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RUEHBU/AMEMBASSY BUENOS AIRES 7264
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RULSDMK/DEPT OF TRANSPORTATION WASHINGTON DC
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUCPCIM/CIMS NTDB WASHINGTON DC
RUEHUB/USINT HAVANA 1595
RUEAIIA/CIA WASHINGTON DC
RHEHNSC/WHITEHOUSE/NSC WASHINGTON DC
RUCPDOC/USDOC WASHDC 1346

UNCLAS LA PAZ 000069 
 
SIPDIS 
 
OPIC; USTR FOR BHARMAN; EB/IFD/OIA 
 
E.O. 12958: N/A 
TAGS: BL EFIN EINV ETRD KTDB PGOV ELAB
SUBJECT: BOLIVIA INVESTMENT CLIMATE STATEMENT 2009 
 
REF: 08 STATE 123907 
 
¶1. (U) Bolivia remains a difficult place to do business. 
Economic activity is often disrupted by social unrest 
resulting from centuries of economic, political, and social 
inequality, and indigenous, labor, and anti-globalization 
organizations have recently targeted private investment )- 
particularly foreign investment )- as the cause of many of 
the country,s ills. Political violence can escalate quickly. 
 
¶2. (U) Social unrest, weak judicial security, arbitrary 
regulatory decisions, widespread corruption, and cumbersome 
bureaucratic procedures may adversely affect companies, 
operations and ventures. 
 
¶3. (U) Investments may also be affected by policy changes 
proposed by the Evo Morales administration. During the 2005 
presidential campaign, Morales pledged to nationalize natural 
resources, move away from market-oriented economic policies, 
and empower Bolivia's indigenous population. Since his 
January 2006 inauguration, Morales has "nationalized" the 
hydrocarbons industry (forcing companies to negotiate new 
contracts and offering the state-owned oil company majority 
share of five firms), the telecommunications industry, and 
threatened the mining and forestry sectors with similar 
action. In 2009 he has mentioned other sectors such as 
electricity and transportation as possible nationalization 
targets. Resulting political and economic uncertainty 
presents challenges for potential investors. 
 
¶4. (U) Companies considering doing business in Bolivia should 
carefully weigh the advantages and risks of potential 
investments, conduct extensive due diligence before 
committing funds, and retain competent Bolivian legal and 
other counsel. Bolivia's new draft constitution, which will 
go to the voters for approval on January 25, 2009, mandates 
significant change to Bolivia's investment regime, including 
an end to international arbitration and reservation of 
exploration of natural resources to the state. 
 
------------------------------ 
Openness to Foreign Investment 
------------------------------ 
 
¶5. (U) Bolivia's legal framework, at the present, remains 
generally open to foreign investment. Foreign firms are not 
subject to special registration requirements. However, they 
may be adversely affected by inconsistent and arbitrary 
regulatory decisions, unfavorable interpretations of laws, 
and an easily corrupted judicial system that may deny due 
process. 
 
¶6. (U) The Investment Law (Law 1182, 1990) provides for 
national treatment of foreign firms and guarantees the 
unimpeded repatriation of profits, the free convertibility of 
currency, and the right to international arbitration (limited 
to contractual rights) in all sectors. Laws governing 
activities in the mining (Law 1777, 1997) and hydrocarbons 
(Law 3058, 2005) sectors authorize joint ventures, and 
association or provision of services to state-owned 
corporations. 
¶7. (U) Investors should note recent changes in hydrocarbons 
legislation. Hydrocarbons Law 3058 (issued in May 2005) 
required investors to migrate to new contracts within 180 
days, imposed an additional 32 percent tax on revenues, and 
forced producers to relinquish all hydrocarbons to the state. 
The law also required companies to sell all hydrocarbons 
through YPFB and to satisfy the domestic market (at 
artificially prices set by the hydrocarbons regulator) before 
exporting. 
 
¶8. (U) The government's May 1, 2006 Supreme Decree 
"nationalizing" the hydrocarbons sector generally restated 
the provisions of the 2005 statute, giving companies six 
months to negotiate new operating contracts, transferring 
control over the entire production chain to the state, and 
offering state-run Yacimientos Petroliferos Fiscales 
Bolivianos (YPBF) majority share of five companies. Although 
private upstream operators and YPFB have been negotiating 
these new provisions, as of December 2008 terms and 
conditions for delivery agreements have still not been 
settled for most operators. 
 
