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Total Projects in Bolivia

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This post was taken from the Total website here. It shortly mentions the various business interests Total has in Bolivia. I thank Total for letting me place this here and point to the original through the link above.

Source: https://www.total.com/en/media/news/press-releases/total-lance-le-developpement-dincahuasi-en-bolivie

Paris, September 25, 2013 -

Total announces today the final investment decision for a first development phase of the Incahuasi gas and condensate field in Bolivia, following the successful drilling results of the ICS-2 exploration well.

Located on the Ipati Block 250 kilometers South West of Santa Cruz in the Andean foothills, the development, operated by Total, will involve 3 wells (one on the Aquio block and two on the Ipati block), a gas treatment plant with a capacity of 6.5 Mm3/d and associated export pipelines. First Gas, is expected in 2016, of which a large portion will be exported.

The ICS-2 well, drilled to a depth of 5,636 m, is the second successful exploration well on the Ipati Block. The results of two recent tests on this well proved a hydrocarbon column of around 1,100 meters in the Devonian Huamampampa fractured sandstones reservoir.

“The very positive results of the last well drilled on the Incahuasi field enabled us to launch a first development phase to help meet growing gas demand in the region,” said Ladislas Paszkiewicz, Total E&P Senior Vice President for the Americas. “We shall actively continue our exploration efforts in Bolivia to enable additional developments”.

Total plans several more exploration and appraisal wells on the Ipati and Aquio blocks to prove the significant additional potential of the Incahuasi field. Total also plans to commence exploration activities on the neighboring Azero block following the recent signature of an agreement with national energy company YPFB and Gazprom.

Total Exploration and Production in Bolivia

Present in Bolivia since 1996, TEPBo operates the Aquio and Ipati blocks with a 60% participating interest, in association with Tecpetrol de Bolivia (20%) and Gazprom (20%, pending final administrative approvals).

TEPBo also owns a 15% participating interest in the San Alberto and San Antonio blocks which supply natural gas mainly to Brazil, as well as a 41% participating interest in the Itaú field, put on stream in 2011 to supply gas to Argentina.

Company information:

Total has been operating in Bolivia since 1995 in two main areas: Exploration and production and marketing and services (lubricants and special fluids). For more info visit Total's Bolivia website.


Online Tool to Check on Your Electricity Bill

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The Bolivian agency in charge of controlling and administering the electricity sector AE has entered the e-government era. It published this website providing various services so users are able to do many things related to their electricity supply. 

To start of, they can find out where to go to complain or make use of services the company offers, such as making payments, establishing services, etc. Customers can follow up their complaints, and see in advance a schedule of oncoming reparations, outages, and so on. Finally, they can make use of a tool to calculate their monthly charges, as a way of controlling.


The Verdict on the Causa Bolivia vs. Chile at the Hague

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The decision on the lawsuit Bolivia started against Chile at the Hague, in order to oblige the latter to conduct negotiations on a sovereign sea access, has been issued. At three pm, the judges made public their statement whereby they rejected all of Bolivia's arguments. In consequence, there is no obligation for Chile to negotiate as Bolivia has argued.

The statement, which can be found here, outlines all of the proceedings, from start to end. In it, the court lists all of Bolivia's arguments as well as what Bolivia expected from the court, that is:


  1. Chile has the obligation to negotiate with Bolivia in order to reach an agreement granting Bolivia a fully sovereign access to the Pacific Ocean;
  2. Chile has breached the said obligation; and
  3. Chile must perform the said obligation in good faith, promptly, formally, within a reasonable time and effectively, to grant Bolivia a fully sovereign access to the Pacific Ocean.
The statement protocols Chile's expectations as well:
  1. The Republic of Chile respectfully requests the Court to dismiss all of theclaims of the Plurinational State of Bolivia.
An earlier post of mine explains a bit more what was this dispute about. You will find this post here.

This is a major blow for the Morales government, one which he took in person, because he was present during the reading of the verdict.

It is a major blow because Morales in person raised the expectations on a positive outcome. He more or less promised Bolivians the verdict would be positive and Bolivia would get its sea access.

Instead the judges dismiss the arguments and take the Chilean side. More on this later....


Elections: Prediction Polls on Bolivia's Coming General Elections

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This is a collection of election polls published on newspapers on the coming general elections in 2019.

Newspaper: Pagina Siete, Sunday, October 21, 2018
Link: https://www.paginasiete.bo/nacional/2018/10/21/mesa-tiene-33-en-intencion-de-voto-evo-morales-31-197603.html





Entry and Exit Fees for Tourists to Bolivia

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Bolivia has been charging tourists fees for entry and exit in to the country. Many tourists do not know they pay such fees because often such charges are hidden in the ticket prices. Bolivia is not alone charging such tourism fees in the region.


Departure fees

Bolivia charges tourists a 327 Bs fee per person when they leave the country by air. That is equivalent to around 47,40 US$, at current exchange rates. The fee is called Tax on Departures to the Exterior (ISAE, Impuesto a Salidas al Exterior) and was created by article 106 of Law 843. The fee is applicable to any country departure by air, of natural persons residing in or visiting Bolivia, with the exception of government officials, diplomats and their families and members of sport delegations that fulfill activities in official representation of the country. It is stipulated that the charge be included in the price of a ticket. In 2013, the ISAE was valued at 266 Bolivianos; in 2014, at 281 Bolivianos; in 2015, at 296 Bolivianos, and in 2016, at 314 Bolivianos, according to the Bolivian tax authority (Servicio de Impuestos Nacionales), SIN data. The revenues are supposed to go to the implementation of plans, programs and projects to promote Bolivian tourism.


The fee has been deemed by the national airline association (Asociacion de Aaerolineas, ALA), as one of the highest in the region and one which discourages travel to the country. ALA's general manager, Yanela Zárate, highlights the disadvantages by quoting the fees in other neighboring countries. She argues that the same charge in other countries does not exceed 35 US$. For example, in Peru it is 30.25 dollars, in Colombia 33 dollars if the stay is short and if it lasts for more than two months the rate reaches 66 dollars. In Venezuela it reaches 44 dollars. She also illustrates: "For example, a family of four who travels abroad ends up paying almost $ 200 and if a traveler must leave several times, he must pay the tax on each trip". Finally, she added the fee goes directly to the coffers of the General Treasury of the State and does not generate any return for tourism.

Entry fees


Since February 2017, Bolivia has been charging an entry fee of 100 bolivianos (about 14,50 US$ at today's rate) to tourists who enter Bolivian territory by air. The payment of 30 bolivianos (4 dollars) to tourists who arrive by land has been deferred, for operational reasons, until 2019, according to the provisions of the new norm and Deputy Minister of Tourism, Joaquín Rojas. The Law for the Creation of the Fund for Promotion, Promotion and Facilitation of Tourism and Special Contribution will allow financing "the elaboration and implementation of plans, programs and / or projects to promote Bolivia" abroad, he points out.

The tax to tourists arriving by air will be included in the plane ticket, said Rodas, adding that "we have given two years to implement (the charge) in the income by land." Diplomats and staff of foreign organizations, airline crews and children under two years of age are exempt from this payment.

The Government estimates that around 20 million bolivianos per year will be raised, which will be included in the Fund for the Promotion and Promotion of Tourism (FONTUR). The purpose is to finance the development and implementation of tourism plans, programs and projects in the national territory. Official sources assured that the tax will not affect the tourist flow and that the amount is low, compared to that imposed by countries such as Peru or Colombia.



Sources:

http://www.paginasiete.bo/economia/2017/3/8/tributo-salidas-pais-esta-entre-altos-region-129838.html

http://www.paginasiete.bo/economia/2016/12/31/desde-2017-bolivia-aplicara-impuesto-turistas-122248.html



Bolivia's Hydrocarbon Reserves

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This is a document in Spanish, published on the YPFB website, showing Bolivia's hydrocarbon minerals certification. The document is in Spanish and is here to document the process of certification of said minerals.

The important thing is to note the document certifies (the certification was done by an independent firm) that Bolivia has proved a total of 10.7 tcf of natural gas, and a grand total of 14.7 tcf of proved, probable, and posible reserves. The document also shows a total of 240.9 mmbbl, and a grand total of 376.1 mmbbl of oil or petroleum. 

I place the document here to keep a copy of such report available for those who are interested. I know the Bolivian government does have a transparency policy and a law providing for the free access to information.

Clicking on the image will pull a larger image.

I also encourage those who speak Spanish to visit YPFB's website.

Source: YPFB website (https://www.ypfb.gob.bo/es/transparencia/informes-tecnicos/9-ypfb-corporacion/955-cuantificaci%C3%B3n-y-certificaci%C3%B3n-de-reservas-de-hidrocarburos.html)

PS. If I have time I will translate the text. But do not wait for it.

Bolivian Economy: Recent and Future Performance

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Here we are, beginning a new year, just about 1/5 of the new century, and I think is a good time to take a look at Bolivia's economic performance. The simple reason being the golden years the commodity boom seemed to bring Bolivia is just about over. At least, that is what experts are saying. We have now, actually since mid-2018, entered a rather volatile period in the global economy when several fundamental conditions have ceased to be constant. Actually, there are many who argue the global economy is headed towards a recession, one which no one is able to predict how deep will it go. 

Many experts cite as factors for the recession the Brexit and its effects on the EU, the trade war between the US and China, the several armed conflicts going on, the new ones rising in the horizon (Turkey, Kurds and Russia), once again deteriorating relationship between the US and North Korea, the political uncertainty in Latin America, and slowing consumption around the world.

In such an economic environment, countries like Bolivia, dependent on the export of a natural resource, but in the process of making substantial investments in their economies, have uncertain futures.

That is what the IMF has been saying about Bolivia as a result of monitoring the economy as part of its article IV consultations with the Bolivian government.

Basically, IMF experts highlight the better than average economic performance of around 4. something percent per year over the last decade and the fact that the country practically halved its poverty rate, in the same period. The same experts also like to point out that the Bolivian government has been addressing health and education in a positive manner and that its economic policies have been, until now, rather reasonable in order to stimulate growth.

However, the praise stops there and the warnings begin. The IMF experts, who visit Bolivia for some time and talk not only with government officials, but also with industry and business people and academia to, in the end, write an extensive report, warn that if Bolivia does not make changes to its policies to address the twin deficits problem as well as the increasing debt and the crowding-out of the private economy, the country will in a couple of years encounter economic problems.

The experts point to the negative trend of the fiscal and trade deficits, which if they are not addressed, can inflict much distress in the economy. Added to that, the experts argue, if the country keeps on stimulating the economy from the demand side by keeping up the rate of investment in the economy, the level of debt is bound to reach counterproductive levels for the economy. Particularly worrisome is the level of capital goods imports and central bank credits to many state owned enterprises. In similar terms, the experts highlight the central role the government wants to play in the economy, which tends to crowd out private investment in the economy.

The conclusions drawn in the report are not so stimulating. Above all, rises increased levels of economic uncertainty in an uncertain global economic environment and the level of political uncertainty resulting from not knowing whether Mr. Morales will run for re-election in 2019 or will indeed be forced to abstain giving someone else a chance.

The latest IMF report can be found in the IMF's Bolivia page.


Cabinet Renewal 2019

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President Morales renewed his cabinet to face head on the general elections approaching in december.

New Cabinet Swearing - Jan. 2019 - with permission of ABI-Jose Lirauze
The modifications are as follows:

1.- Diego Pary, Relaciones Exteriores (Ministry of External Relations)
2.- Juan Ramón Quintana, Presidencia (Ministry of the Presidency)
3.- Carlos Romero, Gobierno (Ministry of Government)
4.- Héctor Arce, Justicia (Ministry of Justice and Transparency)
5.- Luis Arce Catacora, Economía (Ministry of Economy and Public Finance)
6.- Nélida Sifuentes, Desarrollo Productivo (Ministry of Productive Development and Plural Economy)
7.- Gabriela Montaño, Salud (Ministry of Health)
8.- Manuel Canelas, Comunicación (Ministry of Communication)
9.- Óscar Coca, Obras Públicas (Ministry of Public Works, Services and Housing)
10.- César Cocarico, Desarrollo Rural (Ministry of Rural Development and Land)
11.- Luis Sánchez, Hidrocarburos (Ministry of Hydrocarbons)
12.- Mariana Prado, Planificación (Ministry of Development Planning)
13.- Carlos Ortuño, Medio Ambiente (Ministry of Environment and Water)
14.- Tito Montaño, Deportes (Ministry of Sports)
15.- César Navarro, Minería (Ministry of Mining and Metallurgy)
16.- Javier Zavaleta, Defensa (Ministry of Defense)
18.- Milton Gómez, Trabajo (Ministry of Labor, Employment and Social Security)
19.- Rafael Alarcón, Energías (Ministry of Energies)
20.- Roberto Aguilar, Educación (Ministry of Education)
21.- Wilma Alanoca, Culturas (Ministry of Cultures)


Morales confirmed 13 ministers and changed 7. The ceremony took place in the Casa Grande del Pueblo, in La Paz. The new ministers are Juan Ramón Quintana, Minister of the Presidency; Luis Arce, Minister of Economy and Public Finance; Nélida Sinfuentes, Minister of Productive Development and Plural Economy; Óscar Coca, Minister of Public Works, Services and Housing; Miltón Gómez, Minister of Labor, Employment and Social Security; Gabriela Montaño, Minister of Health; and Manuel Canelas, Minister of Communication.

He ratified Diego Pary, Minister of Foreign Affairs; Carlos Romero, Minister of Government; Javier Zavaleta, Minister of Defense; Luis Alberto Sánchez, Minister of Hydrocarbons; Mariana Prado, Minister of Development Planning; Rafael Alarcón, Minister of Energy; César Navarro, Minister of Mining and Metallurgy; Héctor Arce, Minister of Justice and Transparency; Carlos Ortuño, Minister of Environment and Water; Roberto Aguilar, Minister of Education; César Cocarico, Minister of Rural Development and Land; Wilma Alanoca, minister of Cultures; and Tito Montaño, Minister of Sports.

Quintana, Arce and Coca return to the Cabinet.

