Bolivia has been governed by the Movement for Socialism (MAS) since the beginning of Evo Morales's presidency in 2006. Morales has transformed the country's economy with an unapologetically left-wing agenda, redistributing wealth and reducing poverty. However, Bolivia's success is also attributed to its natural resources, particularly natural gas, which accounts for 45% of its exports. While Bolivia has nationalized some industries, it has allowed varying degrees of capitalism to exist, with private companies sharing profits with the state. The country's current president, Luis Arce, is facing a strike in Santa Cruz, the nation's largest department, which produces most of Bolivia's wealth. The strike is led by reactionary and racist opposition forces who aim to undo the country's socialist and indigenous-led government.
Characteristics | Values |
---|---|
Economic growth | Bolivia's economy has grown at twice the rate of the Latin American average. |
Extreme poverty | Reduced by more than half. |
Gini coefficient | Lowered by 19%. |
Natural resources | Bolivia's economy is largely driven by natural gas and mineral exports. |
Welfare state | Generous welfare state, with universal non-contributory pension system and cash transfers to parents of young students, pregnant women, and the elderly. |
Entrepreneurialism | Informal markets have been allowed to spring up. |
Inequality | Bolivia's levels of inequality have decreased. |
Remittances | Remittances have contributed to Bolivia's economic growth. |
Inflation | Inflation has been stable. |
Foreign debt | Bolivia's foreign debt has increased to $11.2 billion. |
COVID-19 pandemic | Bolivia has a three-pronged strategy to tackle the pandemic, involving widespread testing, coordination between governments, and national provision of tests, medical supplies, and vaccines. |
What You'll Learn
- Bolivia's socialist government has been led by Evo Morales and Luis Arce
- The Movement for Socialism (MAS) is the dominant socialist political party in Bolivia
- MAS has been in government since 2006, except for a coup-government interregnum from 2019-2021
- Bolivia's GDP growth has been attributed to its natural resources
- MAS has been responsible for social welfare programs and reduced inequality
Bolivia's socialist government has been led by Evo Morales and Luis Arce
Morales' successor, Luis Arce, is a Bolivian banker, economist, and politician who has served as the 67th president of Bolivia since 2020. Arce previously served as the minister of finance, later the minister of economy and public finance, from 2006 to 2017, and again in 2019. For over ten years as Morales' longest-serving minister, Arce was hailed as the architect behind Bolivia's economic transformation, overseeing the nationalization of the country's hydrocarbons industry, the rapid expansion of GDP, and the reduction of poverty. Arce's presidency brought Bolivia back in line domestically and internationally with its traditional position under Morales and away from the rightward shift the interim government had taken. Arce's first year in office saw its greatest successes in combating the COVID-19 pandemic through the procurement of vaccines from Russian and Chinese sources.
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The Movement for Socialism (MAS) is the dominant socialist political party in Bolivia
Bolivia is a country with a long history of revolution and political and class struggle. The Movement for Socialism (MAS) is a Bolivian left-wing populist and indigenist political party. It is also known as the Movement Toward Socialism or the Movement to Socialism. MAS is led by Evo Morales, who is Bolivia's first indigenous president. The party was founded in 1998 and its followers are known as Masistas.
MAS is the dominant socialist political party in Bolivia. In the December 2005 election, MAS won the first-ever majority victory by a single Bolivian party. The party continued to rule until 10 November 2019 and was victorious again in the 2020 elections. MAS is the dominant force in municipal politics in Bolivia. In the 2015 municipal elections, it was the only party to contest leadership of all 339 municipalities. The mayors of 227 municipalities belong to MAS, as do 1,144 of the country's 2,022 municipal council members.
The roots of MAS can be traced to the closures of the Bolivian Mining Corporation and the shutdown of various mines during the 1980s. Thousands of former miners became coca farmers and encountered new hardships. The growth of the coca farmer community resulted in the emergence of a 'peasant-Indigenous' movement. MAS evolved out of the movement to defend the interests of coca growers. Evo Morales has articulated the goals of his party as the need to achieve plurinational unity and to develop a new hydrocarbon law that guarantees 50% of revenue to Bolivia.
Since taking office, the MAS government has emphasized the modernization of the country, promoting industrialization, increased state intervention in the economy, social and cultural inclusion, and redistribution of revenue from natural resources through various social service programs. MAS has also championed 'national sovereignty', denouncing U.S. interventions in Bolivian affairs and portraying the political elite and proponents of neoliberal policies as 'traitors' supported by the United States.
During his presidency, Evo Morales has transformed Bolivia's economy with an unapologetically left-wing agenda. He has nationalized key industries, such as the petroleum industry, and used aggressive social spending to reduce extreme poverty, build modern infrastructure, and lower Bolivia's Gini coefficient, a measure of income inequality. Morales has also dramatically increased social spending, investing in roads, schools, and hospitals, and establishing popular cash transfer programs.
