Bolivian gas conflict

The expression can be extended to refer to the general conflict in Bolivia over the exploitation of gas resources, thus including the 2005 protests and the election of Evo Morales as president.

Violent suppression by the Bolivian armed forces left some 60 people dead in October 2003, mostly inhabitants of El Alto, located on the Altiplano above the seat of government La Paz.

However, protesters, who included Evo Morales and Felipe Quispe, demanded full nationalization of hydrocarbon resources, and the increased participation of Bolivia's indigenous majority, mainly composed of Aymaras and Quechuas, in the political life of the country.

Morales' election at the end of 2005 was met with enthusiasm by the social movements, because he was, as the leader of left-wing MAS, one of the staunchest opponents to the exportation of the gas without corresponding industrialization in Bolivia.

The 2003 Lozada deal was opposed heavily by Bolivian society, in part because of nationalism (Bolivia feels resentment after the territorial losses of the War of the Pacific in the late 19th century, which deprived it of the Litoral province and hence access to the sea).

Government ministers hoped to use the gas profits to bolster the sagging Bolivian economy and claimed the money would be invested exclusively in health and education.

They further argued that exporting the gas so cheaply would be the latest case of foreign exploitation of Bolivia's natural resources, starting with its silver and gold from the 17th century.

According to Carlos Miranda, an independent expert quoted by Le Monde, the best industrialisation project is the petrochemical complex proposed by the Brazilian Braskem firm, which would create 40 000 direct or indirect jobs and cost $1.4 billion.

[12] Cultural divisions exist because people in eastern Bolivia, called "Cambas" (meaning "friends" in Guarani), are primarily of mestizo descent (mix of European and several native tribes the largest of which are the Guaraní), while the western Altiplano is dominated by a small white elite and a historically oppressed Quechua and Aymara majority.

Left-wing intellectuals Walter Chávez and Álvaro García Linera (former Bolivian Vice President and MAS party member) published an article in the Monthly Review asserting that autonomy has been historically a demand of the Santa Cruz region, "contemporarily imbued with far-right, populist sentiments."

", which pits the "modern", "whiter" Santa Cruz elite against the short, dark-skinned and anti-capitalist Aymara and Quechua peoples of the western region of Bolivia.

[15] The dispute arose in early 2002, when the administration of President Jorge Quiroga proposed building the pipeline through neighboring Chile to the port of Mejillones, the most direct route to the Pacific Ocean.

Bolivians began campaigning against the Chilean option, arguing instead that the pipeline should be routed north through the Peruvian port of Ilo, 260 km further from the gas fields than Mejillones, or, better yet, first industrialized in Bolivia.

The social conflict escalated in September 2003 with protests and road blockages paralyzing large parts of the country, leading to increasingly violent confrontations with the Bolivian armed forces.

Government forces used planes and helicopters to circumvent the strikers and evacuate several hundred foreign and Bolivian tourists from Sorata who had been stranded by the road blockades for five days.

Eugenio Rojas, leader of the regional strike committee, declared that if the government refused to negotiate in Warisata, then the insurgent Aymara communities would surround La Paz and cut it off from the rest of the country — a tactic employed in the Túpaj Katari uprising of 1781.

Felipe Quispe, leader of the Indigenous Pachakuti Movement (MIP), stated that he would not participate in dialogue with the government until the military withdrew from blockaded areas.

However, Vice President Carlos Mesa deplored what he referred to as the "excessive force" used in El Alto (80 dead) and withdrew his support for Sánchez de Lozada.

Protesters argued that the new law did not go far enough to protect the natural resources from exploitation by foreign corporations, demanding a complete nationalization of the gas and process in Bolivia.

The May–June social unrest affected the supply of hydrocarbons products to the internal market, principally LPG and natural gas to the occidental region.

Tens of thousands of people each day walked from El Alto to the seat of government La Paz, where protesters effectively shut down the city, bringing transportation to a halt through strikes and blockades, and engaging in street battles with police.

The protestors demanded the nationalisation of the gas industry and reforms to give more power to the indigenous majority, who were mainly Aymaras from the impoverished highlands.

However, both sides rejected Mesa's call: the Pro-Santa Cruz Civic Committee declared its own referendum on autonomy for August 12, while in El Alto protesters began to cut off gasoline to La Paz.

Riot police used tear gas as miners amongst the demonstrators traditionally set off dynamite in clashes near the presidential palace, while a strike brought traffic to a standstill.

The treaties are a step towards a court hearing before the International Centre for Settlement of Investment Disputes (ICSID), dependent of the World Bank, which could force Bolivia to pay indemnities to the companies.

In the meantime, Chile promptly started to build several coastal terminals to receive shipments of liquefied natural gas from Indonesia, Australia and other sources.

Ordering the military and engineers of YPFB, the state firm, to occupy and secure energy installations, he gave foreign companies a six-month "transition period" to re-negotiate contracts, or face expulsion.

Vice President Álvaro García Linera said in La Paz's main plaza that the government's energy-related revenue will jump to $780 million next year, expanding nearly sixfold from 2002.

Recently, Guaraní people from this group have taken oil fields run by Spain's Repsol YPF and the United Kingdom's BP and have forced them to stop production.

Quispe is the leader of the Pachakutik Indigenous Movement, that won six seats in the Congress and the secretary general of the United Peasants Union of Bolivia in the 2002 Bolivian elections.