Bolivia unrest rooted in years of free market reforms

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Bolivia unrest rooted in years of free market reforms that failed to end crushing poverty

Thursday October 16, 2003
By KEVIN GRAY
Associated Press Writer

LA PAZ, Bolivia (AP) For more than three weeks, Bolivians have rioted in the streets in a conflict pitting the ruling elite against a poor Indian majority over market reforms that have failed to narrow the gap between rich and poor in South America's poorest country.

The demonstrators have set up roadblocks and battled police, demanding President Gonzalo Sanchez de Lozada step down in what is fast nearing a popular revolt. Estimates of the number of people killed in the riots range from 16 to 65, with no figure confirmed.

On Wednesday, tanks and army troops guarded the presidential palace as protesters hoisted cement blocks onto street barricades nearby. Shops were shuttered and highways empty.

Sanchez de Lozada's plan to export natural gas has triggered the riots in a country that has seen repeated conflicts between the government and Indian groups over economic policies officials insist will lift the country from the economic doldrums.

<http://cbsnewyork.com/international/BoliviasRevolt-ai/resources_news_html>

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1. Oil companies will earn 24 times more than Bolivia in sale of its gas

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The consortium Pacific LNG will obtain $24 for each dollar paid to Bolivia on taxes and exemptions due to gas sales, if the project of Exportation of Bolivian Gas to the U.S. becomes a reality. The consortium Pacific LNG is constituted by the transnational companies British Gas (BG), British Petroleum (BP) and REPSOL/YPF.

The Projections of Pacific LNG shown by Edward Miller, president of British Gas, state that the income foreseen for the transnational companies will be $1,369.6 billion per year on average. On the other hand, the payment of taxes and exemptions will range among 40 to 70 million dollars. The Agreement has duration of 20 years. By that time, the transnational Oil Companies expect to have earned more than $27 billion.

Project of exportation

The Pacific LNG Project consists of the daily export of 36 million cubic meters of gas to the U.S. for a period of 20 years. It is expected that 6.26 trillion cubic feet of gas will be supplied to the American industry.

The transportation and shipment of gas will be carried out from Tarija Fields (south of Bolivia) to the Port Patillos in Chile, on the Pacific Ocean, according to Pacific LNG planning. Gas is the most valuable source of energy due to the fact that it is ecologically trendy and less polluting.

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