However, there are internal divisions within MAS, between the supporters of President Luis Arce and former president Evo Morales. Despite these divisions, MAS remains the dominant socialist political party in Bolivia, with a strong base of support, particularly among the indigenous population.
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MAS has been in government since 2006, except for a coup-government interregnum from 2019-2021
The Movement for Socialism (MAS) is a socialist political party in Bolivia. MAS has been in government since 2006, except for a coup-government interregnum from 2019-2021. In the December 2005 election, MAS won the first-ever majority victory by a single Bolivian party. Evo Morales, a former coca grower and labour activist, became the first indigenous president of Bolivia. Morales's tenure marks the first time that the majority-indigenous population of Bolivia has lived above poverty and benefited from the country's natural resources.
Morales has transformed Bolivia's economy with an unapologetically left-wing agenda. He has nationalised key industries and used aggressive social spending to reduce extreme poverty, build modern infrastructure, and lower Bolivia's Gini coefficient, a measure of income inequality. Morales has also dramatically increased social spending, pouring money into building roads, schools, and hospitals. He has established cash transfer programs for parents of young students, pregnant women, and the elderly.
However, there have been criticisms of Morales's environmental policies. Despite passing a law giving equal rights to all living things, Morales's infrastructure efforts and expansion of extractive industries have been destructive to Bolivia's rainforests, rivers, and wildlife.
In 2019, Morales was ousted in a coup and replaced by Jeanine Áñez, who is now in prison for human rights abuses and killings by soldiers during her tenure. The MAS-led government returned to power in 2020 following the electoral victory of Luis Arce and David Choquehuanca.
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Bolivia's GDP growth has been attributed to its natural resources
The mining industry, particularly the extraction of natural gas and zinc, currently dominates Bolivia's export economy. Bolivia has the second-largest natural gas reserves in South America, and natural gas exports bring in millions of dollars per day in royalties, rents, and taxes. The country also has an estimated 9 million tons of lithium, which is used to make lithium batteries for hybrid and electric vehicles.
During the presidency of Evo Morales, a self-proclaimed socialist, Bolivia's GDP per capita doubled, and the extreme poverty rate declined from 38% to 18%. Morales has nationalized key industries and used aggressive social spending to reduce extreme poverty, build modern infrastructure, and lower Bolivia's Gini coefficient, a measure of income inequality.
However, it is important to note that Bolivia's economic growth is not solely due to its natural resources or socialist policies. President Morales has allowed varying degrees of capitalism to exist in the economy, and the country has incorporated elements of a free-market economy. Additionally, Bolivia has been fortunate to have leaders who have managed their resources well, and the country has been fiscally responsible, with low inflation rates and decreasing debt.
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MAS has been responsible for social welfare programs and reduced inequality
Bolivia's socialist political party, the Movement for Socialism (MAS), has been responsible for implementing social welfare programs and reducing inequality in the country. MAS's social welfare programs have had a significant impact on the lives of Bolivians, especially in rural communities. One notable program is the system of bonos, or cash transfers, provided to parents of young students, pregnant women, and the elderly. This initiative has been well-received by the population, who appreciate the government's efforts to support them.
In addition to cash transfers, MAS has also invested in infrastructure projects, such as paving and widening roads, providing running water to homes, and constructing schools and hospitals. These improvements have made a noticeable difference in the daily lives of Bolivians, making it easier to transport goods, access clean water, and obtain an education.
Furthermore, MAS has prioritized the nationalization of key industries, including natural gas, oil, telecommunications, and electricity. This has allowed the government to share in the profits of private companies and use the revenue generated to fund social welfare programs. While some may argue that this approach is less socialist than complete state control, it has enabled Bolivia to reduce its debt, maintain low inflation rates, and accumulate foreign exchange reserves.
The success of MAS's social welfare programs can be seen in the reduction of extreme poverty by more than half and a significant decrease in income inequality, as measured by the Gini coefficient. Bolivia's per capita income has tripled, and the country has transitioned from a low-income to a lower-middle-income economy. The standard of living has improved for millions of Bolivians, especially those from the majority-indigenous population, who now have access to opportunities previously unavailable to them.
The impact of MAS's policies extends beyond economic indicators. Bolivia's socialist experiment has defied right-wing predictions of food shortages, labor camps, and the collapse of private life. Instead, it has moved towards European social democracy, demonstrating that a developing economy can modernize and grow without subjecting itself to austerity measures. The relative longevity of MAS's approach, compared to other leftist movements in Latin America, is a testament to its effectiveness in improving the lives of Bolivians.
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