President Morales’ move to nationalize hydrocarbons in Bolivia has come as a cold shower for many in the international community. However, many of Evo Morales supporters have seen the nationalization of hydrocarbons, in particular natural gas, as the key tool to reduce poverty in the country. The rationalization behind this line of thinking is that natural gas has been portrayed as “La gallina de los huevos de oro” (the hen with the gold eggs). There is a belief that if only the state could take over direct control of natural resources all of Bolivia’s problem will be solved.
In reality most countries have realized that natural wealth is not inevitably beneficial and that it will not automatically lead a country to prosperity and a more equitable and democratic society. Many resource rich developing countries have actually fallen pray to the “curse” of natural resources through corruption and mismanagement. Venezuela, for example, has not been able to reduce its poverty levels in the last couple of years, although the state has seen its revenues skyrocket due to the rising prize of oil in the international market.
CIPE has started to work with Fundación Milenio in Bolivia to promote a non-ideological intensive process of analysis and dialogue aimed at creating awareness and at promoting discussion of alternative options for Bolivia’s management of natural resource. Fundación Milenio will carry out an active campaign of public discussion, deliberation, and sound analysis of natural resource management, with a view to broadening recognition of their importance and stimulating a search for innovative solutions.
Only by promoting an informed discussion of the options that are available for the management of Bolivia’s natural riches will it be possible to avoid the natural resource “curse” and to combat poverty more effectively. Economic development needs to be based on sound research and on growth with equity and to a democracy founded upon freedom and civic responsibility.
Published Date: May 04, 2006