassava: The use of cassava is basic in the Creole cuisine of the eastern region of
Bolivia, but the importance of its production lies in the possibilities that it can be
used in the manufacture of flour, starch and animal feed.
Papaliza: In general it is one of the crops with high resistance to frost and can grow
at more than 4,000 m.

6.2.-INDUSTRIAL CROPS IN BOLIVIA

Cotton: Bolivia has a cultivated area of approximately 15,000 hectares of cotton.
Sugar cane: The cultivation of sugar cane has been one of the most important
agricultural activities for the Bolivian economy. Sugar cane is grown in the
departments of Santa Cruz and Tarija.

Peanut: Cultivation is widespread in all valleys and plains. The departments of

Santa Cruz and Chuquisaca stand out for their production but, in recent years, the
possibilities to expand the agricultural frontier have been oriented to areas of the
Chaco of Tarija.
Soy: The grain has a high content of oily substances, proteins and a wide range of
uses and applications. It can be used as a legume in fresh or canned form, in the
preparation of butter, mayonnaise, milk and milk derivatives, candy, soups and
sauces. In Bolivia there are large soybean crops in the department of Santa Cruz,
where it is possible to obtain two harvests per year (in the northern area of the
department of Santa Cruz).
Tobacco: The most representative cultivation
areas are located in the departments of Santa
Cruz (Florida and Vallegrande), Chuquisaca
(Calvo and Siles), Tarija (O' Connor), with
minor crops existing in the departments of La
Paz (Yungas and Alto Beni), Beni (Moxos and
Iténez) and Cochabamba (Chapare).
Sunflower: Bolivia has a cultivated area of
approximately 150,000 hectares of sunflower.
Rubber: In Bolivia, attempts were made to
establish exclusive commercial rubber forests
through private initiative without much success. The little that is exploited is
destined for the Brazilian market as raw material.
Cacao: In Bolivia, cacao is found in the wild along the banks of northwestern rivers
that offer favorable climate and soil conditions. Native plants produce a more

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aromatic cocoa, although the disadvantage is the small size of the seeds. In the
Alto Beni area, La Paz, cocoa has had the greatest development in well-cultivated
plantations.
Coffee: The coffee tree is a crop of tropical and subtropical climate but the plant
prefers mountainous regions on the mountain flanks that look towards the Amazon
basin (yungas). The Yungas are the main coffee producing area and the Santa
Cruz plains are the second producer.
Coca: It is a crop from a subtropical climate that adapts to all types of soils,
requiring a lot of care in the preparation of land and in the weeding that is carried
out after each harvest. The plant reproduces by cutting or seed, being ready for the
first harvest, one year after being planted, providing 2 to 3 annual harvests. There
are two coca producing areas in Bolivia: the Chapare Cochabamba (in the towns of
Victoria, El Carmen, Lobo Rancho, Todos Santos and Puerto Aurora) which
concentrates around 70% of the national production, the yungas and part of the
province Inquisivi of the department of La Paz.
Tea. The country has a variety called San Carlos tea and the Agricultural Technical
Mission of the Nationalist Republic of China in Bolivia managed to successfully
introduce the Assam variety

6.3.-FRUIT CROPS IN BOLIVIA.

Citrus cultivation is widespread throughout the country, concentrating mostly in the
yunga areas of La Paz, Chapare and northern Santa Cruz.
Orange: The most widespread variety is the Bolivian Creole, a medium-sized fruit
with a diameter of 6 to 10 cm, strong orange color, thin and slightly rough peel,
orange pulp and 50%
abundant juice, with
numerous seeds (10 to 15
per fruit) and sweet flavor.
Mandarin: Like the orange,
the most widespread
variety is the Bolivian
Creole, whose fruits are
medium-sized (diameter 7
cm), orange in color and
have a slightly rough peel, pulp of fair quality and abundant juice with a large
amount of seeds (10 to 25 per fruit). Grapefruit. It stands out for being the largest
citrus fruit with a greenish yellow color, very thin peel, abundant juice and sweet
and sour flavor. The grapefruits of Santa Cruz are distinguished by their quality,
where the grapefruit itself (Citrus grandis) and grape fruit (Citrus pardis) are grown.

