Bolivia's Radical Decentralization

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    8 Americas Quarterly S U M M E R 2 0 1 0 A M E R I C A S Q U A R T E R L Y . O R G

    M

    AURO

    KURY;JORGE

    SILVA/REUTERS

    (FLAG)

    Volume 4, Number 3Table of Contents Summer 2010

    3425

    in ournext

    issue:

    Education, Inclusion and Competition: Access to quality education is the key to social mobility andeconomic growth. The Fall issue ofAmericas Quarterly examines race and educational opportunity in Brazil,

    business promotion of technical education, public-private partnerships, and standards and testing, with

    articles by Marcelo de Paula Paixao, Fernando Reimers and Jeffrey Puryear.

    28 The New El DoradoHUGUETTE YOUNG

    Climate change, oil and

    geopolitics in the Arctic Circle.

    34 Bolivias RadicalDecentralizationMIGUEL CENTELLAS

    President Evo Morales is

    transferring more authority to

    departmentseven when the

    results have been politically

    uncomfortable.

    40 Power to the ParentsDANIEL ALTSCHULER

    Honduras and Guatemala

    experiment with community-

    run schools.

    3 From the Editor

    11 PanoramaFundacin Albatros

    Media, Choc Quib Towns Afro-

    Colombian beat, Inuit filmmak-

    ers, 10 Things to Do in Panama

    City, and more.

    18 Hard Talk Can local govern-

    ments write their own immi-

    gration laws? Governors Janice

    K. Brewer and Bill Richardson

    square off.

    22 Innovators/Innovations

    Lumni, Inc. invests in LatinAmerican college students.

    Yolande James empowers immi-

    grant youth in Qubec. ViaEduca-

    tion trains teachers. Cavi Borges

    puts Brazilian cinema in the

    spotlight.

    104 Dispatches from the Field:

    New OrleansStephanie Hepburnon post-Katrina (and now post-

    BP) worker exploitation.

    108 Tongue in Cheek

    110 Policy Updates

    Juan Blyde and Mauricio Mes-

    quita Moreira on transport and

    trade. Mara de la Paz Vela on

    Ecuadors dollarization.

    114 Fresh Look Reviews

    Adam Isacson looks at Colombias

    Democratic Security policy. Patri-cio Navia reviews an anthology

    on Latin America's new direction.

    120 Just the Numbers

    The hemispheres expanding

    waistlines.

    DEPARTMENTS

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    SOMEONE:FIRST

    LASTNAME

    34 Americas Quarterly S U M M E R 2 0 1 0 A M E R I C A S Q U A R T E R L Y . O R G

    CR D A I LA

    ND CE E RT A

    VB LO I AI S

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    A M E R I C A S Q U A R T E R L Y . O R G 35Americas QuarterlyS U M M E R 2 0 1 0

    IVAN

    ALVARADO

    /REUTERS

    AL ZI T I NO

    Will the creation of multiple andoverlapping regional, subregional and

    local government authorities unifyor fragment Bolivia? BY MIGUEL CENTELLAS

    olivia under Presi-

    dent Evo Morales

    is undergoing rev-

    olutionary change.

    Since it assumed

    power in 2006 ,

    much of the international attention

    on the Morales government has fo-

    cused on its socioeconomic policies.

    But those policies may ultimately

    leave less of a political imprint than

    the transformation of the countrysgoverning structures. In fact, the most

    profoundly radical development is Bo-

    livias transition from a traditional

    unitary state toward something re-

    sembling a federalized onethough

    the end point of this process remains

    uncertain.

    Political power in Bolivia, as in

    much of Latin America, has been his-

    torically centralized in the national

    government. Subnational authorities

    traditionally served as agents of the

    executive. But during the wave of de-

    centralization that accompanied the

    regions return to democracy, Bolivia

    began to move toward the federal

    models of Mexico, Brazil, Argentina,

    and Venezuela. With this years local

    and regional elections, it has become

    the most decentralized of Latin Amer-

    icas nonfederal states.

    It is now worth asking whether the

    results have advanced Bolivias dem-

    ocratic development or hindered it.

    The movement toward a federal-

    ized structure began in the mid-1990s,

    when theLey de Participacin Popular

    (Popular Participation Law) created 311

    popularly elected municipal govern-

    ments (since expanded to 337) and con-

    stitutionally guaranteed them direct

    fiscal transfers. It also included mech-

    anisms for grassroots citizen organi-

    zations to play direct oversight and

    planning roles in local government.

    At the time, the neoliberal archi-tects of those reforms argued that

    municipal decentralization was more

    effective than granting more powers

    to Bolivias nine departments, which

    would merely reproduce the ineffi-

    ciencies of the central government.

    That was a justifiable concern, since

    each of the departments was politi-

    cally and economically dominated

    by its capital city. The decision to cre-

    ate 311 municipal governmentsmost

    of which had fewer than 15,000 resi-

    dentswas a conscious effort to bring

    local government to marginalized in-

    digenous and rural communities.

