Bolivia's Road to Revolution: A process sustained by the mass is indestructible

Judy Rebick

Last fall, I invited Hugo Salvatierra, a founder of the MAS, to speak in Toronto at a relatively small meeting of committed left-wing activists. I in particular felt that it was really important to introduce Hugo Salvatierra to the left here in Toronto. because Hugo is, I think, one of the most articulate translators if you want, or spokespeople, of the Bolivian process. He was a founder of the MAS along with Evo Morales. He was in the founding government of the MAS as Minister of Rural Development, Agriculture and the Environment and then he persuaded Evo to let him resign so that he could go back to Santa Cruz which is the centre of the right and organize the social movements in Santa Cruz. He and others have done a spectacular job of that if you have been following the news at all. He is going to tell us in more detail what’s been happening in Bolivia over the last number of years and I who follow Bolivia pretty closely had really no idea of how serious the coup attempts were. In light of recent criticism of the MAS government by some on the left, we thought it was very important to transcribe that talk so more people can hear from the Bolivian movement directly.

The text that follows has been transcribed from Hugo’s talk at a November 8, 2010, forum in Toronto and is published here with his permission. Translation and editing is by Susan Harvie, Judy Rebick and John Riddell. Republished from Transforming Power blog

Bolivia’s Road to Revolution
‘A process sustained by the broad masses is indestructible’


