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Why Wall St is Betting Millions on Obama

In part 2 of her investigation, market veteran Pam Martens traces the money big Wall Street players are sluicing into Obama's war chest and exactly why they are investing big-time in the "campaign for change". Plus more on the "No federal lobbyists on my team" fraud. You've heard about the plutonium-powered spy transmitters the CIA tasked climbers to haul up 25,000 feet to the high peaks of the Himalayas? What happened to the one they lost and to the men who carried them? Peter Lee gives CounterPunchers the full amazing story. Get your copy today by subscribing online or calling 1-800-840-3683 Contributions to CounterPunch are tax-deductible. Click here to make a donation. If you find our site useful please: Subscribe Now! CounterPunch books and gear make great holiday presents.

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Today's Stories

March 8-9, 2008 Weekend Edition

JoAnn Wypijewski
The Only Way to Fight the Clintons

Mike Whitney
Sorting Through the Rubble in Post Bubble America

Peter Morici
Fed and Treasury Fiddle as Economy Plummets

Jonathan Cook
The Meaning of Gaza's Shoah

Steve Niva
Behind the Israeli Escalation in Gaza

Bill and Kathy Christison
Crisis over Teheran's Alleged Nuclear Plans Nearing Climax

Hervé Do Alto and Franck Poupeau
Bolivia: Morales is Checked

Eric Walberg
To Leave and Stay at the Same Time: Putin to Medvedev to…?

Scott Johnson
City of A Thousand Foreclosures

Mark Scaramella
James Brown's Gate

Bill Clinton
President Clinton's Remarks on Naming William M. Daley as NAFTA Task Force Chairman

Poet's Basement
St. Thomasino, Engel, Davies and Willson

March 7, 2008

Patrick Cockburn
Why Iraq Could Blow-Up in John McCain's Face

Robin Blackburn
Question for Barrack Obama: Why Afghanistan is the 'Right War'?

Saul Landau
The Stupid Economy

Binoy Kampmark
When Competition is Good: McCain and the Muddled Democrats

Chris Floyd
Crushing the Ants: Admiral Fallon and His Empire

Andy Worthington
Spanish Drop "Inhuman" Extradition Request for Guantánamo Britons

Will Potter
Before the Smoke Even Clears in Seattle: Bringing Out the T Word

Eric Walberg
To Leave and Stay at the Same Time: Putin to Medvedev to…?

March 6, 2008

Vincent Navarro
The Next Failure of Health Reform

Forrest Hylton
High Stakes in the Andes: Colombia's Cornered President

Peter Morici
Why the Dollar is So Cheap

George Ciccariello-Maher
Counter-Attack of the Bureaucrats

John Ross
Taxi! Taxi! The Dark Side of the Oscars

Jacob Hornberger
No Standing to Lecture on Justice

Paul Watson
Illegal Japanese Whaling by the Numbers

Dan Bacher
Off the Deep End

Website of the Day
A Katrina Reader Online

 

March 5, 2008

Cockburn / St. Clair
A Great Day for John McCain (and Maybe Nader)

Joanne Mariner
After Guantanamo

Fidel Castro
The Raid on Ecuador: Underestimating Rafael Correa

Christopher Brauchli
The Turkish Invasions

Steven Sherman
Obama and the Prospects for a Renewal of the Left

Dave Lindorff
Busting Bush & Co. in New England

James Murren
Bombing Somalia

Adam Engel
Necropolis Now

Website of Day
Remember Song

 

March 4, 2008

Wajahat Ali
Mumbo Jumbo: Naming Names with Ishmael Reed

William Blum
How Could Hillary Have Known?

Bill Quigley
The Cleansing of New Orleans

Ralph Nader
The Prince Harry Solution

Patrick Irelan
Oil and Health in Venezuela

James J. Brittain /
R. James Sacouman

Uribe's Colombia is Destabilizing a New Latin America

Norman Solomon
The War Election

Jacob Hornberger
Hillary in Waco: the Missing Apology

Andy Worthington
Guantánamo and the European Parliament

Mike Averko
Kosovo and the Press

Website of the Day
Tex-Mex Primary

 

March 3, 2008

Jennifer Loewenstein
Gazan Holocaust

Alan Farago
American Politics and the Faltering Economy

Richard Gott
Colombian Deaths in Ecuador

Wajahat Ali
Who Speaks for a Billion Muslims? Analyzing the World Gallup Poll with John Esposito

Paul Craig Roberts
The Mukasey Conspiracy: a Bi-Partisan Attack on the Constitution

