Agricultural plans will generate rifts in Bolivia

Subject

Controversial plans to increase agricultural output.

Significance

An agricultural 'summit' held in Santa Cruz on April 21-22 reaffirmed the necessity of raising farm output. Controversial decisions were made to expand the agricultural frontier and to 'study' the effects on productivity of using genetically modified (GM) seed. Espousal of the interests of large landowners in the eastern lowlands reflects the need to increase agricultural exports to compensate for reduced gas exports.

Impacts

• Bolivia remains at a competitive disadvantage compared to Brazil and Argentina in such crops as soya and maize.
• Extending the agricultural frontier will speed up deforestation and exacerbate problems of land erosion.
• Increases in output will depend on how commodity prices vary, with Bolivia remaining a higher-cost producer than neighbours.