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Weekly Report - 6 January 2011 (WR-11-01)
BOLIVIA: Morales fuels discontent
“Neoliberal and rightwing". These were the terms used by the supporters of President Evo Morales to slam his government in its efforts to pass a highly contentious decree scrapping generous state fuel subsidies at the end of last year. Morales' subsequent repeal of the measure under the weight of popular pressure less than a week later, serves as the latest reminder of the way in which the main challenge to his government comes not from the opposition Right but his own support base. The controversy has also drawn attention to the government's continuing failure to boost oil output - the need to drive up oil prices to provide incentives to oil companies was cited as one of the reasons behind the decree.
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