*The Bolivian Workers Central/COB (Central Obrera Boliviana) and many left
groups support the nationalizations in Bolivia but in many instances they
have not been completed and done half way and the details of the current
one are still being worked out, the the COB and many workers are still
seeking wage increases and there are other struggles by workers and
indigenous groups that center around the economy,their rights and control
over the natural resources but there should be no compensation for these
nationalizations and the money from the compensation should be spent on
salaries, more and better housing, health and education for all in
actuality not just written the Constitution and the strengthening of the
nationalized companies in Bolivia.*
**
*Cort
*
------------------------------------------

*President Morales' announcement on his plan to nationalise TDE came just
hours before he and the boss of Spain's Repsol opened a natural gas plant
in the south of Bolivia.Spain's economy minister, Luis de Guindos has
expressed disappointment with Bolivia's nationalisation of a Spanish-owned
electric power company and warned it could deter investment, but also
stressed Bolivia had agreed to pay compensation.

President Evo Morales reason for the takeover of REE's Bolivian
subsidiary was because it had not invested enough in Bolivia.
*
-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

*Michael Shifter, president of the Washington based inter-American
Dialogue, called Morales “the poster child for multilateral financial
institutions”.*

http://blogs.ft.com/beyond-brics/2012/05/02/morales-not-as-radical-as-you-think/

 Morales: not as radical as you think
May 2, 2012 10:11 pm by Naomi
Mapstone<http://blogs.ft.com/beyond-brics/author/naomimapstone/>
21<http://www.facebook.com/sharer/sharer.php?u=http%3A%2F%2Fblogs.ft.com%2Fbeyond-brics%2F2012%2F05%2F02%2Fmorales-not-as-radical-as-you-think%2F&t=Morales%3A+not+as+radical+as+you+think+%7C+beyondbrics+%7C+FT.com+>
0<http://blogs.ft.com/beyond-brics/2012/05/02/morales-not-as-radical-as-you-think/#respond>

<http://blogs.r.ftdata.co.uk/beyond-brics/files/2012/05/Evo-morales.jpg>Is
Bolivian president Evo Morales the poster boy for Latin America’s extreme
left? Or for orthodox macroeconomic management?

Morales, a charismatic former coca union leader who swept to power in 2006
on promises to rebalance centuries of inequality, can do fiery rhetoric as
well as his leftist allies Rafael Correa of Ecuador and Hugo Chavez of
Venezuela. But just as Morales swapped his bobbly batwing jumpers for
tailored suits with an indigenous fabric trim, has he taken a more
conservative line when it comes to Bolivia’s bottom line?

Many economists would say yes.

Bolivia’s economy grew at 5.1 per cent in 2011, and after six years of
fiscal surplus had built up $12.1bn in international reserves. And for the
first time in 1920, it is preparing a bond issue of up to
$500m<http://www.ft.com/intl/cms/s/0/158b5eea-710d-11e1-a7f1-00144feab49a.html#axzz1tjYHojkT>to
help Morales further his industrialisation agenda, particularly in
building a lithium processing plant, food processing and hydroelectricity.

This last is more important than ever considering the parlous state of
electricity provision in Bolivia. This and the May Day expropriation of Red
Electrica of Spain’s
assets<http://www.ft.com/intl/cms/s/0/8b563a14-93b3-11e1-8c6f-00144feab49a.html>means
the government will now be carrying the can for energy rationing and
steep consumer prices.

In an interview with the FT, Michael Shifter, president of the Washington
based inter-American Dialogue, called Morales “the poster child for
multilateral financial institutions”.

“Certainly here in Washington Bolivia is seen very favourably in terms of
its economic management and showing discipline,” Shifter said, adding that
Morales, unlike Cristina Kirchner in Argentina, knows he can’t afford to
completely turn off foreign investment.

“I think Morales is going to be careful to try to at least accompany this
measure with at least sending the message privately that foreign investment
in the country is still welcome. Because without foreign investment the
country is going to have a hard time growing and if the country doesn’t
grow he is going to have difficulties.”

Morales’ May Day antics are certainly bad news for Red Electrica, and for
Spain, but no one could say they were shocked. Just as social protests such
as the one that has paralysed Newmont’s $4.8bn Conga gold and copper
project are accepted as a leading risk of doing business in Peru, and
corruption a major consideration in Argentina, nationalisation has been a
factor in Bolivia since 2006.

And while Morales may have quietly restored diplomatic relations with the
United States and prudently managed the economy, he will continue to
demonise American interests in speeches from the presidential palace, and
seize the occasional foreign asset – even if lately those assets are
smaller and in less strategic sectors. Morales is courting international
investors, but it’s a backroom courtship that wouldn’t do his image much
good on the home front.

Inflammatory rhetoric and nationalisations are still very much vote-winners
in one of Latin America’s poorest nations, where Morales’ political base,
the indigenous majority, have for generations got the fuzzy end of the
lollipop.

*Related reading:
*Bolivia’s leader makes a power
point<http://www.ft.com/intl/cms/s/0/336b8c90-947c-11e1-bb0d-00144feab49a.html>,
beyondbrics
Latin American nationalisation
dominoes<http://blogs.ft.com/the-world/2012/05/latin-american-nationalisation-dominoes/#axzz1tXMH6GIa>,
FT
Red Eléctrica: power
outage<http://www.ft.com/intl/cms/s/3/afc2b7d2-945e-11e1-bb0d-00144feab49a.html>,
Lex
Spain in LatAm: not flying so
high<http://blogs.ft.com/beyond-brics/2012/05/01/spain-in-latam-not-flying-so-high/#axzz1tXMH6GIa>,
beyondbrics
Bolivia: “Watch out for May
1st”<http://blogs.ft.com/beyond-brics/2012/05/01/bolivia-watch-out-for-may-1st/#axzz1tXMH6GIa>,
beyondbrics


[Non-text portions of this message have been removed]



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