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Lemon and Lime: The lime, a medium-sized fruit (7 cm in diameter), has a

spherical shape, a smooth yellowish-green peel, white, juicy pulp and a bittersweet
flavor, while the lemon is a small fruit. (4 to 5 cm in diameter), yellowish rind and its
pulp has an acidic flavor.
Bananas and bananas: Bananas are plants with straight stems, made up of
numerous barks, sheathed one with another with wide, long leaves. They produce
fruits with a curved and cylindrical shape, with a yellowish and smooth skin, and
inside they have a pulp with a fleshy structure.
The vine: It belongs to the ampelidea family and has a climbing stem, simple
alternate leaves trimmed by five notches. The fruit is a cluster composed of
globose, white, pink and red berries with four seeds each. All vines are multiplied
by cutting.
Apples: In Bolivia there are two varieties of apples, native and foreign, which
generally lack scientific names and adopt the name of the place of origin; Among
the best are the Vinto, Halcu and Delicious varieties.
Pineapples: The most important growing areas are located in the provinces of
Warnes, Santisteban and Ibáñez de Santa Cruz; in Chulumani of La Paz, and in
the Chapare area, Cochabamba. The production season begins in October and
ends in the months of December and January.
Avocado: Its fruits are highly perishable as a result of the rapid decomposition of its
pulp. It is grown in the Yungas and Sorata areas of La Paz, and to a lesser extent
in the Chapare and fruit-growing areas of Santa Cruz.
Mango: Mango crops are scattered throughout the Yungas area of La Paz and in
the departments of Beni, Santa Cruz and Pando. Harvests take place at the end of
October to January.
BOLIVIA: PRODUCTION PER AGRICULTURAL YEAR ACCORDING TO
CROPS
(In metric tons)
D E S C R IP C IO N 2014- 2015 2015- 2016 2016- 2017 2017- 2018
C E R E A LE S 2,934,920 2,660,494 2,279,134 3,267,425
ES T IM U LA N T ES 28,262 28,821 27,876 29,159
F R U T A LE S 1,449,459 1,478,208 1,495,686 1,556,248
H O R T A LIZ A S 453,800 447,219 477,875 494,163

O LEA G IN O S A S E IN D U S T R IA LES 10,442,877 10,722,970 11,512,346 12,199,458

T U B É R C U LO S Y R A IC E S 1,326,498 1,317,085 1,290,473 1,405,985
F O R R A JE S 504,011 476,785 486,870 500,851

7.- BOHAN MINING PLAN

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We are used to relating mining in Bolivia with Potosí, Oruro and in general with the
west of the country and relate this activity with the poverty and environmental
problems that it has left in these areas, not only affecting the environment itself, but
also others. productive sectors such as agriculture and fishing.
But this reality has changed. The mining stain that characterized the map of Bolivia
since its birth has been modified, since currently mining has been established in a
large area of the east, especially in Santa Cruz. This shows that Bolivia has been
incorporated into the Latin American trend, exemplified by Peru and Colombia, of
the granting of mining rights in a large part of its territory.
We are facing a new mining reality, which is not only expanding into new areas,
creating new mining regions, but also a new model of mining exploitation that has
open pit work as its main technique and transnational companies as its central
protagonist.
The production model of this new mining is no better than the one that
impoverished the Bolivian highlands. As in times past, a few large companies
predominate, surrounded by rights holders in the name of the local elite and front
men.
In the same way as with large-scale mining in the West, mining in the lowlands is
supported by the State's mining policy, which is oriented only to obtaining royalties
and taxes. This happens, for example, in the northern Amazon. There, huge
quantities of mercury and cyanide flow into Bolivia through the Madre Dios River
from mining in Peru.
But the Government's policy in the region, as well as in the east, only seeks the
legalization of the miners so that they pay taxes, regardless of the pollution.

9.1.- MINING IN ANDEAN BOLIVIA

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Regarding the history of Bolivia, there are references that in the Tiwanacota and
Inca times there was an important mining practice in the country: the Incas
developed their own mining techniques until they reached surprising advances for
the execution of stonework works, filigree techniques, gold soldering and
metallurgy management.

