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Andean Group - May 2011 (ISSN 1741-4466)

ECONOMY: Morales hits nationalisation snag

Since first taking office in January 2006, President Evo Morales has seized on the 1 May celebration of International Labour Day as an opportunity to illustrate his commitment to the nationalisation process, a key plank of the new 2009 constitution. Much of the rhetoric was familiar this year: Morales announced the repeal of the so-called "neoliberalism decree 21060", passed in 1985 under President Víctor Paz Estenssoro (1985-1989), and trumpeted the benefits of the process, which began with the hydrocarbons sector in 2006. Unlike previous Labour Days, however, Morales did not unveil new nationalisations, confounding expectations regarding plans to further strengthen state control over the highly lucrative mining sector. Significantly, this followed opposition not from foreign mining companies but rather the miners themselves, pointing once again to dissent from his nominal support base.

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