Robert Weissman
When Multinationals Say Adieu

Uri Avnery
Good Morning, Hamas

Martha Rosenberg
When Your Meat is a Downer

Eva Liddell
Leave the Next Dance for Bill

Michael Donnelly
Will Ferrell Does Flint

Website of the Day
Muddy Waters: Train Fare Home Blues

 

March 1 / 2, 2008

Alexander Cockburn
The Race Card

Paul Craig Roberts
The Political Trial of Don Siegelman

Kathleen and Bill Christison
Nader the Best Antidote to American Imperialism

Nelson P. Valdés
Cuba After Fidel

Christopher Brauchli
Meet Mr. Nursultan Nazarbayev: Friend of Bill, George and Dick

Ron Jacobs
Inside the Secret City: Bomb Making at Oak Ridge

John Ross
The New Conquistadores: Spain's Reconquest of Mexico

Robert Fantina
Posturing Over Patriotism: Obama and Those Lapel Pins

Robert Weissman
Hidden in Plain Sight: Human Rights Hypocrisy

Mohammed Omer
Fear in Gaza

Remi Kanazi
Barack Obama and the Politics of Xenophobia

Bob Jackson
Why is Yellowstone Destroying Its Bison Herd?

Richard Rhames
Casual Threats: Loaded with Mercury

Franklin Lamb
Lebanon Awaits the Arrival of the USS Cole

Rannie Amiri
Showboat Diplomacy: US Warships Steam Toward Lebanon

David Michael Green
The Three Faces of Hillary: the Politics of Flim-Flam

Conn Hallinan
Notes from the Southern Cone

Faheem Hussain
Prince Harry of Afghanistan and the Meaning of Normalcy

Poets' Basement
Gibbons, Orloski, Gardner and Ford

Website of the Weekend
The Palestine Chronicle Needs (and Deserves) Your Help!

 

 

February 29, 2008

Matt Gonzalez
The Obama Craze

Jonathan Cook
Academic Freedom? Not for Arabs in Israel

Joshua Frank
Obama and Israel

Anthony DiMaggio
The Unilateral Presidency: Signing Statements and the Rollback of American Law

Linn Washington, Jr.
Cop Abuse in America

Binoy Kampmark
Hubris and Nemesis

Robert Bryce
Energy Efficiency May be a Good Thing, But It Won't Cut Energy Use

Sonja Karkar
Australia's Government Continues Its Love Affair with Israel

Dave Lindorff
A Manchurian Candidate in the White House? Obama or Bush?

Website of the Day
Olduvai George

 

February 28, 2008

Patrick Cockburn
"Iraq" Falls Apart

Fred Gardner
The Birth of NAFTA

Michael Levitin
The Crisis in Kosovo is Just Beginning

William S. Lind
The Fake State of Kosovo

David Macaray
A Ray of Hope for Organized Labor

Stephen Fleischman
Nader's Latest Run: Monkey Wrench or Cattle Prod?

George Wuerthner
The Myths of Forest Health: Why Ecological Logging is an Oxymoron

Laura Carlsen
The North American Union Farce

Carl Finamore
Why the Delta-Northwest Deal Hasn't Taken Off

Michael Dickinson
The Day I Bombed the House of Commons

Website of the Day
Plane Stupid

 

February 27, 2008

David Rosen
Playing the Race Card: Obama, Love Across the Color Line and Political Dirty Tricks

Vijay Prashad
Bomber John: McCain and the 100 Year War

Harvey Wasserman
Incident at Turkey Point: Did Florida Go to the Radioactive Brink?

Andy Worthington
Guantánamo's Shambolic Trials: Pentagon Boss Resigns, Ex-Prosecutor Joins Defense

Wajahat Ali
Pakistan for Sale: an Interview with Ayesha Siddiqa on Pakistan's Military Economy

Peter Morici
The Auction-Rate Securities Fiasco: a Drama of Greed and Betrayal

Stephen Philion
Conspiracy Theory, Fears of Betrayal and Today's Anti-War Movement

Michael Donnelly
Obama by Unanimous Decision

Erica Rosenberg /
Janine Blaeloch
After the Land Deals: Will There be Any Wilderness Left to Protect?

