Agriculture and the Peasantry

The main purpose of this paper is to examine the Paz Estenssoro government’s New Economic Policy (NEP) launched in August 1985, and the effects of the policy on agriculture and the peasants. First, however, it is useful to examine briefly Bolivian after the passing of the Law for Land Reform in August of 1953. There are three identifiable stages. First, the 1953-61 stage was a period of accelerated land redistribution to peasants. Agricultural production responded well with an average 3.8 percent annual rate of growth. The second stage, 1962-76, was a time of dynamic growth. The average annual rate of production grew 4.1 percent per annum, supported by an import substitution policy and the development of commercial agriculture in the department of Santa Cruz. In this stage, new agricultural and agro-industrial exports were generated. The third stage, 1 977-1985, was a period of stagnation and decline. Between 1976-1980, the annual rate of growth for the sector averaged only 2.2 percent and the rest of the period averaged less than 1 percent. The decline was aggravated by the 1983 draught that caused output decreases of more than 50% percent in some products.