Sources:

https://erbol.com.bo/noticia/politica/23012019/evo_cambia_7_ministros_vuelven_quintana_y_arce

https://www.eldeber.com.bo/bolivia/Evo-hace-siete-cambios-en-el-Gabinete-encarga-gestion-y-accion-politica-20190123-7212.html

https://www.eldeber.com.bo/bolivia/Quien-es-quien-dentro-del-nuevo-gabinete-de-Evo-20190123-7213.html

https://www.boliviaentusmanos.com/noticias/bolivia/326950/evo-hace-siete-cambios-de-ministros-cuatro-regresan-y-tres-son-nuevos.html





Bolivian Economy: A Closer Look at Bolivian Trade for 2017 and 2018

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I want to follow my most recent post on the IMF's, less than encouraging, assessment of the Bolivian economy in 2018, which warned about the twin deficits problem the country has been experiencing, with another post taking a more detailed look at the country's trade sector. The expectation on the country's economic performance is ambiguous at best. Not only because the optimal level of natural gas international prices for the country has not been reached, but because the unsettling trends the IMF's report mentions have been continuing their downward path. Many questions arise of course out of this situation. The most pressing ones are: 1) how did Bolivia get in this situation? 2) what is to come? However, this post leaves the most pressing question aside for a moment to address the question as to how does the trade deficit look like and why does it look the way it does. The aim is to give a clearer picture about what types of products Bolivia sells and what products it buys and to shed light on the country's trade partners.

The Trade Deficit

Source: IBCE (based on INE data)


The data used in this post is from the Bolivian Institute for Foreign Trade (Instituto Boliviano de Comercio Exterior or IBCE), which regularly publishes in the form of simplified graphs the raw data produced by the Bolivian Statistical Institute (Instituto Nacional de Estadistica or INE).


To start of, the data shows a deficit for the years 2017 and 2018 of 970 and 936 millions of USD, respectively. Many observers and experts have been mainly explaining this negative trend, a trend manifesting itself since 2014 or 2015, through the highs and lows in the international natural resources prices, especially that of oil and particularly natural gas, of which the Bolivian economy is highly dependent. That is of course, a simplistic, yet mostly accurate explanation, if we take into account of the fact that the export of natural gas accounts for around 34% of the total export value. The picture becomes even more illustrative if we take into account the export of minerals (another type of natural resources or commodities). The latter account for around 29% of total export value. In essence, if we add the two major Bolivian export products, we arrive at a significant 63% of total export value. That would mean that 63% of the total value Bolivia exports is generated by the selling of natural gas and minerals.

Furthermore, an interesting detail that further points to the commodities price fluctuation explanation is the following. If we consider the data for the two years in question, 2017 and 2018, it shows a marginal increase in exports from 8.3 to 9.0 bn. USD, and for imports, from 9.3 to 9.99 bn. USD. While this parallel increase in the volume of imports and exports might suggest improvement in economic conditions, i.e. that Bolivia is selling and buying more, the real reason behind it is the recent improvement in the international prices of minerals and natural gas. The rise in value from one year to the other and the, at the same time, persistent trade deficit condition underline the economy's dependency on natural gas and therefore, on its international price.

Trade Partners

IBCE's data presents a list of countries with which Bolivia exchanges goods. That gives us a good idea with which countries Bolivia engages in trade and what type of goods is the country buying. Of all the countries conducting business with Bolivia, Brazil and Argentina remain the most important. The simple explanation for this is the fact that the two countries buy Bolivian gas. At the same time, a further look at the list reveals the importance of Asian countries, and in particular of China. For 2017 and 2018, the most important countries buying Bolivian goods include Brazil, Argentina and India, which together represent a significant portion of total buys, above 40%. Brazil and Argentina buy primarily natural gas, followed by gasoline and alcohol but also silver, aluminum, and derivatives of sodium, antimon, barium, as well as Brazil nuts, beans, mais, oregano, bananas, heart of palm, pineapple, and wood. India, instead, having only recently become a relevant partner, mainly has bought gold.

The types of exports reveal that aside from the importance of the hydrocarbons and mining sectors, the agricultural sector contributes significantly to the economy. In addition to exporting natural resources and agricultural products, Bolivia tries to export value-added products, such as packaged foods, processed derivative oil and gas products.

The list of countries from which Bolivia has bought more goods include China, Brazil and Argentina. These countries account approximately for almost 50% of the total bought goods. According to the data provided by IBCE, China sells machinery, buses, motorcycles, tires, trucks, pesticides, mobile telephones, cars, and other communication gadgets. Brazil and Argentina, in turn, sell Bolivia diesel, iron, machinery, buses, cars, shoes, plastic products, flour, malt, barley, fish and canned food. Other significant partners are: The US, which buys tin, silver, gold, jewelry, precious stones, Brazil nuts, quinoa, some petroleum-based oils, and sells perforation machinery, turbines, lubricants, diesel, cars, small airplanes, and machine parts; and South Korea, which buys zinc, silver, copper, plumb, aluminum, wood, coffee and Brazil nuts.

From the import side, we learn that while Brazil and Argentina remain the two most important trading partners, China has become even more relevant that the traditional partner, the US. From China, Bolivia buys capital goods, electronics and other products for the agriculture sector. A bit further down the list is South Korea, which buys mainly minerals and Brazil nuts.

From this data we see that Bolivia is still depending on the export of natural gas and minerals. However, we can also see the increase in importance of the agricultural sector and lagging behind the productive sector, exporting value-added products. 

Sources:

http://ibce.org.bo/images/ibcecifras_documentos/CIFRAS-760-Comercio-Exterior-Bolivia-Diciembre-2018.pdf

http://ibce.org.bo/images/publicaciones/ce-259-Cifras-del-Comercio-Exterior-Boliviano-2017.pdf

http://ibce.org.bo/images/ibcecifras_documentos/CIFRAS-634-India-Relacion-Comercial-Bolivia.pdf






Bolivian Economy: A Look at the International Reserves

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In the last few months, I have been placing quite a bit of attention on the Bolivian economy, as you can see in my recent posts. The main reason for this attention is because Bolivia has had an economic model which has attracted international attention simply because it is a country that has defined itself as socialist. The caveat is, as experience (and history) tells us, socialist economies are not the best example for growth and developed economies. However, Bolivia's economy has been developing at a decent rate, compared to its peers. That seeming contradiction prompts casual observers to ask themselves, how can that be?

Indeed, Bolivia has some good statistics to present, as the IMF shows. For one, it has managed to reduce extreme poverty, inflation has been basically a non-issue, it has until a couple of years ago, fiscal and trade surpluses and it has been a leading economy in the region in terms of growth.

So, how has Bolivia managed to do that?

Above all, to answer that question it is important to know that Bolivia's economy is significantly dependent on the export of natural gas, mostly to Brazil and Argentina. From the total gas exported to both countries, between 52 and 53 percent has gone to Brazil in 2017 and 2018, while between 47 and 48 percent has gone to Argentina in the same periods. In dollar terms that would mean a grand total of around 4.9 billion dollars. In terms of total exports, the IBCE reports the numbers for 2017, which show a dependency of between 29 and 34 percent of gas exports and another similar percentage for the exports of minerals. These numbers I cite are estimates because there is a wide array of numbers available, either from the Bolivian government or the international organizations. In short, they are different!




Another way of showing this dependency and not having to rely on the government statistics is by comparing the evolution of the country's GDP by annual growth in percentage terms for the last ten years and the trend in international oil prices in the same period. The figure above shows, the tendency of the Bolivian economy to follow the development of international oil prices, as the price of natural gas is for practical purposes referenced with the price of oil. As the price of oil rises, the price of Bolivian natural gas also rises, the economy receives more financial assets (dollars) and improves its performance. The effect is a faster pace on economic growth. That looks very telling!

Along the decade, that evolution has resulted in the accumulation of international reserves, which has been very positive for the economy. That brings us to a second factor which offers a further answer to the question.

Bolivia's international reserves has motivated praise due to the levels it has reached in the past, about 40 percent of GDP in 2015, and the resulting associations with sizable reserves, namely that of a solvent country with a high quote of savings (if you will). However, in the last year or so, the praise has turned into careful attention, not in an alarming way, but a healthy concern.

The concern has been with the decreasing trend (see below image), which if continued will mean uncertain economic times for the country. But, let us look at this issue with a bit more care.

International reserves vs. foreign exchange reserves

IMF, Article IV 2018 Bolivia


Experts distinguish at least two types of reserves. International reserves includes the amount of foreign 'liquid' assets that a country has at a given time. Normally, when talking about international reserves we are talking about not just foreign currency, but other types of assets such as SDRs (special drawing rights), gold, liquid government securities, and foreign deposits. The actual composition may vary by country, however what I list here is the norm. For its part, foreign exchange reserves are those assets kept to sustain the exchange of national currency for foreign currency.

Now I think, or better yet, it seems to me, Bolivia seems to conflate both terms, calling it Reservas Internacionales Netas (RIN) or Net International Reserves. In it, the central bank includes its holdings of US, Canadian and Australian Dollars, Euro, Renminbi, gold, SDRs and other government securities denominated in US dollars.

But the most important issue here is the trend, actually the decreasing trend, the reserves have been taking since some time. The Bolivian central bank reports for 2018 a total of USD 1,8 billion, that is down from USD 10.2 bn in 2017 and from a high of USD 15.1 bn in 2014. Now, if we look at the image above, which is taken from the IMF's Article IV report on Bolivia for 2018, we can see that Bolivian foreign reserves have been steadily decreasing between 2015 to 2018, and the image further shows projections for 2019 and 2020 are even lower.

What are reserves good for?

International reserves play different roles in different parts of the economy. For instance, countries use their foreign exchange reserves to keep the value of their currencies at a fixed rate. A critical function is to maintain liquidity in case of an economic crisis. For example, to supply foreign currency to pay for imports or when foreign investors or traders withdraw their deposits. Another reason is to provide confidence. The central bank supplies foreign currency to keep markets steady. It also buys the local currency to support its value and prevent inflation. Additionally, keeping reserves are always needed to make sure a country will meet its external obligations. Finally, some countries use their reserves to finance development (industry, infrastructure, etc.)

Adequacy

This down trend throws some questions, namely, what is going to happen if it keeps going down? and more importantly, what is an adequate level of international reserves?

Because the first question's answer is obvious, we jump directly to the second one. The fact that the reserves go down does not necessarily mean the economy is in trouble. In fact, experts on the issue have more or less two rules of thumb to determine the level of adequacy for the international reserves. One rule of thumb says, a country is still in good condition if it has around the equivalent of three months of imports in its reserves. The other rule of thumb says that a country is equally in good condition if it has enough reserves to cover all short term debt obligations to the end of the fiscal year. A third rule of thumbs, albeit not widely used, was to keep the level of reserves to a 10 per cent of GDP.

Bolivia has been maintaining, by international "standards", a good level of international reserves. In terms of GDP, which is what the central bank reports, the country has 22 per cent. That places Bolivia among the first countries in South America. However, when we look at the IMF's estimates, we realize that Bolivia is still in somewhat good situation, but the prospects are not good. While the level of reserves 2018 is estimated to be 21 percent of GDP and 7 months worth of imports, the estimations for the following years, 2019 and 2020 are significantly lower, namely 18 percent and 6.9 months and 16 percent and 6 months respectively.

What is the problem?

The concrete problem with Bolivia's particular situation, being addressed by concerned experts at the national and international levels, has to do with the down trend and the probable difficulties this trend might bring for the country's currency. For this we need to keep in mind what the international reserves are for.

Bolivia has been pegging the value of its currency (the Boliviano or BOB) to the USD. The concern here is, if the down trend in international reserves continues, there will come a time when foreign investors and creditors will ask themselves if Bolivia is still able to keep the value of the BOB pegged to the USD. The reason, because in the international markets, the value of the dollar goes up and down, as does therefore the value of the BOB. To keep the value fixed, the central bank has to (as required) buy or sell currency. If the central bank is forced by the market to defend the BOB, and it some time runs out of reserves... Then there is trouble!

A Bloomberg analyst puts it this way:
A currency plunge is an especially frightening prospect because of Bolivia’s increasing external debt. Though Bolivia hasn’t yet borrowed nearly as much from other countries as it did in the 1980s (relative to the size of its economy), the amount that Bolivia’s government owes in foreign currencies has approximately quintupled since 2007. The country’s total external debt has gone up by about 30 percent.
Bolivia might not have the money to pay its debt in the future if the reserves are further depleted. That would be the second problem threatening Bolivia.

The only thing that can help Bolivia regain some stability is a rise in the price of commodities, that is a rise in the price of natural gas. That would bring fresh new currency into the foreign reserves pot and can increase the cushion the country has to weather coming crises.


Sources:

http://www.datos-bo.com/Economia-a-Finanzas/Analisis/Analistas-Baja-de-las-Reservas-puede-afectar-el-tipo-de-cambio

https://www.thebalance.com/foreign-exchange-reserves-3306258




The Current Administration's Latin America Policy

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The latest statement by VP Pence clears up a bit the approach the current administration has adopted on Latin America. The statement was given at the 49th Washington Conference on the Americas, on May 7th, 2019. The conference was held at the State Department.

In this speech, Pence briefly mentions a couple of policy actions, to later enter at length on the Venezuelan issue. If we guide ourselves by this speech, we confirm our suspicion that Venezuela has replaced Cuba as the most important issue on Latin American policy and it will be for some time to come.

In this post, I would like to comment on the other couple of actions Pence mentioned. That is not to say Venezuela is not important, because it is a humanitarian emergency, but because we know much more about it than we know about the other actions. In prior posts I have talked about the meaning of a Trump administration for Latin America and the US's approach to the region.

Pence said:
"Under the BUILD Act, we’ve pledged up to $60 billion in development financing to help our partners build the infrastructure they need to grow. We’ve expanded access to affordable, American-made energy through our Americas Crece initiative. We’ve promoted free, fair, and reciprocal trade, forging a new trade deal, like the United States–Mexico–Canada Agreement."
Mike Pence, The 49th Washington Conference on the Americas, May 7th, 2019, Washington, DC.

