Overwhelmed by violent protests, Bolivian president Evo Morales announced last Friday that he was reversing his controversial decision to abolish fuel subsidies. The removal of those subsidies had caused an abrupt spike in gasoline and diesel prices (which immediately jumped by 73 percent and 83 percent, respectively, according to the Los Angeles Times). It had also triggered anti-government riots across the country. “This measure isn’t necessary,” Morales declared on December 31. “I understand the recommendations of the workers.” He also understands that two previous Bolivian governments were toppled by energy-related protests (led by Morales, among others) in 2003 and 2005.
In the short term, the former coca farmer may have saved his leftist government and temporarily fortified his political base among the indigenous poor, who were at the forefront of the recent protests. But Morales is now greatly weakened and vulnerable to future challenges. Moreover, unless he changes course on economic policy, Bolivia will continue to experiences major difficulties.