¶9. (U) All production companies signed new contracts in 
October 2006, just days before the negotiation deadline, and 
agreed to pay 50 percent in taxes and royalties, plus a 
varying take for YPFB. In late November 2007, the Bolivian 
Congress approved the new contracts. Separate negotiations 
between the Bolivian government and the five companies 
destined for YPFB takeover are ongoing. As of December 2008, 
YPFB has been able to settle with most international 
operators in the sector. 
 
-------------------------------- 
Conversion and Transfer Policies 
-------------------------------- 
 
¶10. (U) Currency is freely convertible at Bolivian banks and 
exchange houses. The official exchange rate is determined by 
the Central Bank's daily auction of dollars, where the bank 
offers a given amount of dollars and sets a minimum price. 
The parallel rate has tracked the official rate closely, 
which suggests the market finds the Central Bank's policy 
acceptable. 
 
¶11. (U) The Banking Law (Law 1488, 1993) establishes 
regulations for foreign currency hedging and authorizes banks 
to maintain accounts in foreign currencies. This accommodates 
the steady demand for U.S. dollars. There are no restrictions 
of any kind on currency transfers or remittances. However, 
the Central Bank established during the last quarter of 2007 
a one percent fee for all money transfers larger than one 
thousand US dollars. Also, since November 2008, any 
hard-currency cash larger than ten thousand U.S. dollars 
entering or leaving the country must be registered with and 
authorized by the Central Bank and Ministry of Finance. 
 
------------------------------ 
Expropriation and Compensation 
------------------------------ 
 
¶12. (U) Article 22 of the Bolivian Constitution allows the 
government to expropriate property for the public good or 
when the property does not fulfill a "social purpose." It 
also stipulates that individuals and firms be awarded just 
compensation. 
 
¶13. (U) The Mining and Hydrocarbons Laws outline procedures 
for expropriating land to develop underlying concessions. In 
2007, the Bolivian government nationalized the Vinto smelter 
belonging to Swiss company Glencore; requests from Glencore 
for negotiations were ignored, and the smelter is now run by 
the state mining company COMIBOL.  COMIBOL also regained 
control of the Huanuni tin deposit, evicting small 
cooperative mining operations that had previously been given 
rights to exploit portions of the deposit and returning all 
Huanuni mining to state control. 
 
------------------ 
Dispute Settlement 
------------------ 
 
¶14. (U) Property and contractual rights may be enforced in 
Bolivian courts, but the legal process is time-consuming and 
may be subject to political influence and corruption. 
 
¶15. (U) Efforts to improve Bolivia's justice system have 
generated results in some regional courts. Past decisions by 
the Supreme Court and Constitutional Tribunal have 
occasionally been influenced by outside factors, but both 
have generally rendered fair decisions. However, neither 
Bolivian nor foreign firms can rely on the judicial system to 
effectively enforce contracts. 
 
¶16. (U) The Bolivian government currently accepts binding 
international arbitration. The Investment Law provides for 
arbitration in accordance with the Bolivian Constitution and 
international norms, while the Arbitration and Conciliation 
Law (Law 1770, 1997) outlines arbitration procedures and 
enforcement mechanisms. The law states that international 
agreements, such as the Convention on the Settlement of 
Investment Disputes between States and Nationals of Other 
States and the New York Convention of 1958 on the Recognition 
and Enforcement of Foreign Arbitral Awards, must be honored. 
It mandates the recognition of foreign decisions and awards 
and establishes procedures for the Supreme Court's execution 
of decisions. In October 2007, however, Bolivia became the 
first country ever to withdraw from the International Center 
for the Settlement of Investment Disputes (ICSID), a World 
Bank referee for investment disputes. The draft constitution, 
which will go to referendum on January 25, 2009, contains 
language that seems to limit the ability of international 
companies to apply for international arbitration or 
diplomatic intervention in disputes. 
 
¶17. (U) Bolivia's Commercial Code (Decree Law 14379, 1977) 
has roots dating from 1939. Although many of its provisions 
have been modified and supplanted by more specific 
legislation, it continues to provide general guidance for 
commercial activities. 
 
--------------------------------------- 
Performance Requirements and Incentives 
--------------------------------------- 
 
¶18. (U) The Bolivian government does not impose performance 
requirements as conditions for establishing, maintaining, or 
expanding businesses. It does not generally provide tax or 
investment incentives for foreign investors, but some 
municipalities have established property tax exemptions for 
businesses located in their areas. 
 
