Bolivia, named after Simon Bolivar, the Venezuelan leader who played a major role in Bolivia’s independence from Spain, is wedged between Chile, Peru, Paraguay, Argentina and Brazil. Bolivia is an amazing country of contrasts with unmatched deposits of silver, tin, zinc, natural gas, and enough lithium to power all of our modern devices for centuries, With all that, Bolivia should be a wealthy country. But is one of the poorest countries in the western hemisphere, only slightly better off than Haiti.
Since its “discovery” by the Spanish in the 1500s until today, Bolivia has historically been on the short end of the stick in deals and wars with Spain, Britain, the United States, Chile, Brazil, Paraguay, and Argentina, all in partnership with its small upper class that has historically exploited its natural resources a labor.
Bolivia is known for natural beauty and underdevelopment compared to its neighbors. From the world’s largest salt in the southwest, Salar de Uyuni, where visitors can find pink flamingos in the 11,000 sq-km landscape, to rainforest, El Camino de La Muerte and other natural wonders, Bolivia is an incredibly interesting country.(more…)
If you’re looking for an off the beaten path gift this holiday season, check out these pullovers from the team at Virtu. Guillaume and Jason have been working out of our office in Santiago for the past few months while frequently traveling to Bolivia to get their project off the ground and launched a Kickstarter to get the first batch into production.
Not only are they making a great product, they’re also creating jobs that pay at least 30% more than average wages in Bolivia, a place that I’ve really enjoyed every timeI’ve visited. I just backed them and can’t wait for my pullover!
Ever since I started blogging, I’ve done a year end post summarizing what I’ve done in the past year. These posts are mostly for me, so that I can look back and remember what I did, what I was thinking and what was important to me each year. Previous versions (2000s, 2009, 2010, 2011, 2012, 2013). Here’s what I did in 2014.
Like 2013, I rang in the new year on a friends balcony overlooking Santiago surrounded by friends, including my friend Polsky who was visiting from the US. Polsky and I took off for southern Chile, visiting Pucón, Frutillar and Puerto Varas during the first week of 2014. I was back in the south six weeks later when my parents and brother came to visit, adding Chiloé to the list. Every time I go to the South, I don’t understand why I don’t go more. It’s relaxing, stunningly beautiful, has incredible food and, in summer, has amazing weather.
I always come back from the south with new ideas, rejuvenated to get back to work and this time was no different. While 2013 was a year of starting many new projects, 2014 was the year that I focused.
In January, I partnered with Francisco Sáenz and Diego Philippito launch Magma Partners, a private seed stage investment fund and accelerator based in Santiago, Chile. Our goal was to bring US style investment and know how to Chile and pair it with Chilean connections and mentorship to help entrepreneurs create successful businesses.
A year in, I’m extremely proud to say that we’re already starting to see results. Over the course of 2014, we reviewed over 350 startups, met hundreds of entrepreneurs and finally invested in 13 startups. Running a fund has been much more work than I thought it would be. But it’s been worth it.
We’re already starting to see promising results from multiple companies, but 2015 will bring the hard part: helping our 13 portfolio companies make their way from nascent startups to real, scaling companies. I have high hopes and 2015 will be an extremely important year for Magma and our portfolio companies.
In addition to Magma, I started the year with four active projects Andes Property, La Condoneria, Startup Chile consulting and teaching entrepreneurship at multiple universities. By mid year, my head was ready to explode from so many different projects taking up brain space and I started to focus.
First, I realized that I was using the same part of my brain to mentor Magma companies as I had previously used to teach entrepreneurship at universities. I knew I had to stop teaching because I was getting mentorship overload, so I found other entrepreneurs to take over my classes. Next, I stopped doing Startup Chile consulting, as it was taking up too much brain space and tried to figure out how I could get La Condoneria and Andes Property to run more autonomously.
