State control of hydrocarbons in Bolivia

By Mario Hubert Garrido
LA PAZ, January 21

The Movement Toward Socialism (MAS) government today noted that, in two years of power, President Evo Morales has recovered state control of Bolivians’ principal natural resource: hydrocarbons.

César Navarro, MAS leader in the Chamber of Deputies, explained to Prensa Latina that since May 1, 2006, when nationalization of the sector was decreed, it has not been up to the transnationals to decide on the future of the country’s energy.

According to Navarro, under previous governments the state was merely the receptor of handouts from those foreign companies.

At the same time, he noted that by recovering control of its natural resources, Bolivia has been able to negotiate better prices for the gas it sells to Argentina and Brazil.

Since January 2006, when Morales was installed in Quemado Palace, the principle of "we want partners, not bosses," has been adhered to with foreign companies, he stated.

Navarro also welcomed the fact that the nationalization of hydrocarbons has allowed for the redistribution of profits to the prefectures, municipalities and universities, profits that were previously taken out of the country by the transnationals.

Navarro said the re-founding of the state oil company YBFB is to be consolidated in 2008, implying greater participation in the entire productive chain.

Morales is celebrating two years as the first indigenous president of Bolivia, immersed in a national dialogue with an opposition that is active against the social changes set in motion by his government.

On May 1, 2006 he fulfilled the central proposal of his program, the nationalization of hydrocarbons.