The Inca culture was also surprising in its rudimentary gold, silver and bronze
work, noting a high development and knowledge of these minerals. At the time of
the Spanish colony, historical studies coincide in pointing out the discovery of
Cerro Rico de Potosí as the beginning of the modern mining cycle for the territory
that today constitutes Bolivia.
The colony also marked the beginning of mining at the service of the Spanish
crown and linked to the progress of other continents, on whose regulations the
current ones are still based. The mineral wealth of silver in Potosí contributed to
the development of Europe and placed Potosí as the international center of the
economy; but it ended up causing migrations that uninhabited its provinces,
destructuring the entire agricultural productive organization of Potosí and leaving
these regions in a state of poverty that to this day they have not been able to
overcome.

9.2- MINING LEGISLATION IN BOLIVIA

Bolivian mining legislation has its origins in Spanish regulations from the mid-14th
century; Thus the idea of Monarch/Owner of the mines found its parallel in the
State/Owner of the mines; despite the fact that in fact a type of property was

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maintained for the miner through the executory title, which represented absolute
ownership of the mine.

In the first years of the Republic (1825-1870) the mining situation did not change,
despite the mining policies dictated in that period. President Isidoro Belzu (1848-
1855) ruled on the Protectionist Legal Measures and Promotion of Industrialization.

9.3.- THE NATIONALIZATION OF MINING

The nationalization of the mines that occurred with the popular revolution of 1952,
placed the State and the workers, organized around COMIBOL, at a time when
mineral prices had fallen extraordinarily; determining not only the great power of
mining to overcome obstacles but also to continue managing State policies and
benefiting in an extraordinary way. Thus, the tin barons of 1900 received large
compensations for the nationalization on behalf of the Bolivian State, a fate that is
unequivocally expressed in one of Almaraz's texts (1969:14).

Finally, on October 31, 1952, the Decree of Nationalization of the Mines in the
Campos de María Barzola, of the historic Catavi mine, was issued.

The following mines passed to the State: Bolsa Negra, Kami, San José, Colquiri,
Morococala, Huanuni, Alantata, Catavi, Antequera, Colquechaca, Colavi, Unified
del Cerro Rico de Potosí, Pulacayo, Matilde, Chorolque, Ánimas, Chocaya,
Oploca, Venus, Pampa Grande and Viloco.

The momentous measure occupied the world's attention and provoked a favorable
and supportive reaction throughout Latin America.

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On October 31, 1952, Victor Paz Estenssoro signed the decree nationalizing the
mines in the María Barzola field (Potosí). One of the postulates of the Revolution
had been the elimination of the so-called mining superstate. Between April and
October 1952 a commission worked to study the measures to be taken.
Popular pressures, channeled by the COB, defined some doubts. The decree was
signed with workers' control; a political measure without precedent on the
continent, which reliably demonstrated the capital importance of union power,
whose strength was clearly shown in the twelve years of the MNR government.

The nationalization reverted to the state all the assets (fields and facilities) of the
three large companies: Patiño, Hoschild and Aramayo.

For the administration of the mines now in the hands of the state, the Bolivian
Mining Corporation, COMIBOL, was created.
8.5.- HISTORY OF MINING ACTIVITY IN THE PRECAMBRIAN AREA
The studies we have consulted coincide with what was stated in the Prime
Engenharia Consortium Study 6, pointing out that the outcropping portion of the
Eastern Shield has played a minimal part in the history of Bolivian mining and its
economy, but it had its own history. with the gold used from 1692-1767 during the
Jesuit colonization, constituting ten population centers in the Chiquitanía of Bolivia:
Santa Rosa, San Javier, San Miguel, Santa Ana, Concepción, San Rafael, San
Ignacio, San Juan, Santo Corazón and Saint Joseph.
In the San Simón area, reference is made to remains of very rudimentary
exploitation dating back to 1700. According to the geologist and mining analyst,
Salomón Rivas, intrepid miners since the Jesuits, exploited gold, kaolin from
pegmatites in the Precambrian to paint churches and homes white, and some
white mica, beryllium, Columbite and so much stone.

For the first time, the common man of the jungle is made aware of the eastern
wealth of the forested mountains of the Precambrian, taking into account that
mining has been the most important sector of Bolivia's economy.

