On December 26, Bolivia’s vice president announced a gas subsidy cut, saving the government $380 million, but meaning a rise in fuel prices of 57-80 percent. Massive protests and street demonstrations followed, but the Morales government insisted that the move would be mitigated by cost of living subsidies to families and public employees. In the meantime, the government would stamp out “neoliberal” practices in Bolivia: citizens were fencing fuel, transporting it to neighboring countries and selling it.
Morales publicly changed his mind on 1/1/11, rescinding the price hike. He thanked Bolivians “for making me understand this is not the best time” to raise prices. Rather than blaming his advisors Morales has said that the subsidy is still planned, but at a later time. So neoliberalism, it seems, persists in Bolivia. For now.