After a long search, I hired employees to help run La Condoneria and Andes Property, both of which continue to grow quickly month over month. At the start of the year, I was personally picking, packing and taking packages of condoms to chilexpress (chilean fedex) five times per week and was personally showing apartments to foreigners for Andes Property. I still work on both businesses, but Andres, Gonzalo and Bernadette have really stepped up to the challenge to take responsibilities away from me.
2014 was the year that I finally started to get better at spanish again after feeling like I’d plateaued in 2013. I still speak with a strong accent, but I can say 95% of what I want to say and am now happy making a joke per day, up from one per week last year. Baby steps.
2014 was the first time I wrote an entire post on my blog in Spanish and the first time one of my spanish blog posts went semi-viral in Chile. It was the first year I presented to large audiences in Spanish without notes, just like I do in English. I also did multiple radio interviews in Spanish for the first time. I’m still not as good as I’d like to be and I hate to see eyes glaze over because I’m not as engaging in Spanish and I am in English.
2014 was a great year for travel, as I explored Chile’s south on two separate trips to kick off the year. In February I took an incredible ten day trip to Uyuni, Potosi and Sucre in Bolivia. I’d previously been to Uyuni in 2011, but never to Potosi and Sucre, both of which were amazingly different from anything else I’d ever seen. I took a mile long tour of the Potosi mine, where miners as young as 10 years old use pick axes, dynamite, coca leaves, pure alcohol and their brute strength to try to scratch out a living. Sucre was an amazingly beautiful window into the Spanish Colonial past.
I took an express trip to Lima for the first time when my Aunt Nancy and Uncle Paul decided to come go to Machu Picchu. It was fun exploring old Lima with them and I ate the best meal of my life at Maido, a japanese/peruvian fusion restaurant. I can’t wait to go back to Peru to continue exploring the rest of the country.
I took three quick trips back to the US, one in late May to visit family, another for a friends’ wedding and the third for my group of college friends’ 10th annual Friendsgiving and the holidays with my family. I think I stayed better connected to family and friends by visiting more, but for shorter amounts of time each visit, a plan I’d like to keep up in 2015, rather than one 5-6 week long trip as I’ve done in previous years. It still isn’t fun to miss weddings, bachelor parties, thanksgiving, the Forward Festival and birthdays, but life is all about tradeoffs.
I made it back to Madison on all three trips, including an extended stay where my friends and I reunited for a weekend of Badger football and memories. I honestly can’t believe it’s been ten years since I started college. Time really flies. Madison is noticeably more dynamic each time I visit. The tech scene is on the leading edge of this new dynamism and I’m thankful and proud of Madison’s entrepreneurs for paving the way. Capital Entrepreneurs (made one meeting this year) and Forward Fest (sad I missed it this year) continue to be pillars of he newly emergent startup scene, with other entities and institutions arriving to continue to progress.
2014 saw me focus on two key businesses, continue to explore South America, attend a world cup and still stay connected with my friends and family in the US. I’ve been very lucky that the years keep getting better and better and I hope 2015 is no exception.
Favorite Posts of 2014
2014 was my lowest blog output in the six plus year history of my blog. And even worse, I didn’t make up for the lack of quantity with better quality. I’m not sure if its because I’m writing less or because my brain is getting mixed up because I’m speaking more spanish, but my writing is noticeably worse than in previous years. Last year 10 posts made my list. This year only four made the cut. I need to get back to writing more.
1493: Uncovering the New World Columbus Created – I learned more from this book and its companion book 1491 than I’ve learned in a really long time. 1493 talks about how things changed after Columbus arrived in the Americas. It busts myths, adds new facts and really made me think.
1491: New Revelations of the Americas Before Columbus – This book completely changed my understanding of what the Americas were like before Columbus and opened my eyes to some of the amazing things that native cultures in our hemisphere had done. Really worth reading and makes me want to explore Peru and Mexico.
