The following paragraphs are excerpts from an article published in El Dia yesterday. Santa Cruz competitiveness’ results were published in an earlier post on September 20th, you can read about it using this link.
These excerpts are interesting and describe even more Santa Cruz’s importance:
From Marcelo Campos Velez article:
Idiosyncrasies of the Santa Cruz people helps development. Within this framework, the historian Nino Gandarilla said Santa Cruz economy was given by three fundamental factors: first by the increase of the sugarcane industry, second by 11% of the oil royalties that was obtained in the 1950s, during the “civic struggle” and finally to the entrepreneurship of the crucian [cruceño is the word for the Santa Cruz people], since Gandarilla believes that without the avant-garde and innovative of the crucians spirit, Santa Cruz had hardly reached the degree of development that is currently living.
Participation of the State in the crucian progress. The role played by the State in Santa Cruz development has been very important, according to the Economist and historian Carmen Dunia Sandoval, since it considers that the revolutionary process of the Government of the MNR in 1952, joined Santa Cruz to the whole of the country. Sandoval expresses that this can be reflected in favorable measures at that time to local economic sectors, the construction of the Santa Cruz – Cochabamba road, loans for productive sectors through the agricultural Bank, the creation of the Guabira sugar mill, among other measures.
Events that marked history
Integration. The construction of the road Santa Cruz – Cochabamba in 1950, joined the West and East of Bolivia, facilitating domestic and international trade. The road is considered as the beginning of the Santa Cruz development.
Royalties. The enacted law on July 15, 1938, during the Presidency of Germán Busch, established that the oil-producing departments received 11% of the oil royalties. The refusal of the Government of MNR “civic struggles” took place between 1957 and 1959. As a result, Santa Cruz began to receive those resources, which was the kickoff for the urban development of the city.
Autonomy. Since 2003, Santa Cruz under the command of the civic Committee began a series of protests to demand more autonomy of decision to the central Government. After several cabildos and mobilizations, the departmental autonomy was included in the new Constitution; However, this according to some positions lacks a financial cushion and power of decision in order to manage the Department.
THE IDH. The direct tax to the hydrocarbons (IDH), has certainly been an important income for universities, municipalities and Government departments. Just have to compare this year that has been granted to these territorial entities throughout the country, Bs15,124.9 million, while in the year 2000, this tax barely reached Bs2,741.1 million. For this reason, the IDH has become one of the monetary processes most important of the country, that has been observed in the universities and cities as a breakthrough in infrastructure.
Carmen Dunia Sandoval
Four centuries of strength of the crucians
Colony. The history of the Santa Cruz economy went through several stages. During the colonial period settled the versatile traditional haciendas, with production of food for the subsistence of the family, landowners and peons. It was planted corn, rice, cassava and sugarcane in sugar mills. There were small bovine and equine livestock. The articles for exchange with the West, were mainly sugar (empanizao) and beef hides, and Jesuit missions offered honey, cebo [type of grease from cattle] and yarn.
20Th century. The arrival of the Liberals to power in the early 20th century, meant the rupture of commercial relations of Santa Cruz with the Andean markets. Trade in the quinine, since the end of the 19th century until 1920 and the rise of the economy of the rubber band, allowed that crucians landowners to have a relief carrying food using the waterway [demand for quinine and rubber allowed that transport]. Later during the Chaco War, food from the traditional farms supplied the frontlines.
Take-off. It was from the Decade of the ‘ 60s. Concessional loan from the U.S. funded the highway Santa Cruz-Cochabamba. Support was expressed to the industrialization of agricultural production especially refined sugar and rice. Between 1957-1959, the civic struggles managed the disbursement of oil royalties that initiated public works in the city, which was one of the least developed in Bolivia.
In the ‘ 70s is given the rise of agricultural production, at the same time that the production of oil in Camiri. While the Santa Cruz economy is characterized by its diversification, the sectors that dominate are agriculture, manufacturing industry, and hydrocarbons.