Federico Fuentes
Declaring an end to the "looting of natural resources by the international petroleum companies", Bolivian President Evo Morales announced the nationalisation of the country's gas resources on May 1. "The day has come, the awaited day, a historic day on which Bolivia retakes absolute control of our natural resources", Morales said as banners were raised over gas fields proclaiming "Nationalised: Property of Bolivians".
The presidential decree — which gives the Bolivian state total control over all aspects of oil and gas production and distribution — was read out as Bolivian armed forces began occupying gas fields and stations.
The decree also announced the expropriation of the necessary shares to give YPFB (the state-owned hydrocarbon company) 51% control of five companies that were privatised under Bolivia's 1997 hydrocarbons law, including production companies and a refinery.
All transnational corporations in Bolivia have been given a 180-day period to renegotiate contracts under new regulations that will increase taxes and royalties from 50% to 82% for companies operating in Bolivia's two largest gas fields (Petrobras, Repsol and Total). This represents 70% of Bolivia's national gas. Bolivia's earnings are set to increase from US$140 million under the 1997 law, to $780 million under the new law.
An audit of investments and earnings for all other oil and gas companies operating in Bolivia will be carried out by a newly established auditing unit to determine what taxes these companies should be required to pay. The new unit was announced on May 2, due to a lack of confidence in Bolivia's current ombudsman, according to hydrocarbons minister Andres Soliz Rada.
During six years of intense social struggle, the demand for the nationalisation of gas gradually became a focal point for Bolivia's powerful social movements. Despite sitting on the second-largest gas reserves in South America, Bolivia is the poorest country in the region.
When former president Gonzalo Sanchez de Lozada attempted to sign in an agreement in 2003 under which Bolivian gas would have been sold at well below market prices to the US, a mass uprising spearheaded by the militant city of El Alto kicked Lozada out of the country.
Less than two years later, his successor Carlos Mesa was also booted out after a controversial hydrocarbons law was passed that fell well short of popular demands. This time, the social movements were clearly united behind the demand of nationalisation.
It was from within this upsurge in struggle that Morales, an indigenous coca-grower union leader, rose to national and international prominence. After coming a close second in the 2002 elections as presidential candidate for the Movement Towards Socialism (MAS), he was elected president on December 18 last year, with an historic 54% of the vote.
According to Pablo Stefanoni in the May 2 Pagina 12, Morales's hydrocarbon policy radicalised during that period, shifting from advocating "a 50/50 sharing of the cake between the companies and the state", to supporting nationalisation, "pushed in part by the social movements themselves, which constitute his social base".
Reflecting the sentiments of most Bolivians, Roberto Delis, a YPFB employee who participated in the refinery takeover, told Gretchen Gordon in an article published on Upsidedownworld.org on May 2, "The recovery of the oil and gas resources is what Bolivia is counting on to be able to develop. Now those resources are going to be returned so that they serve Bolivia."
Later on May 1, speaking in La Paz, Morales stated that nationalising Bolivia's hydrocarbons is "just the beginning ... tomorrow it will be the mines, the forests and all the natural resources".
The nationalisation has dealt a blow to imperialist interests in Bolivia. Repsol chairperson Antoni Brufau was quoted widely in the media as saying, "The news is of great concern to us ... it's a matter which has been taken right out of the logical business framework which should guide relations between the state and companies". However the Spanish transnational, along with all other transnational gas companies, has made clear its intentions to renegotiate contracts with the Bolivian government rather than pull out.
A spokesperon from Brazil's ministry of mines and energy said the nationalisation was "not a friendly gesture", but rather "one that could be understood as a rupture in our understandings with Bolivia". Petrobras, partially owned by the Brazilian government, is the biggest investor in Bolivia and 67% of Brazil's gas comes from Bolivia.
Brazilian President Luiz Inacio "Lula" da Silva phoned Morales the day after the nationalisation was announced, and following the conversation the Brazilian government issued a statement noting that Bolivia's measure was "an inherent act of sovereignty" and that the Brazilian government would "act with firmness and tranquillity ... to preserve the interests of Petrobras".
The Venezuelan government declared its support for Bolivia and is set to sign a new contract via its state petroleum company, PDVSA, to establish a separation plant for ethanol, propane and methanol (component parts of natural gas). This would aid Bolivia in the industrialisation of its gas sector.
MAS president of the senate Sergio Ramirez told Bolivian news agency ABI on May 2 that if the affected companies decide to leave Bolivia, "the door is open", because others have expressed interest, including PDVSA.
The Cuban government has also expressed its support. Ricardo Alarcon, president of Cuba's National Assembly, called for the formation of an "anti-fascist united front" to support the moves by Morales.
Much of the international corporate media has focused on the use of the military to occupy the gas fields. In response to concerns that this was "heavy-handed", Soliz Rada explained in Clarin on May 3: "The military presence served as a dissuasive factor to prevent possibly contrary reactions, for example that they do not let us enter to inspect the reserves. But for now, luckily none of this has occurred." The other reason, according to Soliz Rada, was the hope that the jubilation of the social and popular movements would spread to the armed forces.
In his speech to announce the decree, Morales said that if the companies "do not respect us, then we will make them respect us by force".
PSI reported on May 1 that "Sources from the [Bolivian] hydrocarbon chamber, cited in the Spanish newspaper ABC, said that a meeting has been called of its directorate to analyse the decree point by point. 'From now on anything can happen', they said and added that in Bolivia 'we are beginning to live' the same thing as in Venezuela."
Vice-president Alvaro Garcia Linera explained earlier that day that "This heroic and patriotic decision that gives us back our soul, our dignity, our history, will be attacked by the ... conservatives ... we need to defend it and we will not accept pressure from any foreign company."
Explaining that it is not enough to rely on Morales or the police and military to implement the decree, Garcia Linera added: "We need the mobilisation of every one of you. The homeland needs to be defended with the mobilisation of the 8.5 million Bolivians."
From 91×ÔÅÄÂÛ̳ Weekly, May 10, 2006.
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