The BUILD Act

The BUILD Act or the Better Utilization of Investment Leading to Development Act is a law passed on October 2018 to basically restructure the US development aid institutional structure. The bill creates a new development aid entity called United States International Development Financial Corporation or USIDFC. Through this new entity, the aim of the bill is to "mobilize and facilitate the participation of private sector capital and skills in the economic development of less developed countries, as described in subsection (c), and countries in transition from nonmarket to market economies, in order to complement the development assistance objectives, and advance the foreign policy interests, of the United States (Title I, Section 102b)."


What does this bill do, you can read in more detail in this article from CSIS.

The America Crece Initiative

This initiative was first introduced by Undersecretary David Malpass in a speech at the CSIS on February 2, 2018. In his speech, Malpass defined 11 points by which this initiative would develop and what the aims of it were. The initiative was defined as: "The initiative increases trade and investment in energy and infrastructure, expand private investment flows, and develop deeper regional capital markets. We want to encourage a return to democracy in Venezuela, help increase transparency and combat corruption to improve the business environment, and support the Northern Triangle’s efforts to address economic and security challenges and stem the impetus for illegal immigration. Working with the region, we aspire to greater economic opportunity, higher median incomes, and a strong respect for the rule of law."

You can read the entire text in this PDF link.

It is basically seen by observers as the US taking the opportunity to tackle many issues with one shot, among them, dealing with Maduro, replacing Venezuela as the supplier of energy, exporting American natural gas, investing in infrastructure, gaining ground in regional influence, displacing China, development aid, economic growth, business development, reducing unemployment in the US, creating more employment in US and other countries, etc.

The United States - Mexico - Canada Agreement

Wikipedia defines this agreement as: the agreement between the United States of America, the United Mexican States, and Canada is a signed but not ratified free trade agreement between Canada, Mexico, and the United States. The agreement is sometimes referred to as "New NAFTA" in reference to the previous trilateral agreement it is meant to supersede, the North American Free Trade Agreement (NAFTA).

Compared to NAFTA, USMCA increases environmental and labor regulations, and incentivize more domestic production of cars and trucks. The agreement also provides updated intellectual property protections, gives the United States more access to Canada's dairy market, imposes a quota for Canadian and Mexican automotive production, and increases the duty-free limit for Canadians who buy U.S. goods online from $20 to $150.

The agreement has an own website and you can read the text here.

Fight Against Illegal Drugs

This is a long-standing and very controversial issue which by now it involves other regions such as Europe. The Trump administration wants to keep its efforts, especially in Colombia.

Strengthening Democracy

Strengthening democracy has also been a long-standing piece of policy towards the Latin American region, one that has bared fruits but has also had its own failures.

Aid to Venezuelan Asylum Seekers in Colombia and Brazil

The US is currently spending a lot of money to help the many Venezuelan asylum seekers in Colombia and Brazil. It has also deployed food and medicines and placed them along the Venezuelan border.

I also found another source at the State Department's website that outlined additional pieces of policy. This was a speech given by Kimberly Breier, Assistant Secretary, Bureau of Western Hemisphere Affairs at the 2019 Concordia Americas Summit Bogota, Colombia on May 13, 2019. Her speech carried the title: “A New Era in the Americas”. In addition to the above policies, it mentioned three more:

100,000 Strong in the Americas

The 100,000 Strong in the Americas Innovation Fund is the public-private sector collaboration between the U.S. Department of State, U.S. Embassies, Partners of the Americas, NAFSA, corporations, and foundations working together to stimulate new higher education partnerships between the United States and the rest of the Western Hemisphere.

Young Leaders of the Americas initiatives

"The Young Leaders of the Americas Initiative (YLAI) builds linkages between young leaders across the hemisphere. YLAI addresses the opportunity gap for youth, especially women, by empowering business and social entrepreneurs with the training, tools, networks and resources they need to transform their societies and contribute more fully to economic development and prosperity, security, human rights and good governance in the hemisphere."


You can find the initiative's website here.


Americas and Women’s Global Development and Prosperity Initiative.

Promote an enabling environment that increases women’s economic empowerment by reducing barriers and enhancing protections in policies, laws, regulations and practices (public and private) to facilitate women’s participation in the economy.


The Unified Bolivian Health Care System or SUS

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The SUS or Unified Health System bill was passed on February 20, 2019. It is supposed to provide free health services to a population of 7,225,000 people. However, the bill was born against a fierce opposition of a wide range of medial professionals and practicians, who saw the bill did not fund it properly. They argued the system did not have enough material, medicines and technology to deal with the increase in care. They only saw the bill as the government's intention to solidify its electoral support, ignoring the warnings of medical professionals.

Law 475 can be seen here.

Coverage of the Unified Health System

According to the data available to 2017, the population affiliated with the other health schemes or Short Term Social Security reached 4,235,000, while the population not protected reached 7,225,000. This is the universe of beneficiaries the Unified Health System is supposed to cover. They are to receive comprehensive health care, free of charge.

The potential universe of beneficiaries, includes 2,966,000 people divided among the functioning public insurance schemes: the Maternal and Child Insurance (SUMI), the Health Insurance for the Elderly (SPPAM) - both integrated in the Integral Health System and Universal Health Insurance of Tarija (SUSAT). This implies that the population not protected reaches around 37% of the Bolivian population. It should be understood that the SUS is designed to provide all the necessary medical services, although progressively.


Financing

The SUS bill is to be financed in part by the national treasury or TGN.  The government will finance the third and fourth levels of health care in the Bolivian system and will cover the medical personnel and will guarantee the fuctioning of the services. For the first and second levels, which function at the more local level, the bill provides the financing through the municipal and indigenous governments. This will be with 15.5% of the Co-Participation or the IDH tax and, if need be, they will allocate a higher percentage.

Outstanding debts

It is surprising that the creation of the SUS is happening when the system already has difficulties to guarantee the benefits of SUMI and SSPAM. The expansion of the system to cover people with disabilities, without the corresponding financing has already created bottlenecks in hospitals and health centers, for resources not transferred to their administration and for outstanding debts. It is known, for example, that the debts to the General Hospital in La Paz and to the San Juan de Dios Hospital in Santa Cruz amount to more than one hundred million Bolivianos. In addition, in the department of Santa Cruz there is a deficit in the municipal accounts that, for the year 2017, reached 81 million Bolivianos. In fact it has been demonstrated that the resources that the municipal governments allocate for the care of pregnant women, children, the elderly and the disabled is insufficient.

The cost of a universal system

There are three sources of financing: Short Term Social Security, the Government and what is known as "out-of-pocket expenses", which people make, both in private services and in public services. Employers contribute 10% of the workers' salaries; while retirees contribute 3% of their pensions. These two contributions are equivalent to 1.9% of GDP. The population, on the other hand, has an out-of-pocket expense equal to 1.8% of GDP. Thus, the sum of the contributions of workers, retirees and out-of-pocket expenses, amount to 3.7% of GDP. This is a percentage higher than the contribution of the public sector, equivalent to 2.4% of GDP. The total public and private spending is estimated at 2,472 million dollars, which is equal to 6.1% of GDP.

The cost of Social Security benefits has an estimated cost of US$ 400 per person. Taking this value as a reference, and applying it for a population of 4,259,000 (the number of people that would join the SUS), an estimated expenditure of US$ 1,703 million per year is obtained for the provision of benefits.

Given that current health spending equals 6.1% of GDP, the expanded coverage of a universal system would lead to an increase in health spending of 4.2% of GDP.

More doctors and nurses


The number of physicians per thousand people in Bolivia is a quarter of the average number of doctors in Latin America. The indicator of the number of doctors in the country, which is included in the Sectorial Health Development Plan of the Ministry 2016/2020 differs from the international figure, but is still insufficient.

The ratio of doctors per 1,000 people defines the capacity of the medical resource for the care of outpatient services and hospitalization. According to the Health Development Plan, the indicator in Bolivia (as of 2015) reaches 0.8 doctors per thousand inhabitants; this is less than the three doctors per thousand established by the international indicator of PAHO. With these data, the SUS would be born with a deficit of more than 15,000 doctors.

The International Technical Indicator also establishes that three nurses are required for each doctor, and one Nursing Assistant for every 4 doctors. Therefore, it would be necessary to hire 5,000 nurses and 3,750 additional nursing assistants.

A study by the Medical College of Santa Cruz has estimated a requirement of 26,453 new jobs for the 49 new hospitals -consigned in a government construction plan-, and a budget of 276 million dollars per year, which, by the way, does not foresee the SUS draft law.


Problems and questions

The ambitious objective of the law contrasts, on the one hand, with the ambiguity and gaps in the legal text, which leaves in the shadows critical questions: what specific benefits will the SUS provide its insured members? What is the budget that demands a system so widespread in its population coverage ?, where does the sufficient financing come from, that ensures its effectiveness and sustainability? On the other hand, the contrast is evident with the current deplorable state of the public health system and its deficient budget, human resources, hospital infrastructure, equipment, medication and managerial management.



Elections 2019: First Election Polls

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The first urban-rural poll of this year gives President Morales 38.1% advantage on the intention vote. That means 11 points above Carlos Mesa, who with 27.1% is second in this election race. Third place is made up with people who do not want to respond or do not know yet with 16.2%.

The presidential candidate of the Bolivia Dice No (21F) alliance, Óscar Ortiz, is on fourth place with 8.7%, while the candidate for Civic Solidarity Union (UCS), Víctor Hugo Cárdenas, is in fifth place with 3.6%.

The list continues with former president Jaime Paz Zamora on sixth place (2.8%) for the Christian Democratic Party (PDC). The last place is held by the businessman Virginio Lema, of the Nationalist Revolutionary Movement (MNR), who obtained only 1.9%.

More details, with images are found in this link.

Bolivian Trade 2018

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Although the general elections in October 20th would have to classify as 'the' event for Bolivia in 2019, the major issue capturing the attention of most people currently is the economy. Perhaps because the elections outcome is already known? Who knows!

In all seriousness, the economy has began giving not so encouraging signals, and not only at the micro level, but also at the macro level. The IMF takes, in its latest review of the Bolivian economy, aside from its continued praise for the economy's pace of growth, a cautious tone pointing at the main potential problems, i.e. the twin deficits and the increasing debt. In fact, the IMF stopped short of cautioning the country of the consequences to instead focusing on suggesting measures aimed at permeating the country's authorities approach. In other words, directness not yet necessary.



This post will take a look at trade for 2018. The data here considered comes from the Bolivian Institute of Foreign Trade (Instituto Boliviano de Comercio Exterior or IBCE). As usual, I praise the work of this institute for publishing this data for the general public.

The situation for 2018 is somewhat serious. From the graphs above, 2018 would be the fourth consecutive year where the imports outweigh the exports. This means of course Bolivia has been running a trade deficit, expressed in millions of dollars, since 2015. However, the most unsettling thing is the deficit's upward trend rather than the deficit itself. While an economy normally would be able to weather temporary imbalances, the moment a trend becomes part of the picture is normally perceived as a cautionary development that merits attention.

For Bolivia, this downward trend has been largely accredited to the unfavorable international natural gas prices, of which Bolivia is to a significant extent dependent.



The rationale is as follows: the lower the international natural gas price, the less currency Bolivia receives from this sell, this is reflected in the total amount of exports expressed in millions of dollars. The two graphs above provide some evidence for this. The first pie graph above shows Bolivian exports classified according to sectors such as agriculture, natural gas exports (Bolivian call this sector Hydrocarbons sector), minerals and manufactures. The pie pieces represent the percentage of exports per sector. Therefore, if you want to separate natural resources exports (for Bolivia natural gas and minerals) you would see that from all exports, the natural resources part represents around 61 percent. That is a significant part of total exports and as such it is bound to have an impact on the expression of total exports.

The second pie reinforces the prior idea and takes a simpler approach and classifies exports in two categories, traditional and non traditional products. This categorization I have seen mainly in Spanish literature and it denotes, on the one side, products which have not gone under value added transformation, the traditional products, and on the other side, those products which have been transformed in some form. In Bolivia's case, traditional products would be natural gas, minerals and other products basically exported in unprocessed form (soy paste, for example). This image shows a much larger proportion of traditional products (79 percent) being exported. This would mean the Bolivian economy is largely dependent on the export of traditional exports, i.e. raw materials or natural resources.

Bolivia's trade relationships

But can we put a bit more flesh on this argument? It might be possible if we get a bit more detailed on trade. It gets interesting when we start looking at Bolivia's trade relationship with the countries it exchanges the most. For this little exercise we will exclude Brazil and Argentina because these two countries are the recipients of all of the natural gas exports.

When we leave natural gas out, India, Japan and South Korea currently are the most important trade partners of Bolivia. According the the IBCE, India buys gold, wood, leather, beans, aluminium, Brazil nuts and chia. Japan bought for its part, zinc, silver, lead, tin, sesam, coffee, sugar, quinoa, Brazil nuts and wood. While South Korea bought zinc, silver, lead, pure alcohol, copper remnants, tungsten, wolfram, aluminium, coffee, and Brazil nuts.

Taking into account only the so called non-traditional exports shows Bolivia exports mostly products that have not been significantly transformed or with little value added. Most gold is exported in its raw form, and so is leather, wood and aluminium. Even coffee and Brazil nuts are sent in basically raw form. The only products that have some type of value added are tin and silver and sugar, quinoa, alcohol and chia.

In terms of imports, Bolivia has been importing a lot of capital goods. This has meant of course a larger value in terms of currency exchange. When we talk about trade partners, China has taken the first place to be followed by Brazil, Argentina, Peru and the US. Bolivia has imported from China turbines, buses, motorcycles, mobile telephones, pesticides, rubber tires, etc. From Brazil, Argentina and Peru, Bolivia has bought turbines, plastic, buses, shoes, paper (Brazil), diesel, flower, smaller cars, gasoline, pesticides, some fish and barley (Argentina), as well as cement, pampers, iron bars, derivative oil products, and other comestibles (Peru).

What about the former significant trade partnership with the USA and also with the EU?

If we remember past reviews of Bolivian trade, the USA showed up in the first places among the most important trade partners of Bolivia. This picture is undergoing a change where other countries are replacing the USA as important trade partners. Also, the EU has not been really in the first places and the tendency is it will remain a distant trade partner. But, let us take a closer look at these two partnerships.



