BOLIVIA:MORALES SET TO CHALLENGE U.S. ON TRAFFICKING, AID (Oh, yeah?)

Miami Herald ^ | 1/13/2006 | Pablo Bachelet

[FerdieMurphy]

WASHINGTON -Washington's antidrug trafficking and aid policies face challenges in Bolivia from the incoming leftist government of Evo Morales.

When Bolivia's Evo Morales is sworn in as president on Jan. 22, analysts say he's likely to challenge two policies long cherished by the Bush administration -- that U.S. aid must be tied to investment-friendly policies, and that coca crops must be eradicated.

A former coca growers' leader, the fiery Morales toured France, Venezuela, Cuba, Spain and China -- all not exactly friendly to the Bush administration -- and in Venezuela vowed to join the ``anti-neoliberal, anti-imperial fight.''

So far, the Bush administration's reaction has been cautious. A number of officials, from Secretary of State Condoleezza Rice on down, have said Washington will wait to see how Morales governs before passing judgment on his policies.

Assistant Secretary of State for the Western Hemisphere Thomas Shannon already said this week that Washington wants to talk with him about drug trafficking. Morales replied he would be willing to do so.

The Bush administration has been debating for some time how to tackle Morales, whose election comes as left-wing leaders seem well positioned to seize power in Peru and Mexico, further entrenching the region's leftward trend of recent years.

For now, the decision is to use the Millennium Challenge Account (MCA) -- a massive U.S. aid program launched by President Bush in 2002 -- as a big carrot to entice Morales to behave, U.S. government officials familiar with the deliberations say. Just before Morales' election, Bolivia presented a proposal for $598 million in aid from the MCA fund to build roads linking remote areas and help finance alternate export industries. If awarded, this would be the largest MCA grant to date.

`REAL LITMUS TEST'

But crucial details will have to be worked out with the new Morales administration in what will become a test of both the Bush administration's willingness to work with Morales and the Bolivian leader's acceptance of the capitalist system.

''The [MCA] conditions have to do with a free market, with its checks and balances,'' said one Latin American diplomat who asked to remain anonymous because of the sensitivity of the issue. ``If you want to migrate to a different system, obviously you will reject those conditions . . . It is a real litmus test of the Bolivian government's moderation.''

Eligibility for MCA aid is subject to indicators measuring everything from corruption to spending levels on public health, but a nation can be suspended if the administration believes the government is implementing the wrong policies.

Nationalizing oil investments in Bolivia without adequately compensating foreign investors could very likely lead to suspension, the diplomat said. Morales has said he wants to nationalize oil and gas reserves, but not above-ground assets.

The Bolivian leader has not said whether he plans to pursue MCA's $598 million grant, but observers say Morales may have less room to antagonize the United States than President Hugo Chávez of oil-rich Venezuela, who regularly blasts Bush.

DEPENDENT ON AID

As South America's poorest nation, Bolivia is heavily dependent on foreign aid. The country annually receives about $500 million -- a tenth of its government budget -- from 18 foreign institutions, including about $150 million from the United States. One-third of U.S. aid is earmarked for anti-drug trafficking programs.

Jim Vermillion, managing director for Latin America at the Millennium Challenge Corporation, which manages the MCA funds, said the Bolivian initiative would not be cut based on minor provocations by Morales. ''We are not going to do a knee-jerk reaction,'' he told The Miami Herald.

Officials in both La Paz and Washington say Morales may accept the program because groups that supported his candidacy played a big part in crafting the proposal, including peasant, indigenous and labor groups. Agreeing on coca eradication may be harder, however, because U.S. officials fear that Bolivia could reclaim its title as a top cocaine exporter -- a position it held in the 1980s -- if unchecked coca growing is allowed.

[FerdieMurphy]

...he's likely to challenge two policies long cherished by the Bush administration -- that U.S. aid must be tied to investment-friendly policies, and that coca crops must be eradicated.

Abolish ALL foreign aid, but cancel Bolivia's first!

the fiery Morales toured France, Venezuela, Cuba, Spain and China -- all not exactly friendly to the Bush administration --

The "fiery" communist running dog visited all our enemies. More reason to pull his plug. Castro, (a thorn in our side...thanks to the Brothers Kennedy...has been a thorn in our side for 45 years) Chavez and Morales. The three commie stooges that need to be taken out.

[Wiz]

Well, it seems to be time to retreat our aid to Bolivia.

[One Proud Dad]

Cut all aid and use it to build the fence and hire more border and customs agents. Let them eat their coca plants.

[Eric in the Ozarks]

Let the Vens build Bolivia's roads. They have a lot of asphalt that they no longer ship to the US.

[FerdieMurphy]

And, they're donating oil to Castro because he's furnishing them medical care. Of course while he's being so benevolent there's currently a shortage of doctors in Cuber.

[FerdieMurphy]

If only there was a way to cut the staffs of our elite, elected political class. This, alone, costs the "treasury" ( I use that losely as it's looted on a daily basis. I believe there's one Kennedy half-dollar coin left.) over $1.5 billion.

Instead of plushy offices that resemble that of the Enron gaggle, shove two or more senators into one cubicle. We'd be rid of Teddy if they were required to compose their own drivel. Send them all home for six-eight months and we'd save a trillion.

[One Proud Dad]

Cut the State Department by half. Cut about half of the Congressional "aides" and make them do their own work and actually talk to their constituents instead of lobbyist while some flunky reads my letter or takes my call.

[Flavius Josephus]

Why should he worry about a piddling $600 meg from the US when he can make that up in Coca exports, and the Chinese will probably dollar match anything he looses from us.

[raybbr]

As South America's poorest nation, Bolivia is heavily dependent on foreign aid. The country annually receives about $500 million -- a tenth of its government budget -- from 18 foreign institutions, including about $150 million from the United States

A small drop in the bucket towards a "new America".

We are now one of the largest Spanish-speaking nations in the world. We're a major source of Latin music, journalism and culture.

Just go to Miami, or San Antonio, Los Angeles, Chicago or West New York, New Jersey ... and close your eyes and listen. You could just as easily be in Santo Domingo or Santiago, or San Miguel de Allende.

For years our nation has debated this change -- some have praised it and others have resented it. By nominating me, my party has made a choice to welcome the new America.

George Bush from a campaign speech in Miami, August 2000.

[Malesherbes]

Even Spain's Sappy Zapatero is worried about Evo. Spanish businesses have heavy investment in Bolivia, and when Morales was in Madrid Zapatero urged him not to get too close to Castro & Chavez. The Spanish Foreign Minister declined to meet the little indio, saying that he had met him once before.

[wtc911]

Bolivia gets $150 million from us? How long do you think it would take them to recoup that exponentially by jumping back into the cocaine business without fetters? We have no leverage, here or anywhere in South America thanks in large part to Bush's policy of pretty much ignoring what goes on south of the border.