Individual and community compensation per eradicated hectare of coca bush 1998 - 2001 (in $US)*
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| Years | Period | Individual compensation | Community compensation |
| 1998 | until 31 March until 30 June until 30 September until 31 December | 2,500 1,650 800
| 850 1,700 2,500 |
| 1999 | as of 1 January until 30 September as of 1 October | � | 2,000 2,000 1,500 |
| 2000 | until 30 June as of 1 July | � | 1,500 1,000 |
| 2001 | until 31 March as of 1 April until 31 December | � | 1,000 500 500 |
| * Source: Bolivian Strategy for the Fight Against Drug Trafficking 1998 - 2002 |
| | The demand for coca leaf for traditional use, considered legal under the Coca and Controlled Substances Law (Law 1008), is supplied by 12,000 hectares of coca from the Yungas of La Paz and the Yungas of Vandiola, in Cochabamba. It becomes evident, therefore, that a surplus of 38,000 hectares of coca planted enters the illicit drug trade. Since 1986, the Bolivian government has followed a strategy of monetarily compensating growers for each hectare of coca eradicated, with the objective of reducing the volume of leaf entering illicit drug production and in compliance with Law 1008.FIGURES
In the period 1986-1987, compensation was at the rate of $US 350 per hectare eradicated, paid directly to the grower. The rate jumped to $US 2,000 per hectare in the period 1988-1993, and then rose to $US 2,900 at present (including $US 400 compensation in kind).
TWO-EDGED SWORD
But this direct compensation to individuals has proved a two-edged sword. Over a 10-year period, the Bolivian government has spent $US 85 million in compensation, benefitting 34,000 coca bush producers.
It is also estimated that this resources have been invested in new coca plantations. For instance, in the period 1993 - 1996, 17,600 hectares were eradicated while 19,060 were planted.
Instead of reducing the volume of leaf entering the drug trade, compensation unleashed a vicious cycle of eradication, compensation, and new cultivation.
Apart from failing to lead to a net reduction of cultivated coca, compensation generated expectations on the part of growers, who assumed that its rate would continue to rise.
BOLIVIAN STRATEGY
In December of 1997, the government approved the Bolivian Strategy for the Fight Against Drug Trafficking 1998-2002, whose goal is to remove Bolivia from the coca-cocaine cycle within five years. All illicit coca is to be eliminated during the period.
NEW COMPENSATION
Changes in the compensation scheme is one important component of the new strategy, aimed at eliminating all illicit coca bushes in the country. the individual compensation scheme will be phased out and gradually replaced by community compensation. The new compensation scheme will offer the communities alternative development projects to generate income and employment for coca-growing and non-coca-growing families.
DISPLACEMENT
The new Strategy also seeks to stem migration from impoverished rural areas into coca-producing zones, which seem to offer improved economic perspectives. The strategy also envisages the relocation of about 15,000 families already in the coca producing areas.
Through this programme, the elimination of coca production is expected, thus cutting the supply for illicit drug manufacture.
DISAGREEMENT
A response to the new strategy from coca growers was not long in coming. They refused immediately to accept the new compensation scheme since it would put an end to illegal coca cultivation. This is because Law 1008, passed in July of 1988, makes all coca planted since that date illegal, and thus the object of non-compensated eradication, and so disqualifies those farmers planting it from receiving alternative development. It is also important to note that coca bush from the Cochabamba tropics has a life span of ten years. Taking into account these two considerations and that ten years has passed since the approval of the Law 1008, no coca bushes should exist whatsoever.
It is no wonder that a few coca-grower leaders have radically opposed the government's enforcement of Law 1008, and its policy of forced eradication of illicit coca. One then can ask if they are supporting activities that are not compatible with the well-being of the country.
The Bolivian government is committed to "pull the country out of the coca-cocaine cycle in the period 1998 - 2002", that in turn has become a State policy for the benefit of Bolivia.
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