By Dr. Hugo Salvatierra
Good evening compañeras y compañeros. First, I would like to thank the person who has given me the privilege of sharing ideas with you. I am not a lecturer. For this reason, I ask your forgiveness for any errors. We are simply activists. Where political ideas are concerned, our obligation is to speak, to share, to understand each other, to try to help others understand us and to help people know what we are doing.
Miguel just brought me some photos that made me very happy. The year is marked as 2003. In 2003, we had no idea that we were going to be the government. Neither did Evo think of being president. Even less that I was going to be a Minister. Things happen through an accumulation of circumstances. This afternoon, I was with some compañeros from York University and we did a kind of theoretical retrospective about what is this process of change in Bolivia and a good part of the South American continent.
The Che generation
I talked about us, a generation of more or less my age, and I am about 59 years old. In the 1970s, the revolution in Chile, socialism in democracy, was a novelty for the related revolutionary movements who lived in other neighbouring countries. In Argentina, we had guerrilla groups. In Bolivia, we had just finished a failed guerrilla experience in Teoponte. Sixty-four university students went into the forest to undertake a guerrilla action. About six or seven survived. Our first steps into Marxism were basically some small concepts about what the Russians said, what the Chinese said, what the Cubans said and, within that, what the Trotskyists were saying. As for Marxism, we knew only concepts.
We studied Marta Harnecker about Chile. There we learned that historical materialism exists, dialectical materialism. But it was a generation of young people, predominantly from the middle classes, who under the influence of the ideas of Che, in 1968/69/70, were proposing the armed struggle. On the part of the working class, we had a strong Bolivian Workers’ Central whose driving force was the miners. The discussion was about how to make the revolution – via insurrection, via prolonged people’s war, via revolutionary war. The thing was that all of us wanted to make the revolution. The working class, led by the miners, was powerful, strong.
Between 1970 and the middle of 1971, a People’s Assembly was created that was like a copy of the Russian Soviets. During this time, there was the People’s Assembly which considered itself as a dual power, young people trying to undertake guerrilla work in the jungle and some democratic or progressive military people who took power. I remember that in October 1970, we had the last coup before the beginning of a dictatorship that lasted seven years. On that day in October 1970, we had five presidents on the same day. The People’s Assembly decided to support the military government of Juan José Torres, but they claimed dual power and demanded revolutionary measures from the government like nationalization of the existing transnational companies, administration of the factories by the workers, administration of the Bolivian Mining Corporation by the workers, and collectivization of the land for the peasants.
A group of revolutionary university students were in the forest doing guerrilla work. The guerrillas were massacred. They were virtually exterminated. I remember that the guerrillas were led by the surviving brother from Che’s guerrilla group, Chato Peredo. The president of the Confederation of University Students of Bolivia was there. Most of them were young people between 19 and 24 years of age. None of these young people was forgiven even though they surrendered. And probably despite their Marxism, all of them were also Christians. You can see the ideological mix between what Mao said, what Lenin said, what Stalin said and “for Christ I am going to die for the people.” Nestor Paz Zamorra was a religious seminarian and he was the political chief of the guerrilla group. He died of starvation and he died saying, “Jesus, today I surrender to you my soul. Today is my Thursday and tomorrow is my Friday.”
I am telling you all of this so that you can see that a generation of young people was full of many humanist ideas, capable of giving their lives for a revolution for the people. They wanted to make a revolution for the people and it was drastic in terms of life or death. The expectation generally was that the individual militant was prepared to die for the people.
The working class represented something else in the scenario of the class struggle. And the left political parties taught that the principal element, the principal contradiction, was between the working class and the capitalists. Therefore, the working class had to be the leader of the revolution, and the peasants were only their allies. We were not yet talking about nation, Indigenous peoples, original nations. They were theoretical concepts fitted around a single conception of the working class versus the bourgeoisie.
Those who did not read or write taught us how to make a revolution.
After more or less 20 years, we undertook a reconsideration based on both victories and defeats. We wanted to make the revolution for the people. But suddenly it was the people who wanted to make their own revolution. We never imagined that in 40% of the Bolivian territory, even today, Indigenous peoples exist with collective ownership of the land. And we wanted to collectivize the land. Why did we die, so many generations of Bolivian fighters? Perhaps we had a mistaken reading of the national reality because our understanding was that the social struggle expressed itself in the struggle between workers and capitalists. It is a classic formula of Marxism. But the social struggle has various expressions. The class struggle has various expressions. The military dictatorship, the defeats in Chile were necessary in order for us to all learn a lesson – or many lessons. We understood that the science of Marxism is not a dead letter. It is not dogma. And it was necessary that those who did not know how to read or write ended up teaching us how to make a revolution.
The neo-liberal model imposed
