Bolivia: Heading Toward a Failed State? | ¿hacia un Estado fallido?

By Ronald MacLean-Abaroa, Brujula Digital:

If we’re not yet a “failed state,” we’re headed there—and fast. Today, Bolivia likely has the weakest government in its history since the Revolution of 1952. Possibly comparable to the UDP in the early ’80s and more similar to the misrule of Juan José Torres and the “People’s Assembly.” But the UDP only lasted three years, and Torres a few months, before the Armed Forces and the two most important political parties saved the country from socialist mismanagement.

Thus, the prediction of the renowned Harvard professor Samuel Huntington, author of the classic “Political Order in Changing Societies” (1968), comes true: “the worst government is a weak government.”

Bolivia has been “failing” for a long time and far too many times at the hands of socialists, declared or disguised. There they are, and always have been. It’s enough to read their acronyms carefully, recall their deeds, and remember their names.

Fortunately, in the past, Bolivians had little patience for the failed experiments of their “revolutionary saviors,” their inability to govern, and their recipe for lifting the country out of poverty. Unfortunately, this time they had enough time and resources to complete their destructive task.

The MAS government is an amplified copy of the García Meza government, with the other García, García Linera, as its main “guru.”

The road to being “failed” is paved with successive historical “failures,” from which Bolivia only recovered through the intervention of the so-called “right-wing” or “neoliberal” governments, which gave the country breathing room to attract capital and technology—late and little, but essential to project the country forward.

Following the failure of the nationalization of the mines, which blocked the injection of capital and high technology necessary for mining to be profitable and nearly bankrupted the country, Bolivia had to close the mines in 1985.

It wasn’t Comibol that managed to bring in a modest injection of capital and technology to modernize mining but a private initiative that launched large-scale open-pit mining, replacing mechanical recovery by gravity with chemical leaching methods.

It was the Inti Raymi mine in Oruro, a project started by Mario Mercado, of which I had the privilege of participating in its feasibility study and as its first executive. This was followed by another large-scale mining project, the San Cristóbal mine in Potosí. Bolivia needs to multiply these kinds of mining investments.

On the contrary, today, mining cooperatives carry out primitive exploitation lacking capital and technology, which destroys the deposits and pollutes the environment with mercury.

The same has happened with agriculture. Agrarian reform was based on the assumption that access to land would lift peasants out of poverty. It didn’t. The lack of land ownership and a divisive inheritance system have created uneconomic smallholdings that have ultimately forced peasants to migrate to the cities.

The peasant migration from the west of the country follows the same pattern as agrarian reform, this time distributing land in the east to family units and groups to cultivate it artisanally, without capital or technology, on plots too small to be economically viable. This is heading for another failure.

During my adolescence, I grew up in the countryside on a cotton plantation and witnessed the rise of business agriculture in Santa Cruz, where we cultivated thousands of continuous hectares in large “camps,” with dozens of modern tractors, sprayers, harvesters, crop-dusting planes, trucks, gins, workshops, etc., and employed temporary labor from the provinces of Santa Cruz and Cochabamba. These were poor peasants who came to hoe and harvest to accumulate a small capital that allowed them to survive on their unprofitable plots, which kept them in poverty.

In the U.S., only 2% of the population is employed in agriculture because it applies high technology. In other words, like modern mining, contemporary business agriculture must be capital- and technology-intensive to be profitable.

Over time, and it’s already happening, the “colonists” will abandon the occupied, burned, and cleared land; it will fall into the hands of new landowners who will accumulate large tracts of land and mobilize huge capital and technology. The peasants will end up migrating to cities in search of jobs and opportunities.

We will have destroyed our forests and national parks at the cost of temporary soil fertility, low wages, and insignificant taxes. This will be a new failure, this time of enormous proportions, a greater “failure” that could sink us definitively.

Just like the “industrialization” that didn’t substitute any imports or the “juqueo” [stolen mineral at the site] mining, we now live through the forced and predatory redistribution of land in the east; this will ultimately concentrate the land into large corporate estates, mostly foreign, perpetuating the vicious cycle of poverty and extreme inequality typical of “banana republics.” That is the end of the road to “socialism”: a failed state.

Ronald MacLean is a professor; he was the mayor of La Paz and a state minister.

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