¶19. (U) Foreign firms are allowed to participate in 
government-sponsored research and development programs, but 
few, if any, such programs exist. 
 
¶20. (U) Work permit, visa, and residence requirements are 
non-discriminatory. The government sets a minimum monthly 
wage each year, but many workers in the formal private sector 
earn more. In 2007, Bolivia began requiring tourist visas for 
American citizens. Work visas have not been affected by the 
change. 
 
-------------------------------------------- 
Right to Private Ownership and Establishment 
-------------------------------------------- 
 
¶21. (U) Foreign and domestic private entities have equal 
right to establish, acquire, and dispose of business 
interests and to engage in remunerative activity. Private and 
public entities enjoy equal access to markets, credit, 
licenses, and supplies. 
 
----------------------------- 
Protection of Property Rights 
----------------------------- 
 
¶22. (U) Bolivian law guarantees property rights, but rights 
are not always effectively enforced. The Agrarian Law (Law 
1715, 1996) outlines the rights and obligations of land 
ownership and establishes an independent Agrarian 
Superintendent to administer the law's provisions, while the 
Office of Property Registry oversees the acquisition and 
disposition of land, real estate, and mortgages. In November 
2006, the Agrarian Law was modified by Law 3545, which 
provides that property deemed unproductive in biannual 
reviews will revert to the state and places limits on 
landowners, legal recourse. 
 
¶23. (U) Despite efforts to reform the National Agrarian 
Reform Service (INRA) and related entities, challenges to 
land titles are common, and Bolivia lacks an adequate system 
of title verification. Competing claims to land titles and 
the absence of a reliable dispute resolution process create 
risk and uncertainty in real property acquisition. Illegal 
squatting on rural private property is an ongoing problem. 
 
¶24. (U) Efforts to protect intellectual property rights (IPR) 
are insufficient, despite the government's 1999 creation of 
the National Intellectual Property Service (SENAPI). The 
organization oversees all IPR-related activities, but its 
reach is limited. 
 
¶25. (U) The Copyright Law (Law 1322, 1992) protects literary, 
artistic, and scientific works for the lifetime of the author 
plus 50 years. It protects the rights of Bolivian authors, 
foreign authors domiciled in Bolivia, and foreign authors 
published for the first time in Bolivia. Foreigners not 
domiciled in Bolivia enjoy protection to the extent provided 
in international conventions and treaties to which Bolivia is 
a party. Bolivian copyright protection includes the exclusive 
right to copy or reproduce works; to revise, adapt, or 
prepare derivative works; to distribute copies of works; and 
to publicly communicate works. Although the exclusive right 
to translate works is not explicitly granted, the law does 
prevent unauthorized adaptation, transformation, 
modification, and editing. The law also provides protection 
for software and databases. 
 
¶26. (U) The Bolivian Film and Video Law (Law 1302, 1991) 
contains elements of IPR protection, establishing a National 
Movie Council (CONACINE) to oversee the domestic film 
industry and requiring that all films and videos shown or 
distributed in Bolivia be registered with the organization. 
 
¶27. (U) SENAPI reviews patent registrations for form and 
substance and publishes notices of proposed registrations in 
the Official Gazette; if there are no objections within 30 
working days, the organization grants patents for a period of 
20 years. 
 
¶28. (U) The registration of trademarks parallels that of 
patents.  Once obtained, a trademark is valid for a 10-year 
renewable period. It can be canceled if not used within three 
years of the date of grant. 
 
¶29. (U) Bolivia has no laws protecting trade secrets. 
 
¶30. (U) Despite existing legal provisions )- the Copyright 
Law recognizes copyright infringement as a public offense, 
and the 2001 Bolivian Criminal Procedures Code provides for 
the criminal prosecution of IPR violations )- the 
enforcement of intellectual property rights remains 
insufficient, and Bolivia remains on the U.S. Trade 
Representative's Special 301 Watch List. Video, music, and 
software piracy rates are among the highest in Latin America, 
with the International Intellectual Property Alliance 
estimating that piracy levels have reached 100 percent for 
motion pictures and over 90 percent for recorded music.  The 
new draft constitution  explicitly states that "the right to 
access to medicines may not be restricted by intellectual 
property rights."  It is unclear how this statement will be 
interpreted, should the draft constitution pass. 
 
