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Comment: Give Bolivia a chance

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06/2006
 

Comment

Give Bolivia a chance

By announcing his intention to nationalise Bolivia’s gas resources, Evo Morales, the country’s new president, has provoked criticism internationally. However, the government’s approach is legitimate. Bolivia needs funds to fight poverty among its long-neglected population. Morales must now prove he is serious about doing exactly that. The international community should support, not hinder him.


[ By Archbishop Werner Thissen ]

For the Catholic Church, a key question when assessing how a state and an economy are ogranised is whether the needs of the people are taken care of. In this sense, the current discussion on Bolivia is not about whether one argues for or against state intervention in the economy, but rather on how to best achieve people’s welfare.

For many of us, the term “nationalisation” is an emotive term, which makes us think of inefficiency, nepotism and corruption. But we should not forget that there are large state-run enterprises in Western countries, and that governments influence corporate decision-making thanks to shares they hold and board members they appoint. That is the case, for instance, in sectors such as energy, transport and communication.

The controversial case of Bolivia must be assessed bearing that in mind. This country is South America’s poorest. Two thirds of its 8.8 million people live in poverty. Unemployment is at almost 40%, the annual gross domestic product is less than ¤1000 per capita. This list of social indicators that cause concern could go on indefinitely. However, Bolivia has considerable oil and, especially, gas resources. As president of the Episcopal Commission MISEREOR, I often stress that Latin America is not a poor continent, but an unjust one. Bolivia is a striking example of abundant resources not having served poverty reduction yet. It is therefore no surprise that exploitation of gas reserves has become a controversial political issue, destabilising the country.

In a referendum on the national energy policy in 2004, nine out of ten Bolivians spoke in favour of nationalising fossil resources. This year, President Evo Morales was elected with a large majority. He is now living up to an election pledge by transferring, by decree, the decisions on licences, output and exports to a government holding. Production contracts will be renegotiated in the next six months, foreign-based companies involved will probably have to pay significantly higher duties. However, the – at times heated – debate has arisen because the presidential decree does not elaborate every detail precisely.

There is no question that any government needs funds to perform urgent social tasks. Levying high duties on export commodities is an obvious approach for Bolivia. Doing so has been democratically approved of – just consider the results of both the referendum and the presidential election. The result, so far, is not nationalisation in a narrow sense. Rather, the government is creating new conditions for exploiting the gas and oil reserves, over which its wants to regain sovereignty. After all, the constitution defines mineral resources in Bolivia as property of the state. Nonetheless, the state may place production in private hands.

Today, one should check whether the criticism expressed internationally is motivated by concern for the people and the country of Bolivia, or by fear of losing perks or access to energy.
As a Catholic development agency, MISEREOR wants to contribute to improving the living conditions of the population’s poor majority in a sustainable manner. The next few months will show whether the Bolivian government’s announcements on fighting poverty and corruption are to be taken seriously. The government should be given a chance.

MISEREOR and its partner agencies will remind Morales and his administration of social obligations, and offer advice on sustainable initiatives to further enhance the chances of the poor population. Similarly, the Bolivian Bishops’ Conference is also putting trust in the implementation of the decree on nationalisation in the name of fairness. It hopes that corruption and bad governance will be avoided and that the poor and marginalised members of society will benefit in particular. I share this hope.




Archbishop Dr. Werner Thissen
is head of MISEREOR, the development agency of Germany’s Catholic bishops.
http://www.misereor.de