Repercussions Of Nationalisations To Be Limited

BMI View: President Evo Morales is clearly still determined to bring strategic sectors under the government's control, as evidenced by the nationalisation of four power firms on May 1. More state expropriations may well materialise, but we suspect that there is a limit to how much further the government is able (and willing) to go without compromising its longer term economic ambitions, which hinge critically on external assistance.

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