The process changed, and from 1983 on, the neo-liberal model was hammered into place. Supreme Decree #21060 was promulgated. This was the model that changed the whole Bolivian economic and social structure. About 11,000 miners were relocated, not laid off but relocated. Tragically, the backbone of the working class was destroyed.. A right-wing civil government began which said that Bolivia was killing us. The process of privatization began without a leadership class. Another government began, following on the government of Victor Paz Estenssoro, and it consolidated two things. On one hand, Bolivia had 304 companies which were owned by the state, the departments [provinces] or the municipalities. All that passed into the hands of the local bourgeoisies. And we had five strategic state companies. All that passed into the hands of the transnationals. The state virtually disappeared.
The transnationals took over the economic structure, the most important companies – the petroleum, the aviation, the railways. The local bourgeoisies were rewarded with 304 companies. Layoffs took place on any pretext, hiring was carried out under any conditions, social security cut backs began. Close to 26 million hectares of forest were placed in the hands of nine companies that exported lumber. Up until then we had had 35 to 40 years of agrarian reform in which they said they had redistributed 36 million hectares of land. Bolivia has 109 million hectares of land. How many hectares do you have? Nine million square kilometres. We have one million and a little bit. Thirty-six million hectares were handed over, so supposedly there was a good agrarian reform. But it happens that 32 million hectares were in the hands of 40,000 families and four million hectares were in the hands of more than half a million poor peasant families. There was no real agrarian reform.
The defeat of the working class, the installation of a military dictatorship for seven years, began a big struggle for democracy that finally concluded in 1982. The neo-liberal model began in early 1983. But the subjective response also arose. It was not the working class. It was not the university students or the individual revolutionaries, the heroes, etc., the Christians – prepared to die for the community, to die for the people, to die but always to die. It was the peasant movements who began to unite. There were elections, but three million people did not vote. And why did three million people not vote? Because they did not legally exist. You could not be a citizen if you did not have a birth certificate, and you could not be a citizen if you did not have an identity card. Three million people and basically, of those three million, at least 60% or 70% were Indigenous women. The traditional political parties were corrupt. They sold themselves in the parliament. They did business with the companies. They took turns in power, one after the other. The poverty and unemployment were enormous. But in the countryside, there was the resistance.
Indigenous resistance begins to appear
In 1983, the first Indigenous organizations began to appear. And they began to propose about three or four things – land, territory and dignity, the right to political participation. Later they advanced and said a new political constitution and they continued, a nationalization of the hydrocarbons. I remember in the mobilizations of 2000, in the confrontations on the highways in the rural areas. I will never forget this image which will stay with me forever. There was a very small Indigenous woman from the Altiplano throwing stones at a tank. Everybody was saying, “They’re going to kill her. They’re going to kill her.” When the journalist said, “They are going to kill you. Get out. Get out.” And the journalist asked her, “Why are you here? Why Señora?” And she said, “Nationalization of the hydrocarbons.” She cooked with wood. Probably even today she does not have gas or oil in her house. But they were collectively building a national consciousness to recover everything that we had lost.
Neo-liberalism left Bolivia with nothing. It made us ashamed when we travelled. People asked us “What are the companies of your country?” There are none. The idea began to arise that, confronted by these parties, their political structure, their power, their corruption, we will build our own political instrument. What does classical Marxist theory say? The party goes to the working class. Here the process was the reverse. The political instrument was created by the peasant and Indigenous masses. And the working class did not participate in the process, because they were always educated in the theory that the trade union was independent of the party. The universities did not participate in the process. The middle classes did not participate in the process. The professionals did not participate in the process.
In Santa Cruz, the place where I come from, the second congress of peasants and Indigenous people took place with the goal of building a political instrument. What was that? It was a simple idea to have a tool of our own that was not a political party but that was for political leadership.
On March 24 and 25, 1995, just around the corner from our office, we created the political instrument in a little stadium. That’s where we chose the slogans. And perhaps we didn’t tell you the whole truth, Miguel. When many compañeros, compañeras from Europe, Canada visited us, we showed them the struggle, the social problems, but I don’t know, we didn’t talk about the political instrument or explain that we are doing this politically. We had to tell you, we are fighting, fighting, fighting but not commit ourselves very much politically. But I think that, nevertheless, we always shared feelings and ideas about humanism above all. Because in the end, what is it to be a revolutionary but to be nothing more than profoundly humanistic. That is where the political instrument was created. Evo was not yet president of the political instrument. The electoral court denied us legal status. We presented lists with more than 20,000 people registered in our books but the majority of our people did not have an identity card and we had only their thumb prints. The electoral court rejected them. And yet we had to participate in elections.
