Bolivian campesinos take on globalization goliath

Catholic New Times, Jan 16, 2005 by Will Braun

The rhetoric of globalization tangled in acronyms and "isms" flows freely in directions pro and anti. But solid handles on what it is really all about can be hard to find. In Bolivia, however, the realities of liberalized trade and globalized markets are not at all ambiguous for millions of common folk.

With exploitable natural resources-including oil and gas reserves second only to Venezuela on the continent--and governments that have rolled out the red carpet for the transnational peddlers of prosperity, Bolivians have had a front row seat to the globalization experiment.

More than spectators though, Bolivians have piled onto the stage of globalization en masse--as unstoppable as they are unwelcome-dramatically altering the plot. The momentum of the people has sent a multinational water company packing, changed national laws and ousted a liberalization-minded president. Now on center stage is the struggle with the ultimate goliath of globalization; the oil industry.

Oscar Olivera, a shoe factory worker by trade and one of the most recognizable figures in the popular movement, has been in the thick of the drama. He says the template of the free trade gurus has been applied directly and brutally in his country. The people were told it was the only way to go; progress and prosperity were at hand. The path of privatization, unrestrained foreign investment and international borrowing were pursued with abandon. The people heard the promises of a better country, Olivera says, but they feel the "violence of neo-liberalism" in their daily lives.

On the move

Bolivia's 8.6 million inhabitants live in the poorest country in South America and the second most unequal society on earth. But it is clear from listening to Olivera that the common people of Bolivia are not stuck in despair. They are on the move. Olivera emphasizes the struggle is not so much against something as for a positive vision of the country they are creating.

In a world hurtling toward global integration, Olivera speaks of participatory, decentralized decision making and local control leading to local sustainability. Traditions of localized resource management and decision-making are strong, as 60 per cent of Bolivians are indigenous people.

Olivera says oil and gas are vital to the sort of country the people are constructing. "We want a different country," says Olivera, "and for that we need an economic base." He sees Bolivia's fossil fuels as the obvious economic foundation. But currently oil is controlled by foreign powers and revenues pour out of the country.

Crude politics

Where there is oil, there is an excess of politics. For almost a century Bolivia has vacillated between nationalized and privatized control of its oil. In 1996, president Gonzalo Sanchez de Lozada signed privatization deals with various oil companies. Now, Olivera says, for every $100 of oil extracted in his country, $18 stays in Bolivia and $82 goes to the companies.

In 2003, Sanchez de Lozada--rumoured to be Bolivia's second richest man--said Bolivia would sell gas to California. The people, seeing more of their national birthright siphoned off, said "no." And they said so forcefully. The government responded with its own force. In the end 63 people were dead and hundreds injured. Sanchez de Lozada ended up resigning and retreating to Miami.

Arising largely from continued public momentum, the Bolivian government is now debating a draft Hydrocarbons Law that could nationalize management of the resource and ensure greater industry benefits for the country as a whole. The high-stakes parliamentary debate on the law continues (it began November 3), as do pro-nationalization protests.

The current president is caught between prevailing international oil interests and a people proven capable of toppling a president.

To Olivera the oil and gas issue is a matter of "'life and death" for his homeland. It could be an historic step toward realizing the vision of the people, or it could bring two powerful forces into direct conflict. Olivera says he fears violence if parliament defies the people. His hopeful eyes betray grave concern.

It is not clear when Bolivia will see a final version of the Hydrocarbons Law.

The oil struggle rides a wave started by one of the most dramatic displays of anti-globalization direct democracy. In 2000, overwhelming public pressure in Olivera's hometown of Cochabamba forced the multiinational that had taken over control of the city's water system--a subsidiary of U.S.-based Bechtel--to pack its bags. Laws governing water were also changed to reflect the value of common access and control.

As Olivera tells it, the victory was not so much against a corporation or a government as a victory for deprivatized local control of decisions that impact daily life. "People can change things."

Archbishop Solari

The nation's political tensions are reflected in the Catholic church. National church authorities--some of whom circulate in the upper echelons of society--oppose church involvement in "political" matters. Despite official dissuasion, Cochabamba's Archbishop Tito Solari decided to support the people in the water conflict. With admiration, Olivera cites Solari's credentials: he listens to the people, he has no car or driver, "he walks, like the common people."