Internal War within Bolivia’s Left Prevents Addressing Impending Economic Crisis | La guerra interna en la izquierda boliviana impide abordar la crisis económica que está en camino

By The Economist:

The Economist: la guerra interna en la izquierda boliviana impide abordar la crisis económica que está en camino

Evo Morales and Luis Arce. Photo: EFE

Meetings of the Movement for Socialism (MAS) used to be boring affairs. Not anymore. Nowadays, they explode into brawls, with bottles and chairs flying overhead before being dispersed with tear gas.

This change reflects a rift at the top of Bolivia’s ruling party, where President Luis Arce and former President Evo Morales are vying to lead MAS into next year’s elections. This has paralyzed the government, divided the indigenous and labor groups that form the party’s base, and given the opposition its first real chance at power in almost 20 years.

In 2005, Morales led MAS to win the first majority in Bolivian politics since the country returned to democracy in 1982. In the following election, he won a supermajority in congress. MAS has governed Bolivia for all but one year since then. Morales, a former coca grower who expelled the United States Drug Enforcement Agency (DEA) from Bolivia, became an icon of the left.

This dominance cracked in 2019 when Morales ran for an unconstitutional third consecutive term. He won, but allegations of fraud sparked protests. The military asked Morales to resign, which he did, and he went into exile. An interim government took control for a year—a power transition that MAS now views as a coup—before MAS returned to power under Arce, Morales’s chosen candidate, in 2020. Morales returned to Bolivia with his eyes on the 2025 elections.

It soon became clear that Arce wanted to stay in power. Morales has the support of his former ministers and rural worker unions. Arce, lacking Morales’s charisma, controls the state and its largesse. Until recently, many Bolivians saw Arce as the economically prudent choice due to strong growth during his tenure as finance minister under Morales and low inflation since he became president. But a faltering economy is changing that.

The infighting has paralyzed the government. Arce cannot count on the votes of legislators loyal to Morales. This limits his response to an economic crisis stemming from the depletion of Bolivia’s foreign currency reserves. He has struggled to secure legislative approval for loans from multilateral development banks and cannot pass a law allowing foreign companies to extract Bolivian lithium. A collapse would destroy Arce’s reputation.

Attempts at reconciliation, such as holding a national party congress, have failed; Arce and Morales each held their own congress and denied the other’s legitimacy. Morales has challenged Arce to compete with him in primaries, but the government insists that the constitution bars Morales from running. Morales warns of “convulsion” in Bolivia if he is disqualified.

The opposition smells an opportunity. Carlos Mesa, a former president, might run again for Comunidad Ciudadana, a coalition of centrists. Luis Fernando Camacho, in preventive detention for his alleged role in the 2019 “coup,” might run for Creemos, a right-wing party. Many others have joined the race, all calling to unite the opposition. None of them seem to excite voters. Only Morales and Arce can keep MAS out of power.

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