Bolivia, South America’s poorest and most unstable country, has a long history of mobilization and activism. Considering that up until 1982 it had experienced more coups than it had years of democratic governances, its political instability is evident. Much of this can be attributed to the divide of the Bolivian society along geographic, ethnic, ideological and class-based lines. The main divide is between the indigenous groups of the West and the mostly of European descent residents of the east, which also represents a stark contrast of rich and poor, a phenomenon that is well-known in Bolivia. Although nearly two-thirds of Bolivia’s population is comprised indigenous people, historically they have been dismissed to the edge of Bolivia’s civic, economic and political institutions.
Bolivia’s indigenous population, who predominantly live as subsistence farmers, ranges from poor to extremely destitute while east of the Andes a wealthy minority have a higher standard of living than most South Americans. Bolivia’s indigenous people have routinely been excluded from Bolivian political economic and social processes and throughout history have felt exploited, believing that the wealthy minority of the east has partitioned the country’s best farmland and natural gas reserves for their own benefit. Throughout history there has been much conflict between these two groups with the indigenous people mostly favoring nationalism, socialism, anti-U.S. policies and just wanting more rights in general while those in the east often favor strong ties with the U.S. as well as foreign trade and exporting. During the 20th century, attempts at reorganization and reform in South America’s poorest and most unstable country were overshadowed by military coups, rule of dictators and bankruptcy. There are patterns of the same people coming into power, social movements unable to maintain collective unity and of the government going back and forth between nationalism and privatization as the person in power continuously changes.
It wasn’t until 1952 that the State attempted to incorporate into the national life the indigenous population of Bolivia. This significant turning point was due to the 1952 revolution which was started by a successful revolt led by the Revolutionary Nationalist Movement (MNR)—a loose coalition of coal miners, Indian subsistence farmers and middle-class mestizos—bringing President Paz Estenssoro to power. The MNR also introduced universal adult suffrage, a sweeping land reform, promoted rural education and nationalized the country’s largest tin mines. The MNR party ruled Bolivia for 12 years but their popularity began to decrease when they failed to boost the economy resulting in rampant inflation and declining farm productivity.
Authoritarian Military Rule 1964-1982-
Estenssoro was overthrown by a military coup in 1964 at the start of his third term followed by another prolonged period of authoritarian military rule filled with coups and right-wing military dictatorships. Between 1964 and 1985 there were over 15 different dictators and military groups in power. Of these, only a few managed to remain in power more than a year or two. Rene Barrientos and co-president Alfredo Ovando supported a program of “revolutionary nationalism”. According to Ovando, the only way to end Bolivia’s underdevelopment was to allow and to encourage the military to manage the economy and intervene in domestic politics.
The 1970s were dominated by dictator and general Hugo Banzer whose populist military government had the support of the MNR party as well its traditional rightest opponent during the first few years. Banzer closed the universities, arrested opposition opponents and returned Bolivia to a pro-U.S. foreign policy. Driven largely by the heavy demand for Bolivia’s commodity exports, Banzer oversaw rapid economic growth. But by 1974 labor unrest intensified as the economy experienced a slowdown and the military regime resorted to greater repression in order to maintain political control. Pressured by the U.S. and Europe to liberalize and restore civilian democratic rule, Banzer announced a presidential election for 1980. Banzer was forced to resign in 1978 by the military which soon gained control of the government and delayed the elections until 1982.
Economic Crisis of the 1980s-
Civilian rule and a democratic government were restored in 1982. In that year, Hernán Siles Zuazo and the Democratic Popular Unity (UDP) party, a loose coalition of 20-odd leftist and non-aligned political parties and movements, were elected to power with the goal of resuming the nationalist project of the MNR 30 years before. It was in the early 1980s that Bolivia faced the most severe economic crisis of the preceding three decades, foreign debt amounting to nearly $3 billion U.S. dollars. The Siles Zuazo government attempted to address this crisis negotiating several tentative stabilization programs with the International Monetary Fund (IMF) but during 1985 the international tin market collapsed and Bolivia’s inflation reached an annual rate of over 24,000 percent. The UDP proved unable to maintain any sort of collective unity and opposition forced them and Siles Zuazo to give up power through a new round of elections in 1985.
The 1985 presidential election became a head-to-head contest between former military dictator Banzer and MNR founder Paz Estenssoro. After luring support from the Movement of the Revolutionary Left with promises of state patronage, Paz Estenssoro was elected president for the fourth time since 1952. Abandoning his left-wing allies and populist past, Paz Estenssoro implemented one of the strictest economic stabilization packages ever implemented in Latin America.
