Washington -- The United States is committed to working with Bolivia
to deepen democracy, combat illicit coca cultivation and promote
economic development, says John Creamer, deputy director of Andean
affairs at the State Department.

Creamer and Bolivia's ambassador to the United States, Jaime Aparicio,
were among the featured speakers at a May 16 session at the Center for
Strategic and International Studies (CSIS), where participants
examined Bolivia's current political and economic climate, as well as
the challenges facing the administration of Bolivian President Gonzalo
Sanchez de Lozado.

Upon assuming office in August of 2002, Sanchez de Lozado inherited a
four-year economic recession and a democracy under attack, Aparicio
recalled. The ambassador noted that democracy is also under attack
elsewhere in Latin America, but indicated that the political climate
in Bolivia is particularly worrisome because certain elements of the
opposition often fail to observe democratic procedures.

The Bolivian government, Aparicio noted, is worried because certain
parties are "not just against the government, but the democratic
system." He cited the violence that erupted in February 2003, leaving
30 people dead, as evidence of the necessity for reform of political
parties and the police.

Aparicio added that convincing recalcitrant members of the opposition
to work within the rules of the democratic system and ensuring that
Bolivians enjoy the benefits of sound economic management are among
the most pressing challenges for the Sanchez de Lozado administration.

Pointing out that the Bolivian government has increased social
spending by 75 percent, worked with international financial
institutions to implement programs, and positioned the economy for as
much as 4 percent growth this year, Aparicio was optimistic in his
assessment of Bolivia's economic outlook.

"The next six months should bring good news," he said.

As the Sanchez de Lozado administration addresses Bolivia's multitude
of challenges, it will do so with the continued support of the United
States, Creamer told the CSIS audience.

The State Department official said that U.S. policy toward Bolivia
centers on efforts to work with the Bolivian government to strengthen
and consolidate the nation's democracy, combat illicit coca
cultivation and narcotics trafficking, and promote Bolivia's
socio-economic development.

To these ends, the United States has provided $1.3 billion to Bolivia
over the last ten years, Creamer observed. In 2002, it also extended
and expanded the benefits Bolivia receives under the Andean Trade
Preference Program (ATPA).

Bolstered by U.S. support, Bolivia has made important progress in each
of the areas of democracy, economic development and counter-narcotics,
he said.

The election and subsequent inauguration of Sanchez de Lozado, Creamer
noted, marked Bolivia's fifth successful election and sixth democratic
transition since 1982. Although poverty and economic challenges endure
in Bolivia, Creamer said the nation has done a good job implementing
reforms and pursuing sound policies, thus avoiding hyperinflation and
the economic collapses that have struck several other nations in the
region.

Creamer also applauded Bolivia's efforts to curb illicit coca
cultivation, pointing out that the number of hectares under
cultivation in the Andean nation have dropped from 50,000 hectares in
the 1980s to approximately 22,000 hectares in 2003.

He said that the United States has worked with the Sanchez de Lozado
administration and the International Monetary Fund (IMF) to help
Bolivia establish a strong economic framework to ensure stability, as
well as to sign an IMF stand-by agreement. The U.S. has also worked
with the World Bank and other nations to secure funding for programs
to help Bolivia address its social and economic needs, Creamer said.

In addition to working with international financial institutions and
other nations to support Bolivia's efforts, Creamer emphasized that
the United States has committed $165 million dollars in assistance for
that nation in 2003. Forty-one million dollars of this assistance will
be for alternative development, $63 million for social spending such
as health care, and $49 million for narcotics interdiction and
eradication efforts and the strengthening of judicial institutions.

Mindful of criticisms of alternative development programs, Creamer
acknowledged that it is "not possible" for these programs to match
"one-for-one" the money small farmers or campesinos can derive from
coca cultivation. Instead, he said the goal of these programs is "to
provide reasonable income to move campesino families to cultivate
licit crops."

Creamer concluded that as Bolivia continues its efforts to deepen
democracy, curb coca cultivation and pursue sound policies, it will
enjoy the ongoing support of the United States and be a "strong early
candidate" for assistance through the Bush administration's Millennium
Challenge Account, which rewards good governance as well as investment
in health care and education.