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Impasse in Bolivia

Impasse in Bolivia

Benjamin Kohl | Linda C. Farthing

(2008)

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Abstract

Bolivia has experienced two decades of unprecedented popular resistance to the consequences of neoliberal policies, resulting in the resignation and flight of its president in October 2003. This unusual book uncovers the reasons and processes behind the rising opposition - mirrored in country after country in Latin America - to this currently fashionable, internationally prescribed approach to economic development. It explores the problems faced by governments in reproducing global strategies at the national level, the tensions between markets and democracy, state restructuring, citizenship and property rights. It points to the problems inherent in retaining neoliberalism as the dominant paradigm in Latin America for the foreseeable future and the unlikely prospect of it putting down real roots of approval and legitimacy.
'The crisis in contemporary Bolivia is exceptional even by the formidable standards of the region. A confrontation between global forces and local populations, a battle over basic ideas in political economy, a comprehensive struggle over natural resources and their proper use, and a prolonged dispute over the political organisation of the republic have combined in an extraordinary experience of contested nationhood. This admirable book is written with both bold engagement and clear-headedness. Its authority derives from the author's deep knowledge of Bolivia, where they have lived and on which they have written over a range of issues. Lucid and well structured, the book provides an excellent synthetic account and analysis of the Bolivian labyrinth.' James Dunkerley is Professor of Politics and History and Director of the Institute for the Study of the Americas at the University of London and editor of the Journal of Latin American Studies. 'An extraordinary achievement...The authors leave little doubt that the main cause for Bolivia's turbulent contemporary history is neo-liberalism. But they look beyond simple causalities in their analysis...The book will, beyond the slightest doubt, become a major reference for scholars attempting to analyse Bolivia's endeavours. It is well documented, has a clear structure and combines engagement with lucidity...outstanding and a must for every Bolivia scholar.' Ton Salman, Revista Europea de Estudios Latinoamericanos y del Caribe 'Impasse in Bolivia is a thoughtful and thorough analysis of Bolivia’s struggle over the past two decades with neoliberal policies...fills a critical gap in literature on Bolivia, providing an astute analysis of the forces that have dictated the course of Bolivia’s recent history...Policy-makers, journalists, academics and students of Latin American politics alike will benefit from the window this book offers into the complexities of a country that has taught the world about the dangers of foreign prescriptions and highlighted the chasm between Western theoretical solutions and the Andean reality.' Melissa Draper, the Democracy Center, Cochabamba
Benjamin Kohl is a member of the Department of Geography and Urban Studies, Temple University and a Visiting Scholar in the Department of City and Regional Planning, Cornell University. Linda Farthing, a journalist, educator and activist, has worked on Bolivia for 20 years, including living there for eight. She is a former regional director for the Americas at the School for International Training, and has extensive experience in grassroots community development in both Bolivia and Nepal.

Table of Contents

Section Title Page Action Price
Cover Cover
Contents v
Tables and map vii
Acknowledgements ix
Abbreviations xii
Introduction: entre fiestas y bloqueos (between fiestas and blockades) 1
24 June, La Paz, Bolivia 1
Organization of the book 7
1 | Neoliberal globalization: the challenge of maintaining hegemony 11
Neoliberalism 15
Neoliberalism in practice: structural adjustment and the Washington Consensus 18
Neoliberalism as a hegemonic system 22
Market democracy 25
Neoliberalism and the state 28
Resistance to neoliberalism and challenges to hegemony 30
Notes 32
2 | From Francisco de Toledo to Jeffrey Sachs 34
Reshaping the Andes: the Spanish invasion 37
Republican heritage: the legacy of liberalism 40
The resurgence of silver and the rise of tin 43
The Chaco War and the 1952 revolution 45
Military rule 50
Return to civilian rule and economic crisis 54
Global pressure and local response 57
Notes 58
3 | The neoliberal incursion: structural adjustment and the New Economic Policy 60
Bolivia’s economy before neoliberalism 62
The New Economic Policy (NEP) and Presidential Decree 21060 65
Impacts of the NEP, 1985–93 70
Constructing hegemony: cocaine, contraband, the informal economy and remittances 73
Constructing hegemony: debilitating the COB 75
Constructing hegemony: NGOs and the Church 77
The MIR–ADN coalition, 1989–93 79
Conclusions 80
Notes 83
4 | Reinventing Bolivia: the Plan de Todos 84
Citizenship 88
Deepening citizenship rights: constitutional reform 90
Civil rights: agrarian and judicial reform 92
Political rights: popular participation and administrative decentralization 93
Social rights: education reform 95
Social and economic rights: privatization and the Law of Capitalization 97
Social responses to the new laws 99
Four years restructuring Bolivia: ‘If-then’ policies in ‘Yes-but’ environments 100
Notes 102
5 | Privatization Bolivian-style 103
Privatization and the practice of neoliberalism 105
Privatization and capitalization in Bolivia 107
Implementation 109
Impacts 111
New opportunities for rent-seeking 116
Social responses to capitalization 120
The Bolivian economy after capitalization 121
Conclusions 122
Notes 123
6 | Municipal reform, social movements and new electoral politics 125
Decentralization, participation and development 127
Bolivia’s Law of Popular Participation (LPP) 130
New roles for local actors 132
Impacts of the LPP 137
Conclusions 145
Notes 147
7 | The neoliberal wars: water, taxes and gas 149
The setting 150
Reformulating opposition in the 1990s 153
The water war: a turning point 162
Campesino uprisings, April and September 2000 167
The rise of the landless campesino movement 169
The political success of the MAS 170
The tax war 172
The gas war 173
Conclusions 175
Notes 177
8 | Global trends and local responses: contesting neoliberalism 179
Neoliberal hegemony: fractured, fragmented and mutilated 180
Nationalist challenges to global neoliberal hegemony 186
Challenges in constructing an anti-neoliberaldiscourse 187
Limitations of national resistance movements in a global market 190
Conclusions 192
Notes 195
Appendix 197
References 199
Index 228