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Analysis: Strikes, dwindling support for President Morales likely to impact Bolivia industry

On May 16, 2012,

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By Arthur Dhont

Recent Bolivian protests have signified growing conflict between President Evo Morades and his former allies, the country's powerful unions.

On 9 May, Bolivia’s Central Obrera Boliviana (COB), the country’s largest trade union, started a three-day national strike in response to the government’s passing of Supreme Decree 1126, which extends daily working hours in the medical sector from six to eight.

The strike follows two days of protests led by the COB in April against government proposals to increase the minimum wage and public sector pay which, they argue, are inadequate.

Other recent protests have seen transport workers in La Paz, again with the support of the COB, mobilise against a law that will regulate public sector transport in Bolivia’s de facto capital. Indigenous groups continue to protest against government plans to build a road through the Isiboro Secure Indigenous Territoryand National Park (TIPNIS).

This surge in protests is symptomatic of a serious crisis in Bolivian politics, increasing the risks faced by companies operating in the country and threatening to safety and business continuity. (more…)


If you would like to comment on this article, request further in-depth analysis, or contact the analyst for media comment please contact: blog@maplecroft.com

in Agri-business, Construction, Economics, Elections, Emerging markets, Enterprise risk, ESG (Ethical, social and governance), Financial services, ICT and engineering, Labour standards, Latin America, Legal and regulatory, Mining, Oil and gas, Political risk, Supply chain risk, Transportation and logistics, Uncategorized, by Jason McGeown
Tagged with: Bolivia • Bolivian Workers' Center • elections; unions • Evo Morales • Gold • industrial action • Isiboro Sécure National Park Indigenous Territory • Latin America • Minimum wage • Mining • Morales • National park • protest • roads • strike • supply chains • Trade union • United States
 

Is there a rise in resource nationalism in Latin America?

On May 2, 2012,

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Bolivia's left-wing president, Evo Morales, has struggled to balance encouraging foreign investment with maintaining support from his voter base.

By Arthur Dhont

On 1 May, Bolivian President Evo Morales announced the nationalisation of Transportadores de Electricidad (TDE), a subsidiary of Spain’s Red Electrica Española, during his annual Workers’ Day speech.

Although a number of media outlets have already started to compare the TDE nationalisation with that of YPF in Argentina on 16 April , the two incidents are not linked and do not necessarily point to an increased risk of resource nationalism across the region as a whole.

Resource nationalism has certainly become increasingly visible amongst a number of leftist-governed Latin American countries, including not only Bolivia but also Argentina, Ecuador and Venezuela.

On the other hand, however, the risk of expropriation remains low in other key countries in the region such as Chile, Colombia or Mexico. (more…)


If you would like to comment on this article, request further in-depth analysis, or contact the analyst for media comment please contact: blog@maplecroft.com

in Uncategorized, by Jason McGeown
Tagged with: Argentina • Bolivia • Evo Morales • Latin America • Nationalization • Permanent Court of Arbitration • YPF • YPFB
 

Bolivia protests illustrate tough choice facing government and developers

On February 1, 2012,

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Ongoing protests by indigenous groups in Bolivia over a major road building project in the Amazon illustrate the tough choices facing President Evo Morales’ government as it tries to satisfy the competing demands of different indigenous sectors and to balance economic development with conservation.

A protest march of 5,000 people led by the Southern Indigenous Council (CONISUR) has just arrived in La Paz to demand that the government press ahead with long-standing plans to build a controversial road through the  Isiboro-Secure reserve – known as Tipnis – in the Amazon rainforest.

The CONISUR marchers largely consist of Andean indigenous peoples who comprise President Morales’ core support base and are seeking to colonise the Tipnis reserve. They say that the road will bring economic benefits to local people and also allow them better access to food and medicine. The protestors briefly clashed with police yesterday as they tried to enter the main square in La Paz where the presidential palace is located.

The government had however cancelled the planned 190 mile road just last year after a rival indigenous organization, representing groups native to the Tipnis area, the Indigenous People Federation of Bolivia (CIDOB), had held their own protest march and demonstration. They had argued that the road would accelerate de-forestation of the Amazon and damage their way of life.

(more…)


If you would like to comment on this article, request further in-depth analysis, or contact the analyst for media comment please contact: blog@maplecroft.com

in Construction, Economics, Elections, ESG (Ethical, social and governance), Latin America, Mining, Oil and gas, Political risk, Sustainability, Transportation and logistics, by Jason McGeown
Tagged with: Amazon • Amazon rainforest • Bolivia • Brazil • Evo Morales • Isiboro Sécure National Park and Indigenous Territory • La Paz • South America
 
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