Five Days at Memorial – An investigative journalist looks at what happened at Memorial Hospital in New Orleans before, during and after Hurricane Katrina where doctors potentially euthanized patients.
Bolivia, wedged between Chile, Peru, Paraguay, Argentina and Brazil, is an amazing country of contrasts. With unmatched deposits of silver, tin, zinc, natural gas and enough lithium to power all of our modern devices for centuries, Bolivia should be a wealthy country. But is one of the poorest countries in the western hemisphere, only slightly better off than Haiti.
Since its “discovery” by the Spanish in the 1500s until today, Bolivia has been screwed over by nearly everyone, first by Spain, then Britain, the United States, Chile, Brazil, Paraguay and Argentina, all in partnership with its small upper class that has exploited its natural resources a labor. As I traveled through Bolivia over the past ten days, taking in its incredibly natural beauty, I read A Concise History of Bolivia and reread Open Veins of Latin America and began to appreciate just how unlucky the Bolivians have been.
Salar de Uyuni
I started my trip from San Pedro de Atacama in Chile, booking the three day tour to the Salar de Uyuni. I’d done this trip before in 2011, but I still loved doing it again. You can read horror stories about this trip, but both times I’ve gone, I’ve never had a problem. This time I booked with Cordillera Traveller on the Chilean side and the accommodations were much better than with Colque Tours in 2011. We paid about $20 more than the competition but our driver seemed safer and more knowledgable.
I joined a group of 18 people in four Jeeps and we left San Pedro at 8am and made the one hour trek to the Bolivian border, where pretty much the only people who cross are tourists. We climbed from 2000 meters all the way up to 5000m (~16,000 feet) by nightfall. The scenery, along with the altitude, is (literally) breathtaking. We slept at altitude, but kept waking up every hour or so, our hearts racing and throats dry from the altitude.
The next day, we went past geysers, interesting rock formations and more colored lagoons until we reached a tiny town called Culpina K. It looked like a ghost town. Our guide, Humberto, told us that most of the people in the town either cultivate quinoa or work in the mines, so they got to bed by sundown at the latest. It was like going back in time to when most people farmed and lived in small towns.
We woke up early and drove through Uyuni, a poor, broken down town in the middle of nowhere, that wouldn’t exist without the Salar that’s just next door. At 10,000 square km, its the largest salt flat in the world and contains 50%-70% of the world’s lithium supply.It’s so different from anything I’ve ever seen and coming back a second time just brought the point home again. It’s so flat, so white and so big that you can see the curve of the earth. On cloudy days, the guides can’t go too far away from the “shore” or they risk getting disoriented and lost on the Salar. Not taking my own advice from 2011, I got burned to a crisp. Again.
We arrived back to Uyuni in the afternoon, burned, thirsty and caked in salt and went directly to the bus depot to reserve tickets to Potosí. Bolivian roads are unsafe. Drivers aren’t very experienced, road conditions vary and you have to keep your eye out for mudslides and the occasional llama darting into the road. As a rule in Bolivia, always buy the most expensive bus ticket. Our bus trundled out of Uyuni onto the brand new road that connects Uyuni-Potosí-Sucre and prepared ourselves for the four hour trip. It was the first paved road we’d seen in four days and had only been completed in the past year. The bus seemed safe enough, but it was easy to imagine the bus falling off the hairpin turns.
We arrived safely into Potosí and got off at the “ex terminal”, which is really just a service station in the middle of the town and took a taxi to the Tukos Casa Real, an old building that’s been refurbished into a hotel. The room was massive, had hot water and the hotel provided a nice breakfast and only cost $40 per night for something that would cost at least $150 in the US. My heart was pounding and I was struggling to breath after walking up the three flights of stairs to get to the room. The 4060m altitude really takes it out of you. I can’t imagine playing a world cup qualifier in La Paz, Quito or even Mexico City.
