Bolivia's business elites have shifted to Morales

Subject

Government-business relations.

Significance

President Evo Morales’s government has established a collaborative working relationship with the country’s most powerful business elites that belies its leftist rhetoric. This is based on an understanding that while government offers large corporate interests favourable economic conditions, business groups will refrain from conspiring against the government in the political sphere. Thus, the government has managed to minimise the sort of pro-regional tensions that characterised its first term in office (2006-10), driving a wedge between economic and political elites.

Impacts

• The economic policies pursued by the Morales administration will continue to prove, broadly, good for business.
• Smaller-scale businesses have been less beneficially treated, but lack political lobbying power.
• Avoidance of strife with the more powerful business groups will continue to help underpin political stability.