The Morales government: neoliberalism in disguise?

Federico Fuentes

For more than a decade Bolivia has been rocked by mass upsurges and mobilisations that have posed the necessity and possibility of fundamental political and social transformation.¹ In 2005 the social movements that led the country’s water and gas wars managed to elect a government that since then has presided over a process of change that has brought major advances.

Among these are: the adoption of a plurinational state structure that for the first time recognises the country’s indigenous majority; regaining sovereign control over vital natural resources and initial steps towards endogenous industrialisation; an ongoing agrarian reform; and the development of social programmes that have substantially improved the lives of ordinary Bolivians. Democratic rights have been reinforced; forms of self-government by indigenous communities established; and electoral processes expanded to include popular election even of the judiciary. Not least in importance, Bolivia has also become a prime participant in the movement for Latin American anti-imperialist unification and sovereignty and emerged as a major leader in the international fight against capitalist-induced climate change.

In his recent article in this journal, “Revolution against ‘Progress’”,² Jeffery Webber offers a harsh critique of the MAS government, illustrating it by reference to recent conflicts between the government and some indigenous groups involving environmental and development issues. His conclusion: the government remains committed to a neoliberal programme based on “fiscal austerity”, “low inflationary growth”, “inconsequential agrarian reform”, “low social spending” and “alliances with transnational capital”, among other policies. As such, it shares “more continuity than change with the inherited neoliberal model”.

These are sweeping assertions, and many are questionable. Webber criticises the government’s supposed “fiscal austerity”, yet omits the fact that budget spending has increased almost fourfold between 2004 and 2012. He attacks the government for seeking “low inflation” and “macroeconomic stability”, but what is his alternative: high inflation and macroeconomic instability? These were certainly traits of previous neoliberal governments. Furthermore, is it “inconsequential” that in its first five years the Morales government presided over the redistribution or titling of 41 million hectares of land to over 900,000 members of indigenous peasant communities?³ And if the government’s policy can be simply defined as one of forming alliances to benefit foreign transnationals, why is the Bolivian state currently facing 12 legal challenges in international courts initiated by these same companies?

Simply put, Webber ignores the real progress made by the Morales government in rolling back the neoliberal project in Bolivia..... read the rest of the article here