The amazing story of the formation of the MAS
I will confess to you that many revolutionaries, among them myself, didn’t like very much the idea of a democracy with elections, because a political system like the Bolivian democracy was a stunted democracy which always reproduced the power of the parties that represented the rich. But in the end we all said, “That’s life. Look how it is in Chile, how it is in Argentina – they have made change through elections.”
And something happened, an anecdote – a bad thing, a good thing, I don’t know – which changed our history. My generation were educated, and more or less Red. And the municipal elections of 1996, I think, arrived and we didn’t have a legal political party. The elections had arrived and we were all meeting, we were all in agreement but what were we going to do? So, someone says, “I’m going with the United Left Party.” I am going with the Axis. I am going over there. And the peasant masses did not know where to go. There was no instrument to participate in the elections.
And something happened – a miracle or accident, I don’t know – a Señor named David Añas Pedrasa. He died about two or three weeks ago. And he said “I have a legal political party and it is called MAS, MAS-U” and its colour was blue. The colour blue is the colour of fascism. And MAS-U meant Movimiento al Socialismo Unsagista. Movimiento al Socialismo, good. Unsagista was the problem. What was Unsagista? It comes from the name – Unsaga – of the founder of fascism in Bolivia. Look at the games of history, absurd, I don’t know, disappointing. We had to explain to the peasant congress, “Here is the legal political party, compañeros.” Everybody hissed. People were more or less comfortable with Movimiento al Socialismo, good. This MAS-U was a split off from the Falange Socialista Boliviana, a copy of the Spanish Falange. Fascist in every way.
But the congress approved that we accept this legal political party, although several people did not accept it. For example, peasants who had moved from the Altiplano to Santa Cruz and who had more political education quit the congress. Our congresses are not like the congresses of the left. They are huge, in stadiums, and the theoretical discussions are very difficult. There isn’t much of that. In this congress, Evo Morales was elected President of the MAS – Unsagista. These are the tricks of history. Look at what was the structure of this political instrument, at this point, called MAS-U. We elected a Board of Directors with 23 compañeros and compañeras. All of them were peasants, all of them were Indigenous people. There was one position for an intellectual. And the intellectual would be either Hugo Salvatierra or another person. But that was because we had participated for nearly all our lives in the whole process. Still, our presence there was absurd. It had no significance. It was more or less to show that we were not only Indigenous people or peasants – we were a decoration. Afterwards the electoral court rejected the election of Evo Morales. They rejected that we erase the U and they demanded that all the departmental chiefs of the MAS-U also sign. Fascism has a vertical structure. There is one national chief and local chiefs. They gave me the responsibility to go and convince the fascists of Santa Cruz to sign. They signed after much discussion because fascism by then was very small and they never thought, never imagined what history would later do with the MAS.
A plurinational country
Evo Morales was elected and we began a process of political construction. The MAS, compañeros, is not organized in cells, in groups, in sectors. The MAS has a virtue. It is based on the large agrarian movements of peasants and Indigenous peoples, on the most uneducated, the illiterate, and they were the ones who did not abandon the struggle. If you look at the big reforms they proposed in 1994 for reform of the constitution, one article, only one, the first one deals with the nature of the Bolivian state. There they introduced two words – Bolivia, in addition to being a democratic state, and so on, was pluricultural and multilingual. This was the first element that was introduced in the constitution to show that Bolivia was a plurinational country.
There are, in Bolivia, 36 original [First] peoples and nations. The left and the right have recently found out that there are 36 original peoples and nations. And from there began the large mobilizations, now thanks to this political instrument that began to unite all of the social sectors. They began to fight for the nationalization of the hydrocarbons, legal title to the land and the Indigenous territories, rupture of the political-party monopoly and a new political constitution with a constituent assembly, but plurinational. They always told us that a constituent assembly was unconstitutional; political participation outside of the political parties was unconstitutional; nationalization of the hydrocarbons was unconstitutional. Everything was unconstitutional. Then came the social movements with their large mobilizations.
Racism
The big weakness that we had, I want to repeat to you, was the cities. The cities did not see a leadership in the people with traditional clothes, in the downtrodden people, in the poor people, in the Indigenous peoples, because the education of urban residents excluded the Indigenous peoples. Culturally, this society did not accept, could not accept that these Indigenous people could lead a political process of change. Even the left political parties did not understand the process, but those who were fighting understood it. In Bolivia, first, there is a regional division. Those from the east are “cambas” – now the region with the most important natural resources – land, gas, petroleum, forests, water – and the west is where there are the Indigenous concentrations of the Aymara, Quechua. In the east, when we look at the west, we say “kollas.”