Website of the Day
Dress Blues

 

February 26, 2008

Debbie Nathan
Confessions of a Gitmo Guard

Alan Dershowitz
v. Frank Menetrez

On Finkelstein

Harvey Wasserman
How Ohio Got Nuked

Michael Colby
Ralph Nader vs. the Fundamentalist Liberals

Gary Leupp
Condi vs. Putin on Bullying Belgrade

David Orchard
The New Conquistadors: Canada in Afghanistan

Martha Rosenberg
The Big HRT

Fran Shor
The Electoral Circus and Nader's Sideshow

Serge Halimi
The Dom Perignon Socialist Manifesto: Bernard Henri-Levy's Plan for the French Left

Global Balkans
Neo-Liberalism and Protectorate States in the Post-Yugoslav Balkans: an Interview with Tariq Ali

Website of the Day
Texistentialism

 

February 25, 2008

Roger Morris
A Death in Damascus

Anthony DiMaggio
Military Bases, the Media and the Democrats

Ralph Nader
Why I'm Running

Patrick Cockburn
Iraq Broils

Paul Craig Roberts
Kosovo and the Empire Crazies

Peter Morici
Bernanke's Failing Policies: a Long Recession Looms

Dave Lindorff
General Welch's Whitewash: What We Still Don't Know About That Minot Nuke Incident

Saul Landau /
Farrah Hassen

Fanatics, Mountebanks and Drillers: a Bloody Oil Film

Heather Gray
James Orange, Civil Rights Legend

Robert Weitzel
Accomodating Torture

John Halle
Kucinich Goes Down

Website of the Day
Do the Trunk Monkey!


February 23 / 4, 2008

Alexander Cockburn
The Mushrooming Clouds That Hang Over McCain

Paul Craig Roberts
Obama and Global Trade

Wajahat Ali
Omissions of the Commission: an Interview with Phillip Shenon on the 9/11 Commission

Ralph Nader
Neutering the FDA

Jürgen Vsych
"What Was Ralph Nader Thinking?"

Fidel Castro
Watching the US Presidential Campaign from Havana

Andy Worthington
Britain's Guantánamo

David Macaray
Unions Under Assault

Jeremy Scahill
The Real Story Behind Kosovo's Independence

David Krieger
Stanley Sheinbaum
Caging the Cold War Monster

Ron Jacobs
Building for the Future

Michael Garrity
The Last, Best Hope for the Northern Rockies

Brian McKenna
Higher Ed's "Civic Engagements" Get Dumbed Down

Missy Beattie
Over the Hill with John McCain

Fred Gardner
American College of Physicians Takes Pro-Cannabis Stand (Mostly)

Boris Kagarlitsky
The Growth of the Russian Labor Movement

Mike Ferner
Kick That Barrel

Dan Bacher
On the Trail with the Border Angels

Christopher Ketcham
Hillary Goes Where Obama Fears to Tread

Poets' Basement
Davies and Buknatski

Website of the Weekend
Obama Mariachi

 

February 22, 2008

Mike Whitney
The Bonfire of Capital

Jason Hribal
Elephants and the Circus: The Story of Janet

Liaquat Ali Khan
Arresting Musharraf

Joshua Frank
That Obama Glow: the Nuclear Industry's Golden Child

Dave Lindorff
Vicki's John: Ask Not What She Did for Him, Ask What He Did for Her!

Liliana Segura
When Torture is Old News: McCain's Blonde Diversion

Robert Fantina
Castro, Bush and Cuba: a Fiasco Waiting to Happen?

Yifat Susskind
The ABCs of Death: Bush vs. Africa's Women

Norm Kent
Pushing 60 with Pot

Website of the Day
Bush Gets Down in Liberia

February 21, 2008

Saul Landau
Fidel Steps Aside

Elizabeth Schulte
Left Behind, With No End in Sight: America's Long-Term Unemployed

Helen Redmond
Health Care as a Human Right

Benjamin Dangl
Undermining Bolivia

Michael Levitin
Kosovo's Dilemma

Liam Leonard
Fear and Loathing on the Emerald Isle

Patrick Irelan
Land and Food in Venezuela

Linn Cohen-Cole
Poor Ohio: a Second Letter to Hillary on Her Ties to Monsanto

Michael Simmons
Daydream Believer: John Stewart, the Miles Davis of Folk Music

CounterPunch News Service
A Message from the Women of Okinawa to US GIs

Website of the Day
Cop Abuse in Shreveport

 

February 20, 2008

Paul Craig Roberts
Lies and Spies

Paul Krassner
My Brief Encounter with Fidel Castro

Fawzia Afzal-Khan
The Pakistani Elections

Farzana Versey
The Great Dictator: Musharraf, Peace and the Autumn of the Patriarch

Allan Nairn
Dying for a Second Round: Israel's New Plan to Attack Lebanon

John V. Whitbeck
If Kosovo, Why Not Palestine?

