Deadlock Continues

February 2008 | Risk Summary

The Bolivian political scene remains in turmoil. Talks between President Evo Morales and opposition leaders to forge a national unity pact to incorporate some of the breakaway provinces' demands for greater freedom stalled in January following Morales' decision to cut provincial budgets, reducing the money that the provinces get from natural gas income by 30%. Santa Cruz Prefect Rubén Costas announced that the referendum on autonomy would take place on 4 May, although the government maintains that the referendum is illegal because it has not been approved by congress.

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