¶31. (U) Bolivia belongs to the World Intellectual Property 
Organization and is a signatory to the Nice Agreement and the 
Paris, Bern, and Geneva Conventions. 
 
------------------------------------- 
Transparency of the Regulatory System 
------------------------------------- 
 
¶32. (U) The Bolivian regulatory system is generally 
transparent and consistent. Bolivia has no laws directly 
regulating competition. Instead, related articles are 
incorporated into laws governing activity in specific 
sectors. 
 
¶33. (U) The Sectoral Regulatory System (SIRESE) Law (Law 
1600, 1994) establishes general principles governing 
anti-competitive practices, expressly prohibiting companies 
engaging in regulated activities from participating in 
agreements, contracts, decisions, or practices whose purpose 
or effect is to hinder, restrict, or distort competition. 
 
¶34. (U) The law created an autonomous regulatory body 
comprised of a general superintendent and five specific 
superintendents to oversee the water, electricity, 
telecommunications, transportation, and hydrocarbons sectors. 
However, the current administration has overruled and limited 
regulators, administrative decisions. Market forces largely 
determine public utility prices, but most are periodically 
reviewed and approved by the relevant superintendent, with 
regulated prices occasionally established through relatively 
transparent procedures and formulas. An exception is potable 
water and garbage collection, for which municipalities set 
local rates. 
 
¶35. (U) The Electricity Law (Law 1604, 1994), the 
Telecommunications Law (Law 1632, 1995), and the Hydrocarbons 
Law (Law 1689, 1996) define the characteristics and functions 
of their respective superintendents. 
 
¶36. (U) The Morales administration stated in 2007 that it 
planned to modify the regulatory structure by placing the 
superintendents under the control of relevant ministries, 
potentially decreasing the regulators, freedom from 
political interference. As of December 2008, some regulatory 
bodies (superintendencies) have been preserved as before, but 
subject to open political pressure and discretionary 
decisions. 
 
¶37. (U) A similar regulatory system governs the financial 
sector, but several laws have changed its structure over the 
last five years. Commercial banking is regulated by a 
different regulator from pension and stocks. 
 
--------------------------------------------- ----- 
Efficient Capital Markets and Portfolio Investment 
--------------------------------------------- ----- 
 
¶38. (U) Bolivian commercial banks were once closely held 
operations lending only to well known individuals or firms, 
but foreign and national institutions now play a role in the 
banking system. Bolivian banks have developed the capacity to 
adjudicate credit risk and evaluate expected rates of return 
in line with international norms. Over time, they have 
directed their services to small and micro enterprises around 
the country. 
 
¶39. (U) Credit is allocated on market terms, but foreign 
investors may find it difficult to qualify for loans from 
local banks due to the requirement that domestic loans be 
issued exclusively against domestic collateral. Since 
commercial credit is generally extended on a short-term basis 
at high interest rates, most foreign investors prefer to 
obtain credit abroad. Most Bolivian borrowers are small and 
medium sized enterprises (SMEs) and have received a large 
share of credits over the last four years. In 2007, the 
government created a Productive Development Bank (PDB) 
designed to support SMEs and other entities. 
 
¶40. (U) Established Bolivian firms may issue short- or 
medium-term debt in local capital markets, which act 
primarily as secondary markets for fixed return securities. 
Bolivian capital markets have sought to expand their handling 
of local corporate bond issues and equity instruments. The 
Securities Law (Law 1834, 1998) laid the groundwork for 
creating a truly modern securities exchange, but social 
unrest and economic disruptions have slowed its development. 
Over the last few years, several Bolivian companies and some 
foreign firms have been able to raise funding through local 
capital markets. 
 
¶41. (U) Although most accounting regulations follow 
international principles, Bolivian accounting and reporting 
procedures do not fully conform to world standards. Bolivian 
firms commonly maintain several accounting books: one for tax 
authorities, one for bankers, and another for management. 
Financial sector regulations restrict extraordinary 
compensations and financial transactions for managers and 
senior executives. 
 
------------------ 
Political Violence 
------------------ 
 
¶42. (U) Bolivia is prone to social unrest that can quickly 
become violent and disrupt the transportation of goods and 
people. In March and April 2000, protests against foreign 
investment in the Cochabamba municipal water system led to 
roadblocks and demonstrations across the country. 
 