Niranjan Ramakrishnan
A Balcony Seat to Our Own Balkanization?

Steve Eckardt
Cuba Sans Fidel: No News is Big News

Lee Sustar
Union-Busting at Freightliner

Mike Ferner
How Sick of It are You?

Website of the Day
The US Military Index

 

February 19, 2008

Uri Avnery
Blood and Champagne

Paul Craig Roberts
Paying Insurgents Not to Fight

Gary Leupp
The Independence of Kosovo

Fidel Castro
The Moment Has Come

David Macaray
Management's Dirty Little Secret

Reza Fiyouzat
Buck the Circus! The Left and the Elections

Valerie Morse
The New Zealand Terror Raids: Land of the Long White Lie

Walter Brasch
Bush on Safari

Website of the Day
Don't Think Twice, It's Alright

 

February 18, 2008

Wajahat Ali
Free Pakistan: an Interview with Imran Khan

Diana Johnstone
NATO's Kosovo Colony

Paul Craig Roberts
What Do We Stand For?

Andy Worthington
Gitmo: "We're Making This Up as We Go Along"

Debbie Nathan
Bernie Ward's Sex Tapes

Anthony DiMaggio
Following the Money Trail: the Democratic Party and the Business of Elections

Bill Simpich
Ten Years Ago, People Power Stopped Clinton in Iraq

Eva Liddell
A Short History of Super-Delegates: Hope, Yes! But Pay in Cash

Christopher Brauchli
The President Who Couldn't Keep His Word: Short-Changing Veterans

Stephen Soldz
Wikileaks is Under Attack!

Johann Rossouw
The Ouster of Thabo Mbeki: South Africa and the Costs of Neoliberalism

Website of the Day
Sick of It Day!

 

February 16 / 17, 2008

Alexander Cockburn
The Terrorists Still at Ground Zero, 7 World Trade Tower, Lower Manhattan

Ralph Nader
We the Corporations ...

David Macaray
The Big Buy Out: Did GM Drive Another Nail in Labor's Coffin?

William J. Peace
Wheelchair Dumping

Ron Jacobs
War on the Psyche: Shellshock and Redemption

Diane Christian
War Corrupts

Alan Maass
Oil, Blood and Greed: Taking Upton Sinclair to the Big Screen (and Beyond)

Ramzy Baroud
Iraq and the US Elections

Michael Donnelly
Genitalia First! Old Guard Feminists Play the XX Card

Cpt. Paul Watson
The Art of Finding Whalers

James L. Secor
China Diary: Spring Festival and New Year 2008

Eve Bachrach
Bush Returns to Africa

Nikolas Kozloff
Hugo Chávez's Anti-Imperialist Army

Stephen Gowans
Steven Spielberg, Faux-Humanitarian

Missy Beattie
To Vote or Not to Vote?

David Michael Green
Warming Slowly to Obama

Wajahat Ali
Attack of the Info-tainment Circus

Poets' Basement
Gibbons, Willson, Mickey Z., Orloski and Reuther

Website of the Day
Yellowstone's Bison Need Your Help--NOW!

 

 

February 15, 2008

George Szamuely
The Absurdity of "Independent" Kosovo

Patrick Cockburn
Ground-Truthing the Surge: Is the US Really Bringing Stability to Baghdad?

Wajahat Ali
Pakistan is Burning: an Interview with Steve Coll on the Taliban, Bin Laden and the Bush Administration

Mike Whitney
Henry Paulsen's Wild Ride on the Economic Hindenberg

Alan Farago
God and the Democrats

Chris Genovali
Alberta's Black Gold Rush

Jacob Hornberger
Courting Injustice: Scalia on Torture

Dave Lindorff
Snoops Always Ring Twice: Bush's Protect America Bill Bull

Website of the Day
Live From the Land of Hopes and Dreams

 

 

February 14, 2008

Kathleen and Bill Christison
Palestine in the Mind of America

Mike Whitney
Swan Song for NATO

Clancy Sigal
Strike Notes from a Screenwriter

George Wuerthner
A Bloody Sham: the Yellowstone Bison Slaughter

Peter Morici
Is Bernanke Headed for the Exit?