And to the rich classes in the west, the Indigenous peoples in the Altiplano and the valleys were beasts of burden. In the cities, they were employed in domestic service and, in the countryside, to work and survive as they could. Even mixed race people, if they wanted to progress, could not look back at their Indigenous past. It was a disgrace to be an Indian. In the Bolivian military, you are never going to find an Indigenous last name, never. The dominant classes were educated with a colonial education. They looked toward Europe, toward the United States, rather than internally.
It was these 36 nations that began to internalize this consciousness of nation, and they were the ones who began to lead this process for these four fundamental demands – land, territory, constituent assembly, citizen participation. And here is where ideas were developed about gender equality and a democratic system more open to the whole population.
Is this a revolution?
These are democratic tasks of the bourgeoisie. Isn’t that true? The capitalist development in the countryside should have been done by the Bolivian bourgeoisie. But it is the Indigenous people who have to take control of the land to force a new agrarian reform. Equality, justice, participation are tasks of the bourgeois democracy. But in Bolivia, the interesting thing is that all of that was revolutionary, and that is why it is called a revolution.
Since then, we have recovered almost all the state companies. Many people wanted us to confiscate. They said that was nationalization. The petroleum companies said, “We did not take anything from the Bolivian state. The gas and the petroleum continue to be Bolivian.” And in the law, that is how it appeared. It said that the gas and petroleum were Bolivian. But it was Bolivian as long as it was in the ground because when it came out of the well head, it belonged to the petroleum companies.
They stole everything from us. Not a single state agency could go and see the production books which the companies maintained. Not a single state official could verify how much gas was being exported or not exported. But they told us they were paying 18% in taxes. That was the situation. And the national government proposed the nationalization of the hydrocarbons. I don’t know if it was nationalization or recovery. It was not the classical formula, let’s say, which is to take control of the company and confiscate all of its property. The state promulgated a decree which recovered the private property of the companies for the Bolivian state. Evo personally, with a team of Ministers and the army, went to physically take control of a petroleum operation.
The important thing is that a process was initiated which put the petroleum companies under Bolivian state control. They threatened us with international legal charges. The communications media of the opposition and the associations of the powerful conducted a big campaign, saying that we were going to be economically asphyxiated, that we were going to suffer sanctions, that we had a mistaken reading of the international situation, that we were defying the big powers, and that poverty would come to us all. The petroleum companies were forced to sign new contracts. The taxes were reversed. The state claimed 82% and they have 18%. Not one single company left the country. That tells us how much they were stealing – 82%. Nobody left.
In terms of the land, we established that private property would be respected as long as it meets two conditions – that it was acquired legally and that it is carrying out an economic or social function. In other conditions, it is unproductive land. And so far, we have recovered nearly 14 million hectares of land. The Indigenous peoples have a demand for approximately 20 to 22 million hectares of land. We are hoping to finish the whole process of redistribution of the land in three years.
Now, we have a new constitution. It was adopted against the opposition of the right wing and the church, unfortunately, which did a big campaign saying that we were going to take away private property, that we were prohibiting religion, that we were destroying the family because we wanted gay marriage to be possible, that we did not respect life because we accepted abortion. This hit many people very hard. We held the referendum and the constitution was approved by a large majority. Confronted by a very strong opposition which came from the east, from Santa Cruz, Evo accepted a recall referendum and he won it overwhelmingly. We have a new constitution. We now have seven laws approved – the law of judicial bodies, which is plurinational. The participation of Indigenous peoples is obligatory, and there is a mixed justice system – the ordinary common justice system and the communitarian justice system. We have a new electoral system which has what is called intercultural democracy based on three systems – participative or direct democracy, representative democracy which is the old system and communitarian democracy based on the norms and procedures of the Indigenous peoples for electing their representatives.
I would like to stop here by saying that this is not a revolution yet. It is a permanent and constant process of change, and possibly it is going to construct a dual power with the people in a kind of political revolution which will develop into a social revolution. When? I don’t know. But what I do know is that it is permanent. In current conditions, which are different for Latin America and the world and, in particular, for Bolivia, we have large internal conflicts. For this reason, it is neither a straight road nor a pure revolution. We have the luck to be surrounded by democratic and insurgent governments. But we also have something which is fundamental; it is a process of change sustained by an almost indestructible cement – the peasant and Indigenous movements.
I will conclude. Before it was possible to kill a revolutionary process by killing its leaders. But when a revolutionary process is sustained in the huge masses, it becomes indestructible. I say now that not one single military person in Bolivia could dare to make a coup because it would not last five minutes. But there are ways to destroy the revolution – external conspiracy and also our own weaknesses if we do not have a correct reading of where we are going.

