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FRAYING NERVES IN BOLIVIA

Last week, Congress approved steep taxes on oil and gas as a compromise between the industrious free marketers of Santa Cruz province, and the Marxist nationalizers of cocalero kingpin Evo Morales, who gets his funding from the drug trade and from Venezuela’s Hugo Chavez. Obviously, that was no solution. Santa Cruz province is threatening to secede over this move that is sure to keep Bolivia’s gas in the ground. The province is also angry at the breaking of already signed contracts with investors. The Marxist coca growers, meanwhile, threaten more roadblocks to starve the cities into coming to their point of view, since they can’t win at the ballot box. Today, President Carlos Mesa unexpectedly vetoed the unworkable high taxes. Now, the tension is rising. Read it here.

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