John Ross
Drug War Mayhem Boils Over from Border to Border

Allan Nairn
Mafia Rules in the Middle East: If You're Big Enough, You Can Whack Anyone

Rannie Amiri
Lebanon's Warmongers

Niranjan Ramakrishnan
The New Tractatus: Where Wittgenstein Meets Feinstein

Donna Volatile
Be Careful What You Vote For, You Just Might Get It

Seth Sandronsky
The Student Squeeze: Fighting California's Tuition Hikes

Website of the Day
Conventions: the Land Around Us

 

February 13, 2008

Nikolas Kozloff
Meet John McCain: Mr. Big Stick in Latin America

Alan Farago
Hell to Pay: Warren Buffett on the Goal Line

Christina Kasica
King's Dream Foreclosed: the Subprime Crisis in Black America

Vicente Navarro
How to Read the U.S. Primaries

Hall Greenland
Australia's Finest Hour

Lee Sustar
Strange Stimulation: Too Little for Those Who Need It Most

David Macaray
The Writers' Strike Finally Ends

Roderick Frazier Nash
Celebrating Wilderness

Patrick Irelan
Hugo Chávez and High Anxiety at the NYT

Anthony Papa
Mean Mister Mukasey: AG Tries to Block Crack Cocaine Releases

Carl Finamore
Another Parade Passes Me By: Don't Let Your Movement be Coopted by Politicians

Website of the Day
John He Is

 

February 12, 2008

Frank J. Menetrez
The Case Against Alan Dershowitz

Paul Craig Roberts
War Without End

Dr. Trudy Bond
The Elephant at Gitmo: Camp 7 and the Torturer's Shrink

Andy Worthington
The Guantánamo Six: Why Charge Them Now? What About the Torture?

Col. Dan Smith
The Psychology of Killing: Close In or Far Away?

Ronnie Cummins
Globalization: Standing at the End of the Road

Ralph Nader
Open the Government

John V. Walsh
Antiwarriors, Divided and Conquered

Dave Lindorff
Obama and Progressive Change: Let's Hope the Movement Transforms the Candidate

Michael Donnelly
Who's Pimping Whom? The Clintons' Selective No Talk Rules

Ron Jacobs
La Lucha Continua: Castro's "Life"

Ben Tripp
Beggars Collide

Website of the Day
Springsteen and Youngstown

 

February 11, 2008

Cockburn / St. Clair
Lessons for Obama: When is a Delegate Not a Delegate?

Wajahat Ali
A Discussion with Walt and Mearsheimer on the Israel Lobby

Ray McGovern
Waterboarding for God and Country

Allan Nairn
The Shooting of Jose Ramos Horta

Uri Avnery
An End Foreseen?

Chris Floyd
American Psycho: the Meaning of Mitt Romney's Exit Speech

Martha Rosenberg
School Lessons in a Lunchbox: Lunchmeat from Tortured Cows

Stephen Fleischman
The Bonnie and Clyde of American Politics

Marc Lamont Hill
Not My Brand of Hope

Liliana Segura
Obama and Torture: the Sounds of Silence and Equivocation

Peter Morici
Challenges for the New President

Christopher Brauchli
A Drug Rant from a Former Taker

Website of the Day
Annie vs. the Blue Angels

 

February 8 / 10, 2008

Paul Craig Roberts
Does the GOP Have Aces Up Its Sleeves?

Patrick Cockburn
Will Moqtada al-Sadr's Truce Hold?

Mike Whitney
The Great Bust of '08

Anthony DiMaggio
How the Press Covers Waterboarding

Andy Worthington
The Guántanamo Trials: Where are the Terrorists?

Linn Cohen-Cole
Hillary, Will You Renounce Your Ties to Monsanto?

Firmin DeBrabander
Notes from the Foreclosure Front: Suing Your Way to Solvency

Cpt. Paul Watson
The Other Whaling Industry: How Greenpeace Cashes In on the Suffering and Deaths of the Great Whales

Kenneth S. Pope
Why I Resigned from the American Psychological Association

Jacob G. Hornberger
American Soldiers Will Pay the Price for Bush's Torture Policy

Robert Bryce
Beyond Group Think on Climate Change: If More CO2 is Bad ... Then What?

P. Sainath
The Last of the Buccaneer Editors

Allan Nairn
Give Me Back My Land

Fred Gardner /
Pebbles Trippet

"The District Attorney of Shasta County Doesn't Know the Law!"

Andrew Wimmer
Growing Up Catholic: Ignorance is Death

Robert Fantina
America's Disgrace: the Case of Omar Khadr

David Michael Green
Partycide in Six Easy Steps: Watch the Democrats Destroy Themselves

Kevin Zeese
Is Dennis Kucinich Being McKinney'd?

Peter Morici
Wall Street Gives Bernacke a Vote of No Confidence

Chris Driscoll
Could Nader be the Come-Back Kid of 2008?

