CSIS Forum with Bolivian Vice President Alvaro Garcia Linera

24 Julio 2006
CSIS Forum with Bolivian Vice President Alvaro Garcia Linera


Friday July 21


by Jesse Feinberg, U.S. Chamber



Bolivian Vice President Alvaro Garcia Linera spoke this morning at CSIS.
His speech focused on the Bolivia’s transition from a liberalized market-based economy to today’s “nationalized, integrated, participatory” approach, to paraphrase.
Here is a summary of his remarks.



Economic History of Bolivia

Garcia Linera gave his brief economic history of Bolivia: he explained how Bolivia’s traditional political parties deserted their constituents, how public resources were used for private wealth acquisition, the problem of patronage, and the ultimate result: a democratic revolution led by poor farmer sand indigenous peoples that demanded more than the old government could offer.



He also spoke out against the forces of privatization, capitalization, liberalization, etc. that produced, as he termed it, a macroeconomic crisis.
He argued that a country like Bolivia with no internal market cannot compete with an external market; that without domestic, private, competitive actors, free trade is impossible.
He acknowledged that freer trade facilitated foreign investment in Bolivia, but noted that investment was in sectors already dominated by the Bolivian state.
In other words, there was no diversification.



Bolivia Today

Today’s Bolivia is very different, argued Garcia Linera.
He cited the meritocratic system of political appointment, designed to eliminate the corruption of the old patronage system.
He announced plans for the development of a university for public administration to strengthen this new meritocracy.
He also mentioned a strict minimum of representation of indigenous peoples in government.



Garcia Linera concluded by speaking on today’s macroeconomic issues.
He prioritized the creation of strong institutions to mediate between different groups in Bolivia’s fragmented society, to form consensus, and to respect diversity.
He urged macroeconomic responsibility, but also emphasized the need to raise the minimum wage and to support health and education initiatives.
He pledged not to touch bank reserves that guarantee Bolivia’s macroeconomic stability.
He was also interested in negotiating a trade agreement with the United States in a year and a half’s time.



On the Issues

On expropriation of Petrobras assets, Garcia Linera preferred the term nationalization.
He justified this “nationalization” on grounds that Bolivia could not afford to let its energy profits escape to Brazil.
However, he also guaranteed that future contracts with foreign oil companies would be respected.
He emphasized the desire to produce, repeating several times “queremos producir.”



On narcotrafficking, Garcia Linera argued that people have confused the war on drugs with benign coca productions.
He said that Bolivia wholly supports the war on drugs, but that production of coca has a long cultural history in Bolivia that must be respected.



On relations with Venezuela and Cuba, Garcia Linera said there existed a friendship between them, but no more a friendship than between Bolivia and Argentina or Bolivia and the United States.
He acknowledged cooperation between Venezuela, Cuba, and Bolivia on health and education issues, but little else.
No privileged relationships, he said.




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