Mayo 08, 2006
For Bolivia, For Once
My most cherished possession sits safely in a bank deposit box, until I can figure out the proper way to display and protect it. A few years back, I was given my late grandfather’s medal from the Chaco War. Shiny, colorful and authentic, the historic memento was given to those soldiers who fought in a dead-end war. As a result, even more territory was chipped away, as had been a common practice throughout the country’s history. In each of those instances, outside interests propelled those acts and without a doubt, the motivating factor for the conflict was the promise of natural resources in a vast, dry and lifeless land on the Bolivian and Paraguayan border. Fueled by the interests of oil companies, Bolivia sent tens of thousands of soldiers to their eventual death.
Regardless of the reasons and the questions hindsight may bring, my grandfather was extremely proud for having served his country. In his wallet, he still carried his lifetime railway pass given to veterans, even though that transportation service had ceased to operate during the capitalization process. During his last years on earth, he was adamant that he should be buried alongside his veteran brothers in the mausoleum specifically for veterans in the Cochabamba public cemetery.
Fast forward seventy years and this war and the service provided by these Bolivians are being invoked as a cause. Gas and oil was eventually discovered in the Gran Chaco area, yet the million dollar question is always, “if Bolivia’s so rich (in natural resources) why is it so poor?” Much of it has a lot to do with for so long, few Bolivian leaders put the interests of Bolivia first. When the nationalization announcement arrived, many analysts and journalists concentrated on how such a move would affect other countries’ interests. When has Bolivia’s interests been placed squarely in front?
No one can argue that businesses’ chief objective is to make as much money as possible for its shareholders. Record profits and a magical number of multiple times recuperation of investments cannot be tolerated when so many Bolivians still live in empty opportunities. I am not a socialist and am convinced that private enterprises are essential for economic growth and businesses must be encouraged and protected. It’s naïve to think that multi-national companies operate on a strict code of ethics (see: Enron). But to allow for such obscene amounts of profit and the placing of profits so far ahead of human lives, then the state has the right and obligation to protect its interests. Voters often cited that Evo Morales would be the only candidate who would put Bolivia first, even though his tactics and rhetoric may leave a lot to be desired.
Who can be surprised by the turn the country is undergoing? It’s the legacy of the war veterans, the millions of indigenous slaves that were exploited and died in the mines, a people who were considered sub-human, and an apartheid-like society that stimulates the current sentiment in the country. Outside interests all said that this was acceptable because someone somewhere might get rich. When will it be time for Bolivia to finally put Bolivia first?
The lavish in-your-face displays left a bad taste in the mouth of many that thought it unnecessary. Stenciled banners reading “Nationalized” and “Property of the State” was not made for people like me, who don’t know what it’s like to never achieve a small victory once in awhile. How is this any different than a more subtle reminder that Bolivia is property of everyone else, but itself? Creditors were in the business of allowing Bolivia to be indebted to the lending institutions so that it would have to sign ludicrous contracts and sign away its state patrimonies. I understand the concept of privatization and think we can learn a lot from how businesses operate, but there’s a big difference between the privatization of a service such as an airline and signing away natural resources, which belongs to everyone.
Yes, the newly constituted state oil company failed in the past. There was good reason to find another way to make it more efficient. Yes, because of the capitalization process, most of the natural gas reserves in discussion were found. However, Bolivia for once has an opportunity to become less dependent on foreign aid, which never comes without strings attached. It frustrates me to hear that this nationalization process was announced only to transform Bolivia to South Venezuela or to create a political slush fund. Again, there are real concerns that I hold regarding much of the recent events, such as allowing the Venezuelan oil company and Bolivia’s main rival to export gas to Brazil to audit its books, but in the end, I honestly believe that there is a sincere desire to serve the most marginalized and destitute people in Bolivia, those people who have never had any reason to hope for the better. And for once, Bolivia has a bargaining chip and can be a participant in its own destiny instead of being merely a bystander.
Posted by eduardo at Mayo 8, 2006 03:42 PM
Comments
First, I've great respect for all veterans of any war who served their country w/ devotion & pride in what they thought was a just cause. So don't take any of this the wrong way.