Bolivia has been running trade deficits with the USA and the EU. The deficit with the EU extends for 8 years, since 2012, and the deficit with the USA has been running for the last three years, since 2017. Above all, the deficit with the US has been significant because the USA has traditionally been one of the most important trade partners, however, since Morales took office and the USA lost interest in the country, trade between the two countries has been dwindling. As for the EU, trade has not been very significant in terms of volume or value, but the significance is more political and diplomatic.

Nevertheless, the deficits with these two trade partners has some explanations. One explanation is, because the Bolivian government has been investing in infrastructure, such as energy producing plants (Bolivia has said it wants to become a major energy exporter in the region) and trying to diversify the economy by starting some industrial ventures such as factories or refineries, it has obviously needed capital goods. These capital goods cost much more and as such they are reflected in the trade accounts.

The USA and the EU are major suppliers of capital goods. Bolivia has been buying gasoline, turbines, lubricants, compressors, transport vehicles from the USA and vapor and gas turbines, parts, tractors, industrial ovens, prefabricated constructions, transport vehicles and cable cars as well as paper for money from the EU.null the same time, Bolivia has exported minerals such as zinc, tin, silver, lead, Brazil nuts, quinoa, chia and some refined alcohol as well as some oils derivate from petroleum to the USA.


What does it all mean?

This short post should contribute to the explanation of why the Bolivian economy has been having trade deficits. As said earlier, deficits are not per se bad, but the problems begin when a downward trend establishes over several years. The volume and value of trade can be an explanation for that downward trend, but we shall not forget other potential factors that also may contribute to this trend.



Prospects for Bolivian Economic Growth, or not?

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On July 31 of this year, opposition Senator Oscar Ortiz (Democratas) made a public statement where he presented a report drafted by him with the help of a consulting company which placed in doubt the amount of proven natural gas reserves the Bolivian government said the country had. The government had, in December last year, published a document summarizing the volume of gas reserves to December 2017, which were 10.7 tcf. I wrote a post about it here.

Senator Ortiz alleges the consulting company that certified the amount of reserves for the Bolivian government, Sproule, had made a number of technical and methodological mistakes in the certification process, which resulted on an overestimation of such reserves. Among other things, which you can read from the document (in Spanish), Ortiz alleges the company had failed to take into account the flooding that occurs in the exploitation of mines such as the Bolivian ones, which would diminish the volume of gas and the use of statistical techniques which tend to overestimate the results, which again would deliver wrong results. In the end, Ortiz's report reduces the total volume of proven reserves from 10.7 to 5.05 tcf.

As you can imagine, this has larger repercussions not only for the Bolivian economy, but also for the political situation taking into account that on October this year there will be general elections, when the executive and the legislative are up for election.

However, leaving aside for a moment the political implications, and instead considering the fact that Bolivia is still dependent on the export of natural gas, though not as much as before, important consideration arise as to the economic development of the country. After all, if we consider the country is to face the probability of having less natural gas to export and looking at the current weaker economic environment, one has to wonder whether the concerns (here, here and here) about the Bolivian economy will become more serious.

There would be two things to consider here. One, is to wonder what is going on with the natural gas exports. These are the most important exports for Bolivia. The other one, is to take a look at the other important export sector which is the mining sector or better said, the export of minerals. After all, these two sectors make up to 79 per cent of the total exports.

Source: IBCE Report on Exports, August 2019

The Bolivian Institute of Foreign Trade (IBCE, in Spanish Instituto Bolivian de Comercio Exterior) publishes regularly reports on Bolivian trade. The above figure shows, in Spanish, Bolivian exports by groups of products and compares the periods january to june 2018 and 2019 and the units are in kilograms and US Dollars. The groups depicted are gas and other hydrocarbon products and minerals.

The Gas Sector

The IBCE's latest number on exports give again something to think about. Their report (btw, they use data from the Bolivian statistical institute, INE) highlights a y-o-y 30 per cent decline in the volume and a 16 per cent decline in the value of natural gas exports from the first half of 2018 to that of 2019.

These numbers do not only show the decline in the international price of natural gas, which I suggested was the main reason for Bolivia's economic weakening on my other posts about this topic, but also a decline in the exported volume. The latter shows the Bolivian economy is in fact exporting less. Two interpretations are then possible. The first one is of course Brazil and Argentina, the two countries buying Bolivian gas have reduced their demand for gas. One problem for this version, is that the volumes to be exported are set in contracts and are very difficult to change. Of course, in the Latin American context the fact that conditions are set in black and white is no barrier, nevertheless, under normal conditions, such contracts are normally held. The other possibility would be to think the Bolivian government cannot satisfy the demand because simply it is running out of gas. This in fact is the argument some experts are making and is as well what Senator Ortiz is implying with his report.

The Mining Sector

Source: Trading Economics and Tradingview

Looking at the export of minerals the numbers show another decline, this time in the export of the second most important sector of the Bolivian economy. We are talking here about the export of zinc, tin, lead, silver and gold. This decline y-o-y is of 11 per cent in terms of volume of mineral exported and of 3 per cent in terms of value, for the same periods in 2018 and 2019.

Again, these declines show the developments in the international prices and the volume exported. However, the situation is a bit different in this sector. It seems here the negative development of international prices, especially of zinc, tin and lead is the major factor influencing this negative trend. From the three charts above you can clearly see the decline in the prices, which points to an increase in supply or decrease in demand, because we are talking about international markets here. This explanation is plausible because China has been buying less raw material, due to the slowdown in global economic growth and its trade war with the US. At the same time, as far as I know, there are more of these metals in the market because more mines have been opened, I think in Australia.

In addition, the reason why the decline has been smaller is due to the positive environment around gold and silver. Gold has been gaining new heights due to the same global economic problems because it is usually sought as a safe heaven when other things are not looking well. In the case of silver, it seems that this metal follows gold.

Implications for Bolivia

The implications for Bolivia are not so rosy. It seems the country is running out of natural gas to export, although the government and the certifying company deny the allegations of Senator Ortiz. As a result, the plans for the future are still on track and the government seems to be desperately looking for new gas fields.

As far as the developments on the metals markets, the government seems to be a taker. It seems the strategy is to sit back and wait for better times.

What the government is doing is trying to start other industries such as cement, paper, and other products, however none of these attempts is turning profits yet.

What has been promising is what the government calls the evaporation extraction sector or the extraction of lithium and the production of derivative products such as urea. These efforts have lots of promises and is drawing many interested parties such as China and Germany. In fact Germany won a bid to build the first lithium production plant. Before that a Chinese company had started a pilot project to see if it was possible to produce lithium in the Salar de Uyuni.




Elections 2019: Candidates, Political Organizations and Polls

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Here is a look at the players taking part in this year's general elections. I will present here the candidates and the political organizations.

As a brief reminder, the Bolivian political party system is dominated today, in this plurinational era, not by political parties, as understood in the western sense, but by political organizations. This is a more general term including formal political parties as well as alliances, citizens groups, social movements and other groupings with the intention to take part in elections with candidates.

There is a historical background for this. Briefly explained, it has to do with a law passed in the 1990s allowing other types of political organizations to take part in elections. It also has to do with the political events leading up to the rising of Evo Morales and the MAS, when the population lost trust on what Bolivians know today as the traditional political parties. Since then, many politicians have had to reinvent themselves and in order to gather political strength, they have had to forge alliances amongst the various interest groups in Bolivian society.

Having said that, I am presenting in the following table a list of all the registered and officially listed candidates to the offices of president and vice-president, along with their respective political organizations.
Source: Miguel A. Buitrago based on Organo Electoral Plurinacional data
In the list of political organizations, the only traditional political party left is the MNR, and perhaps the UCS and the PDC, which have played a much less significant role in Bolivian politics as the MNR. That much is for sure. The rest of the organizations are either conceived as social movements or alliances. Among the alliances we can count Comunidad Ciudadana (Citizen Commune), which is led by former president Carlos Mesa and may present the most danger for Morales and the MAS' dominance yet. Other alliances are Bolivia Dice No, which emerged from the protests against Morales running again for the presidency. Carlos Ortiz, Senator and its leader, has not been able to gather enough strength to date. The last two alliance groups to mention in this list are Partido de Accion Nacional Boliviano (PAN-Bol, Bolivian National Action Party) and Frente para la Victoria (Victory Front), which virtually do not have any hope to play a role in the coming elections. The leaders in these two groups are also virtual unknowns at the national level.

I guess I do not need to say much about the MAS.

Polls and Voter Preferences
Source: Miguel A. Buitrago based on Organo Electoral Plurinacional data

The graph above gives us the average support for the most relevant candidates in this electoral period, from July to October 2019. This is the average of all the polls published in the electoral agency. It is my calculation and should be taken as informative only.

Below, I have made another graph that shows all the polls yet published, once again, from July to October 2019. These polls can be viewed in the electoral agency's website. Also, these are, as any poll, a moment picture at the time of interview, hence subject to change as the political process reaches its apex.
Source: Miguel A. Buitrago based on Organo Electoral Plurinacional data

As you can see, Evo Morales has a comfortable lead over the second in the list, Carlos Mesa. A third distant candidate is Oscar Ortiz, who gets almost lost among the votes for null or the ones for people who do not know for whom they will be casting their vote for.

One thing about the polls, is that while the majority are to be considered at the national level, the Ipsos poll was only conducted in the capital cities, which might skew the result a bit. Ipsos has been doing this for a while now and their argument is that most of Bolivians live in the urban areas and therefore the poll is representative.

Analysis

So what conclusions can we take from this information?

For one, Morales is still leading the voter intention polls and is set to win the next elections, thereby extending his presidency beyond 2020.

This is what he, his team and his party have been working towards and it seems they are in a good path.

At the same time, it is also evident Morales and the MAS are losing support quite significantly, even in departments where they are still the first choice.

The Ipsos poll, for instance, shows a 2 % decline in the support for Morales from 2018 to 2019, while the support for Mesa increased 3 % in the same period. However, the most worrying part of this poll for the MAS should be the results for cities such as Sucre, Tarija and Potosi, which show an increased support for Mesa of 58, 34, 49 % respectively and a declined support for Morales of 14, 25, 17 % respectively in comparison to prior polls. In Sucre and Potosi, former MAS dominated departments, Mesa leads by 44 and 32 percentage points. That sounds wrong, when we think about the dominance of MAS, but sentiments and perceptions are changing slowly in parts of the country.

Another thing to mention is the divided opposition, which once again has not been able to come together to present a united front to Morales. Months before the campaign period started, the opposition talked, met and considered, without success. It seems there are too many egos or too little trust to form a large alliance capable of presenting competition to Morales.

Elections 2019: The Most Likely Outcome (the Second Round)

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The coming elections in Bolivia is reaching its highest point. The campaigns are at full steam, though with a not so insignificant self-imposed break due to the fires in the Chiquitania region in Santa Cruz. However, the candidates are doing the possible to take out their message and reach voters as much as they can. The candidates with better prospects aside from Morales are Carlos Mesa from Comunidad Ciudadana and Oscar Ortiz from Bolivia Dice No. In terms of polls however Ortiz is fighting an increasingly uphill battle.

Interesting this time, was the Americanization of the campaign. With that I mean, the vicepresident candidates of the participating political organizations with real prospects are engaging in a series of televised debates. The first debate was televised this week by the network Red Uno. If anyone is interested in following these debates, head to Uno's website. I watched that debate and I found the VP candidate from Bolivia Dijo No, Shirley Franco, was giving the MAS candidate and acting VP Alvaro Garcia and Comunidad Ciudadana's VP candidate Gustavo Pedraza a hard time by attacking them with facts, a clear message and some spontaneous wit. An interesting question is whether these debates will have an impact in the level of support for any of the opposing candidates. That may be another post.

The question I want to address here is: what is the most likely outcome after the votes are counted?

To answer that question we have to take a look at the procedure written in black and white.

The elections on October 20th are labled general elections. This means voters will have to vote (and therefore elect) for president, vicepresident and members of congress. Now, the procedure to translate the votes into outcomes are set in the law of electoral regime number 26, passed in 2010.

These law says the outcome (the election of presidents, vps and congress) will be determined according to two possible outcomes. The first possibility is the direct election of the president and vp. For this to happen the winner candidates (both taken as a pair) have to win with 50% + 1 of the votes counted.

In the case the winner pair does not get more than 50% of the votes, it can still win if it gets 40% + 1 of the votes and the second pair follower gets at least 10% less.

Only in these two situations will the president and vp will be appointed to office.

The second possibility, and the most likely, is for neither of the pairs to reach the necessary conditions to be directly elected and therefore the law prescribes a second round of elections within 60 days.

The pairs have 45 days to withdraw without penalties. After that, the second round of elections would happen, with new precinct officials at the voting tables.

The most likely scenario

Source: Miguel A. Buitrago, based on OEP data


If you read my prior post you are aware of the latest polls. These polls present a clear signal for a second round of elections where the most likely pairs to compete are MAS and CC.

While Morales has been leading the polls, with some polls showing his support in the 40s, the average support is only around 35%, down from what once was a proud 65% support. At the same time, the CC candidate, Carlos Mesa, has been gaining (slowly but surely) support to reach an encouraging 27% on average.

This current state, points to a second round of elections between Morales and Mesa where the outcome is wide open.

Analysis

Taking into account this situation, it looks like Morales needs to win in the first round. If it waits for a second round, it might lose the elections. In this situation, getting 50% plus seems near to impossible. Even in Bolivia, the level of support does not change that fast, of course unless something big happens. The fires in the Chiquitania would be such an event. However, the government has been active on responding as best possible to this disaster. So, in my opinion, these fires will not be that blow for Morales, but they do have the potential to weaken the support even more. This is because the victims of the fires are asking the government to declare state of emergency and the government does not want to do so. This makes the government seem insensitive and hard headed and gives munition to the opposition.

What the MAS is most likely to aim for is to reach the 40% plus level, which is within reach, and in a parallel manner work to lower the upward trend from the second pair, the CC, to at least achieve a 10% difference. This situation is within reach of the MAS. The party's strategy seems to keep on showing itself as the good government that builds all kinds of good things for the people and brings all kinds of goodies as well. At the same time, on the campaign train, they seem to be highlighting all the good things they have done and will do if they are elected again. In short, continuity is the motto.

