ABSTRACT
In the mid-1990s the government of President Gonzalo Sanchez de Lozada succeeded in passing two key critical pieces of legislation, notably the Ley de Participacion Popular and the Ley de Descentralizacion Administrativa which are intended to bring Bolivia a more democratic and participatory system of government. This chapter examines how these two laws have transformed the process of urban and regional planning and development in Bolivia, focusing particularly on the changing relationships between the central government and local governments. Political and economic power shifted downward on the urban hierarchy toward competing urban centers and out of the highlands, particularly to Santa Cruz and to a lesser extent Cochabamba, as commercial agricultural development, the illegal drug trade, and internal population migration favored their development. Concepts emphasizing local control, decentralization of political power, citizen participation, revenue sharing, and a more equitable distribution of central government income began to enjoy wide currency.