Potosí was the city that drove Europe’s economy for almost three hundred years. From 1550-1783, it’s estimated that 45,000 tons of pure silver came out of Cerro Rico, one of the richest silver mines in the history of the world. The mine made people fabulously wealthy and the town grew to a peak of 200,000 people at a time when Madrid only had about 50,000. But it was all built on exploitation of natives and africans, who were used as slaves. Some people estimate that eight million people have died in Cerro Rico mining first silver, then tin and now zinc.
The mine created incredible wealth, which led to some amazing churches, cathedrals, public spaces and houses, much of which has gone into different stages disrepair after the richest minerals were extracted. Cerro Rico’s riches pushed the Spanish to create Bolivia’s first national mint, which has been preserved and converted into a beautiful museum. The original donkey powered minting machines are preserved alongside some of the original coins.
The cathedral has been beautifully restored over the past ten year. During the war for independence, Simon Bolivar ordered the colorful cathedral to be whitewashed. People forgot and the incredible colors were rediscovered during the renovation. Now a UNESCO world heritage site, parts of colonial Potosí have been preserved, but the poverty remains.
Today, it’s a loud, bustling city filled with diesel busses that come directly from China after they’ve been banned for expelling too much pollution, broken down cars honking at every intersection and people everywhere. I only saw a few non-natives during my three days in Potosí. Even today, an estimated 25% of Bolivians aren’t fluent in Spanish and many people are still bilingual Quechua or Ayamar speakers, including a taxi I got into.
You can see the grinding poverty: Potosí is now one of Bolivia’s poorest areas. There’s hardly any industry, other than mining, and the occasional tourist, so locals, mostly indigenous people, are forced into the mines. The miners forced out the government’s nationalization attempt because of rampant corruption, so now the miners have an elaborate series of cooperatives where you work for yourself. If you strike it rich, you can be a millionaire. If not, you may starve to death or be relegated to extreme poverty.
Because life expectancy is so short and families are large, Bolivia is an incredibly young country, with an average age of 22, compared to 33 in Chile and 36 in the US. It’s noticeable. There are school aged kids everywhere, decked out in formal school uniforms. After school, the kids held massive water balloon and squirt gun fights on the main roads and plazas. I got caught in the crossfire a few times.
The food reflects the local conditions, making the most out of less expensive ingredients to provide the highest level of nutrition possible. There’s lots of potatoes, quinoa, corn and vegetables. Meat is a luxury. Llama features on many menus. Coca Cola is ubiquitous, but I didn’t see many international chain fast food restaurants.
We tried to go to Doña Eugenia, a restaurant specializing in local food, but it was closed. We ended up at a tiny restaurant nearby where I tried Kalapulca, a corn based soup with bits of meat and potatoes that’s served with two superhot rocks that creates a volcano like soup. Another good option was Koala Cafe, which has cheap fixed price menus and featured an awesome quinoa soup.
We did a mine tour with Big Deal Tours, the best company in town. Founded and run by ex-miners, the guides take you on a 3km walk underground through the mine. I felt a bit conflicted about doing a mine tour to basically gawk at people who were working in terrible conditions, but after talking to the miners at the tour agency, I decided to do it. I’m glad I did. It was a sobering tour.
Miners still work nearly the same as they did in the 1500s. Most don’t have electricity, so they use pickaxes, hammers and dynamite to bust open the rocks. They carry out the ore on their backs in 40-50kg loads or in wheeled carts weighing between one and two tons. If they slip, they get crushed. Life expectancy for miners is between 40 and 50.
It’s dark, dank and filled with ankle deep water. Particles hang in the air, invading your lungs. Miners chew massive amounts of coca leaves to suppress hunger, fatigue and keep them energized, just like the slaves and exploited indigenous did in the colonial era. They drink 96% pure alcohol that costs the same as a beer to dull the pain and for luck to get “pure” veins of minerals and make sacrifices to “El Tio” the God who has domain of the mountain.
