Regional Effects of Local Roadblocks

Waiting for the roadblock, Peru

Over the past two years in Bolivia, I've seen hundreds of protests (not an exaggeration, literally hundreds).  Most are small, organized groups that halt traffic and win marginal funding from the cash strapped central government.  Since this money has to come from somewhere, appeasing one group assures that another feels disadvantaged, causing a long string of demonstrations.

Peru is experiencing its own unrest this week.  Some group wanting some concession is setting up some strategic roadblocks, cutting off traffic crossing from the old Incan capital to Bolivia.

All week long my paragliding instructor has been complaining of the lack of tourists flowing through La Paz.  He hasn't been able to figure out why on a normal day during the current "high" season he takes an average of three passengers up in the air, while this week's demand has almost completely dried up.  Then we started hearing of backpackers by-passing Bolivia (going straight to Chile) due to roadblocks across the border.  Peru's problems instantly became regional hardships.

The same way the tsunami in Japan increased demand for American automakers, protests have widespread implications.  Richard Branson, the adventurous CEO of Virgin Air, is threatening to cut future business with Boeing after recent strike-caused manufacturing delays.  Boeing's response to the Washington strike?  Build a one billion dollar factory complex in South Carolina, directly creating one thousand new jobs in the state.

Bolivians cutting off traffic to Santa Cruz.

The same is happening in Bolivia.  The country is landlocked and hidden behind the mountains from sea-ports.  Eighty four percent (84%) of La Paz's imports cross through Peru or Chile.  When commerce gets cut off, this effects Bolivia's economy.  For this reason, among others, Bolivia is negotiating to expand upon ports in Ilo to further diversify its dependence on a single port's traffic in Arica.

What may seem like harmless protests and democratic cries for representation has rippling regional implications.  Could Peru's blockades change Bolivian preference for cheap Colombian coffee with a shift to more secure supplies of the higher priced Brazilian blends?  Should Bolivia export cement via Chile even though transportation costs are higher than their northern neighbor?  These questions are very interesting to think about and they can also alter regional industrial strengths.

Protests serve as checks-and-balances in a continent once afflicted with dictatorships.  They pose as an important economic constituent by fostering democratic political stability (ie no military governments).  However, there does reach a point when local problems hinder further growth.  With slowly increasing economic output, more groups will find that they have representation in the expanding economic system.  Unfortunaetly, until then, for many poor laborers, the only way to get heard is through detrimental roadblocks.

Regional Effects of Local Roadblocks