Wednesday, June 08, 2005
Troubles in Bolivia
Neither I nor most other Americans pay a great deal of attention to the politics of South American countries. They are not so close as Central America, and their troubles rarely seem important to American geopolitical interests. I confess that I barely read even headlines that relate to South America. However, since I am down here I am getting some sense of the region and its trouble spots. For example, I learned only last night -- chatting with our distributors in an excellent restaurant in Santiago -- that Bolivia is a mess right now.
Like many South American countries, Bolivia has a huge gulf between its rich and poor, with virtually no middle class. Apart from agricultural products (both lawful and otherwise), its big asset consists of huge natural gas fields concentrated in two of its provinces. These two provinces are wealthier than the rest of the country, have demanded greater autonomy in their political and economic affairs (my hosts in Santiago say they really want to secede), and oppose legislation in La Paz that would tax the hydrocarbons industry at much higher levels than historically. That legislation is itself a compromise, insofar as indigenous groups and labor leaders have rallied thousands of protesters who are demanding nationalization of all oil and gas interests without compensation to their owners.
President Carlos Mesa originally vetoed the new tax, and that triggered a new wave of demonstrations demanding nationalization. Mesa has in fact tried to resign twice, first so that he could avoid casting his original veto, and then so that he could avoid the repercussions of having signed the legislation that he originally opposed. But the Congress, which is closely divided and has no interest in being on the hook itself, has rejected his resignation.
The protesters have escalated their demands, and now say that nothing will appease them other than nationalization of the hydrocarbons industry.
The problem is, in a country as harshly divided as Bolivia, the ones that "have" more may go to war to defend it. My hosts in Santiago are very worried that Bolivia will in fact descend into civil war, and that will drive refugees over the border into Chile, South America's wealthiest and most orderly country.
Like many South American countries, Bolivia has a huge gulf between its rich and poor, with virtually no middle class. Apart from agricultural products (both lawful and otherwise), its big asset consists of huge natural gas fields concentrated in two of its provinces. These two provinces are wealthier than the rest of the country, have demanded greater autonomy in their political and economic affairs (my hosts in Santiago say they really want to secede), and oppose legislation in La Paz that would tax the hydrocarbons industry at much higher levels than historically. That legislation is itself a compromise, insofar as indigenous groups and labor leaders have rallied thousands of protesters who are demanding nationalization of all oil and gas interests without compensation to their owners.
President Carlos Mesa originally vetoed the new tax, and that triggered a new wave of demonstrations demanding nationalization. Mesa has in fact tried to resign twice, first so that he could avoid casting his original veto, and then so that he could avoid the repercussions of having signed the legislation that he originally opposed. But the Congress, which is closely divided and has no interest in being on the hook itself, has rejected his resignation.
Tens of thousands of demonstrators took to the streets of the Bolivian capital La Paz on Tuesday, saying they would not give up their protest against the government’s handing of the country’s gas resources, despite the resignation of President Carlos Mesa....
For weeks, Bolivia has been paralyzed by demonstrations that blocked highways and access to cities, causing food and fuel shortages.
Bolivia’s political opposition and indigenous groups are calling for the nationalization of all gas companies and demand a constitutional assembly to rewrite Bolivia’s laws to give indigenous people more representation in the government.
They are also protesting against a demand for greater autonomy by some of Bolivia’s wealthier gas-rich provinces in the east.
Last month, Mesa - hoping to quell the protests and violence - approved a controversial bill that drastically increased taxes on foreign-owned oil and gas companies, even though he had repeatedly spoken out against such a move.
Protest leaders said the measure was insufficient and that total nationalization of the industry was in the best interest of the Bolivian people.
Again last week, Mesa announced that the constitution would be rewritten by an assembly scheduled to be elected this October, and that a referendum would be held on the autonomy request for the eastern provinces.
The protesters have escalated their demands, and now say that nothing will appease them other than nationalization of the hydrocarbons industry.
“To us, [Mesa is] a traitor,” David Gisbert, a 35-year-old unemployed protester, told ISN Security Watch in La Paz. “The only thing we want is to nationalize Bolivia’s gas industry.”
Patricia, 44, who declined to give her last name, said from the sidelines that the protests illustrated the enormous economic divide between Bolivia’s haves and have nots.
“The situation is simple: it’s the ones who have more against the ones who have less.”
The problem is, in a country as harshly divided as Bolivia, the ones that "have" more may go to war to defend it. My hosts in Santiago are very worried that Bolivia will in fact descend into civil war, and that will drive refugees over the border into Chile, South America's wealthiest and most orderly country.
2 Comments:
By 
Charlottesvillain, at
Wed Jun 08, 08:46:00 AM:
None of this would be happening if Fielding Mellish were running things.
By Final Historian, at
Wed Jun 08, 07:23:00 PM:
IIRC, Hugo Chavez has some role in all of this...