The danger with that is that the opposition has an open target to which to shoot, even if it messes. Any shot seems to be inflicting damage and the government does not seem to be doing anything to ditch or step aside.

Carlos Mesa seems to be pretty sure he will win in the second round of elections. It seems to me he is surely pursuing this strategy. All numbers point to this outcome and that Mesa will get what it wants. However, I would issue a warning here. Carlos Mesa has shown in his career as politician a naive approach to politics and amateur skills at best. I do not need to remind us all of his presidency, but I will cite here his wrong choice for press secretary which ended in the secretary's premature departure after a pretty unplanned or careless statement to the public. This statement ended up costing Mesa some weeks in his campaign. In this regard, I would be careful of the MAS and pay much attention to what Morales' team does in the next weeks to outmaneuver Mesa. No doubt they have much more experience than Mesa. Unless, their plan is to leave it to Mesa to do the job for them.

Elections 2019: Political Organization's Programmes

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Source: OEP

The Bolivian electoral landscape, already in the last stretch of the campaign season, is populated with nine political organizations, of which, only two have a real chance to achieve some success, one trails considerably behind and has minimal chance and the rest, which do not have any chance, sway along the 1 to 3 percent of electoral support. As much as the pre-electoral season has become interesting, due to the several debates among the second row candidates, several television interviews of the candidates themselves, the issues being discussed and the participation of a new generation of politicians (along with some old ones), voters however seem to be going back and forth between two states: 1) either they already know for whom they will vote and nothing seems to influence them to change that. 2) or many seem to not know for whom they will vote and (presumably) are ready to change their preferences. This last state, which usually is around 10 percent, includes those who have said they do not yet know for whom they will vote, but also those who say they will vote blank or null. It is so, that in Bolivian pre-elections periods there is always an elevated percentage of such people, but that number, after all is said and done, falls smaller. In this election cycle, it is precisely that 10 percent difference what may make the difference between a continued or a new government.


One factor that may play a role in convincing the one or the other voter to vote for this or that political organization or candidate may be that organization's own government programme. Many voters at this point in time are asking themselves what alternatives there are and what exactly do those political organizations will want to implement once in power. In similar manner, observers of Bolivian politics might be asking themselves the same questions.

But, first things first. This post aims at addressing those questions by presenting a table I made for myself based on the more or less careful reading and summarizing of the various government programmes presented to the "electoral organ" (that is how Bolivians refer to the country's electoral agency) by the political organizations taking part in the elections.

To start of, however, I must point out that the following summary includes only the three political organizations with a real chance at getting voter support of more than 5 percent. This is according to the already published polls in this blog. The three political organizations are: the Movement Towards Socialism (Movimiento al Socialism, MAS), Citizen Community (Communidad Ciudadana, CC), and Bolivia Said No/February 21 (Bolivia Dijo No/F21).

Second, the set of issues have been directly extracted from the documents. The text in the table reflects, to a large extent, the structure of the MAS document. For that reason, I had to move some statements from the other two documents here and there to make it more understandable for me. Therefore, let's remember that many of these statements are normative and as such they might belong in more than one category, according to the person who categorizes them.

Third, from the text, I extracted what seemed to me the most concrete statement demonstrating a concrete step, i.e. either the formulation of a policy or the passing of a law. Nevertheless, there are some more general statements that might formulate an intention. I extracted such statements in the absence of concrete examples.

Lastly, the table below shows, on the left column, the set of issues that seem important for the political organizations. The three other columns show the issues by political organization. The table will hopefully allow you to: a) inform yourself about what each political organization pretends to implement if they win the elections, and b) compare and contrast among the three "parties".



MAS
CC
BDNo-F21
Poverty
Create programs for the young and women heads of households.

Prioritize the insertion of women in the labor market.

Create “young brigades against poverty” (gather ideas to reduce poverty in areas most affected by poverty).

Create better conditions for small and medium producers in rural and urban areas to increase income.

Introduce social policies to protect families living from traditional agriculture against the risks of climate change.

Build infrastructure for handicapped and senior citizens.

Continue with current policies (social transfers, supply of drinking water, electricity, construction of sewage systems, education, health, housing, economic incentives).

Eradicate multidimensional poverty.


Reduce extreme poverty to less than 5% by 2030.

Reduce moderate poverty to between 15 and 25% by 2030.


Telecommunications
Reach the 100% coverage target in towns with more than 50 inhabitants.

Implement new technological developments.

Audit the Tupac Katari Satellite.

Reform the national telecommunications company ENTEL (transparency, efficient, lower prices, better service, technology, data security).

Build fiber optic nationally.

Build wi-fi connections in public spaces.
Electricity
Implement Mi Luz program to reach 100% electricity coverage (rural and urban areas).

Deliver three-phase electricity for rural businesses.

Reach the further corners of the territory using a combination of sources (wind, bio, solar or smaller scale electrical plants).

Continue investment on electricity generation to supply the internal market as well as export to neighbor nations.

Consolidate the national electricity grid to provide constant energy.

Implement the integration of alternative sources of electricity, such as hydroelectricity and solar, wind or biomass.

Further the generation of electricity through the participation of individuals (families), through solar, bio, etc.)

Provide support for local government in the production of clean energy.


Further the construction of solar and wind energy at the rural level to provide electricity to households, whom will own the resource and contribute to the national grid.
Roads
Continue the construction of road to expand the national road network.

Do maintenance work to the already built roads.

Finish the road towards Ilo port.

Reform the roads maintenance system (efficient, modern, transparent).

Connect the east-west and the north-south road networks.
Trains
Design and build railway networks for the major urban areas.

Continue the realization of the bi-oceanic train.

Connect the two railway systems, east and west.

Make the bi-oceanic train a reality.
Cable-cars transport
Finish the La Paz-El Alto Teleferico Project.

Build similar transportation systems in other cities.


Airports
Build national and international airports around the country.

Transform the Santa Cruz airport in to a hub.

Turn Santa Cruz into an international hub for air traffic.
Housing
Continue with the construction or modernization of subsidized housing.

Build housing for students.


Introduce a social housing program with government incentives.
Natural gas for households
Continue the construction of networks to bring natural gas to households.



Health
Consolidate SUS.

Continue building health centers (hospitals, clinics, etc.).

Provide personnel and equipment to treat major illnesses.

Introduce the mandatory yearly medical check during each citizen’s birthday month.


Introduce a universal health insurance system.

Create a grave illnesses fund.

Decentralize the health system (finances, administration, more responsibility for departmental and municipal levels of government).
Education
Continue with the goal to universalize education.

Continue providing additional training for teachers and professors.

Integrate new technologies in education.

Give scholarships for post-graduate training.

Implement a theory/practice system of training.

Implement programs to help the handicapped to join the labor market.
Evaluate the educational standards.

Apply international standards.

More investment in education (better access, more technology).

Train teachers on new technologies.

Introduce scholarships for technical schools.

Make ecology part of the educational curriculum.


De-ideologize the education.

Emphasize English and computer programing.

Close the gap between public and private education systems.

Decentralize education (more responsibility for departmental and municipal levels of government).

Train teachers.

Emphasis on hard sciences.

Introduce scholarships for young Bolivians (in and outside Bolivia).

Introduce online learning.

Introduce certification of skills.

Sports
Build infrastructure.

Sponsor sport events.



Technology
Introduce a competitive financing system to fund scientific work.

Build scientific centers and areas where these institutions concentrate in the largest cities.

Develop further nuclear energy research.

Further scientific research in the agricultural and industrial sectors.



Economy
Continue granting subsidized loans for productive investment and housing.

Develop industry in the chemical, petrochemical, and iron and steel industries.

Continue developing the internal market.

Encourage entrepreneurship.

Implement import substitution model of production.

Promote tourism in Bolivia at the international level.


Transition to a post-extractive economy.

Introduce a mixed model of economic development (public and private sectors).

Introduce the agrarian productive complexes, where private and public cooperation will increase production.

Creation of an eco-agro-industrial park where ecologically adequate pesticides, herbicides, fungicides, and fertilizers will be produced.

Introduce a sustainable wood industry.

Create the Bolivian Institute of Biotechnology.

Support agricultural production through subsidized credit.

Further the growth of the construction sector (efficiency, technology, ecology, international and national, financing,).

Build infrastructure to transport goods by rivers reaching the Atlantic.

Adopt approach to city development through the concept of intelligent and green cities.

Place emphasis on tourism, gastronomy, technology and culture.

Assure the continued financing of the Renta Dignidad and other retirement payments.

Eliminate export quotas.

Create an institution to help small and medium enterprises in technical matters.

Establish the Andes Export Plan, South Export Plan and the Amazon Export Plan to help the regions to develop export activity.

Seek trade agreements (bilateral or multilateral).

Re-evaluate the functioning and value of public enterprises.

Reconstitute the independence of the central bank.

Develop capital markets.

Encourage the development of metropolitan regions along the main axis.

Employment
Promote employment of young technicians and professionals.

Employment through infrastructure projects.


Approach the creation of employment through the coordinated work among the public and private sectors.

Encourage the creation of employment for young people (connection between technical schools and universities with enterprises).

Strengthen the manufacturing sector (focus on small and medium companies, niche markets, integration to international production chains, innovation towards natural resources).

Creation of Agencia Bolivia to attract responsible, ethic and green investment.

Reduce red tape for starting business and facilitate production.

Encourage entrepreneurship (taxes, training, red tape, technology, credit).

Encourage commercial exchange (fight against contraband, treaties with preferences for Bolivian products).

Create coworking spaces.

Create systems for seed financing of startups.

Reform the Law for Labor (modernize, better conditions, protection, productivity, competition, retraining, relations, etc.).


Natural resources
Increase the natural gas output (through exploration, extraction and refining).

Implement the production of biodiesel.

Increase the export of Urea.

Continue with the exploration, exploitation and refining of minerals for export.

Develop further the Mutun iron refinery.

Continue investment on lithium and its derivatives industrialization.

Produce batteries and barium products in association with ACI (Germany) and TBEA (China).
Reorganize the sector to rid it from politically motivated structures.

Create new incentives for the exploration and finding more natural gas reserves.

Industrialize the sector.

Consolidate the Argentina and Brazil markets and seek new markets.

Develop a national strategy for the mining sector with the involvement of all groups interested (meet international demand and growth for actors).

Encourage the cooperative mining sector with financing and technical help.

Develop mining of cobalt, copper, and rare earths to complement the lithium battery industry.

Apply safety standards to protect workers, towns and the environment (technology, norms)

Industrialize the lithium resources.

Explore and increase natural gas production.

Reevaluate lithium industrialization policies and Encourage its industrialization.

Initiate exploration to find natural gas and the subsequent extraction.

Seek new markets for natural gas.

Reform the Hydrocarbons Law.

Reform taxes in the sector.

Establish an efficient and transparent system for contracting.

Reform YPFB (efficiency, accountability, competition, performance, financing caps, corruption).

Prioritize investment for medium mining enterprises (incentives).

Introduce environment regulation to mining and hydrocarbons.


Health
Promote better nutrition for the general public and focus on school children (subsidize nutritious school meals).

Encourage an increase in the production of basic foods to meet internal demand and reduce imports (invest in the production of comestibles).

Expand agricultural areas or land.


Introduce a new system of universal health care for those without insurance.

Provide health institutions with machinery and doctors.

Promote traditional medicine (complement clinical medicine).

Prioritize children, women, disabled and elderly.

Strengthen telemedicine.

Implement systems of shared responsibility between state and society to take care of children and elderly (voluntary social year for young instead of military service).

Introduce leave of absence for fathers.


Environment
Promote at the international level the rights of mother earth.

Coordinated management of nature and agriculture to achieve both the preservation of nature and food security.

Consolidate a better system of residuals management.


Encourage the increase of renewable energies (solar, wind and hydro).

Stop deforestation and encourage reforestation.

Create a unique system for environmental information.

Integrate ecological and environmental policies in the formulation of policies by sectors.

Implement a public education campaign on the environment.

Create a tax on plastic bags.

Finance the development of green cities and municipalities (using circular economy).

Encourage the use of clean and renewable energies at the local level.

Decentralize policy-making and competencies in environmental issues.

Incentivize conservation with bonuses.

Penalize environmentally damaging technology and pesticides.

Subsidize the transformation to bio-agriculture.

Create a system to make the handling with wood environmentally friendly and sustainable (handling with certificates and establishment of standards).
Foreign policy
Continue with the advancement of:

Indigenous peoples rights.

Climate change and mother earth.

Reform of the international financial system.

Revaluation of the coca leaf.

Establish negotiations with Chile to talk about sea access.

Establishment of Casas Bolivia in many countries.

Better the service in embassies and consulates.

Provide incentives for Bolivians who want to invest in the country.

Eliminate taxes for property repatriation.

Leave ideologically constituted international organizations aligned with Cuba and Venezuela.

Seek close relations with neighbor countries (open markets for goods, easy exit and entry, secured borders).

State Reform/Public administration
Continue with Transparency and anti-corruption policies.

Increase investment in the area of citizen security.

Reform the police.

Continue the efforts to eradicate drug trafficking.

Increase investment in the reform of the military (more infrastructure and personnel).

Continue efforts to fight violence against women.

Modernize the justice system.

Reinstate article 168 of the constitution which establishes presidential terms.

Renew the leadership of the electoral agency on the basis of meritocracy.

Restructure of the state apparatus (specially, electoral court, attorney general’s office, ombudsman, auditor general’s office).

Introduce meritocracy as the basis to hire public servants.

Revise and nullify all laws and regulation in violation of the constitution.

Audit the current government’s actions.

Pass transparency and access to public information laws.

Introduce a platform to control corruption in the areas of administration, hire processes in public works as well as receive complaints.

Expand e-government.

Restructure the justice system, make it independent.

Create citizen’s justice centers (police, public attorneys, ombudsmen, local courts and administration).

Digitize judicial work.

Create commission against impunity.

Reform the police (security, trust and efficiency as well as excellent training).

Introduce a fiscal pact to give the departmental and municipal levels of government more say in the use of financial resources.

Encourage, respect and protect indigenous territories and their rights (previous consultations, autonomy, self-determination).

Introduce the Access to public information and institutional transparency law.

Introduce the government contracting law.

Introduce the law of effective collaboration for the fight against corruption.

