The mining activity has little impact in terms of employment because more than 60% of the working population is engaged in activities related to agriculture, which has a low incidence on the GDP of Potosi. Consequently, their incomes are lower and poverty levels are the highest in Bolivia. It should also be noted that the income inequality in Potosi, could be explained by the very limited impact of the mining industry on the employment generation. As a result, the majority of the population work in the traditional agriculture that has a very low productivity and therefore that generates low incomes.">
EXPERTISES

Changes in climate will have a profound impact on both human activities and ecosystems.







THE DEPARTMENT OF POTOSI





According to the information from the National Census of Population and Housing of 2012, Potosi has 823.517 inhabitants, 16.1% more than in 2001. It represents 8.2% of the total national population, and it is the fourth most populated department after La Paz, Santa Cruz and Cochabamba.

Census information shows that more than half of a million people have migrated throughout Bolivia, and especially from Potosi, which reaches nearly a quarter of the total national (131.441 people). The main destination for emigrants from Potosi Argentina (68.5%), followed by Chile (6.1%) and Spain (4.5%).

The 2012 Census results show an improvement in several indicators from the previous census. However in many respects it remains below the national average. For example, the literacy rate among men in Potosi (95.1%) is very close to the national average; but for women it is 83.6%, which means a difference of 11.5% in favour of men. It is the highest gap in all the departments.

Regarding the availability of basic services in Potosi, 55.6% of households have piped water network, 66.8% have electricity and 41.5% have toilets. .

Employment, income and poverty

In early 2013 the INE provided a brief summary of the Household Survey 2011, from which we extracted relevant departmental information.

Employment shows that 62.3% of the working population was in the activities of "agriculture, hunting, forestry and fishing", 9.0% in "wholesale and retail" and 5.5% in "education services". This relates to the fact that 78.8% of the working population works in a familial category. It means that more than three quarters of employment in Potosí is related to the family environment and a very low proportion to the state and to the business sector. The average monthly labour income in Potosi was Bs. 787, the lowest compared to the national average (Bs. 1.617). We should clarify that this salary is an average between rural and urban areas, with an annual average wage in the rural area of Bs. 1,400 because its main activity is agriculture.

Obviously this affects the levels of poverty and inequality. The incidence of poverty and extreme poverty in Potosi reached respectively 67.4% and 49.5%. There is a high level of inequality, the highest compared to the rest of the country, measured by the Gini coefficient, which reached 0.58, while for the country as a whole it is 0.47.

Product

Since 2005, the gap between income per capita in Potosi and the national average was gradually reduced until 2011 when the difference was only of $ 9. But in 2012 the income per capita in Potosi reached $ 1800 while the national one reached US $ 2.480 representing a significant drop of 19.2% compared to 2011, and a widening gap of $ 680.

This decline in per capita income reflects the fall of 7.7% of the GDP in Potosi in 2012 compared to 2011.

Clearly it shows that the evolution of the national GDP has a more stable pace, while the GDP in Potosi slowed steadily since 2009, after growing by 24.3% in 2008.

In 2012 several activities were undertaken. The biggest drop was recorded in mining (19.3 percent), then in the services of the public administration (5.2 percent).

This production and services downsizing could be explained by the decline of the mining that would have negatively impacted other activities as the mining GDP accounted for an 34.6% of the total GDP between 2005 and 2012.



A few conclusions

The indicators of the 2012 census reflect an improvement of the department in the last decade in some indicators even if it stays behind compared to the rest of the country like for the inequality of education between men and women. This census also warns that only slightly more than half of its population has access to basic services.
br> The mining activity has little impact in terms of employment because more than 60% of the working population is engaged in activities related to agriculture, which has a low incidence on the GDP of Potosi. Consequently, their incomes are lower and poverty levels are the highest in Bolivia.

It should also be noted that the income inequality in Potosi, could be explained by the very limited impact of the mining industry on the employment generation. As a result, the majority of the population work in the traditional agriculture that has a very low productivity and therefore that generates low incomes.