Bolivia had been colonised since the 15th Century, its silver and gold removed by invaders in the 17th century (probably offering bibles and democracy in exchange?). In the 20th Century, Bolivia suffers decades of military dictatorship until civilian rule is restored in 1982. But with mega-inflation, Bolivia was forced, in exchange for assistance from the World Bank, to privatise its oil and gas reserves, railways, telecoms and airlines.
In 2002, the World Bank admitted that a loan to improve the water supply also included a condition to privatise it. The State Supplier was bought by a US/British company Aguas del Tunari, who immediately hiked the water rates by 35%, sparking protests and a General Strike. Attempts to negotiate with the Government saw the negotiators arrested and sent to remote prisons in the jungle bordering Brazil. But protests (and the reasons for them) spread including 4 Police Units in the capital La Paz refusing to act because of a wage dispute. A State of Emergency was declared.
A Bolivian Army Captain was shown on TV shooting a rifle into a crowd. Anger peaked. The Executives of Aguas del Tunari fled, their contract in the form of Law 2029 that authorised the privatisation, was rescinded and control over water handed to La Coordinadora, a group of engineers, environmentalists, confederations of peasant farmers and factory unions. Law 2029 was so extreme that even collecting rainwater off your own roof may have been deemed a chargeable event. A Spanish drama was made in 2010, entitled “Even the Rain”.
Oscar Olivera and Omar Fernandez were instrumental in the protests which raised the profile of Evo Morales, who was elected President in 2005. Fernandez became a Senator.
Morales was active in the Second Gas War in Bolivia arguing for greater taxes on foreign owners of Bolivia’s hydrocarbons (oil and gas). It led to the resignation of President de Lozada and the election in 2005 (with 54% of the vote) of Morales as President, at the head of the MAS Party (Movement for Socialism). MAS were re-elected in 2009 (64%) and 2014 (61%). Economy grows steadily until 2014.
In May 2006, Morales nationalised Bolivian Oil and Gas. Oil stakeholders previously were British Petroleum BP, French-owned Total, Brazilian-owned Petrobras and Spanish-owned Repsol who adjust to lower profits but remain to collect massive profits still on offer. Government revenue rockets from $500 million per year in 2006 to $6 billion per year by 2016. Poverty declines from 36% to 17% of the population according to the World Bank. By 2017, $828 million in compensation has been repaid to nationalized firms across industry, about a quarter of the amount originally demanded. Slower profits for the rich in exchange for less poverty and suffering.
2018. Morales wins by 10% to enter a 4th term of office. Objection to Morales’ victory was made mainly by the US-backed Organisation of American States who repeatedly asserted, without ever providing evidence that the Election was rigged.
November 12th, 2019. General Williams Kaliman requests that Morales steps down, a clear breach of the Constitution. The BBC show a photo of a small march in support of the removal of Morales, mainly Policemen. US President Donald Trump applauds the coups. Morales goes into exile in Mexico to avoid further bloodshed. What did General Williams say to him and did it have anything to do with democracy? Senate vice-president, Jeanine Áñez, a conservative Christian, assumes the Presidency bearing a presidential sash and a bible. She is congratulated by the UK and by right wing Brazilian President Bolsonaro. Although only an interim Government, Áñez sets about ending relations with all left wing Governments in the Americas and a climate of naked racism against the indigenous community breaks out on the streets of Bolivia.
Elections were supposed to occur within 90 days but took nearly a year, during which time MAS supporters were massacred in peaceful demonstrations.
In spite of Morales remaining in exile and being intimidated from standing, the former MAS Economics Minister Luis Arce leads MAS into the Election. MAS win 55% of the vote with the “centrist” candidate on 26% and the right wing on 14%. So much for the righteous interference of the Right in staging a coups to unseat Morales based on the insistence (without evidence) that Morales rigged the election. Clearly not. His Party retain the thumping support of the people and the finger of suspicion points back to Ms Anez and elements of the Police and the Military that supported a coups to oust a fairly elected leader. Same old, same old.
Bolivia, beyond its vast reserves of oil and gas, also has the world’s largest deposit of lithium. Increased global use of renewables and electric cars requires batteries to store energy, lithium being the key component. Look out for who grants the concession treaty and extraction rights for the lithium and look out especially to whom they grant it.
The pattern remains the same. If there was genuine democratic opposition to MAS, then MAS would have lost an Election. It is not enough to suggest without showing evidence that they only won because they rigged it. One wonders who stands behind General Williams and his threats. He clearly has heavyweight backers, and as Trump and Bolsonaro’s endorsements indicate, they are not Bolivians.
The Americans will never let it rest in Bolivia while there is lithium at stake. Expect the rhetoric to ramp up. Trump’s successor Biden is already complaining about outrageously undemocratic behavior from the MAS Government – how dare they detain and bring to trial Áñez and the other coup organisers.
But as we have seen in our discussion of Uruguay, anti-imperialism is a set of tools, and Bolivia, maybe more than most, needs to defend itself with them.