Prairie Miller
Black August: Bringing George Jackson's Life to the Screen

Poets Basement
Davies and Buknatski

 

February 7, 2008

Patrick Cockburn
Why Baghdad Will Explode Again

Bill Christison
Potholes Bigger Than Ever for Palestinians

David Anderson
NBC's "To Entrap" a Predator: Perverting Justice for the Sake of Ratings

Ron Jacobs
Innocent Flesh: Recruiting Kids to Kill

Nikolas Kozloff
Hugo Chávez's Coca: It's the Real Thing

Jane Rockefeller
The Moral Economy of an Anti-Poverty Foundation

Andy Worthington
On Waterboarding: Two Questions for Michael Hayden

 


 

 

 

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March 8-9, 2008

Bolivia: Morales is Checked

By HERVE DO ALTO and FRANCK POUPEAU

Those on the left may often want to change the world without taking power, but Bolivia’s socialists have taken a different path. Evo Morales, the first indigenous Indian president in the Americas, came to power with ambitious plans to change Bolivian society at the end of a turbulent period in its history (1999-2005). When elected on 18 December 2005 with 53.72 per cent of the vote, he promised to defend the rights of the indigenous Andean Indian population, denied since colonization, to end 20 years of neo-liberal politics and to implement the October agenda, whose most significant aspects are the nationalisation of the gas and oil industries and the re-founding of the state based on a new constitution.

Since it came to power, his party – the Movement towards Socialism (MAS) – has been cautious in its economic policies for fear of provoking instability orchestrated by the economic elite. Whereas some ministries replaced most of their staff after the election, there have been almost no changes at the Department of Finance. The government’s overall approach to the economy has been pragmatic. It negotiated the end of the involvement of French company Lyonnaise des Eaux in La Paz’s water system in January 2007. But despite the announcement of the nationalization of the petrochemical industry on May 1, 2006 , it has guaranteed that Brazilian, Argentinian and Spanish multinationals can continue their activities. Instead of nationalizing, Morales has increased taxes on the multinationals and renegotiated their contracts. As a result, tax revenues from the gas and oil industries have gone from $300m in 2005 to $1.7bn in 2007.

Two years after coming to power, Morales finds himself in an impasse: his project for a new constitution faces fierce opposition and the rich oil and agro-industrial regions of the media luna  [Santa Cruz, Tarija, Beni and Pando are the four eastern departments of the country and together resemble a half-moon]  the economic heartland of the country, have declared their autonomy.

Most of MAS’s social reforms have been blocked in the Senate, where, in contrast to the lower house, the right has a majority. In November 2006 farming reforms only went through because several members of the opposition voted with the government. Approval of the renta dignidad, an old age pension, was held up through all last year.

The Main Problem

MAS’s principal problem stems from its political management style. Its political intentions are hard to read because it is not so much a political party as a federation of social organizations, with its roots in the peasant unions of cocaleros, the coca producers, mainly from the Chapare region, in the north of the Cochabamba department. Its assembly members have differing degrees of political clout depending on whether they come from peasant stock – long repressed and marginalized – or from urban intellectual circles. The demographic makeup of the party explains why parliamentarians with a rural background tend to adopt hardline positions and present their opponents with faits accomplis. This reinforces the impression, strong among the urban middle classes, that the government is only concerned with the indigenous Indian communities of the Altiplano (the high Andean plateaux in the west of the country).

MAS’s political miscalculations are not simply a matter of breaking the formal rules of democracy; they reveal that at a deeper level the government feels it must drive through projects blocked by the opposition. This is paradoxical since MAS won the last two elections with an absolute majority. The right has made use of all legal (and some illegal) blocking tactics at its disposal.

The election of assembly members and a referendum on regional autonomy took place in July 2006, both at the government’s instigation. At the national level, more than 56 per cent of Bolivians voted no to separatism, but the four eastern media luna departments voted in favor.

In the run-up to the referendum, MAS allowed the opposition to recover from past electoral defeat , by succumbing to pressure from social organizations to call for a no vote. These social organizations view regional autonomy as a plan dreamt up by the elites of the media luna. MAS clumsily let the opposition monopolize this issue even though its own manifesto had sought to promote the autonomy of indigenous peoples. At the same time, the assembly ratified an electoral system similar to the previous one, but which doesn’t offer any great advances in popular representation. While MAS won an overall majority with 133 assembly members out of 255 in the assembly elections, it did not reach the two-thirds level necessary for the approval of the new constitution.

