Sunday 27 March 2011

Morales no longer mas populares

Bolivia's Evo Morales was re-elected in 2009 with a majority of over 60%. His policy of directing increased oil and gas industry taxes to the poor has gained him great popularity. But populism can only work for a while and some of the screws are now coming loose. A few months back he removed subsidies on local fuel products causing prices to rise by over 70%. This didn't go down very well and he backed off. But price rises in food and bus fares have also caused discontent. The country is now running into a budget deficit and inflation is picking up. Price controls and curbs on farm imports have backfired and state control of the energy industry has deterred investment by local and foreign companies. Morales is a man of the people and to this day remains general secretary of a union of coca farmers. His stance on coca farming has brought him into conflict with the US which has tried to eliminate the crop in Bolivia. He has a point - you can't blame Bolivian farmers for the US's drug problems. But as president, Morales, having emerged as a populist, is also at the mercy of the people and has a tricky path to walk, with his popularity ratings in the cities down to just 32%. The QSL is my first from Bolivia - Radio Nueva America in La Paz. At the time (1987) my mother was visiting La Paz on holiday and I asked her to deliver my reception report by hand. It worked!

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