    One of the most striking results of

    the law was the empowerment of a

    new generation of political leaders,

    such as Evo Morales. But just as sig-

    nificant, municipal decentralization

    along with electoral reforms that in-

    troduced a mixed-member electoral

    system, accelerated the decline of Bo-

    livias traditional party system.

    B

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    DAVID

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    36 Americas Quarterly S U M M E R 2 0 1 0 A M E R I C A S Q U A R T E R L Y . O R GA M E R I C A S Q U A R T E R L Y . O R G

    HURTLING TOWARDTHE UNKNOWN

    U

    nder Morales, the

    pace of change has

    sped up, thanks to

    the new nationalconstitution ap-

    proved in 2009 .

    While Article 1 of that constitution still

    declares Bolivia a unitary state, it also

    declares it (among other things) a

    plurinational state with autonomies.

    Essentially, the constitution now ex-

    plicitly recognizes that multiple na-

    tions live within the territory and

    grants local self-government to differ-

    ent communities. However, none of

    this is defined in practical terms.The constitution introduces a new

    structure for subnational autonomies

    that is more comprehensive and far-

    reaching than the decentralization

    reforms of the 1990s. While it en-

    shrines departmental autonomya

    consequence of the protracted conflict

    between the central state and auton-

    omy movements in the eastit also

    grants varying levels of political and

    economic autonomy to three other

    types of government: regions (subde-

    partmental units self-defined by pop-ular referendum), municipalities and

    indigenous communities.

    This means that Bolivia is now con-

    stitutionally divided between four

    equal, distinct, yet overlapping lev-

    els of autonomy, with many questions

    still unanswered about how this po-

    litical structure will work in practice.

    The legislature is still working on a le-

    gal framework that will regulate the

    various autonomous entities. Each au-

    tonomous unit must also draft its own

    statute (local constitution or charter).

    The reality is that no one has a clear

    idea of how these units will relate to

    each otheror the central govern-

    mentin practice.

    Even before the enactment of the

    2009 constitution, departmental au-

    tonomy emerged as the most visibly

    federal feature of the system. Begin-

    ning with the 2005 general elections,

    prefects have been chosen by popu-

    lar election rather than appointed by

    the president. The result: in 2005, even

    though Morales andMovimiento al So-

    cialismo (MAS) won a comfortable na-

    tionwide victory, opposition prefects

    were elected in six of the country s

    departments. These prefects consti-

    tutionally still serve at the pleasureof the president, but Morales has

    respected opposition victories and

    declined to unilaterally remove mem-

    bers of the opposition from office.

    He maintained this hands-off ap-

    proach even during the tense period

    of 2008, when opposition prefects or-

    ganized autonomy votes in the east-

    ern lowland departments of Santa

    Cruz, Tarija, Beni, and Pando. The

    Presidents response was to organize a

    nationwide recall referendum for him-

    self and eight prefects. Savina Cul-

    lar, the Chuquisaca prefect elected in

    a special election that year, was ex-

    empt. Morales won, but so did most

    opposition prefects.

    Regional autonomy movements re-

    main the greatest single challenge to

    Morales presidency. In the absence of

    a credible, disciplined or coordinated

    national opposition political party, re-

    gional movement leaders have been

    the only ones capable of mounting a

    sustained opposition to Morales gov-

    ernment. Often, government-opposi-

    tion negotiations have taken place

    outside the legislature, forcing Morales

    to negotiate with the prefects. Since

    his election, every compromise he has

    made has strengthened the autono-mists position. After resisting the in-

    clusion of departmental and regional

    autonomy clauses in the new constitu-

    tion, Morales and the MAS delegates

    finally caved in to the opposition and

    included autonomy provisions.

    Then, in December 2009, in what

    was clearly an electoral calculation,

    Morales suddenly reversed position

    and supported autonomy referen-

    dums: in each of the five Andean

    departments (La Paz, Cochabamba,

    Oruro, Potos, and Chuquisaca), in the

    province of Gran Chaco (part of Tarija

    department) and in 12 rural munici-

    palities (where voters were given the

    chance to declare themselves an in-

    digenous community). Yes won in

    all the referendums except for Cara-

    huara. As a result, in April 2010, voters

    went to the polls in a host of autono-

    mous jurisdictions: nine departments,

    326 municipalities, 11 indigenous com-

    munities, and one region (Gran Chaco).

    A political evolution: Evo Morales celebrates victory with Felipe Quispe (left),

    head ofMovimiento Indgena Pachakuti, in 2005 (above). In 2008, Savina Cullar

    is sworn in as Bolivias first woman governor of the Chuquisaca region (right).

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    LUIS

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    A M E R I C A S Q U A R T E R L Y . O R G 37Americas QuarterlyS U M M E R 2 0 1 0

    They elected 2,511 officials.