For several months after the election, a group of MAS moderates tried to reach agreement with the opposition. But the hardliners prevailed in November 2006 and attempted to change the rule requiring a two-thirds majority into a simple majority. The opposition seized on this as an opportunity to renew its attack on the government, accusing it of authoritarian tendencies reminiscent of Hugo Chávez in Venezuela. There are similarities between Morales and Chávez, who has sanctioned aid measures for Bolivia.

The Rally of the Millions

The regional prefects, whose revolt first began over control of their budgets, also seized the chance to renew their claim for regional independence from the dictatorship of the central state. Anti-government protests culminated on December 12, 2006 with the cabildo del million, a rally of a million people in Santa Cruz, renamed the cabildo de los milliones (the rally of the millions) by Morales’ supporters – a reference to the money put up by big entrepreneurs to ensure the demonstration’s success.

Thereafter both sides became entrenched. First came clashes in January 2007 in Cochabamba between peasant union members and supporters of the local prefect, Manfred Reyes Villa, who had called for a second referendum on the autonomy of his region, which had previously voted no. Next came a dispute over which city should be the nation’s capital. The opposition proposal to make Sucre the outright capital, replacing La Paz, won strong support from the outset from the civic committees in the eastern regions. Yet MAS excluded this issue from its debate on the constitution, and took comfort from a huge demonstration of support in La Paz and El Alto (the rapidly growing city which began as a suburb of La Paz).

The civic committees of Sucre then blocked debates in the assembly by methods which included violence. From November 23 to 25  violent clashes took place in Sucre between an alliance of students and municipal workers and the forces of law and order. The authorities were protecting Sucre’s military school in which members of the government had taken refuge.

The opposition claimed the vote on the constitution taken on the night of November 24-25 was invalid. MAS and its allies had passed the draft constitution with 130 votes out of 255 (therefore not a two-thirds majority) at a session which the opposition had boycotted. The government found itself obliged to see through its constitutional project in order to hold on to its core vote.

By late 2007 the regions of the media luna were engaged in a decisive struggle. Defeat would spell the end of regional political autonomy, which is the core of their political program. The government’s decision to change the distribution of the petroleum tax by financing the renta digindad, but also by allocating more money to the town halls and less to the regions, left the regional authorities no alternative but to challenge the government in order keep their funding.

Bolivia’s eastern regions are the richest and most dynamic, thanks in part to their gas reserves. In this context, the battle over which city should be the capital was a rallying point for the opposition. What was really at stake was reining in a constitutional reform which would man greater recognition for indigenous peoples and a fairer distribution of the nation’s wealth, especially its land. Power centers on the right The spokesmen of the right include some of the most prominent landowners in Bolivia’s agro-industrial sector, such as Branko Marinkovic, who is president of the Pro Santa Cruz civic committee and also the head of a large national oil producer (a commodity whose price rose by more than 20 per cent in December 2007). Morales has accused these opposition leaders of waging economic war by encouraging inflation on primary consumer goods such as meat, produced by the big agro-industrial concerns in the east. They are hostile to the new constitution, which would limit the size of haciendas.

As these powerful figures on the right also own the large private media companies (such as Unitel, the nation’s most popular television station), the violent clashes at the end of November 2007 sparked angry anti-government outbursts in the media. On the evening of the clashes in Sucre, the opposition declared the new constitution illegal. There was a similar reaction when, on December  9 in the mining town of Oruro, in another session boycotted by the opposition, the assembly approved by 165 votes the text of the constitution which the social organisations had been promised.

The political deadlock raises questions about the overall direction of the government’s policies. Since it was founded in the 1990s, MAS has been characterized by its anti-capitalist stance and its advocacy of the exercise of national sovereignty by reclaiming natural resources (water, gas, mines) from the domination of foreign companies. Since its victory in the 2005 elections, it has made the decolonization of the state and society its main objective.

The government’s rhetoric is designed to appeal to indigeno-campesino trade unionists, since it needs to maintain their grassroots support at a time of great change. Yet disaffection with the current situation among Bolivians who don’t identify with any particular ethnic-cultural group is especially pronounced in a large part of eastern Bolivia. Here people doubt whether policies which they suspect of favouring the indigenous Indian communities of the Altiplano have any relevance to them.

Meanwhile the elites in the more economically successful regions have proposed a more inclusive principle: regional identity based on economic dynamism and modernization. This goes hand in hand with attempts to question the legitimacy of Morales’ authority, by means which have at times provoked charges of racism. In a speech the mayor of Santa Cruz, Percy Fernández, said: “Soon you’ll have to wear feathers if you want to get any respect in this country.”