But. In my digging through some of the history of the Chaco War in the last year or so, I've come to the conclusion that some of that history (in Bolivia) wasn't very accurate. That is, the war wasn't so much started by foreign interests (though they played their part) as by the interest of President Salamanca to quiet opponents at home by instigating a war w/ Paraguay. The two countries had a border dispute for some time, and Bolivia was expected to win the war easily (better army, better equipment, better air force, more people, etc).
The first shots in the war were fired by Bolivian troops, who seized a Paraguayan position well beyond the internationally-recognized disputated zone. After a Paraguayan force counter-attacked (both "forces" had maybe a dozen or so men) Salamanca skipped the arbitration/negotiation stage, and publicly declared war w/ Paraguay in defense of the nation. As expected, rallying around the flag worked, the opposition flocked to his banner (he was able to round up or exile hundreds of socialist/communist opponents, such as the founder of POR) and go off to war. Gross mismanagement of the war soon turned a rallying around him into a call for his resignation, and a coup overthrew him & ended the war (although perhaps too soon, since Busch & others were starting to regain lost territory in an offensive the Paraguayans could no longer match). Thus, the war ended.
Since the war was the last nail in the coffin of the criollo ancien regime, it soon became a central element in the emerging national mythology of the 1952 Revolution. So Busch & Villarroel are part of the pantheon of "Chaco generation" heroes. But much of that history has been selectively taught by the post-1952 state (not unlike the War of the Pacific history).
As to the question about poor countries that are resource-rich, that's a whole other argument/debate. But I believe that it isn't resources that make countries rich (how do you explain Singapore, Japan, Switzerland) but rather how those resources are managed. My biggest concern is still that nationalized resources in the third world tend to increase poverty, rather than decrease it.
Posted by: mcentellas at Mayo 8, 2006 06:03 PM
That's a brilliant writeup, Eduardo, thank you for it.
Posted by: Liam at Mayo 8, 2006 08:52 PM
Perhaps the war wasn't started by the oil companies, but certainly they had a great stake in the outcome.
I wonder whether this is nationalization in the truest sense of the word. The companies will still receive their share of the profit, although at rates much lower than before. It still remains to be seen whether the funds from these new royalties will go to create new jobs, increase the minimum wage and encourage spending, or will it just be wasted as before.
Posted by: eduardo at Mayo 9, 2006 07:46 PM
Miguel, regarding the War the first shots were fired by the Paraguayans back in 1929. When they seized Fortin Vanguardia (Wikipedia has a major error in that one)and other Bolivian outposts. With regards to Laguna Chuquisaca, the story is pretty bizarre, it was in the middle of the Chaco but within all previous Bolivian claims and became a focal point of the "linea de fortines" that the army tried to build to solidify the country's de facto position; according to various authors it was occupied by both sides at some point.
In any case I agree with your point about Salamanca and his view of "hay que pisar fuerte en el Chaco" foreign business interests did play a nefarious role though, both oil companies and local groups (the Casado family for instance) had vested interests in supporting each side and even prolonging the war.
Eduardo, I know how you feel about your legacy and I'm glad you also value it as it should.I agree with many of your points about the current situation but we also have some clear differences of thinking. And I hope to be wrong... I hope Evo and his clique haven't invoked the memory of valiant ancestors in vain.
Posted by: Jonathan at Mayo 9, 2006 08:29 PM
First, I also respect Eduardo's grandfather's legacy. So I hope I wasn't raining on that parade.
Second, as for who started the Chaco War, that's entirely unclear. So it's a debatable point, to be sure. But I wasn't using Wikipedia sources for this, I was using a set of books written in from the 1930s onwards, some as thesis by students at the US Army War College & West Point Military Academy. The war really goes back even further back, w/ the post-independence borders never really clear.
But it's clear that when Salamanca declared war in response to Paraguayan agression in 1932, it was only after Bolivian troops had occupied a Paraguayan military post weeks earlier, which the Paraguayans then re-took. Since Salamanca ignored that major fact in his pronouncement, most historians have suggested that he "manufactured" the reason to go to war as a boost to his sinking political fortunes.
