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Economy / Bolivia

Capital Change Sparks Protests

August 2007 | Risk Summary

Huge demonstrations broke out on July 20 with protestors angered by the proposal to transfer the executive and legislative branches of government to Sucre, which is currently the seat of Bolivia's judicial branch. The proposal emerged during discussions over the new constitution - put forward by opponents of President Evo Morales. In our view, a change in Bolivia's capital could heighten the antagonism in Bolivia between those in the poorer western highlands where La Paz is located, and the more prosperous east.

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