Bolivia: New Pension Law Lowers Retirement Age, Raises Expectations

Emily Achtenberg

On December 10, surrounded by union leaders and foreign dignitaries, President Evo Morales promulgated Bolivia’s new pension law at the headquarters of the Bolivian Workers Central (COB), the country’s militant national trade union federation. The unprecedented and highly symbolic event culminated a four-year negotiating process, during which the COB agreed to suspend its mobilization for higher wages in exchange for comprehensive pension reform.

The new law nationalizes Bolivia’s private pension funds, guarantees universal retirement benefits for participants, and makes it easier for workers to access them. Both the COB and the government have called it “revolutionary” and “historic.” “We are fulfilling a promise to the Bolivian people,” said Morales at the signing ceremony. “We are creating a pension system that includes everyone.”

To be sure, Bolivia’s new pension plan defies current neoliberal orthodoxy in important respects—for example, by lowering the pension retirement age when at least 47 countries (including France, Japan, and even Cuba), have moved to increase it. “Unlike other governments,” says Morales, “Bolivians are developing our own laws without international ‘experts,’ for the benefit of the Bolivian people.”

Still, some social sectors, together with Bolivia’s respected non-profit Center for Labor and Agrarian Development Studies (CEDLA), question just how much the new system departs from the existing market-based pension model, and whether its ambitious promises are achievable and sustainable. The government and the COB are betting on an optimistic scenario.

Since 1996, Bolivia has operated under a pension scheme based on compulsory worker savings with no guaranteed benefits—-a hallmark of the neoliberal structural adjustment policies imposed by the World Bank and International Monetary Fund. Funded entirely by individual worker contributions (at 12.2% of earnings), the system has featured low benefits with long and stable working lives required to achieve even the most minimal pension.

While some 1.3 million of Bolivia’s 4 million workers have established pension accounts, only 600,000 (15% of the workforce) have sufficient job stability to contribute on a regular basis. Fewer than 30,000 workers have succeeded in retiring with a pension over the past 13 years.

Informal sector workers—a broad category encompassing merchants, domestic workers, taxi drivers, and other independents, who constitute 60% of Bolivia’s economically active population—are largely excluded from the present system. With their irregular and typically low earnings, and private fund managers’ avoidance of unprofitable small accounts, few have managed to qualify.

The new pension law will provide guaranteed benefits and allow workers to retire sooner: men at 58 (instead of 60), and most women (those who have three or more living children) at 55. Miners will be able to retire at 56, or as early as 51 with longevity. With an average life expectancy of 62 for Bolivian men and 65 for women, the government notes, the current age criterion virtually guarantees no retirement, especially for workers performing arduous manual labor.

Retirement benefits will increase in most cases, based on the average of a worker’s last two years of monthly salaries. After 20 years of contributions, the average worker will receive 60% of this amount, increasing to 70% after 30 years. Anyone who has made contributions for at least ten years is entitled to a pension.

The new system seeks to extend pension benefits to all workers, including those working in the informal sector. Independent workers can contribute on a voluntary basis, with a minimum monthly payment of $14 (around 14.4% of the $97 minimum monthly wage). After 10 years, a worker contributing at this rate would be guaranteed a monthly pension of $68, equal to 70% of the minimum wage. With pension offices slated to open in cities and rural areas throughout each department, the government hopes to enroll 100,000 informal sector workers in 2011.

The key to expanding coverage to workers with no prior savings is the Solidarity Fund, to be financed largely by a 0.5% contribution paid by workers on their earnings and a 3% payroll tax paid by employers. Higher income workers, along with mine operators, will pay an extra surcharge.

For workers already contributing to the system, the Solidarity Fund payment is in addition to the 12.2% required for their individual pension accounts, which will be left intact. The new system will transfer some $5.3 billion in these personal accounts, currently managed by two transnational corporations, to the Bolivian state, which will invest and administer them on workers’ behalf under terms established by the new pension law.

The Solidarity Fund will also be used to augment the meager benefits available from the individual pension system for most salaried workers. For example, a 58-year-old worker with 25 years worth of contributions and current earnings of $430 per month is entitled to a monthly pension of $107 under the old system, equal to just 25% of current income. Under the new system, the pension will increase to $265, or 62% of current income. The difference of $158 will be paid by the Solidarity Fund.

The government anticipates that some 43,000 workers will be able to retire with pensions in the first quarter of 2011, including 30,000 who will benefit from the Solidarity Fund. For those over 60 who are still unable to achieve a pension under the new law, the government will continue to provide the Renta Dignidad income supplement ($340 per year, funded from a tax on gas and oil revenues).

Some sectors, including urban teachers, factory workers, and health workers, have criticized the new pension law for not going far enough. They note that the average pension benefit their members can expect after 30 years, at $230 per month, is less than half the amount required to cover the basic needs of a typical Bolivian family (estimated by Bolivian economists at $511 per month). Further, says Teachers Union leader Daniel Ordoñoz, “The vast majority of workers who don’t have job stability will be marginalized from our retirement rights, since in the last 25 years we haven’t been able to accumulate 10 years of contributions.”