Consequences

The government’s radical attitude to indigenous peoples has had two consequences. The first is that the unconditional affirmation of the legitimacy of their cause has given the impression that it takes precedence over the law: so if political forces oppose this cause, it is no longer necessary to abide by constitutional rules. The right has often been able to make political capital from the government’s disregard for the rules. And when the right employs tactics which used to be the preserve of the left, such as road blocks and public rallies, those in power face an insurmountable problem: how can a government of the people use repressive force? All they can do is resort to denouncing their opponents as seditious factions in the service of the old oligarchies.

The civic committees easily sidestep this charge by presenting themselves as defenders of democracy, as evinced by their support for regional self-determination in the face of the authoritarianism of the state. Political observers who are usually quick to denounce the populism of the left have fought shy of applying that term to rightwing opposition to Morales’ government. MAS supporters are unable to understand the growing support for regional identity since it originated with the old oligarchies. The second consequence of the radicalization of the government is the problem of inclusiveness: neither the urban middle classes nor the eastern regions, despite voting for MAS in increasing numbers since 2000, have benefited from the policy of wealth redistribution, whose dividends have gone mainly to the countryside. The government’s social transformation project has alienated large sections of the mixed-race population in the east and in the cities by establishing a multi-coloured flag, the wiphala, which symbolizes the different indigenous populations as an emblem alongside the national flag.

The Bolivian left has revealed the limitations of redefining itself around the issue of ethnic identity, since it has given priority to ethnic diversity over tackling inequalities between classes and offering a remedy to the harmful effects of capitalism. It has also made it difficult for the government to broaden the base of its support. The (often opportunistic) mass conversion of leftwing intellectuals to this postcolonial cause, especially in the cities of La Paz and El Alto, which are the heart of power, also explains the force of the issue of the capital city. Returning the capital to Sucre from La Paz is a way of challenging the dominance of the Altiplano regions, the source of most of MAS’s support. This gives the right a way of justifying its frequent claims of inverse racism (which are not without bad faith). It remains to be seen whether, in a country such as Bolivia, marked by such social inequality, and the ethnic discrimination and anti-Indian racism which still prop it up, a leftwing government can find another discourse and whether it is possible to avoid violent consequences of the resentments built up in the colonial past.

MAS’s decision to force through the constitution in December 2007 risks provoking the rejection of its entire program, which includes historic advances towards the construction of a communitarian, multinational state, which is decentralized, autonomous and democratic, and which at last recognizes the rights of indigenous peoples. Beyond that, the constitution also legitimizes economic plurality (communitarian, state and private), the guarantee of fundamental rights (to education, basic services, work, health and an old age pension), the existence of several levels of autonomy (regions, provinces, cities and original indigenous territories), and the affirmation of sovereignty based on natural riches (whose industrialization will be favored alongside national investment and associated structures of small producers in town and country).

Recent events have shown that in the name of resisting a drift towards authoritarianism and the suspension of democracy, populist conservatism can make use of democratic rules (and undemocratic means) to block all attempts at change. The question is whether it is possible for Bolivia to drive through a peaceful revolution: the radical transformation of society by democratic means whose legitimacy derives from a popular mandate, and government which respects constitutional law. The democratic and cultural revolution advocated by Morales is today being taken forward by the classes in society which have historically been downtrodden. Despite their engagement in past and present struggles (against the dictatorships of the 1970s and 1980s and then the neo-liberal policies of 1990-2000), they have not yet mastered the parliamentary and democratic rules of the game from which they have until recently been totally excluded.

MAS faces a difficult dilemma: the more it reinforces the privileged place of the rural world, the more it risks alienating the urban population, which remains attracted by the anti-Indian rhetoric of the regional elites. Unless accompanied by more visible gestures to the middle classes, the desire to establish civic, economic and social rights for the poorest in society also risks stoking up social and ethnic tensions. In these circumstances the likelihood of violent clashes between right and left cannot be ruled out. The present struggles endanger one of the most significant benefits of the Bolivian democratic revolution – the granting of genuine political citizenship to Bolivians who are represented in the spheres of government and decision-making for the first time.

Translated by George Miller

Franck Poupeau is a member of the Institut Français d’Études Andines in La Paz and Hervé Do Alto is a doctoral student in political science at the Institut d’Études Politiques in Aix-en-Provence. The views expressed in the article are the authors’ own.

This article first appeared in the March issue of the excellent monthly Le Monde Diplomatique, whose English language edition can be found at mondediplo.com The full text appears by agreement with Le Monde Diplomatique and CounterPunch.

 

 



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