Costs for the Region of Arica and Parinacota incurred in compliance with the Treaty of Peace and Friendship of 1904 and other facilities granted by Chile to Bolivia

Authors

  • Ian Thomson Universidad de Manchester
  • Tomás Bradanovich Pozo Universidad de Talca; Universidad de Tarapacá

Abstract

In this paper an attempt is made to identify and, where possible, quantify the costs borne by Chile, and especially by the Region of Arica and Parinacota, in favor of Bolivia over and above those obligated by the 1904 Peace and Friendship Treaty between the two countries. The focus is on the two overland channels used by Bolivia to transport goods to and from the port of Arica, i.e. the 11-CH Highway and the Arica to La Paz Railway. It is estimated that the effective subsidy ceded by Chile amounts to at least USD 6.12 per ton transported over the said Highway, based on data covering the period 2001 to 2008. Due to a huge investment plan to be carried out by 2023, this amount can be expected to rise. It excludes the costs borne by Chile resulting from the storage free of charge of goods bound to or from Bolivia in the Arica port area and those due to various preferential charges and tax exemptions. The quantitative assessment also excludes certain external costs which are, however, identified.

Keywords:

Arica and Parinacota, 1904 Peace and Friendship Treaty, Chile, Bolivia, Arica to La Paz Railway, transport goods, costs borne

Author Biography

Ian Thomson, Universidad de Manchester

Economista de la Universidad de Manchester, Inglaterra. Consultor en temas referidos al transporte en diversos países de Europa, América, Asia y Oceanía. Desde 1976 a 2005 trabajó como economista de transporte para la Comisión Económica para América Latina y el Caribe (CEPAL). Fue presidente de la Asociación Chilena de Conservación del Patrimonio Ferroviario (ACCPF) desde su constitución legal, en 1986, hasta 1995. Autor de un gran número de libros y artículos sobre el pasado y presente de los ferrocarriles de Chile, Bolivia, Ecuador, Inglaterra, Paraguay y Perú