According to CEDLA, the new pension system is unlikely to capture the growing numbers of independent workers with low and irregular earnings. While certain salaried sectors do stand to benefit—such as state miners, who have been contributing for decades without the ability to secure their pension rights—the vast majority of marginalized and informal workers, whose expectations have been raised, will not.

Further, says CEDLA’s Carlos Arze, the new pension law is far from “revolutionary” because it maintains the logic of the existing neoliberal model, preserving the principle of individual pension savings accounts. Despite the Solidarity Fund, those who earn and save more will still retire with higher pensions; impoverished workers will still be hard put to achieve a decent living standard. The pension plan as a whole still relies disproportionately on worker contributions, relative to employers and the state.

In perhaps ten years, Arze predicts, the system will become unsustainable, especially when a residual state subsidy provided to workers who contributed under the pre-1996 pension plan phases out as these workers retire. Future retirees with low earnings will need more support from the Solidarity Fund, creating pressure to increase worker contributions, reduce benefits and access, or both.

The government projects that the system will be viable for at least 35 years. It emphasizes that Bolivia’s economy is continuing to expand, with declining unemployment and poverty, and a growing “middle class.” Politically, 44 of 47 trade unions in the COB voted in favor of the pension reform, including the powerful Transportation Workers Union which rejoined the COB to solidify its support. This union alone could potentially deliver 200,000 informal sector workers to the new program.

In the government’s view, the mixed private/social pension model is strength, not a weakness, of the program. Such ideological pragmatism, perhaps born of political and economic necessity, has become a hallmark of the MAS (Movement Towards Socialism) project, exemplified by the 2006 hydrocarbons “nationalization.”

Whether the new pension system can achieve its stated goals of universality, solidarity, sustainability, and self sufficiency remains to be seen. In the meantime, even the most skeptical observers are watching Bolivia with interest. As one financial blogger commented, “I know a lot of you are thinking, ‘what’s President Morales sniffing?’--but maybe he’s onto something.”

Emily Achtenberg is an urban planner and a NACLA Research Associate.

Republished from NACLA

Opposing the Coca Chewing Amendment? A Shameful Act

Pien Metaal
Thursday, January 13, 2011

In March 2009, Bolivia's President Evo Morales chewed a coca leaf at the UN High Level session on drugs in Vienna. He announced he would seek the abolition of the articles in the 1961 UN Single Convention that stipulate that the chewing of coca leaves should be eliminated within 25 years, after the treaty entered into force.

He was applauded forcefully by those attending, and hope returned to me. Would rationality and justice finally find its way to this nerve centre of international drug control? Is there still a chance this extremely embarrassing mistake committed by the world community 50 years ago could be corrected, recognising human fallibility without fear.

Morales’ special mission in Vienna was meant to explain the officials present why Bolivia simply cannot accept the existing ruling framework. “If this a drug, then you should throw me in jail,” said Morales. “It has no harmful impact, no harmful impact at all in its natural state. It causes no mental disturbances, it does not make people run mad, as some would have us believe, and it does not cause addiction.” In order to finally rectify a historical mistake, he presented a formal amendment, asking for the removal of the articles.

In two weeks time, on January 31, the deadline ends for countries to present objections to this change; without any objections the amendment would automatically enter into force. And at this very last moment, the United States formed a “friends of the convention” group and announced it would object. Several other countries – notably the Russian Federation, Japan, Colombia, France, Germany, the United Kingdom, Italy, Sweden, Bulgaria, Denmark and Estonia – have announced to present a formal objection as well. The exact arguments are yet to be known, but most likely bear no relation with the protection of the coca chewing population against the dangers of drugs abuse. The first case of intoxication of a person by consuming coca leafs is yet to be reported in the world, being more probable the fact it has brought benefits upon their health and their sense of identity and community.

The proposed amendment to the Single Convention by the Bolivian government is a very reasonable proposition, and represents a positive opportunity for countries to express their gained insight on mistakes from the past. Sixty years ago brief visit by the UN Commission of Inquiry on the Coca Leaf to Peru and Bolivia basically defined the case. On arriving in Lima in September 1949, the head of the Commission Howard B. Fonda gave an interview before beginning his work, in which he said: “We believe that the daily, inveterate use of coca leaves by chewing ... not only is thoroughly noxious and therefore detrimental, but also is the cause of racial degeneration in many centers of population, and of the decadence that visibly shows in numerous Indians - and even in some mestizos - in certain zones of Peru and Bolivia. Our studies will confirm the certainty of our assertions and we hope we can present a rational plan of action ... to attain the absolute and sure abolition of this pernicious habit.”

