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William Powers: Bolivia's Must Shift Real Power to It's Poor Majority

William Powers, in the NYT (6-11-05)

[Mr. Powers is the author of "Blue Clay People" and a forthcoming book on Bolivia, "A Natural Nation.]

...For three weeks, the country has been paralyzed by blockades and protests; a few days after my experience at the roadblock, the uprising forced the president, Carlos Mesa, to resign. The protesters want to nationalize Bolivia's vast natural gas reserves, South America's second largest; BP has quintupled its estimate of Bolivia's proven reserves to 29 trillion cubic feet, worth a whopping $250 billion. The Indians are in a showdown with the International Monetary Fund and companies like British Gas, Repsol of Spain and Brazil's Petrobras that have already invested billions of dollars in exploration and extraction.

Many are calling the remarkable past five years in Bolivia a war against globalization. In a limited way, they're right. McDonald's closed its outlets here, unable to lure Bolivians away from their saice and salteñas. Demonstrators in bowler hats forced out Bechtel and Suez water privatizers; blocked an income tax urged by the mighty I.M.F.; and ousted President Mesa's predecessor, Gonzalo Sánchez de Lozado, who spoke Spanish with a heavy American accent, over his plan to export Bolivian gas to California through Chile...

...Moreover, our own ideas for this region are not always so fabulous. Bolivia was the testing ground for the I.M.F.'s "shock therapy" liberalization in 1985. This stringent recipe has made millions for oilmen and industrial soy farmers here (neither sector creates much employment) but has not reduced inequality; 20 years later, Bolivia's income levels are stagnant or worse, and half the population lives on less than $2 a day.

Besides taking a respectful hands off, the world should contribute one vital thing toward a more democratic society that embraces Indians: debt relief to the reforming government. Bolivia's debt load has risen to 82 percent of gross domestic product, sucking up a mind-boggling 40 percent of fiscal expenditures. This is a recipe for more poverty and turmoil.

Meanwhile, the Indians, distrusting Mr. Rodríguez's promise to call elections and talk to proponents of nationalization, are keeping some of the roadblocks in place, a tactic that costs millions of dollars in lost commerce, hurting the Indians themselves most of all. But as one Quechua told me as he crossed his arms in front of trucks here in Samaipata, vaguely evoking Tiananmen Square: "Our cultures have been blocked for 500 years. This is our only voice."