¶43. (U) Roadblocks were even more serious in September and 
October 2000, when rural indigenous groups, coca growers, and 
a variety of labor and social movements united in opposition 
to various government policies. Concessions by the Bolivian 
government ended these and subsequent protests, but not 
before the roadblocks caused serious economic hardship and 
interrupted Bolivian exports. 
 
¶44. (U) Disruptive and violent social protests occur 
regularly in La Paz and El Alto. In February 2003, units of 
the National Police mutinied against the Sanchez de Lozada 
administration. Spurred by a misunderstood government 
proposal to introduce income taxes, mutinous police units 
fought loyal military units, and, with the police absent, 
rioters looted and burned government buildings and private 
businesses. Although order was restored within 36 hours with 
minimal damage to U.S. firms, the death toll in La Paz was 
over 30. 
 
¶45. (U) Violence was even worse during the October 2003 &gas 
war,8 a social and political dispute that resulted in the 
deaths of over 60 people and ended with the resignation of 
President Sanchez de Lozada. His successor, Carlos Mesa, 
resigned after similarly violent protests in El Alto in June 
¶2005. 
 
¶46. (U) More recently, various groups have staged large-scale 
protests and blockaded roads. On numerous occasions, major 
airports have been completely shut down and in September of 
2008, American Airlines canceled their flights in and out of 
the country for over 20 days due to the takeover of the Santa 
Cruz airport. Political unrest will likely continue in the 
near future. 
 
---------- 
Corruption 
---------- 
 
¶47. (U) Corruption in the public sector and in many 
non-governmental institutions is endemic. Officials accused 
of corruption are rarely prosecuted or convicted. 
 
¶48. (U) In 2005, the Bolivian government introduced a series 
of reforms to modernize its operations, improve existing 
legislation, and increase citizen participation in politics, 
adopting the Financial Administration and Control (SAFCO) 
Law, the State Employees Statute Act, and the Sworn 
Declaration of Property and Income Law. The government also 
created a Judiciary Council, a Human Rights Ombudsman, a 
Constitutional Court, and a Civil Service Superintendent. A 
cabinet-level presidential appointee is empowered to 
investigate corruption at any level in any branch of 
government. As of year-end 2006, congress was still 
considering an anti-corruption bill proposed by the Morales 
administration. In January 2009, congress re-announced their 
plan to pass a corruption law, however it has not yet been 
formally proposed. 
 
¶49. (U) Bolivia's National Integrity Plan outlines proposals 
for judicial reform and state modernization. Under the 
government's Institutional Reform Project (PRI), the Customs 
Service, the National Revenue Service, and the Ministries of 
Housing, Education, and Agriculture have been reformed and 
professionalized. The National Road Service was disbanded for 
corruption in 2006 and replaced by another government entity, 
the Bolivian Highway Association. 
 
¶50. (U) With international assistance, the last several 
governments have also worked to overhaul the Customs Service. 
Corruption has reportedly fallen since the August 1999 
Customs Reform Law, but contraband continues to flow into and 
out of Bolivia. The Minister of Finance heads a multi-agency 
council on contraband issues. 
 
------------------------------- 
Bilateral Investment Agreements 
------------------------------- 
 
¶51. (U) Bolivia has signed bilateral investment treaties 
(BITs) with Argentina, Belgium/Luxembourg, China, France, 
Germany, Italy, Mexico, the Netherlands, Peru, Romania, 
Spain, Switzerland, the United Kingdom, and the United 
States. In 2006, however, the new Bolivian administration 
announced that it intends to renegotiate all its bilateral 
investment treaties. As of January 2009, the Morales 
administration is awaiting the January 25 referendum on the 
draft constitution, which if passed will allow it to 
renegotiate all international treaties. Officials suggest 
that some Bilateral Investment Treaties will be rejected 
because they were &illegally8 passed while others may be 
renegotiated because they treat Bolivian interest 
inequitably. It is uncertain how enthusiastically foreign 
governments will pursue renegotiating such agreements. 
 
¶52. (U) The U.S.-Bolivia BIT entered into force in June 2001. 
Investors are entitled to the better of national treatment or 
most favored nation (MFN) treatment when they initiate an 
investment and while they maintain that investment, subject 
to certain limited and specifically described exceptions 
listed in annexes and protocols. 
 
¶53. (U) Expropriation can occur only in accordance with 
international law, e.g., for a public purpose, in a 
nondiscriminatory manner, under due process of law, and in a 
manner accompanied by prompt, adequate, and effective 
compensation. 
 