Historians from both countries, of course, argue the matter. That's why I decided to go back to some contemporary accounts by writers who were more "objective" in their analysis.
Posted by: mcentellas at Mayo 10, 2006 09:16 PM
My grandfather fought in that war, he had to abandon medical school and was never was able to go back once he returned. But he went, as did his brother in law, my great-uncle. Like many veterans he did not talk much about the war, but did write about it in some journals found after his death, but which unfortunately we can not find. He did always say that it was his duty as a Bolivian to go there, and till his death was proud of his service as a Defensor Del Chaco.
But did he just fight there to protect the interests of Standard Oil Company???
No, that would be grossly simplistic. Interestingly enough part of the view, that this was simply a vulgar conflict between rival oil companies, started during the war period in the US.
It was a period of time when Americans and Western Europeans were still trying to make sense of the slaughter of WWI, and the economic collapse of 1929, and the new agressiveness of Germany and Japan. Theories that munitions makers were a cause of the entry into WWI were subject to Congressional inquiries. These theories were popular and were often used as ammunition by neutrality proponents.
And what happened is that the US would not allow sales of weapons to the combatants, despite Bolivia having $$$ due to Patino. One company that did sell weapons, ended up having a very public Court fight that ended up in the US Supreme Court. Certain press and the left in the US and in Europe propagated the idea that it all was a fight between the oil companies, and it stuck.
In Bolivia, it ended up being accepted as gospel of course. But the evidence in reference to Standard is non-convincing, since it was such a marginal operation, and arguably the whole contract was shaky to begin with. The Roosevelt Administration ended up convincing Standard to pretty much accept what amounted to a token payment.
Posted by: Boli-Nica at Mayo 12, 2006 12:40 AM
The people of Bolivia go hunger because the leaders of Bolivia place themselves first. No one stands ahead of their self interest. No business stands before them. The question is why do the people of Bolivia continuously elect leaders who will not represent them? Why do the people of Bolivia continuously select ideology over the truth?
Next question, why do you look to create a villian when you can look at yourself in the mirror and see the one who is cheating you. The people of Bolivia can see the villian robbing of them of liberty by stairing into their mirrors.
Respect for private property is a basic human righ that the people of Bolivia do not want to respect. Poverty is the consequence.
Please stop believing in the myth of the conspiracy and accept that we all are responsible for the world we live in.
Posted by: martha at Mayo 12, 2006 10:40 PM
Martha:
I agree. Bolivian politicians are quick to raise the spectre of some conspiracy (look at Evo's recent statements). They point to Chile, to the US, to some manichean global capitalist conspiracy, etc. Why? Because xenophobia works very well to prop up bad regimes. Until people stop seeing "Chilean agents" behind every person who dares question some of the populist-nationalist rhetoric, Bolivia won't go far, I'm afraid.
Posted by: mcentellas at Mayo 13, 2006 03:19 PM
Eduardo,
Unfortunately you had to employ Apartheid in an otherwise good overview. Everybody is using it to amplify their theses instead of concentrating on their own arguments. Few people really understand the motive for Apartheid, which was originally not intended to help the wealthy rich British industrialists and bankers in South Africa, but the Afrikaner who had been downtrodden by British occupation. May I remind that most of the Gold, Platinum and other minerals in South Africa used to belong to the Boer Republics, and soon after their discovery Britain invaded these republics in order to wrest these resources from the Afrikaner. 2 Boer Wars later the Afrikaner instituted Apartheid (Separation) in 1948 in order to prevent this from happening in the future again, but alas, they could not prevent it from recurring. Now the British industrialists still own these minerals under the guise of the ANC. At least if the ANC had nationalized these resources the corruption of British mine owners, who are the real political movers in South Africa, would have ended. I hope you do better in Bolivia.
Posted by: berta at Mayo 13, 2006 11:07 PM
I was happy to see this information on this war and Bolivia in general. My grandfather was a prisoner of the "EL Chaco" war. Unfortunately I know little about it and my grandfather passed away last year. Where can I find more and accurate information about this war? Thank you.
Posted by: C. Fournier at Junio 21, 2006 08:21 AM