The Precambrian rocks are the oldest in the Earth's crust, more than 500 million
years old; prior to the Cambrian, the base of the Primary (Paleozoic) which is the
outbreak of life. The Quaternary era is the sandy soils like Santa Cruz, where we
live. Precambrian are metamorphic rocks such as: granulites, gneisses, schists,
quartzites and igneous rocks such as: granites, diorites, amphibolites, gabbros and
the rich pegmatites.

In the past, the geological knowledge of the sparsely populated region was poor,
where intrepid miners since the Jesuits exploited gold, kaolin from pegmatites to
paint churches and homes white, and some white mica, beryl, columbite and
tantalite.

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The Precambrian Shield, as its name indicates, makes a convex-shaped peneplain

in our country, which from 500 meters above sea level, in San Ignacio, descends
on all sides with gentle slopes to the plains.

Since 1976, for ten years, there was the British Bolivian Precambrian Project,
which has quickly and systematically studied the rocks, differentiating them in
terms of their composition, characteristics, age and potential for mineralization of
economic interest.

It has covered 220,000 km2 (a fifth of our Bolivia), with geological map surveys and
geochemical prospecting of all the streams.
The merit of the Precambrian Project has been the discovery of three large
deposits, namely:
1) The nickel deposit of the ultra-mafic, mafic and stratified felsic Complex of
Rincón del Tigre, an exemplary giant similar to the world producing centers of
nickel, chromium and copper.

2) The uranium phosphate deposit of Cerro Manomó, which is the largest

carbonate complex so far described in the world geological literature (Fletcher et
al., 1981).

3) The tin deposits on the beaches of the streams and rivers of Ascensión de
Guarayos that can be compared with those of Rondonia, Brazil

8.- PLANS AND PROJECTS

Territorial vertebration: Incorporate the east mainly through the construction of the
Cochabamba-Santa Cruz paved highway.
Population redistribution: Promote the transfer and settlement of farming families
from the highlands, the valleys and foreign immigrants to suitable and unpopulated
agricultural areas north of Santa Cruz.
Promotion of production: Modify tax policy to tax unproductive land tenure
and/or revert it to the State; adopt a pricing policy to protect and stimulate

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productivity; incorporate new lands into agricultural production, especially

eastern ones; provide agricultural credit.
Self-sufficiency of the national market:
In the short term: kerosene, diesel oil, fuel oil, hardwoods, livestock and rice; all
this by increasing YPFB's production and its refining capacity; the installation of a
sawmill, and the development of livestock and rice projects on the banks of the Rio
Grande, respectively.
In the medium term: sugar and cotton for the textile industry, with sugarcane
projects in Montero, and small-scale cotton production in Santa Cruz.
Technological transformation: through the incorporation of mechanical
agricultural implements, animal traction and/or motor; the selection and use of
the best soils; pest control; the improvement of the livestock herd in Reyes
(Beni) and breeding techniques.
Creation of facilities for the conservation and agro-industrial processing of
agricultural production: installing a sugar and alcohol mill in Montero, and a plant
for cattle slaughter, conservation and meat packaging in the vicinity of the city of
Santa Cruz.
In a first phase of development, the region grew towards the interior of the country, that
is, exporting products to other regions of Bolivia.
In a second phase of development, since the early 1970s, regional development tended
outwards, that is, exporting products to other countries.
Attraction of migratory flows from other regions (increase in the labor force and the
regional market). Induction of activities that produce mainly for the expanding
regional market, thanks to the effects on regional income, resulting from the
development of activities.
The development model was based on the effect of the migrations that occurred
throughout the 20th century, especially in the second half of the century. We can
conclude that until 1975, Santa Cruz was gradually heading towards being the center of
the national economy and be a total World exponent of the Bolivian economy.
We can talk about three different phases in the economic development of Santa Cruz
1. First phase (Awakening of the Santa Cruz economy 1952-1964)
The revolutionary period marked the beginning of the Santa Cruz economy; the following
years would mark a stable and continuous economic model despite the twenty
governments that passed through the government palace.
The objectives of the MNR's economic policy would be set by the well-known Bohan
Plan, including national economic integration and the diversification of the exportable

