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54 | HUMBERTO VACAFLOR Coca became one of Spain’s allies. To this day, miners chew coca leaves while working. In the colonial era, coca production grew apace with the production of silver. Then, in 1860, cocaine was discovered and the innocent leaf that served as the miners’ companion became the new star of Bolivia’s economy. Today, Bolivia’s president is the leader of the coca growers union. Did the exploitation of silver, which created the coca boom, turn into a time bomb? Coca leaves are now responsible for Bolivia’s doom. The conflicts in Bolivia today are intrinsically linked to the way in which natural resources have been exploited throughout the country’s history. If these conflicts are not properly addressed, cooperation within Bolivia will not be pos- sible, and this will be an obstacle to energy solutions for the region. NOTES 1. Richard M. Auty, Sustaining Development in Mineral Economies: The Resource Curse Thesis (London: Routledge, 1993). 2. Banco Central de Chile, “Exportaciones de régimen general por sector económico,” Estadísticas Económicas. Santiago, 1996-2008. 3. Peter DeShazo, “Bolivia,” in Sidney Weintraub, ed., Energy Cooperation in the Western Hemisphere: Benefits and Impediments (Washington, D.C.: Center for Strategic and International Studies, 2007), p. 347. 4. “Morales Sets Bolivia Recall Date,” May 12, 2008, http://news.bbc.co.uk/2/ hi/americas/7396809.stm 5. The Potosí silver mine in Bolivia was first exploited by Spaniards in 1545, as part of the Viceroyalty of Perú. [Eds.] Oil and the Transformation of the Ecuadorian State Walter Spurrier Baquerizo ECUADOR’S ENERGY RESOURCES Ecuador’s two main resources are oil and hydroelectricity. Oil was discovered in the late 1960s, and production began in August 1972. Production was initially 250,000 barrels per day, and today has increased to over 500,000 bpd. Oil pro- duction as a share of GDP peaked in 1974 (34 percent), and today makes up 20 percent of Ecuador’s GDP. Ecuador, like Mexico, is a country with considerable yet, relatively speaking, limited oil reserves. A significant portion of its production is allocated to domes- tic consumption. The country must anticipate that in a not-so-distant future, a decline in production could mean the end of exports. This fact distinguishes Ecuador from Venezuela; in the Venezuelan case, the economy is expected to revolve around oil exports so long as oil continues to be one of the principal ener- gy sources in the world economy. Crude oil for export by Petroecuador (the national oil company)—both the company’s own production and the crude extracted by contractors—is sold by means of short-term contracts, destined for refineries in the Caribbean principal- ly via intermediary trading companies.1 Peru and Chile are regional customers, and oil has also been exported to South Korea in the recent past. Hydroelectric power comes from the rivers that come down the Andes and which either form part of the Amazon basin or flow into the Pacific. ENERGY AND EXPECTATIONS Ecuador’s key objective over the past 35 years has been to direct oil revenues towards the country’s development. The main obstacle to realizing this goal has been the public’s expectation of obtaining an immediate benefit from oil income,PDF Image | Energy and Development in South America
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