¶54. (U) Investors have the right to promptly transfer funds 
into and out of either country using market exchange rates. 
This covers all investment-related transfers, including 
interest, liquidation proceeds, repatriated profits, and 
infusions of additional financial resources after initial 
investments. 
 
¶55. (U) The ability of either government to require investors 
to adopt inefficient and trade-distorting practices is 
limited, and performance requirements such as local content 
and export quotas are prohibited. 
 
¶56. (U) Investors have the right to submit an investment 
dispute with the treaty partner's government to international 
arbitration, with no obligation to use the host country's 
domestic courts. Several cases have been brought against the 
Bolivian government relating to their nationalization 
efforts, however, no court decisions have yet been reached. 
 
¶57. (U) Investors also have the right to employ the top 
managerial personnel of their choice, regardless of 
nationality. 
 
-------------------------------------------- 
OPIC and Other Investment Insurance Programs 
-------------------------------------------- 
 
¶58. (U) The 1985 U.S.-Bolivia Investment Insurance Agreement 
provides for a full range of Overseas Private Investment 
Corporation (OPIC) programs, including political risk 
insurance and loan financing. OPIC provides financing 
assistance to U.S. firms through direct loans and guarantees 
issued by U.S. financial institutions. 
 
¶59. (U) The International Bank for Reconstruction and 
Development,s (IBRD) Multilateral Investment Guarantee 
Agency (MIGA) has offered a complete line of investment 
guarantees to foreign investors in Bolivia since October 
¶1991. 
 
----- 
Labor 
----- 
 
¶60. (U) Approximately two-thirds of Bolivia's population of 
9.8 million as of 2007 is considered &economically active,8 
a figure that includes teenagers and children legally 
prohibited from working. Overall, between 60 and 65 percent 
of laborers participate in the informal economy, where no 
contractual employer-employee relationships exist. 
 
¶61. (U) Foreign investors generally find the labor force 
stable, with low turnover rates and high levels of manual 
dexterity. Relatively low education and literacy levels tend 
to limit labor productivity, a fact reflected in the low cost 
of labor. Unskilled labor is readily available, but skilled 
workers are often harder to find. Many workers - both skilled 
and unskilled have migrated to other countries to look for 
work, mainly Chile, Argentina and Spain. 
 
¶62. (U) Bolivian labor law guarantees workers the right of 
association and the right to organize and bargain 
collectively. Most companies are unionized, and nearly all 
unions belong to the Confederation of Bolivian Workers (COB). 
Despite international perceptions, extensive labor unrest in 
the private sector is uncommon, and most foreign firms enjoy 
positive labor-management relations. 
¶63. (U) Bolivian labor law also restricts child labor and 
provides for worker safety, but enforcement is often 
ineffective. 
 
---------------- 
Free Trade Zones 
---------------- 
 
¶64. (U) The Bolivian government created free trade zones 
(FTZs) under Supreme Decrees 22410 and 22526. The National 
Council on Free Trade Zones (CONZOF) oversees all industrial 
and commercial FTZs and authorizes operations. Free trade 
zones exist in the cities of El Alto, Cochabamba, Santa Cruz, 
Oruro, Puerto Aguirre (on the Brazilian border), and 
Desaguadero (on the Peruvian border). 
 
¶65. (U) A proposed FTZ in Guayaramerin in the Beni Department 
is not yet fully operational. The FTZ in Cobija, meanwhile, 
has proven unattractive to investors due to a lack of roads, 
limited basic infrastructure and corruption scandals. 
 
------------------------------------ 
Foreign Direct Investment Statistics 
------------------------------------ 
 
¶66. (U) U.S. investments accounted for approximately 
one-third of net foreign direct investment (FDI) inflows of 
USD 1.7 billion between 2001 and 2006, followed by Brazil, 
Argentina, Italy, and Spain (each with about 10 percent) and 
France and the United Kingdom (each with about five percent). 
 
¶67. (U) Over last six years, U.S. companies have invested an 
estimated USD 750 million in the mining sector, USD 420 
million in the hydrocarbons sector, USD 290 million in energy 
production and distribution, and USD 230 million in 
telecommunications. 
 
¶68. (U) According to the Bolivian Central Bank, or its 
Balance of payments statistics, FDI was approximately USD 278 
million in 2006, USD 200 million in 2007, and USD 370 million 
as of September 2008. The Bolivian government has not 
released a breakdown of FDI by country since 2006. 
URS