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base, granting the east that predominant role in state capitalism. It should be noted
that the National Revolution was the driver of the change of economic structures
throughout Bolivia, especially in Santa Cruz.
For this reason, in the 1950s the state turned to help local producers and made it
possible to unblock the structural factors that prevented profitable and dynamic private
activity in Santa Cruz. The following public policies were promoted by the Bolivian
Chamber of Development (CBF) founded in 1942 at the request of the Bohan Plan,
following two central lines of action.
The second line was the direct promotion of agroindustrial production in the east
through programs supervised by the Inter-American Agricultural System (SAI),
granting subsidized credits to production (the Supervised Agricultural Credit created
in 1954), technical assistance for the incorporation of machinery modern and
agricultural research and extension projects. These two lines of promotion were
directed towards encouraging internal migration; until the mid-60s, Santa Cruz would
begin to be the economic center of the country.

2. Second Phase (The Santa Cruz adventure 1964-1985)

The civil governments of the National Revolution (195 2-196 4) are what laid the
foundations for the regional economy. The boost to the Santa Cruz agro-industrial
industry and the golden years of YPFB define the seal of self-sufficiency or the
national market.
The cycle of military governments coincided with the most dynamic and prolonged period
of economic growth that the region and the country experienced in the second half of the
20th century: in the period 1964-1978, the Bolivian economy expanded at an average
annual rate of 5.7 percent, while Santa Cruz probably grew at a rate of around ten
percent.
Annual percent between 1965-1971, and at a rate of 7.1 percent annually between
1971-1978. For this reason, the dynamism of the Santa Cruz economy marked
several milestones in this political-economic cycle.
The results of the 1976 Census made it possible to graph the magnitude of the
structural change in just a quarter of a century. Santa Cruz had not only considerably
increased its economic weight in the national context but its population was globally
richer, and this in the midst of an intense demographic expansion. When the growth
cycle abruptly ended, Santa Cruz concentrated around 16 percent of the Bolivian
population, had around 19 percent of the national GDP, and its GDP per capita had
grown by no less than 6-8 percent between 1965 and 1965. 1978.`

3. Third Phase (The Cruceño Potential 1985-2007)

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The economic crisis in the first half of 1980 brought with it the financial bankruptcy of
the Bolivian State. In this context, the New Economic Policy implemented by the
Paz Estenssoro government in August 1985 was the radical beginning of an
economy based on export and hydrocarbon agroindustry, obviously Santa Cruz
remains the pillar of the national economy.

THE RISE OF RUBBER IN EASTERN BOLIVIA (19TH – 20TH CENTURY)

The rubber boom (or rubber boom) refers to the period, between the end of the
19th century and the beginning of the 20th century, in which the extraction of
rubber from the syringa tree (hevea brasiliensis), in the jungles of Beni and Pando
contributed significantly to the growth of the Bolivian economy, thanks to the export
of this product, and marked a stage of development for the Eastern Bolivian region.
This period of wealth was common to all countries in the Amazon region, until the
English created plantations of Hevea brasiliensis in Malaysia, Burma, Ceylon and
sub-Saharan Africa, after, in 1876, the botanist Henry A. Wickham had managed to
illegally smuggle the tree's seeds out of Brazil. By 1914, the amount of rubber
obtained from these plantations already exceeded that extracted from wild trees.

So that you better understand the processes and events related to the rubber
boom, we present a small glossary.
Small glossary
Syringe. This is the name of the rubber tree, whose scientific name is hevea
brasiliensis (see below).
Rubber tap. The worker in charge of extracting the resin from the gum tree.
To bleed. Extract the resin from the gum, using a V cut made in the bark of the
tree.
Ballacha. It is the rubber ball that is made by smoking and coagulating the resin of
the rubber tree. In this way the rubber was transported and exported.
Estrada. It is a “way” or line of gum trees. The concession that the State gave for
its exploitation was quantified in hectares and roads.
Hooker. He was the one who hired workers through the infamous “enganche”
system (see below).
Hooked or Rehooked. Worker hired under the enganche or reganche system.
Hevea brasiliensis

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Also known as the rubber tree or “syringa”, it belongs to the Euphorbiaceae family
and measures between 20 to 30 m in height. The rubber is made from its white or
yellowish resin, which is “bled” from the trunk through angular V-shaped incisions.
The worker who extracts the resin from rubber is called a “siringuero.”