The conclusions of the Commission were already reached before the enquiry even began. Now a representative of those so-called “racial degenerates” that have chewed coca all their lives has become President of Bolivia and asks for the abolition of these backward racist provisions. So what is the problem, one might ask. You would assume that “friends of the convention” would like to get rid of the embarrassing provisions as soon as possible. Or do we still think of our indigenous brothers and sisters as backward and ignorant, in need for our help to understand the universe? Has progress in human and natural science gathered in these past decades not led to believe otherwise?

It seems that those who do not regularly chew coca have run mad. All recent efforts to establish support in international fora resulted in proof for the point made: a cultural heritage that harms no person, merits protection and a legal base. Outcomes of a WHO study on coca/cocaine in 1995, determined that the “use of coca leaves appears to have no negative health effects and has positive therapeutic, sacred and social functions for indigenous Andean populations.” Moreover, the UN Declaration on Indigenous Rights approved in September 2007 – recently endorsed by the United States on December 16, 2010 –, promises to uphold and protect indigenous cultural practices.

The proposed amendment by Bolivia implies a mere symbolic change: no new country will be facing masses of coca chewing citizens. Not objecting to this amendment simply recognizes coca chewing is there to stay. Time has come to repair a historical error responsible for including the leaf amongst the most hazardous classified substances, causing severe consequences for the Andean region. It is a sad fact that our governments are representing us citizens in disregard of facts, led by mere ignorance and fear. Still there is a chance now to come to our senses.

Republished from Drug Reform Law

Morales Repeals Decree Raising Fuel Prices

Agencia Boliviana de Información - Bolivian President Evo Morales repealed on Friday night the decree issued five days ago to raise gasoline prices, after a meeting with his cabinet, trade unions, and social organizations in La Paz.

"We have decided, in governing in obedience to the people, to repeal Supreme Decree 748 and other decrees that accompany it," the leader of Bolivia said in a message to the country from the Palacio Quemado, the seat of the executive branch.

Flanked by Vice President Alvaro García Linera and Foreign Minister David Choquehuanca, Morales highlighted the simultaneous repeal of his last degree, issued last Wednesday, raising the minimum wage as well as the compensations of uniformed officers, teachers, and health workers by 20%.

"I wish to say to the Bolivian people that this means all the recent measures are null and void," Morales emphasized, while demanding that the prices of mass consumption goods, especially all categories of transportation, be returned to what they were before Sunday, 26 December.

"There is no justification now to raise fare prices or to increase food prices, let alone speculation. Everything goes back to the status quo ante," he underscored, mentioning the promise to "govern in obedience to the people" that he made when he took the helm of the nation in January 2006.

Morales said that he had held -- over the last several days when a series of protests arose against his decision to bring the Bolivian prices of imported gasoline in line with the prevailing prices in the regional market, which meant the end of the state fuel subsidy worth 380 million dollars -- "profound" meetings with peasant unions and social organizations, who judged the timing of the measure raising fuel prices, though in the end necessary for the good of the Bolivian economy, as "inappropriate."

"I thank the social movements who have met us: Thank you, brothers and sisters of the countryside. While firmly defending this measure that benefits the Bolivian people, we received the advice that 'the time is not right for it and it, clearly, is a hard blow to the national economy.' Nevertheless, we are accountable to the Bolivian people," the president said about the repeal, in a ten-minute speech he made a little over an hour after the advent of 2011.

Morales emphasized that, after meeting with trade union and social organization leaders for much of the day, "I understood, having carefully listened to suggestions from various sectors over the last several days."

However, the head of state emphatically pointed out that Bolivia spent, in 2005-2010, at least 1.75 billion dollars on importing gasoline.

The decree for gasoline import was promulgated in 1988, and a decade later the administration of conservative former president Hugo Banzer decided to subsidize fuels.

The original article "Morales abroga decreto de gasolinas" was published by ABI on 31 December 2010. Translation by Yoshie Furuhashi.