[Marxism] Bolivia: Morales is Checked

[Louis Proyect <lnp3@xxxxxxxxx>]

Counterpunch, March 8-9, 2008
Bolivia: Morales is Checked

By HERVE DO ALTO and FRANCK POUPEAU

Those on the left may often want to change the world without taking 
power, but Bolivia's socialists have taken a different path. Evo 
Morales, the first indigenous Indian president in the Americas, came 
to power with ambitious plans to change Bolivian society at the end 
of a turbulent period in its history (1999-2005). When elected on 18 
December 2005 with 53.72 per cent of the vote, he promised to defend 
the rights of the indigenous Andean Indian population, denied since 
colonization, to end 20 years of neo-liberal politics and to 
implement the October agenda, whose most significant aspects are the 
nationalisation of the gas and oil industries and the re-founding of 
the state based on a new constitution.

Since it came to power, his party ? the Movement towards Socialism 
(MAS) ? has been cautious in its economic policies for fear of 
provoking instability orchestrated by the economic elite. Whereas 
some ministries replaced most of their staff after the election, 
there have been almost no changes at the Department of Finance. The 
government's overall approach to the economy has been pragmatic. It 
negotiated the end of the involvement of French company Lyonnaise des 
Eaux in La Paz's water system in January 2007. But despite the 
announcement of the nationalization of the petrochemical industry on 
May 1, 2006 , it has guaranteed that Brazilian, Argentinian and 
Spanish multinationals can continue their activities. Instead of 
nationalizing, Morales has increased taxes on the multinationals and 
renegotiated their contracts. As a result, tax revenues from the gas 
and oil industries have gone from $300m in 2005 to $1.7bn in 2007.

Two years after coming to power, Morales finds himself in an impasse: 
his project for a new constitution faces fierce opposition and the 
rich oil and agro-industrial regions of the media luna  [Santa Cruz, 
Tarija, Beni and Pando are the four eastern departments of the 
country and together resemble a half-moon]  the economic heartland of 
the country, have declared their autonomy.

Most of MAS's social reforms have been blocked in the Senate, where, 
in contrast to the lower house, the right has a majority. In November 
2006 farming reforms only went through because several members of the 
opposition voted with the government. Approval of the renta dignidad, 
an old age pension, was held up through all last year.

full: http://www.counterpunch.com/alto03082008.html


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