Bolivian gas referendum, 2004
Encyclopedia
Bolivia
held a referendum
on the future of its natural gas
reserves on Sunday, 18 July 2004. The referendum was one of the first promises made by President Carlos Mesa
upon assuming the presidency in the aftermath of the Bolivian Gas War
of October 2003 that saw his predecessor, Gonzalo Sánchez de Lozada
, forced to resign and to flee the country.
The referendum was largely intended to quell the political unrest seen during the Gas War
in 2003. Some have pointed out that the complete nationalization
of gas resources – the main demand of the protest
ers and, indeed, of the majority of the Bolivian population – was not a potential outcome of the referendum. Fears of an uprising led the Bolivian government to take measures essentially forcing the population to vote (announcing fines and other penalties for those who refused or boycotted) and warned that protesters against the referendum would be imprisoned
.
Bolivia's natural gas resources have been a flashpoint issue since the late 1990s. International corporate interests, seeking to supply US
, Mexican
and Europe
an demand, have for years been lobbying for the cheap sale of what is thought may well be the landlocked country's last profitable
natural resource. While leaders have been pressured to accept a quick solution, the public has been keenly aware of the issue and its importance; most Bolivians believe that previous offers have been unacceptable, and see their struggle as justified against what they perceive as a hostile takeover, directed by "US-based profiteers".
Thus, following extensive debate on the wording of the questions in the months prior to the vote, the referendum ignored the important question of outright nationalization.
1. As a percentage of the total votes.
2. As a percentage of the valid votes.
Source: IFES
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
held a referendum
Referendum
A referendum is a direct vote in which an entire electorate is asked to either accept or reject a particular proposal. This may result in the adoption of a new constitution, a constitutional amendment, a law, the recall of an elected official or simply a specific government policy. It is a form of...
on the future of its natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
reserves on Sunday, 18 July 2004. The referendum was one of the first promises made by President Carlos Mesa
Carlos Mesa
Carlos Diego Mesa Gisbert is a Bolivian politician, historian and President of Bolivia from October 17, 2003 until his resignation on June 6, 2005....
upon assuming the presidency in the aftermath of the Bolivian Gas War
Bolivian Gas War
The Bolivian gas conflict was a social confrontation in Bolivia centering on the exploitation of the country's vast natural gas reserves. The expression can be extended to refer to the general conflict in Bolivia over the exploitation of gas resources, thus including the 2005 protests and the...
of October 2003 that saw his predecessor, Gonzalo Sánchez de Lozada
Gonzalo Sánchez de Lozada
Gonzalo Sánchez de Lozada y Sánchez de Bustamante , familiarly known as "Goni", is a Bolivian politician, businessman, and former President of Bolivia. A lifelong member of the Movimiento Nacionalista Revolucionario , he is credited for using "shock therapy", the economic theory championed by then...
, forced to resign and to flee the country.
The referendum was largely intended to quell the political unrest seen during the Gas War
Bolivian Gas War
The Bolivian gas conflict was a social confrontation in Bolivia centering on the exploitation of the country's vast natural gas reserves. The expression can be extended to refer to the general conflict in Bolivia over the exploitation of gas resources, thus including the 2005 protests and the...
in 2003. Some have pointed out that the complete nationalization
Nationalization
Nationalisation, also spelled nationalization, is the process of taking an industry or assets into government ownership by a national government or state. Nationalization usually refers to private assets, but may also mean assets owned by lower levels of government, such as municipalities, being...
of gas resources – the main demand of the protest
Protest
A protest is an expression of objection, by words or by actions, to particular events, policies or situations. Protests can take many different forms, from individual statements to mass demonstrations...
ers and, indeed, of the majority of the Bolivian population – was not a potential outcome of the referendum. Fears of an uprising led the Bolivian government to take measures essentially forcing the population to vote (announcing fines and other penalties for those who refused or boycotted) and warned that protesters against the referendum would be imprisoned
Prison
A prison is a place in which people are physically confined and, usually, deprived of a range of personal freedoms. Imprisonment or incarceration is a legal penalty that may be imposed by the state for the commission of a crime...
.
Bolivia's natural gas resources have been a flashpoint issue since the late 1990s. International corporate interests, seeking to supply US
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
, Mexican
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
and Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an demand, have for years been lobbying for the cheap sale of what is thought may well be the landlocked country's last profitable
Profit (economics)
In economics, the term profit has two related but distinct meanings. Normal profit represents the total opportunity costs of a venture to an entrepreneur or investor, whilst economic profit In economics, the term profit has two related but distinct meanings. Normal profit represents the total...
natural resource. While leaders have been pressured to accept a quick solution, the public has been keenly aware of the issue and its importance; most Bolivians believe that previous offers have been unacceptable, and see their struggle as justified against what they perceive as a hostile takeover, directed by "US-based profiteers".
Questions
The five questions on the referendum were:- Do you agree that the Hydrocarbons Law (No. 1689), enacted by Gonzalo Sánchez de Lozada, should be repealed?
- Do you agree that the Bolivian State should recover ownership over all hydrocarbons at the wellhead?
- Do you agree that Yacimientos Petrolíferos Fiscales Bolivianos [the state-owned oil company privatized under Sánchez de Lozada] should be re-established, reclaiming state ownership of the Bolivian people's stakes in the part-privatized oil companies, so that it can take part in all stages of the hydrocarbon production chain?
- Do you agree with President Carlos Mesa's policy of using gas as a strategic recourse to achieve a sovereign and viable route of access to the Pacific Ocean?
- Do you or do you not agree that Bolivia should export gas as part of a national policy framework that ensures the gas needs of Bolivians; encourages the industrialization of gas in the nation's territory; levies taxes and/or royalties of up to 50% of the production value of oil and gas on oil companies, for the nation's benefit; and earmarks revenues from the export and industrialization of gas mainly for education, health, roads, and jobs?
Thus, following extensive debate on the wording of the questions in the months prior to the vote, the referendum ignored the important question of outright nationalization.
Results
The majority response to all five questions was "yes". The overall abstention rate was around 40% (10% higher than normal for Bolivian elections). Of those who voted, between 20% and 28% for each question handed in either blank votes or spoilt ballot papers, so questions 4 and 5 received support from less than half of the total votes.| Q | Total Votes | Turnout | Valid Votes | Spoilt¹ | Blank¹ | Yes² | No² | |
|---|---|---|---|---|---|---|---|---|
| 1 | 2,678,449 | 60.08% | 2,064,369 | 12.10% | 10.82% | 86.64% | 13.36% | |
| 2 | 2,670,213 | 59.89% | 2,075,707 | 12.51% | 9.75% | 92.19% | 7.81% | |
| 3 | 2,670,215 | 59.89% | 2,054,140 | 10.73% | 12.34% | 87.31% | 12.69% | |
| 4 | 2,670,039 | 59.89% | 1,926,290 | 10.72% | 17.14% | 54.79% | 45.21% | |
| 5 | 2,669,213 | 59.87% | 1,910,909 | 11.72% | 16.69% | 61.74% | 38.26% |
1. As a percentage of the total votes.
2. As a percentage of the valid votes.
Source: IFES
External links
- Bolivia Watch from Znet
- Bolivia's Gas Referendum: Znet – Forest Hylton
- Bolivia's Referendum: The Economist
- Turning Gas into Development in Bolivia from Dollars & SenseDollars & SenseDollars & Sense is a magazine dedicated to providing left-wing perspectives on economics.Published six times a year since 1974, it is edited by a collective of economists, journalists, and activists committed to the ideals of social justice and economic democracy.It was initially sponsored by the...
magazine