Decentralize and reform the police (better pay, strengthen the technical work, better equipment, raise budget, more personnel).

Zero tolerance for drug-related crime.

Reform the judicial system.

Introduce meritocracy for appointments.

Reform the attorney general’s office.

Federalize the current autonomic system.

Pass a fiscal pact to equally distribute the public funds.

Reform the prior consultation law.

Reform the indigenous justice law (conflict resolution mechanism).

Reform the tax system (reducing and simplifying).

Reform congress (technical assistance, effective horizontal control, accountability to the public).

Bring back electoral courts.

Introduce Plan Digital Bolivia (e-government).

Professionalization of the bureaucratic career (international standards).

Create a simpler tax system (less types and taxes; introduce incentives for investment, growth; support for SMEs).


Gender
Fight against violence against women.
Desegregate the labor market (no more male and female professions).

Promote equality among men and women (pay, education).

Introduce law to prevent murder of women and sexual exploitation (women and minors).

Fight against violence against women.

Empower women in civil society.

Support entrepreneurship with training and financing for women.


Agriculture


Encourage the export of agricultural products.

Encourage the production of value-added agricultural products.

Eliminate existing export quotas.

Insure food security.

Introduce technological innovation.

Create financial services system for the sector.

Encourage the sustainable use of land.



In summary, the three political organizations with the most chances seem to concur in some parts and differ on others. In my view, that would be typical in a "party" system where there are no institutionalized political parties anymore, but the parties are true agglomerations of different political interests in the form of alliances or movements. The sole aim seems to be the achievement of power to set those interests though.

The MAS seems to be betting for continuity. Evo Morales says "there are two roads, go back to the past or continue with the process of change." In that sense, judging from how the Bolivian economy is growing and the marginal but real progress that has been achieved under Morales, as well as the number of people already depending on the MAS apparatus, the MAS intends to keep its path. That is the reason why most of the programme is filled with very concrete policies expressing the deepening of the "proceso de cambio". One example being, continue with the supply of home gas infrastructure for its use in the kitchen.

The political organization CC, headed by Mesa, seems to be making emphasis on what Mesa calls, "the restitution of democracy". The argument is the current government is seriously undermining the democratic process. Another argument seems to be the return of Bolivia to the republican form of government. However, according to CC's programme it does not seem to want to change much. Another issue that comes across prominently is corruption (from the side of MAS) and the reform of the economic model. Additional issues seem to be the application of policies sensible to the environment and health and education.

As far as the BDN-21F alliance, it seems the focus is on the exhaustion of the current government. Ortiz keeps on saying the MAS government has completed its cycle and should be changed. Other arguments seem to point to the economic model, the reform of the state, corruption, health and education.

The common issues among the three political organizations seem to be the industrialization of the hydrocarbons, lithium and mining sectors, as well as the universalizing of health insurance and the improvement in the quality of education.

Now, what does that tell us about who is going to win? Probably very little. The electoral process seems to be hijacked by emotions and personal interests. The voter seems to be either a MAS supporter, who thinks Bolivia is on the right path and probably is indeed directly benefiting from the MAS being in power through a job or subsidy or social transfer, or he or she thinks the MAS is corrupt and Evo Morales should not be running for elections for a fourth consecutive term.

Lastly, the only current alternative seems to be at the moment Carlos Mesa, the former president and current candidate for CC. The only president in recent history who enjoyed equally high levels of approval while in office, other than Morales, was Mesa. The only problem with Mesa is that he is no politician and, in my opinion, he does not have the skills to set his policy through. He seems caught up in an intellectual level where he might think he can reason policy through, while we all know with reason only a president does not set implement his agenda.

Mesa has proven he lacks the skill of bringing people together. He was not able to bring, for example, the opposition together. In fact, Santa Cruz's Governor, Ruben Costas, has recently referred to Mesa as incapable of listening the other side's argument. Costas described Mesa as "(a person who) did not want to unite the opposition." Apparently, in a conversation, Costas asked Mesa to make space for a new generation of politicians and Mesa declined. Also, Mesa lacks that practical approach that most politicians have to have in order to conduct politics. He seems too principled.


Elections 2019: Elections Day

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Between 7 and 8 am today Bolivia began voting for a new president, vice-president and congress.  At the time of writing this post, the day is coming to an end, the people already voted to a large extent, electoral tables have started with the counting of votes and many are already done and closed.

One of the first results came from Japan, as the electoral process was carried out around the world where Bolivians live. Bolivians around the world in 33 countries are voting for president and vice-president.

The day was, according to press coverage, largely quiet, Bolivians turned out to vote and were able to do that in what already is a routine manner.

There were some events having to do with the consumption of alcohol, driving vehicles and some accidents.

One extraordinary event in Santa Cruz was the arrest of more than 100 young people supporters of Oscar Ortiz, Bolivia Dijo No/21 Febrero, who were meeting in the political organization's headquarters. The police arrived and as they asked the people to leave there was resistance and therefore the police proceeded to arrest them.

The leadership of the BDN/21F said they were about to leave to the electoral places to control the process in that part of the city.

Other than that, the different groups of international observers did not issue any statement. Surely they will wait until the final count is complete.

In fact, there are many private citizens going back to the electoral table to control the counting process of the votes. One former La Paz mayor commented the distrust from the part of people vis-a-vis the government. Many people are filming and posting those videos via Twitter, Facebook, Instagram, and Whatapp.

Cochabamba and Tarija are reporting the end of the counting process.

Prisoners all around the country have voted. In Bolivia, people do not lose that right when they are incarcerated.

Closing into 7 pm, Comunidad Ciudadana said they have their own counting system with a rapid count and a per electoral table, which will take a bit longer. They do not trust the government.

Bolivia is waiting for the preliminary results, the results of that rapid count system from the OEP, to know the results. This will take place at 8 pm, but all indicates the publication of results will be delayed by the late or slow arrival of the ballots.

The law gives the OEP up to seven days to publish the official results, they estimate however they will have results by Tuesday.

I leave you with some images of the day.


Voting was for the most part regular.
This is how citizens voted. They presented id and were checked off on the list.
This is how the ballots arrive at the counting centers.




Elections 2019: Preliminary Results

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One day after elections day, some kind of preliminary or unofficial results have been published. Such results are what Bolivians call, rapid count results. So far, they indicate there will be a second round of elections between Evo Morales and Carlos Mesa. Will there?


The OEP has a web site where one can follow the counting process. The page shows the various results, i.e. nationally, per department, per district, per municipality, etc. The image below was published on Sunday evening at 7.40 pm and shows the results of the count with 84% of the voting tables counted.

Source: OEP

The preliminary results show Evo Morales having gotten a bit more than 45% support and Carlos Mesa a bit more than 38% of the vote. That would make a difference of 7%.

This implies a runoff election between these two candidates because the difference between them is not 10+ percentage points, which is what the law requires for a winning candidate to lead by in order to directly win the elections.

On its part, the Bolivian media is reporting these results, as it is to be expected. While most media outlets report the official numbers, I am highlighting here the results published in Pagina Siete, which has published instead in its website the results from viaciencia. I do this in order to provide a comparison, for whatever these results are worth. Let us not forget viaciencia has been linked to the government by some politicians. Please pay Pagina Siete a visit to see more detailed results.

Below, I have extracted the national results for the presidential vote.

Source: Pagina Siete

Pagina siete has used viaciencia's results to publish these results. They show Evo Morales leading the vote with more than 43% and Carlos Mesa following with just above the 39% mark. That is a difference of 4%.

As you can see, these results are not much different from the ones published by the OEP. They differ only by one or two percentage points and result in a 4% difference between Morales and Mesa. The difference they show is a slight advantage for Mesa. The lack of significant differences points to the normal process the elections seemed to have progressed (though there are some concerns, please keep reading).

Digging a bit deeper into the data, it was interesting to see the level of support per department:





The departments in favor of Mesa seem to be: Beni, Chuquisaca, Santa Cruz, and Tarija.







Meanwhile, Cochabamba, La Paz, Oruro, Pando, and Potosi, seem to be supporting Morales. However, the support in Oruro and Pando looks very close.

An alternative "unofficial" source to see rapid count results has been the work of Jubileo and La Paz's public university UMSA. Under the title Your Vote Counts (Tu Voto Cuenta) these two organizations have published results, of which an image is shown below.

Source: Tu Voto Cuenta
The results show Morales leading with 44% and Mesa behind with 38%. That would mean a difference of 5%.

Source: Tuvotocuenta.org.bo
And above you find the departmental vote, where Mesa won in Chuquisaca, Tarija, Santa Cruz and Pando. Morales won in La Paz, Cochabamba, Potosi and Oruro. In Beni, the two candidates were practically tied.

Aside from the results, there seems to be one issue that needs attention. In the last hours, it has become more clear to me that distrust in these results seems to be of significance.

It was not enough for many people that the government went out of its way to highlight the transparency of the process, and especially make repeated assurances the vote count will be fair. At least one political organization, CC, has put in place its own parallel rapid count to assure they are not cheated. CC people are deployed around the country transmitting data to counting centers to provide thus another layer of control.

What is more, many private people have made it a point to return to the voting places to observe the public count as a form of control. Still, many people documented in video and image form, not only the voting and counting processes but also the transportation of those votes in a regular manner to the counting center in each department. People posted those photos and videos on social media.

The media were literally present all around the country showing on image, video and written forms, how the process went. Here television and radio played an important role because they showed live the voting, the counting and the transportation of those votes as well.

Parallel to that, several companies applied for permission to conduct a rapid count of the votes to make this data available to the media, so it can present unofficial results on the same night. It was noted by many observers the only company awarded such permission was viaciencia, of all such companies, the company alleged to have ties to the government. Nevertheless, viaciencia has done its job and published such data.

Lastly, despite all those control efforts, all throughout the day, many analysts and leaders of political organizations called for caution because they distrusted the government. Carlos Mesa, the leader of CC and the most likely candidate to dispute the presidency against Morales in a runoff, has warned the population about some questionable decisions the electoral commission has been making pertaining the process, which it organizes.

In fact, Mesa, and others, are currently on high alert due to the elections agency's decision to stop the transmission of data online. The first image on this post has apparently been the last. After this, the electoral agency has stopped this process and the count is not being updated. The agency has meanwhile said it stopped the updates because too much data was confusing (@TSEBolivia). No word as to when or if it will renew the updates.

Mesa (@carlosdmesag) has been calling foul and not only demanding the government to restore the process but has been calling on the citizens to remain alert. In the meantime, you can already see people around the country going out to the streets and spontaneously demonstrating against electoral fraud. People in Potosi and La Paz have been among the first ones.

That alone would not have been newsworthy, for obvious reasons (i.e. the opposition yelling fraud). However, recent tweets and other posts from the OAS (OEA_oficial) are calling the government to explain why they stopped that process. The OAS has been observing the elections with a large delegation.

I am guessing this will not be the last we see on this issue. If the difference between Mesa and Morales becomes larger, the problem will be even larger for the government. I sense Bolivians, at least the opposition, is not willing to take anything on the light side. They will protest.

#bolivianelections2019 #eleccionesbolivia2019 #eleccionesgenerales #bolivia

Elections 2019: Day 2 After Elections Day

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Source: Live feed Red Uno

While election day, October 20th, ran relatively smooth and with a remarkable routine character (that is until 6 pm), that evening and the following day suddenly turned turbulent and disconcerting. The spontaneous demonstrations around the country's major cities, yelling 'my vote is sacred', were just the beginning of what was going to be a chaotic situation around the country in which citizens were showing their deep distrust of the government.

First of all, it is necessary for me to clarify the voting process. After people cast their vote in the ballot, they shove the ballot inside the urn. Once all the people in a voting table exercise their right to vote, the table closes. The next step is to count the votes in a public count and fill out the necessary paperwork (the so-called Acta or closing certificate). The officials then proceed to take pictures of these documents including the result counts. They send these data in electronic form to the central office of the rapid count system the OEP set up. Then, they pack up these documents in plastic bags, seal them and place them in the so-called electoral suitcases (maletas electorales), which they then proceed to seal again. These suitcases, see the image above, are then taken to the departmental electoral office, where they will be counted and, from there, are sent to La Paz, for the final count.

Having described the process, I proceed to describe the day. I said disconcerting because what seemed to be a routine for Bolivians, that is, going to vote, cast their vote and enjoy a relatively peaceful and good-weathered free day, turned into a tense and agitated evening with many citizens leaving the comfort of their houses to go watch and guard their votes at the different places where they were being stored.

The one event triggering this sudden change in the mood was the Electoral Tribunal's decision to stop updating a rapid count system they had created to precisely bring transparency to the process, along with double-checking results and providing reliable preliminary results. As soon the OEP stopped updating the website, the general public began to cry fraud.

At first, many people just came out on the streets to demonstrate their distrust. Many groups staged demonstrations, while other people came out armed with their phones and began to search for signs of fraud.

It was these latter group of people, who mostly were in small groups and ad hoc, that began to "broadcast" in social media what they perceived as foul. Many of the videos I saw were cast on Facebook and Twitter. And here I have to say, while normally I do not pay attention to such "videos" in social media, some of them really made me scared. For example, there was a video of a person in Santa Cruz, who armed with his mobile, had clearly identified a car transporting many of the so-called "electoral suitcases". As the car was caught up in traffic, the person approached the car and recorded how the people inside the car were having their hands inside the supposedly closed cases with the ballots. As the person with the mobile asked what were they doing, there were only scared faces to see. What were they doing? The boxes (suitcases) are supposed to be sealed.

Another example, once again a person with a mobile camera approached a street (Landaeta St.) in the center of La Paz and filmed many people looking at several "electoral suitcases" thrown open on the streets with the contents out and ballots exposed. As the mobile made a close up of the ballots, many of them were already marked in favor of the MAS. Now, of course, there was no way to know whether these ballots were regular ballots that had been used by voters? or they were new ballots only marked for MAS. The questions were: if the ballots were regular, what were they doing thrown on the street? if they were not regular, were they being used to replace regular ballots?