Chronology of the rubber boom

Charles Goodyear (Mass Moments)
1839. Charles Goodyear discovers the vulcanization of rubber, accidentally
overturning a container with sulfur and rubber on top of a stove, and observing that
the mixture hardened, becoming waterproof. Goodyear calls the phenomenon
vulcanization in honor of Vulcan, the Roman god of metals, fire and forges. As a
result of this discovery, the use of rubber began in multiple applications at an
industrial and domestic level.
1862. Santos Mercado is the first Santa Cruz native to build a hut for rubber
exploitation, on the right bank of the Madera River. This, and a second barracks
that Mercado built on the opposite bank, were the northernmost settlements of the
Bolivian occupation of the Madera River.
60s of the 19th century. Other Santa Cruz businessmen build barracks for rubber
exploitation in the upper and middle reaches of the Madera River.
1867. With the Boundary Treaty, Bolivia handed over this region to Brazil, and all
these facilities for rubber exploitation had to be abandoned by Bolivian companies.
1872 onwards. The exploitation of the rubber trees begins in the area of the Beni
River.

Cachuela Esperanza founded by Nicolás Suárez Callaú (Mapio)

1882. Nicolás Suárez founded Cachuela Esperanza, the citadel on the banks of
the Beni River that, over the next forty years, would be the administrative center of
his rubber company, one of the most important in the Amazon region.
1896. The Enganche Law is enacted, which attempts to stop, without much
success, the abuses that were committed against workers hired to work in the
rubber fields.
1897 Antonio Vaca Diéz dies who, along with Nicolás Suárez, was one of the great
businessmen of the Gomero boom.
1910. It is the year of greatest production, rubber exports reach a value of 27
million bolivianos.

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1921-24. Due to competition from plantations in South East Asia, rubber exports
fall dramatically, reaching their lowest value of 3 million bolivianos per year. It is the
end of the rubber boom.

The rubber businessmen

Two first cousins, Antonio Vaca Diez, originally from Beni, and Nicolás Suárez
Callaú from Santa Cruz, were the most relevant businessmen of the Gomero
boom. The first contributed to establishing the river route between the Beni River
and the Mamoré River, while the second was the founder of Cachuela Esperanza,
the citadel built on the banks of the homonymous cachuelas of the Beni River, on
the limits between the current departments of Beni and Pando. Cachuela
Esperanza became an administrative center with European-style efficiency and
amenities, connected by river directly to the ports of the Atlantic Ocean, from
where rubber was exported to England. Towards the end of the 19th century it had
2,000 inhabitants, including several European technicians and engineers, and
featured Victorian-style wooden buildings, among which the luxurious mansion of
Nicolás Suárez, the school, the hospital, the chapel, and a hotel stood out. and
even a theater, a casino and a small 800 m railway. Whoever visits Cachuela
Esperanza today can glimpse its ancient beauty in the SS Chapel. Trinidad and the
General Pando Theater.
The hook
If on the one hand the Gomero boom meant a great economic boost and the
insertion of the Eastern Bolivian region into the world economy, accompanied by
the ostentation of luxury and wealth, on the other its human costs were
tremendously high, since the extraction of rubber required large amounts of cheap
labor.
The indigenous people of the Chiquitanía and Guarayos territories were forcibly
removed from their communities and taken to work in the Beni jungles, where
many died due to the environmental conditions and the brutality of forced labor.
Others went into the most remote areas of their territories to escape this servitude,
as happened with the groups of Chiquitanos who founded new communities in the
area of Lomerío, located between San Javier and Concepción.
Other workers – who came from the urban centers of Bolivia, particularly the city of
Santa Cruz de la Sierra, and from abroad – were trapped by the perverse debt
system called “enganche” or “renganche.” The employees were hired by an
“enganchador” and, after being confined in a house for several days until the