We started at the miners’ market where we purchased gifts for the miners: coca leaves, juice and dynamite. A full dynamite kit (detonator, accelerant and stick) cost $3. As we walked through the mine, crouching down to try to avoid smashing our heads, and not doing so very well, we ran into miner after miner. They all looked similar. Dirty, old clothes. A huge wad of coca leaves. Many missing teeth. Upbeat. Happy to chat with us.
“How old are you?” asked our group to a miner who looked at least 35.
“Twenty-five,” he replied.
“How much do you make per week?” we asked.
“About 1000 Bolivianos per week,” he replied, which is about $140 per week.
“And how long have you been working in the mine?” we all wanted to know.
“Fifteen years,” he said.
His story is fairly typical. There are so few jobs and money is so tight that fathers bring their sons to the mine starting at as young as ten. Or if the father dies and there’s many kids, the oldest kids have to go into the mine to support the family.
After a three hour tour or just walking through the mine I was exhausted. The 4400m altitude didn’t help, but the crouching, the head smashing and shuffling through water sapped my energy. I can’t imaging having to hammer all day, run away from dynamite explosions and having to push 1-2 tons carts manually out of the mine for long shifts, with hunger pangs that are only dulled by coca leaves and alcohol.
I’m really glad I got to see Potosí, but it was incredibly sad to see a place that had such natural wealth that has been exploited and squandered to the point where its inhabitants live such a hard life.
We decided to leave Potosí via the new bus terminal, which is located about twenty minutes from the town center. It’s brand new and clearly is an investment from the central government, as the location clearly wasn’t chosen for business reasons. We got out of the taxi and immediately felt like we were in a zombie movie. There were ticket sellers bleating like sheep, but there weren’t any customers. The zombies activated and attacked from all sides, trying to get the commission on the $4 bus tickets. Check out the video.
After getting past the zombies, we settled into the four hour bus ride down from 4060m to Sucre’s 2800m above sea level. Getting off the bus was like being able to drink the air. We took a taxi from the bus station to Hostal de Su Merced, a four star hotel in a refurbished building right downtown. It cost about $60 per night for a level of service that would cost $175+ in the US or Chile.
The first thing I noticed was the architecture. Everything is white. Sucre was Bolivia’s capital during colonial times until the seat of government was changed to La Paz during one of Bolivia’s many coups, dictatorships and revolutions and has preserved its historical buildings. The center is designated a UNESCO world heritage site, so there are building restrictions to keep the local character. The main square is surrounded by the cathedral, the municipality and the house where Bolivia’s declaration of independence was signed. There are a multitude of churches and church buildings, schools and universities, including South America’s first law school.
Although Sucre is a tourist city, the attractions are only open from about 10am-12pm, then again from 2pm-5pm, at most. It was frustrating, but by the second day I’d figured it out. Just like in other parts of Bolivia, the daily schedule is very different from Chile or what you might think of a Latin schedule. Shops open early and lunch ends by 1pm. Dinner is from 7-9 and most restaurants are closed by 9 or 930. People are out drinking at bars by 930pm. In Chile, people are just starting to eat dinner! It’s another example in the long list that show Latin America is not just one homogeneous cultural unit.
I really enjoyed salteñas, Bolivian empanadas, especially from El Patio Salteñaria. They have a sweet, flaky dough and have a bit of sugar on the top and are filled with meat and vegetables. The filling is similar to a Chilean empanada de pino, but the dough is completely different. People eat salteñas from breakfast until lunch and not in the afternoon, whereas in Chile empanadas are a lunch or later food. It was hard to find high quality food, but I really enjoyed Condor Cafe, Cafe Mirador, and especially Cafe El Tapado, where I tired a variety of local, quinoa heavy dishes.
I had an amazing time in Bolivia. The country is absolutely beautiful, the people are welcoming and warm and the country just oozes with history. I hope Bolivia has better luck and better leadership as it moves into this century, as it has all of the natural resources to be much better developed than it is today.