By Monday morning and midday, things got even more agitated. For one, Carlos Mesa has been issuing alarming warnings telling people something was going on and asking people to go out and watch out for democracy. It turns out, his alarming warnings were not all too exaggerated. The OAS, one of two international organizations accompanying the Bolivian electoral process this year (the other one being the EU, I think), began issuing its own cautious warning through Twitter asking the OEP to clarify the stop and urging them to renew the update as soon as possible.

By Monday evening, things got a lot more chaotic. Once again videos uploaded to social media showed many people from opposing camps chanting and aggressively insulting each other in front of one of the OEP's offices in La Paz. Other civil society organizations, such as the Conalde or Fejuve, issued warnings that they were not going to accept fraud. The Conalde, headed by former Ombudsman, Waldo Albarracin, even began talking about civil war.

Other videos showed mobilizations across the nine capital cities in the country and mobs acting out without any control. In Tarija, the departmental electoral office was broken into, the ballots carried out on the street and fired up. There was even a fire inside the office. The police could not do anything. In Sucre, a similar fire was started. In Potosi, a fire set in the first two floors of the local OEP office had trapped officials in the upper floors, who ended up jumping out the window. It is not known yet how badly these people are injured. The building is burnt. In Sucre, Waldo Albarracin, was wounded by a tear gas projectile. In Cochabamba people (a mob) forced their way into the compound where the departmental electoral office was counting the votes. The count was suspended. In Santa Cruz, the Civic Committee for Santa Cruz announced more measures such as strikes and roadblocks. In Oruro, a mob vandalized the MAS offices.

The result of all this was a confrontation with police forces with the use of tear gas and police repression. For now, it seems these disturbances are confined to the largest cities, whereas the countryside remains firmly behind Morales.

As the second day arrives and the afternoon approaches, the OEP had updated the rapid count website. In it, visitors can see the difference among the first candidate and the second has grown larger and the possibility of a runoff election has become smaller. To which the OAS reacted by issuing a stern statement saying they are seriously concerned with the latest development in what they had largely seen as an election where the first and second place candidates will have to go to a runoff election. They mentioned the parallel count by a government-sanctioned company, viaciencia, which published their results showing a 4 percent difference and the results of other two non-sanctioned companies which results also showed similar results.

Source: tuvotocuenta.org.bo
On its part, CC has officially issued a statement rejecting the results and alleging electoral fraud. Paola Cortez, candidate and in charge of communications for the political organization, said in an interview with the channel RTP that the government was trying to increase the difference between Morales and Mesa to render a runoff unnecessary.

These are some newspapers' front pages around Bolivia.

Source: IBCE

Update:

In Santa Cruz, the Civic Committee (Comite Civico de Santa Cruz), an influential civil society organization that hosts a plethora of other organizations, has declared a general strike starting Wednesday.

By the same token, in La Paz, Conalcam (Coordinadora Nacional para el Cambio), an organization composed of many organizations backing up the government's "change", has equally stated they will begin to "mobilize" (vigils, marches, demonstrations, etc.) immediately in defense of the popular vote.

Meanwhile, in La Paz, the election observers of the European Union and the OAS met with Morales to, I guess, exchange words. The OAS said it was going to express its concern for the manner in which the electoral process was put in doubt and the EU read their statement released in the morning. At the same time, about 200 meters from the government palace, opposition deputies Rafael Quispe (Unidad Democratica) and Wilson Santamaria (Unidad Democratica) express their desire to nullify the results of the election due to the confusion and tarnish of the process. In fact, this call is gaining momentum. Many other people are calling for new elections. Among them, several candidates and leaders of other organizations, such as religious organizations.

In Cochabamba, MAS and other supporting organizations called for a gathering in the city center to show their support for the government. In a similar manner, Cochabambinos (citizens of Cochabamba city) are organizing themselves to resist the government's and MAS' efforts to gain support. The video below shows those efforts.





Elections 2019: What Happened? Chaos, Distrust, Impatience or Normality?

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On this third day after Bolivians voted on October 20th who will be their next president for the period 2020 - 2025, the situation has somewhat calmed down but the uncertainty about the validity of the elections and, above all, about who won the elections or whether there will be a runoff is still at best blurry.

The last two days have been very agitated for everyone in the country. As I noted in prior posts, the process degenerated into a chaotic situation where people were not only expressing their distrust of the government and the electoral commission but they began to set the commission's departmental offices on fire, to destroy or vandalize the offices of MAS in several cities and to confront the police, to the point where some people resulted injured. 

Observers of Bolivian politics are, with reason, confused, concerned and many are disappointed, at the images they are finding online.

What happened?

The explanation seems to be one of inept or misguided decision-making from the part of the electoral commission, the OEP, and of a deep distrust on the government.

In the first place, it is useful to look at the facts.

Alas, these facts are my own, as I saw them while following as close as I can the elections process.

The facts are the following:

Elections day started with a feel of normality and routine. As the clock hit 8 am, press teams began reporting on the opening of voting places (mostly schools) and the procedures with which the many voting tables opened.

There were reports of voting places being opened with delay and of some rural places not having received the voting material yet. Officials, however, issued repeated assurances that those minor problems were being addressed and that people were going to be able to vote on that day.

Throughout the day, the media, as well as private persons, continued to feed the public record with images, videos, and articles about the normal progress of the elections. People identifying themselves, officials showing the empty ballot, voters going into the voting booth, voters depositing their ballots in the urns, long lines, observers in their places, etc.

6 pm - As the evening approached and the election day came to a close, the media reported on the closing of many voting tables around the country. At the same time, there were already some reports of some tables having proceeded to count the votes and sent those results to the OEP.

The media was expecting some preliminary results by 8 pm.

7.40 pm - The electoral tribunal (electoral commission), the entity organizing the elections, published its last report of the rapid voting count system named TREP (Transmision de Resultados Electorales Preliminares or Transmission of Preliminary Electoral Results). A system that was supposed to continuously give preliminary or unofficial results within two hours of closing.

At the time, the preliminary results showed Evo Morales having gotten a bit more than 45% support and Carlos Mesa a bit more than 38% of the vote. That would make a difference of 7%. The results showed 84% of the voting tables counted.

8.00 - Sometime around this hour the rapid count results of the company providing such counts, Viaciencia, were published. These results had a similar purpose as the exit polls in the US. Parallel, two other institutions, namely Jubileo and UMSA, published their rapid count estimates on a website. These two unofficial results were giving a difference of between 4 and 5 percentage points.

8.10 - The OEP stopped disclosing preliminary results, by a decision of the plenary, with around 84% of the votes counted.

Between 8.10 and 11.00 pm people went out on the streets to demonstrate their distrust and, as they said, to control the counting process. The aim would be to safeguard their votes.

Demonstrations turned into vandalism. The departmental offices of the OEP in Potosi and Sucre were set on fire.

Many people began to confront OEP officials on the streets asking them what were they doing with the ballots.

There were reports of ballot boxes being abandoned on the street, being on private houses, officials opening what should have been sealed ballot boxes, etc.

11.11 pm Mesa releases a video on his Twitter account alleging irregularities by the OEP and questioning the suspension of the updates to the website TREP. He also mentioned the similar questions made by the observing mission of the OAS.

October 21 and 22 - these two days were spent largely by people continuing the demonstrations outside the many OEP offices around the main cities. Many civil society organizations, opposition and MAS allies, met and issued statements either supporting or discrediting the OEP and the results. Carlos Mesa disqualified the results and said he was not going to accept them. There were more disturbances and confrontation between demonstrators and police.

On the 22nd many civil society organizations in several large cities, Cochabamba, Santa Cruz, La Paz and also Sucre and Tarija, decided to start a general strike to paralyze the country.

Between late night and early morning of the 23rd, the OEP offices in Santa Cruz and Beni were set on fire.

Not only the OAS and the EU, but the governments of Great Brittain and the US expressed their concern. The American diplomat in charge of the Western Hemisphere, Michael Kozak, reminded the public (and the government) the US government was following the developments in Bolivia very closely.

Where are we now?

Bolivians are in a situation where there are no trustworthy election results and instead there is social conflict.

The OEP, despite all the doubts about the quality of the job it is doing and the social convulsion its decisions have triggered, it keeps on counting the votes. It obviously denies all fraud allegations.

On the one side, it is understandable the institution will want to keep with the counting. It is after all its job and obligation. The country will need some type of final results, whether they are trusted or not. That should be difficult however because the count has been stopped in the Potosi and Chuquisaca departments due to the fires and the damage the local OEP offices have had to endure.

Meanwhile, many of its officials are terrified by now and do not want to show themselves in public. Only the head of the Pando office expressed his fear in a television interview. He said he was afraid for him and his family.

On the other side, it is not understandable the OEP's decision to stop the update of the very system designed to give the results high credibility and confidence, because of the level of transparency it was built into it. That might have been the most questionable decision the commission, headed by Maria Choque, had made that day.

Currently, the TREP website seems to be updated. It shows the count as of today (October 23) at 11.16 am. The difference between first and second places is 9.33%, with 95.63% of the votes counted. Here is an image.

Source: OEP


As for the government, adding fuel to the fire (surely unintended, for who would want that), proclaimed its victory very early in the evening of that day. While yesterday Morales was asking people to wait until the publication of the final official count, today, he thanked voters for a fourth consecutive victory. Something that might be true, but far from helpful at this time. Adding even more fuel, he made Carlos Mesa responsible for the disturbances and he asserted that the intention of "some" was to perpetrate a coup against his government. He also called his supporters to "defend" the MAS vote.

The opposition also added fuel to the fire. Carlos Mesa and his political organization CC are placing all the blame on the OEP, as it is, they claim, under the total control of MAS. Also, Mesa has said he will not accept the results and asked his supporters to come out and "defend" democracy and ask for a runoff.

Civil society is currently carrying out a general strike, paralyzing thus most, if not all, the major cities. This strike is being imposed on the citizenry even though the government and its agencies have said there will be normalcy of business and work. Demonstrations, marches, and roadblocks are being set up in the cities.

The interesting thing is that people such as market vendors, teachers, students, doctors, and nurses, etc., are going out in support of the general strike. 

The OAS made public its preliminary assessment of the elections. They released a preliminary report because of the urgency of the situation. In its assessment, the OAS expressed its doubts about the veracity and transparency of the counting process and the work of the OEP. It also expressed the acceptance of carrying out an audit to the process, positively answering a request from the Bolivian government.

The answer to the question is, we do not know.

At the moment, there are not rapid counts produced by the OEP. The results produced are completely discredited.

There are however unofficial results from viaciencia and tuvotocuenta.org.bo.

The official count is, for all we know, stopped.

No results, not solution to the problem.

No solution means, it seems, for now, more social unrest. Hopefully, no violence.

Elections 2019:

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More than two weeks after the October 20th general elections, when Bolivians were supposed to elect a new president, VP, and congress, the country has succumbed instead into a social and political crisis of considerable magnitude. What should have been a routine day for Bolivians, who by now are experienced enough, having cast their votes in at least 30 electoral processes since 1983, ended in a series of chaotic days marred by violent confrontations between two opposing sides, the burning of public buildings, many people injured, and the death of two demonstrators.

In light of recent events, many people are asking what happened here. Electoral processes in Bolivia have been in recent history a model of procedural routine. By all accounts, Bolivian elections have been acknowledged by international observers repeatedly as fair, clean, competitive and serious. The fact that the country slipped into such a crisis leaves many wondering, what happened?

This post pretends to provide an explanation by describing, first of all, how the process should have been. After all, there was a lot of thought, planning, and money, invested in making it efficient, transparent and legit. However, despite all those efforts, this time around, the elections were anything but normal. There were procedural, and perhaps political, mistakes made by the officials. Those "mistakes" have resulted in a serious political crisis that threatens to disrupt the political process.

This is how the electoral process should have been conducted

Aside from all important political considerations about whether the Supreme Electoral Tribunal (Tribunal Supremo Electoral or TSE) is politically independent or not, it (as an institution) has been working hard to bring efficiency and trust to electoral processes in the country. By now, the TSE has accumulated plenty of experience in organizing and carrying out special, national and sub-national elections as well as a number of referenda.

In order to address some of the deficiencies it might have had in the past, the institution recently implemented a digitized electoral register based on biometric data. In addition to that, the TSE also implemented electronic systems to count the votes and, most recently, a rapid-count system to provide a mechanism of control and, at the same time, provide preliminary and unofficial results to the public, in a matter of hours after the closing of all voting precincts.

The voting process was thought out in the following manner: From the voter point of view, a voter approaches the voting table, presents his or her id card, the ballot is shown to the public and given to the voter, and he or she goes to the voting booth to cast their vote.

From the official point of view, each of the more than 33 thousand polling stations around the country has six electoral officials, three women and three men, randomly selected. There is one president and the rest are electoral juries (jurados electorales). These people check the name of the voter, give the voter his or her ballot and direct the voter to place the ballot in the box. Aside from that, they are also responsible for opening and closing the stations and publicly tallying the votes. Once the latter happens, they fill the official record (acta electoral), sign it and place their fingerprint on top of their signature.

Source: TSE - Acta Electoral


At the moment the count is finished, the process splits into two parts, denominated rapid and official count. The rapid-count process begins as one of the officials takes a picture of the tally (the acta) to electronically send it to the company in charge of publishing the rapid-count results. The picture is forwarded through an app specially created for that purpose. In this case, the company was Neotec. The company then takes that picture, which is, after all, a faithful copy of the results, enters the data into its tallying system and then releases the preliminary results on the TSE's website, under the TREP title.

The official count continues as officials seal the ballots in a plastic bag, the official records in another, and then place all these bags plus the voting material in a carton box (maleta electoral), which they also seal. The box is then sent to the TSE departmental offices. These offices, having received the boxes from rural and urban areas, proceed with the recount of the results to come up with the official departmental results. After this recount, officials forward the material to the central office in La Paz.

Source: UNO Television Network, Maleta Electoral being taken to TSE offices.

In addition to the group of officials in a station, each party or political organization sends delegates to act as observers as well as controlling that everything goes according to the rules. Many of these people take pictures or make videos throughout the day, but especially of the vote count. Now, it is also true that the further away a polling station is from the large urban areas, the fewer people are present and therefore there are fewer delegates. For example, it is common that in small villages in the Altiplano where MAS has a large support, there are only or mostly MAS delegates. This is simply because all the locals support MAS and, likely, other delegates could not be present because of distance factors.


