President Evo Morales of Bolivia restructured mining, banking and investment laws in the country to increase state control over the economy. The legislation that the congress will draft is to replace 8 current laws that were annulled by the President on a Labor Day event. These laws had been enforced by President Victor Paz Estenssoro in 1985.
President Morales said on the occasion that it ended 20 years if neo-liberalism. He added that they agreed to approve the new laws in Congress to bury the old decree. The President was wearing a miner’s helmet and was festooned with flowers as he spoke at the event. He added that the best legacy of the Bolivian people is to be anti-imperialist, anti-capitalist and anti-neoliberal.
The socialist agenda of the President has been evident since he was elected in 2006. Labor day has seen announcements of nationalization of Bolivia’s strategic hydrocarbon reserves and the electric power grid, with mass rallies and military displays. The state has had some trouble with the issue of nationalizing mines as miners have been threatening to strike if the state tried to take control of the private mines in the nation.
The new mining bill will ensure a compromise with higher royalties being paid by the mining companies operating in Bolivia. The miners that are not substantially affected are Coeur d'Alene Mines Corp., Pan American Silver Corp. and Orvana Minerals Corp.