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let them sip champagne: the battle of bolivia
by Robert Sterling (robalini@aol.com) - December 28, 2000
Water is the essence of life, making up 70% of the human body. Mankind can't live long without it.

Such is the background behind a failed swindle, masterminded by the forces of globalization. The backlash nearly led to a revolution, the first of hopefully many to follow in the New World Order of economics. Oddly, there wasn't too much about it in the news.

In 1999, the Bolivian government "privatized" the public water system in the city of Cochabamba, based on the "advice" (i.e. demands) of the World Bank. They only considered one bid, by a conglomerate led by Bechtel, the giant San Francisco-based engineering monolith. Bechtel and its pals were given a 40-year-lease. More than half a million people depend on the water to survive.

What is important to understand is that there's nothing unusual behind such plans: it's modus operandi for both the IMF and World Bank. "Privatization" means selling public enterprises and natural resources to private corporations. The corporations are unsurprisingly almost always Western military-industrial titans. In exchange, the countries are infused with more cash. The sales job is that the corporations will run things more efficiently than a bungling government industry.

It didn't work that way in Bolivia. Big surprise: why would an amoral money machine not abuse a granted private monopoly and the license to gouge? The conglomerate doubled and tripled prices. They claimed it was to recover the cost of a huge dam project in Misicuni, yet to be built. Many impoverished people suddenly couldn't afford the essence of life. The response from Bechtel, the Bolivian government, and the World Bank was a collective shrug. Get used to the new economic realities. Or, as Marie Antoinette would put it, "Let them sip champagne."

The people of Bolivia responded to the economic rape and thievery with protests led by workers, environmentalists, and citizen's groups. A strike and transportation stoppage brought the city to a standstill. They were met with tear gas and bullets. Six were killed and 175 injured, including two children blinded from the chemical warfare.

In April 2000, Hugo Banzer, the former Bolivian dictator and now the President, declared martial law. World Bank Director James Wolfensohn commented to reporters that, "The riots in Bolivia, I'm happy to say, are now quieting down." Bechtel issued a statement denying the upheaval in Bolivia had anything to do with its plundering, and suggested the revolt was the work of those opposed to a "crackdown on coca-leaf production."

But the tide had turned. This time, the opponents of Corporatism (under the banner of "free trade globalization") ended in victory against the evil empire. While Bechtel and the Bolivian government tried to shift blame to the other, the industrial giant fled its offices and tried to extract a US$12 million exit payment. The leader of the water protests, Oscar Olivera became a national hero.

More than even Seattle or D.C., the Battle of Bolivia is a global wakeup call against economic oppression in the world.

 
 
more information  
 

Bolivians Rise Against Globalized Water Prices
This Americas.org article (April 2000) by Jim Shultz details what happened when the Bolivian government caved into World Bank pressure and sold Cochabamba's public water system to a British-led consortium - which proceeded to increase rates by up to 400%.

Water Fallout: Bolivians Battle Globalization
This In These Times article (May 15th, 2000) by Jim Shultz details the Cochabamba protests, and the reprisals taken against San Francisco-based Bechtel Corporation.

Blame Bechtel, Not Narcotraffickers, For Bolivian Uprising
This Pacific News Service article (April 12th, 2000) by Jim Shulz points the finger in the right direction.

Water Wars: Bechtel's Bloody Hands In Bolivia
This LabourNet UK article (April 9th, 2000) by Jim Shulz offers a personal reflection on the Cochabamba battles.

The World Bank Must Realize Water Is A Basic Human Right
This Globe & Mail article (May 9th, 2000) by Maude Barlow features a title that is an understatement.

Water, Water . . . Nowhere
This Blue Planet Project article by Maude Barlow offers background on Bechtel's corporate governance.

Protests Against Water Rate Rises Sweep Bolivia
This top-notch World Socialist Web Site article (April 11th, 2000) by Mike Ingram reports on the Cochabamba riots.

Bolivia's War Over Water
This Democracy NOW! transcript (April 12th, 2000) features author Laton McCartney, Jim Shultz (the Democracy Center's Cochabamba office), and Edwin Claros (President of the Cochabamba Assembly of Human Rights in Bolivia).

Not Just A Seattle Sequel
This Salon magazine article (April 15th, 2000) by Bruce Shapiro offers this assessment: ""The protests surrounding this weekend's meetings of the IMF and World Bank are the next step in the backlash to globalization."

New British Empire Of The Dammed
This Z Magazine article by Gregory Palast (April 23rd, 2000) reveals the UK connection to the Bolivian swindle.

The Earth Wrecker
This San Francisco Bay Guardian article (May 31st, 2000) by Pratap Chatterjee states: "The company that won the contract to oversee the rebuilding of S.F.'s water system has a disastrous record worldwide."

Standing Up For The Victims Of Globalization
This Washington Post article (April 26th, 2000) by Judy Mann is a surprisingly good piece on the anti-globalization movement.

Union Members Join Thousands To Protest Anti-Worker World Bank, IMF Policies
The AFL-CIO on the IMF-World Bank protests.

Bolivians Rise Against Globalized Water Prices: Photo Gallery
A Photo gallery from Americas.org.

Globalization & War For Water In Bolivia
The ultimate introduction to the Bolivian revolt (February-May 2000), published by Jim Shultz and Tom Kruse.

Toronto Globe & Mail
This Globe and Mail newspaper delivered top-notch coverage of this people's revolt.

Americas.org
Resource Center of the Americas.

The Democracy Center
The Democracy Center was founded in San Francisco in 1992 to strengthen the advocacy work of nonprofit and community groups in California as well as NGOs in a variety of countries around the world. Since then the Center has provided advocacy training, counseling, strategy planning and other assistance to hundreds of groups and thousands of people working on social and economic justice issues on three continents.

The World Socialist Web Site
Even if you aren't a Socialist, this is probably the finest daily deliverer of news and information.

Global Exchange: Building People To People Ties
Global Exchange is a human rights organization dedicated to promoting environmental, political, and social justice around the world. Since our founding in 1988, we have been striving to increase global awareness among the US public while building international partnerships around the world.

Bechtel Corporation
Visit the Web Site of the beast behind the failed thievery.

Bolivia's War Over Water
Another fine collection on the Bolivian Water Wars, from The Democracy Center.

Disinformation Dossier On A16: The World Bank v The World
Check out the Disinformation dossier on A16: The World Bank v The World.

Disinformation Dossier On The Battle In Seattle
Check out the Disinformation dossier on The Battle In Seattle.

Disinformation Dossier On The World Trade Organization
Check out the Disinformation dossier on The World Trade Organization.

Disinformation Dossier On Bloody Bolivia
Check out the Disinformation dossier on Bloody Bolivia.

Water Privatization In Bolivia
A correspondence exchange between Shultz and Kruse and the World Bank: "The World Bank advised the government against proceeding with the privatization plan and water tariff increases that sparked tragic violence in Cochabamba last month."

 
 


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