Monday, November 06, 2006


The Bolivian Government Sucessfully Renegotiates Contracts With Oil Companies

President Evo Morales and his cabinet, through some pretty deft negotiations, have signed new contracts with major oil companies. With these new contracts Bolivia not only gets a higher percentage of income earned from the sale of petroleum products but also have a greater say in the production of their natural resources. We are seeing, perhaps for the first time in Bolivian history, a concerted and joint effort by petroleum companies and the government to work out a deal that will benefit both parties. In the past the country swayed from the extremities of nationalisation and privatization. Lets pray and hope that the increase in the national income will trigger more growth and social justice.

Lets give credit where its due. The Bolivian goverment served the long term interests of its people in these difficult negotiations. There was talk of nationalising the oil industry and the previous minister who led the negotiations resigned because expropriating foreign property was a non starter from the word "go". The new minister and his team however managed to put together a deal which the oil companies could accept.

Bolivia's problems will not vanish overnight but there seems to be some positive traction; the government appears to be bringing people together and some of the divisive rhetoric has diminished somewhat.

Thank You For Your Prayers.

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