Another Reform Defeated? | ¿Otra reforma derrotada?

Editorial, Bolivian Thoughts:

Law 1720 and the Return of Political Blackmail in Bolivia

The controversy surrounding Law 1720 is exposing one of Bolivia’s deepest problems: the enormous difficulty of advancing economic reforms even when they are intended to benefit small rural producers trying to escape poverty.

The law promoted by Rodrigo Paz’s government sought to allow small farmers to voluntarily convert their plots into medium-sized properties in order to gain access to the formal financial system. The logic behind the measure was simple: without real collateral, thousands of small producers remain locked out of bank credit, unable to mechanize, invest, expand production, or compete under better conditions.

That is precisely the silent tragedy of Bolivian agriculture. Many small farmers survive with low productivity not because they lack ambition, but because the legal and financial system practically condemns them to operate without capital. In that context, Law 1720 aimed to open a path for rural producers to use their land as financial backing and improve their economic conditions.

That is why Santa Cruz’s agricultural sector supported the proposal. Not only out of business interests, but because access to credit remains one of the greatest barriers to modernizing Bolivia’s countryside.

However, the debate quickly stopped being technical or economic and turned into a political battle.

The indigenous and peasant march from the northern Amazon region toward La Paz was presented as a defense of land rights and communal territories. Legitimate concerns do exist regarding potential abuses or future land concentration, and those concerns deserve serious discussion. But the conflict also revealed how certain political and union sectors exploited Bolivia’s historical fears surrounding land ownership to transform the law into a symbol of national confrontation.

The rhetoric about “latifundios,” “privatization,” and “land giveaways” quickly displaced any serious discussion about productivity, rural poverty, and access to credit.

And once again, the influence of MAS and the corporate political structures built during nearly twenty years of its rule became visible. Union organizations, peasant leaders, and groups politically aligned with MAS quickly understood that Law 1720 could become a tool to weaken Rodrigo Paz’s government and demonstrate that any reform effort can be stopped through street pressure.

That is the real danger Bolivia faces today.

If every economic reform automatically turns into a political crisis, the country will remain trapped between ideological fear, corporate pressure, and short-term electoral calculations.

The government itself contributed to worsening the situation. Rodrigo Paz pushed forward a structural reform without first building enough political and social support beyond the productive sector. The public explanation of the law was weak and delayed. That allowed other actors to quickly fill the vacuum with emotional campaigns and alarmist messaging.

Now Congress is debating whether to revise, modify, or even repeal the law. No final decision has been made yet, but the mere possibility already sends troubling signals.

If the government fully retreats, it will reinforce the idea that any organized group can block reforms through political mobilization. Even worse, thousands of small rural producers could once again remain trapped in the same system that denies them real access to credit and limits their opportunities for growth.

The ambiguous reaction of other opposition leaders has also been revealing. Jorge “Tuto” Quiroga and Samuel Doria Medina avoided taking a clear position in defense of the law or opening a more serious debate about how to modernize agriculture without undermining communal rights. Once again, electoral caution prevailed over substantive discussion.

Law 1720 may indeed require adjustments, broader technical debate, and stronger safeguards against abuse. But Bolivia risks repeating a pattern it knows too well: blocking a reform before even attempting to improve it.

And while politicians, unions, and activist organizations turn the issue into yet another power struggle, the people still waiting for real solutions are the small farmers who need credit, investment, and productivity in order to compete and escape rural poverty.

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