The “New Economic Policy” (NPE) aimed at ending Bolivia’s hyperinflation and dismantling the many large, and what critics believed were inefficient, state enterprises created during the revolution. The result illustrates the best and worst of free markets. The NPE successfully ended hyperinflation, dropping from 8,170 percent to a more manageable 9 percent. On the other hand, 35,000 factory workers and 20,000 miners lost their jobs because of privatization. On top of this, there was a downturn in the global tin market and the cost of commodities in Bolivia soared causing the middle class to slip into poverty, increasing the country’s already high poverty levels. Thousands were forced to relocate for work which resulted in the opposition to the country’s ruling political elite no longer being limited to a particular region or industry but instead was diffused throughout the country.
Free-Market Reforms of the 1990s-
Jaime Paz Zamora succeeded Paz Estenssoro as president in 1989 and continued with the market reform policies, overseeing modest economic recovery aided by the a rebound in the tin market. In the early 1990s, the government offered tax incentives to attract foreign investors in the mining industry. Gonzalo Sanchez de Lozada, a mining entrepreneur and Paz Estenssoro’s former planning minister was elected president in 1993. Lozada represented a new generation of MNR leaders, committed to modernizing Bolivia through private capital investment from abroad.
He pursued privatization and continued free-market reforms, but also launched a social security program and granted more resources to poor urban and indigenous communities. The discovery of natural gas reserves in the late 1990s provoked heated controversy over ownership of natural resources and the extent to which Bolivia should pursue “neo-liberal” economic policies favoring foreign capital investment. This debate put the natural gas-rich eastern provinces of Santa Cruz against social movements supported by poorer communities of central and western Bolivia.
Coca-Eradication and Privatization Conflicts
Conflict over natural gas, privatization and coca eradication resulted in a new generation of social protests. The social movements claimed to represent Bolivians who had suffered discrimination and exclusion from the country’s mainstream political and economic institutions, this encompassed a variety of groups including indigenous communities, cocaleros and shantytown dwellers. The social movements were very anti-capitalist, favored socialism and nationalism, and had a deep-seated suspicion of foreign companies. The social movements distinguished themselves from political parties by encouraging disruptive forms of protest like road blockades and occupations of government buildings.
Hugo Banzer came to power again in 1997, this time through democratic elections. During his campaign he promised to halt privatization, but he continued most of the economic policies of Lozada. Pressure from the U.S. led the Banzer administration to implement the Dignity Plan, an aggressive coca-eradication program by the Bolivian armed forces. Although somewhat successful in aims of eradicating coca fields, the Dignity Plan increased rural poverty and social protest movements among the mostly indigenous coca farmers (cocaleros) of the Chapare region. Evos Morales, who was a coca farmer and is now Bolivia’s current president, led cocaleros in violent uprisings against the efforts of the U.S.
In 1999, followed by recommendations from the World Bank, the Bolivian government privatized the water of Cochabamba which resulted in the price of water increasing by 50%. This caused an uproar from poorer inhabitants of the region and in April 2000, violent demonstrations occurred disputing the contract on the grounds that the poor would be deprived of universal access to water. The government was forced to break the contract. Morales was one of the leaders of this protest as well. The water war, the country’s economic difficulties and the anti-coca campaign led to increasing political assertiveness by indigenous people and initiated a period of intense conflict between the social movements and the government. In the 2002 election, Gonzalo Sanchez de Lozada was elected president a second time winning by only two points against Morales, whose popularity was growing along with U.S. opposition to him.
Unsettled Social Unrest and the Rise of Evo Morales
Already experiencing violent protests earlier that year after proposed tax increases, in September 2003 Lozada announced plans to export natural gas to the U.S. and Mexico through a port in Chile, Bolivia’s traditional enemy. This resulted in more demonstrations that continued into October. Lozada sent troops to break up the blockades of the highways which resulted in at least 80 demonstrators dead. This caused even more violent protests and to try to end the violence Lozada resigned and went into exile, leaving the government in the hands of vice president Carlos Mesa.
Mesa attempted to resolve the dispute between the supporters and opponents of a foreign corporate role in the extraction and sales of natural gas through a national referendum which was approved in July 2004. Mesa resigned in June 2005 after protests by labor and indigenous groups about his failure to veto an oil and gas taxation law as he said he would. They demanded that the industry be nationalized and continued demonstrations, isolating Bolivia’s major cities at which point Mesa resigned.
Congress agreed on Eduardo Rodríguez Veltze, president of the Supreme Court, to step in as interim president. He was sworn in on June 10, 2005 and immediately called for a special national election in December 2005. It was the December 2005 presidential election that gave way to Bolivia’s first indigenous president, Evo Morales. As the December 2005 election approached Morales focused on his three main campaign issues: increasing the rights of Bolivia’s indigenous people, nationalizing the economy and protecting Bolivia’s coca production. With the support of fellow indigenous Bolivians, Morales embodied native Indian culture. Since 2005, how has Morales addressed these three central issues? Does he still have the indigenous support that got him into office?
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