Latinnews Archive
Latin American Weekly Report - 21 March 1986
ADN splits over pact with MNR;GALINDO STANDS DOWN TO PREPARE LEADERSHIP BID
Accion Democratica Nacionalista (ADN), the party of former President Hugo Banzer Suarez, is in trouble. ADN's continued support for thePacto por ia Democracia with President Victor Paz Estenssoro's Movimiento Nacionalista Revolucionario (MNR) is being queried by its rank and file and leadership alike. This situation will present problems not only for Banzer, but also for the MNR which relied on ADN support to have an absolute majority in congress in order to steer through one of the worst economic crises Bolivia has known.
The pact, and the roving-ambassador role being played by Banzer, proved too much for Eudoro Galindo, the deputy leader of ADN, who has resigned his post and decided to return to rank and file activities. The pact with the MNR was 'dangerous', he said.
In an open letter to Hugo Banzer, published in the La Paz dailyPresencia, Galindo said ADN must end the Pacto por la Democracia it signed with President Victor Paz Estenssoro in October last year (RA-85-09). Galindo's position is well known; in an interview last year he told us: 'We will not make any deals (. . .) If this means we cannot be the government, we would rather go into opposition.' (WR-85-30).
Galindo, who has a reputation for talking tough, and a resemblance to El Salvador's Roberto D'Aubuisson, represents the hardline right-wing sectors in the party. The pact with the MNR is, he says, a betrayal of ADN's nationalist doctrine. He says he is particularly worried about the negative impact of the neo-Liberal economic policies implemented by Paz Estenssoro.
Banzer is still on a tour of Europe, Israel and the US where he has been performing the unusual role of an opposition leader lobbying for the government. In Germany he requested immediate economic assistance and gave assurances that Bolivia would not renege on its foreign debt commitments. Above all he defended ADN's 'pact for democracy' with the MNR as an important contribution to democracy in Bolivia (RA-86-02).
Galindo has the support of the Potosi department branch of ADN, but other branches are expected to follow suit. His letter was published the day after the labour confederation (COB) held a national day of protest against 'hunger and misery' provoked by the MNR's economic policies.
Galindo dislikes the COB -- he came out against the March 1985 general strike. On the other hand, many ADN members have become aware that any pact with the MNR government can damage the party's prospects.
* For bettr or for worse
The socialist party (PS-1) does not distinguish between ADN and the MNR when criticising the government over its economic policies. The strategy of the left is to use the pact to undermine popular support for ADN and the MNR. Galindo has recognised the danger and wants to end all compromises and links with the MNR. His real objective remains, though, to challenge Banzer as party leader and become ADN candidate in the 1989 general elections.
ADN congressmen are very worried about Galindo's challenge. They are caught in a contradiction of loyalty to Banzer while at the same time being opposed to the pact with the MNR. ADN congressmen reckon Banzer should remove pro-ADN ministers from the cabinet. These ministers are:
* Finance: Juan Cariago Osorio, director of the Banco de Santa Cruz.
* Energy: Carlos Morales, mining entrepreneur and acting chairman of the business confederation (CEPB).
* Mining: Jaime Villalobos.
* Information: Hernan Antelo.
* Trouble with the teachers
Paz Estenssoro is also likely to change his education minister Enrique Ipina, who is considered an obstacle in finding a solution to the teachers' pay strike, which has delayed the March inauguration of the school year.
Private school pupils came out in support of the state sector teachers and students, on 15 March, and demanded a quick end t the dispute.The government, which had at first ordered the violent repression of any demonstrations supporting the teachers, decided to adopt a softer approach.
The planning council (Coneplan) offered to raise teachers wages by 7%. The teachers said this was not enough, and rejected an offer to have part of their wages paid in foodstuffs donated from abroad. The teachers say the 30m peso (US15) monthly minimum wage they earn is not enough to live on, and want 120m pesos (US$60m) to return to work.
If this increase is granted the state budget proposals that have already been put to congress will have to be amended according to what Coneplan offers the teachers.
* Standby for party law
While Banzer has been lobbying for economic assistance abroad, problems which directly involve ADN have appeared in relation to an IMF standby loan. The IMF said it will not grant Bolivia a standby facility of US$60m unless congress approves the state budget. The credit will be released if the following conditions are met:
* Approval of the state budget with a deficit less than 5.6% of GDP.
* The introduction of reforms to the tax system.
* The correct preparation of central bank balances. The IMF was particularly concerned about the excessively large 'various' section of the balance.
ADN says it will only vote for the budget if the MNR abides by the terms of the pact and introduces new rules governing the role of political parties.
The law on political parties envisaged by ADN benefits the parties which got the largest share of the vote in the last general election. The draft law, which has been put together by ADN, will particularly benefit that party. The three parties which will be allowed to exist are: ADN, MNR and the left-of-centre Movimiento de Izquierda Revolucionaria (MIR).
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