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caravan was completed, they were taken in chains to the rubber fields, to prevent
them from escaping during the long and difficult journey. In the Gomals they lived
under a labor system that was based on a vicious circle of debt: the “patron”
assigned a certain territory to each rubber tapper, in which he tapped several tree
paths daily to collect the resin, which he then It was smoked and coagulated in
balls. The employer advanced food, medicine, weapons, tools, and clothing on the
employee's account, which the employee had to pay with rubber balls, thus paying
off part of his debt but going into debt again to receive a new advance of
merchandise. The worker could buy merchandise and deliver the collected rubber
only to the “boss,” thus remaining practically “hooked” for life.
The complaints against this brutal labor exploitation prompted the enactment in
1896 of the Enganche Law, which prohibited this practice. However, in Santa Cruz
de la Sierra, which was the main hiring center for workers, the ban was not applied
due to the connivance of the departmental authorities with the recruiters. In 1906, a
group of prominent citizens, outraged by this practice, met in the Social Defense
group, first managing to free a group of addicts brought from the Cordillera
province and then the return of another group sent to Riberalta. Finally, they forced
the Enganche Law to also be applied in Santa Cruz and for this practice to be
significantly reduced.

9.-BOHAN PLAN: OIL

In relation to the oil area. Main

Objectives set were:

4. The increase in oil production. Through the development of a greater number of fields,
especially the Camiri field.
5. The increase in hydrocarbon reserves, through the exploration of new oil areas.
6. The construction of transportation facilities for oil and its derivatives, in order to optimize
costs, reduce marketing prices in the domestic market and enable the export of surpluses
under favorable conditions for the State.

Development of the oil sector:

1. Exploitation of oil zones in the Bolivian South East.

2. Drilling of discovered wells in Santa Cruz, Chuquisaca and Tarija.
3. Construction of Pipelines: Camiri, Santa Cruz – Sucre.

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4. Establishment of refining plants: Camiri and Sucre.

Exploratory drilling in Bolivia

Drilling wells in search of oil in the country began in 1923, thanks to the exploration work carried
out by the SOC, which resulted in the drilling of 12 geological structures and the discovery of four
oil fields: Bermejo and Sanandita in Tarija, Camiri in Santa Cruz, and Camatindi in Chuquisaca.

From then until the present, the drilling of geological structures, which is the culmination point of
exploration, has known moments of boom and moments of paralysis. This is corroborated by Table
No. 2, which shows the number of drilled and re-drilled structures in relation to the period of
validity of the hydrocarbon laws that have existed in the country.

The beginnings of oil exploration in Bolivia

Permissions to search for hydrocarbons in the country were granted starting in 1865, according to
Victor Hoz de Vila, and in 1912 Luis Lavandez Reyes began drilling what could be the first
exploratory well in the country in Mandiyuti (Santa Cruz). Later, despite its first failure, it began
drilling another well in the Calacoto region (La Paz). There is also Miguel Velasco who, to be
precise, does not carry out explorations, but takes advantage of a surface outcrop to distill
kerosene and distribute it in Santa Cruz

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10.-CONCLUSION

It can be concluded that the Bohan Plan was one of the most extraordinary proposals in the
History of our country, whose application laid the foundations of what Bolivia is today.

The Bohan Plan allowed the creation of a communications infrastructure that enabled productive
and industrial expansion and diversification, with agricultural production as a base platform, not
only to achieve a greater degree of self-sufficiency but to generate export surpluses. It included
suggestions to improve mining and oil production. It contributed to incorporating eastern Bolivia,
then cut off and isolated, into national development.

The principles of the Bohan Plan remain in force: economic diversification, physical linkage of the
country and industrialization, although in a context that responds to the challenges of the new
21st century and not the 20th century. A renewed productive policy focused on technological
change that leads the productive processes of the coming decades: nanotechnology and
biotechnology. From this perspective, the most important inclusion is that of knowledge and there
the country seems to have no agenda.

11.-BIBLIOGRAPHY

Bohan Plan: A success story – ICEES

www.icees.org.bo/2015/08/plan-bohan-una-historia-de-exito/

Bohan Plan — Wikipedia

https://fr.wikipedia.org/wiki/Plan_Bohan

The Bohan Plan (1942) and the “March to the East”

The newspaper El Deber de Santa Cruz. Column Los Collaboradores, March 30, 2004.
http://www.eldeber.com.bo/anteriores/20040330/opinion_4.html

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