Capitalization: The Politics of Privatization in Bolivia

This document is extremely important to understand what was accomplished before, so that this ochlocracy cold have such bonanza.

It is important to understand that over $120 billion dollars came to Bolivia since the coca-grower caudillo assumed the presidency… what happened with that money? aside of purchasing luxury vehicles, motorcycles, planes, and intention to build a new palace, where is the money?

The following is a case study from Harvard University:

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Capitalization: The Politics of Privatization in Bolivia

“In 1993, Bolivia’s newly elected government, headed by President Gonzalo Sánchez de Lozada, embarked on the implementation of a radical new reform agenda called the Plan de Todos (Plan for Everyone) which included the devolution of state power to local governments, education reform, and a revolutionary program called “capitalization” to privatize the state’s largest enterprises.

To many, it is no surprise that Gonzalo Sánchez de Lozada, or “Goni” as he is known to Bolivians, was the driving force behind such a far-reaching reform program. In 1985, under President Victor Paz Estensorro, Bolivia became the first democracy in Latin America to stabilize hyperinflation and implement structural reform. As Minister of Planning under Paz Estensorro, Goni was the chief architect of the radical stabilization and structural reform package, the Nueva Política Económica (NPE), which brought the country out of crisis and enabled the achievement of modest economic growth. Yet as much as he was known for being a visionary, Goni was also known for being an obstinate and insatiable micromanager and those who are the closest to him are the first to admit that he is frequently difficult to work with. A process made difficult by labor opposition was exacerbated by the government’s inability to implement his proposed reforms quickly .”

To read the whole document please downloaded by clicking HKS137-PDF-ENG

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