This is what happened

To cut a long story short, as the polling stations were finalizing their work towards 6 pm that evening and the results started to slowly show a trend of the vote. At about 7 pm, for unknown reasons, the TREP stopped being updated. The last update showed a lead for Morales over his opponent Mesa, but the difference between the first and the second was less than 5 percent. Now, according to the law, in order for a candidate to win the election without the need for a second round, he needed to have at least 40 percent of the vote (which Morales had reached), and at least 10 percentage points more than the second place. The website was showing a tally of up to 80 percent of the polling stations counted and a difference of less than 5 percent between first and second places. This meant, there was going to inevitably be a second round of elections. Morales and Mesa were to meet in a runoff later this year.

From that moment on, it all went down the drain when the TREP site stopped being updated. The result was, not only the opposition but also many Bolivians began to wonder about that unexplained stop. As no explanation from the official side was offered, people began to go out. In a matter of hours, whatever fear was being felt by the population, it soon turned into suspicion of electoral fraud. People then continued to go out on the streets with the purpose of watching out for their votes.

The "suspicious behavior of many election officials made matters worse. For example, many of the electoral juries transported the suitcases in private cars, others kept the material in their private homes and, as the evening progressed and popular fury began to be felt, others just left the boxes on the streets out of fear for the people who were out seeking for scapegoats.

The updating stop of the website lasted 24 hours. At first, there were commentaries from TSE officials that there was a glitch on the system. Days later, the TSE explained there was a "problem" and therefore the count needed to be stopped. A couple of days later, Neotec's director, Marcel Guzman de Rojas, in an interview with CNN, said the company was ordered to stop the count. The stop order came directly from TSE's president Maria Eugenia Choque.

Where is Bolivia, two weeks after the elections?

The crisis has long gone beyond the elections and the political realm. The country is paralyzed and deeply divided among supporters and opponents of Morales and the MAS. While in the beginning, most people around the country just stood outside the TSE's offices to watch out for their vote and observe it was properly counted, today there are two sides entrenched in their positions. One group wants nothing less than Morales' resignation and the other group wants the continuation of the MAS government. Both assure they want to reach their objectives at all costs.

The opposition, defined as the group against the government, is divided into two groups, the political and the civic/civil opposition. The political opposition was obviously the first to be deeply concerned with the irregularities in the counting of votes. After all, they had all the reasons to look at the results with optimism. The trend showed there was going to be a runoff election. Almost as soon as the TREP stopped updating the count, Carlos Mesa began sending tweets expressing serious concern about how the count was developing. Other candidates and politicians followed suit issuing warnings and asking the population to be alert. Today, the political opposition is organized in an institution named Coordinadora por la defensa de la democracia or Conade (something like an institution to coordinate the defense of democracy). It includes most of the candidates running for office in this elections, as well as former presidents, current politicians, and diverse political leaders. Collectively, they are not willing to recognize the official results, they either want new elections or a runoff election, and they demand new and independent leadership in the TSE.

The civic/civil opposition mostly includes different labor, trade and various interest groups, among them the so-called civic committees. The latter organizations have a long history of representing the interests of the cities. They are most influential in Santa Cruz, La Paz, Potosi, Cochabamba and Sucre. This opposition mostly makes a point of calling themselves a-political, which is what differentiates them from the political opposition. An additional characteristic defining these organizations is their claim to be the voice of the people. These organizations tend to mobilize the most people, supporters of the opposition and other people who for some reason or another are against a continuation of the MAS government. As such, they have staged in recent days so-called cabildos (town meetings) to formulate demands. Among the most important are:
1. Declare a national duel and homage to the fallen heroes in the fight for freedom and democracy.

2. Fight until Evo Morales resigns from the presidency.

Demand the annulment of these fraudulent elections and call new elections with a new Supreme Electoral Tribunal that respects the popular will and call for new elections without the presence of Evo Morales and Álvaro García Linera.

3. Reject the second round and audit the elections for being a distraction maneuver to demobilize the struggle of the Bolivian people and keep Evo Morales in power.

4. Ratify the political independence of civic, workers and popular organizations vis-à-vis this government and say neither Mesa nor Evo Morales.

5. Convene the national police and the armed forces to join their people and not stain their hands with the blood of the Bolivians.

6. Maintain and radicalize the pressure measures that are being carried out by the Civic Committees, trade unions and popular organizations until the goal of the Bolivian people, which is to oust Evo, is achieved.

The interesting thing is that such cabildos are happening in all the major cities in the country. This has become truly a national protest. Albeit, a protest which comes overwhelmingly from the urban areas and, both the lower and the middle classes. Most rural areas have firmly remained behind Morales. In fact, many of the violent confrontations among Bolivians have been along this divide and not between indigenous and non-indigenous, as many believe. Groups of people from the rural areas have gone to the cities to "brake" the strike, mostly by force. The deaths of two men in Montero (about 50 kilometers north of Santa Cruz de la Sierra) was the sad result of one of those confrontations.

Parallel to the town meetings, the civic committees are also coordinating other measures of opposition. The Santa Cruz civic committee has taken the lead in these efforts and, its president, Luis Fernando Camacho, has become the most active figure. Camacho has gone as far as issuing on Saturday the 2nd a 48 hours ultimatum calling for Morales to resign. As time passes on, the demands tend to become more radical, albeit more coordinated.

As for the government, one of its first moves was to ask the population to wait for the official results. However, as things turned more chaotic, it reacted in several ways. At one point, Morales declared himself the winner, even after having asked people to wait for the official results. At the same time, several members of Morales' team began blaming the opposition for the vandalism and disturbances while others struggled to present explanations for the procedural mishaps. Most recently, Morales himself asked his supporters to go out to defend the results. Morales' latest moves were, on the one side, to accuse the opposition of carrying out a coup d'etat, and on the other side, to invite the OAS to audit the official results. The audit is in process and if it finds fraud, Morales said he will be willing to call for a runoff election.

The TSE assured the results were valid as they tried to diminish the meaning of the rapid count TREP qualifying it as unofficial. Eventually, the TSE issued a final report declaring Evo Morales the winner as they assured there was no need for a runoff election.

Where is Bolivia headed?

To me, this latest crisis in Bolivia will be resolved in one of several ways.

The first solution that comes to mind is Morales stepping down. He and his team could work out an excuse for him to leave office, that way contributing to the rapid normalization of the country. The opposition is bound to accept this solution and lift all measures it has planned and plans to implement in the next days to pressure Morales out of office. However, that is at the moment unthinkable. I do not think Morales would be willing to take responsibility for the problem and just pack his things and go. That would be the first time for such an outcome.

Alternatively, Morales could wait and see. This, however, would depend on the resolve and resilience of both sides. On the one side, if Morales can keep cool and avoid making more mistakes that incite more ire among the public, he could wait for the OAS audit to confirm his win. This, of course, would depend on whether the audit confirms the official results.

On the other side, this would also depend on whether the opposition is willing and able to carry out the demonstrations as long as is necessary. At the moment, this does seem to be the case. If the opposition (both political and civic/social) keeps up the pressure on the government, and if it even is able to increase that pressure, then it will be a matter of time for the government to have to react to that pressure.

The reality with this second alternative is that the MAS and Morales keep on making mistakes. It seems as though Morales and the MAS have decided to take the confrontational path. Morales has just issued a call for his supporters in La Paz and El Alto to go out on the streets to defend his government. He spoke to them through Radio San Gabriel, known to reach mainly the rural areas. His interior minister, Carlos Romero, keeps on accusing Carlos Mesa. He recently gave a press conference where he showed "evidence" of Mesa's responsibility in the deaths of many people in October 2003. Lastly, Gustavo Torrico, a former interior ministry official and current member in a regional assembly, expressed his determination to defend this "revolution" with any means. His words seemed to threaten the lives of the many young people demonstrating on the streets. These words were interpreted by the parents of those students as a death threat and, so now, they are also joining their sons and daughters on the streets.

Added to that, the opposition does not accept the OAS auditing the electoral process. The distrust is too deep against the agreement between the government and the international organization. Many leaders have said, to accept the audit would mean to legalize what in their eyes is already illegal. In addition, as time goes on, and more organizations get involved, more things happen (i.e. confrontations with police and MAS supporters), and more threats are issued by members of the government (in whatever capacity they serve), the more radical the protests will get. By now, there are many decisions taken by the many actors in the opposition, and slowly but surely, they will end up in a coherent group of demands. Right now, it seems the ultimate demand will be to ask Morales to resign.

Other alternative solutions can involve new elections, with a renewed and independent TSE, assisted by international actors. In fact, this would be the latest demand coming from Carlos Mesa and his political organization, CC.

Whatever the solution will be, it has to come sooner than later. The confrontations between the two main groups have been violent, but have not reached yet dramatic proportions (aside from the deaths of those two demonstrators in Montero).

Elections 2019: The Bolivian Political Crisis Continued

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Source: TV screenshots from ATB network
Twenty-one days after the general elections (executive and legislative), Bolivia's political crisis deepens even further. President Morales has called for new elections, the OAS' audit team concluded it was impossible to confirm the election results, the police force has openly rebelled, and the majority of the many mobilized groups around the country are asking Morales to resign. It seems Bolivia has maneuvered itself in a situation where the only way out of this crisis is a new government.

The events 

In recent days, the government has kept its mixed strategy. On the one side, it has repeatedly called the population to remain calm and not engage in violent acts. For instance, Morales has been issuing statements through the media and his social media channels, speaking in press conferences, as well as sending government officials to issue similar messages, which urged the population to remain calm and to wait for the OAS' audit results. Around the country, there were many buildings set on fire as well as many opposing groups violently confronted each other, where there were injured and several deaths.  On the other side, Morales and his team have been urging supporters to defend their votes. Morales and his team have distributed the blame for the many violent acts and the deaths of demonstrators to the opposition leadership (mostly to Mesa and Camacho). The government also urged its supporters to go out on the streets to "defend" their vote, alleging the opposition wanted to steal the rural vote. Morales even came out alleging there was a coup d'etat on the works and urged, once again, his supporters to defend the democratic process.

In the meantime, the opposition radicalized even more. While the political forces such as CC repeated their massage urging Morales to resign, call to new elections and change the TSE leadership, the various civil society groups changed their demands to call for Morales' resignation. Fernando Camacho, the Santa Cruz Civic Committee president, flew to La Paz to, as he asserted, give Morales a letter which contained the people's demand, i.e. Morales' resignation. These "civic" organizations around the country, begun to concentrate their demands around the resignation of Morales. This change was the result of the events developing simultaneously in other parts of the country. Many groups in La Paz set up barricades around the government building replacing the police which had been securing the area but retreated because of the mutiny.

The media, via many reports around the country by their journalists, has been reporting that many groups supporting the MAS have been confronting demonstrators around the country. A couple of days ago, there were reports of such attacks trying to stop the blockades, which degenerated into violent confrontations with stones, sticks and many times physically and with many injured. There was a death reported in Montero. In the course of yesterday to today, there were several attacks from allegedly MAS supporters to demonstrators trying to reach La Paz to demonstrate against the government. Of course, it is necessary to highlight that there were other MAS groups, in a similar manner, calling for calm and peace as well as for the acceptance of the official electoral results. Many of these also demonstrated showing their support for the government.


Decisive events (before midday)

The development of this crisis took a downturn when more actors joined the course of events.

On November 9: Following the announcement of the Cochabamba police to stage a mutiny (that is how they called it), the rest of the police departments soon followed. By 8 pm (Bolivian time), the police in the 9 departments had declared a rebellion against the government.

Important was what happened in Santa Cruz and La Paz. In Santa Cruz, police officers arbitrarily forced the, up to then, departmental police commander, to replace him with someone else. That person publically declared "the police is with its people". In La Paz, police forces securing the government palace retreated to their precincts, giving thus free access to plaza Murillo.

Another decisive event was an attack against several buses coming from Potosi in direction to La Paz carrying people who wanted to demonstrate against the government. It was reported that as the convoy passed the Vila Vila town, a group of people (it is unclear whether locals or other people) flanked the vehicles and attacked them with stones and other materials. This caused several injured. This is just the information that was verified by the media.

In addition, there are reports of other similar events that involve rape, death, and injury. As a result of all this information or misinformation, the people from Potosi have radicalized even more. At this point, it does not seem as if they will be happy with anything other than Morales' resignation.


At the same time, the group of citizens representing the wives of police officers organized in an association stationed themselves at the doors of police buildings. In many opportunities, these women spoke what the police officers could not. In support of these women, many groups of demonstrators not only joined the women but also posted themselves in order to secure the several police buildings around the plaza Murillo as well as the government building. Remarkably strategic, these moves.

On November 10: The OAS audit team published its preliminary report, which concluded: "vulnerabilities and irregularities, which made it impossible to guarantee the integrity of the data and give certainty about the results."

As soon as the OAS published its audit results and proposed new elections, President Morales, from a military base in El Alto, called for new elections, for the renewal of the TSE leadership and called the opposition to negotiations.

Decisive Events (afternoon)


Source: ATB news, Above: Army, Below: Police

In the afternoon, at around 2 pm, and throughout a course of two to three hours, one by one, a considerable number of ministers, senators, deputies, governors, start to resign from their posts.

There is a video of the Interior Minister, Romero, showing him holding hands with two of his aids and a police official, praying.

At around 3 pm, the Army Commander and the Police Chief, at separate but closely following times, issue a call for Morales' resignation.


What is coming?

It looks like time is out for President Morales!

Elections 2019: The Final Chapter: President Morales Resigns

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Source: ATB news
 On November 10, 2019, at 5:05 pm, Evo Morales resigns from the Bolivian presidency.

In his (and his VP's) monologue, Morales said he took this decision because he wanted to put a stop the various attacks his MAS colleagues were being subjected to. He specifically accused the CC leader Carlos Mesa and Mr. Camacho, leader of Santa Cruz's Civic Committee, of ordering their supporters or militants to intimidate, physically assault and force MAS ministers to resign and denounce Morales. He qualified these events as a civic and political coup, planned and perpetrated by Camacho and Mesa. He pointed out he will not leave Bolivia, instead, he will live in Chapare, in his home. Finally, he said he will be always ready to come back.







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