    Today, Bolivias autonomous de-

    partments look very much like states

    in a federation. Unlike municipali-

    ties, whose structures are defined

    by the central state, departments

    (and regions) are free to draft their

    own statutes. In the end, Morales

    has acceptedwith little or no mod-

    ificationthe kind of autonomy re-

    gionalist movements had demanded.

    It is too early to know whether Bo-

    livias current model will continue to

    evolve toward a full federal model

    though even if it does, the powers and

    responsibilities remain ill defined. But

    its evolution from decentralization to

    devolution to autonomies offers a clear

    trajectory. It also suggests profound

    changes are underway in the coun-

    trys party system.

    THE RISK OF DISPERSIONAND FIEFDOMS

    The municipal decen-

    tralization of the

    1990s was key to

    those changes. Local

    elections served as

    recruiting mecha-

    nisms for party activists and as sound-

    ing boards for societal discontent,

    effectively bringing political parties

    closer to the grassroots. But the resultshave been mixed. Since municipal can-

    didates were still required to run un-

    der the banner of nationally-registered

    parties, they remained largely under

    the control of central party officials

    who recruited them. Once in office,

    they concentrated on strengthening

    their own local power bases.

    Moreover, in their rush to recruit

    electable local candidates, parties

    sacrificed coherent platforms and

    organizational discipline. They fre-

    quently recruited independent out-siders with little or no political

    experience in an attempt to appeal

    to niche constituencies. This en-

    couraged party-switching, as poten-

    tial candidates held out for the best

    offers from rival political parties. It

    also eroded public confidence and

    trust in political parties.

    The picture grew even more com-

    plicated after the Carlos Mesa gov-

    ernment (20032005) established two

    new forms of political representation:

    civic groups and indigenous peo-

    ples. In 1999, just 18 parties partici-

    pated in municipal elections around

    the country. But in the December 2004

    elections, 425 political organizations

    (including 344 civic groups and 65 in-

    digenous communities) campaigned

    across 327 municipal contests. Despite

    the proliferation of groups, a number

    of faces stayed the same, as incum-

    bent politicians jumped ship and ran

    as candidates for local organizations

    or formed new political parties.

    In the December 2005 elections the

    landscape changed again with the

    emergence of what appeared to be

    separate national and regional party

    systems. While just eight parties par-ticipated in the national contests for

    the presidency and the legislature, 18

    parties, electoral alliances and civic

    organizations battled it out in the

    nine prefect elections. MAS was the

    only party to field candidates in all

    of the prefecture votes.

    The trend toward parallel party sys-

    tems has continued. In the December

    2009 national elections, just eight par-

    ties fielded presidential and legisla-

    tive candidates, but by April 2010, 191political organizations offered can-

    didates in regional and municipal

    elections. Of those, 46 won at least

    one mayorship and 124 saw at least

    one of their candidates win a mu-

    nicipal council seat. At the depart-

    mental level, seven won at least one

    governorship and 42 secured at least

    one department assembly seat (this

    figure includes 26 registered indige-

    nous peoples).

    The four parties that won seats in

    the December 2009 legislative electionall participated in the April 2010 local

    and regional elections. But several

    of these were themselves coalitions

    whose member organizations cam-

    paigned separately at the local level.

    At the municipal level, MAS again

    showed itself as the party with the

    longest reach. It competed in all 337

    mayoral elections this year and won

    197 races (compared to 112 in 2004).

    But Morales could hardly have con-

    sidered this a broad victory for the

    party: three-quarters of MASs wins

    occurred in small Andean regions

    and 29 were in unopposed races. The

    second-largest party,Movimiento Sin

    Miedo (MSM)until recently a key

    MAS allywon only 19 mayoral races,

    but this included the city of La Paz.

    In fact, MAS candidates were elected

    mayor in only two departmental capi-

    tals: Cochabamba and Cobija (the capi-

    tal of Pando). Six different parties won

    in the other seven capitals; MSM may-

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    38 Americas Quarterly S U M M E R 2 0 1 0 A M E R I C A S Q U A R T E R L Y . O R G

    ors were elected in Oruro and La Paz.

    MAS gained significant ground at

    the departmental level, however. Mo-

    rales party elected six governors. The

    opposition victories came with the re-

    election of three prefects: Rubn Cos-

    tas (Santa Cruz), Mario Cosso (Tarija)and Ernesto Surez (Beni).

    What does this mean for Bolivias

    emerging autonomies model? First,

    the apparent entrenchment of de-

    partmental autonomy suggests that

    the architects of the 1990sLey de Par-

    ticipacin Popularwere right to be

    concerned about the dominance of

    traditional elites and their civic in-

    stitutions in departmental politics,

    at least in the so-called media luna

    (the eastern lowland departments of

    Santa Cruz, Beni, Pando, and Tarija).

    Second, increased political decentral-

    ization has done little to strengthen a

    national party system. Instead, each

    region is developing its own party

    system. In the four media luna de-

    partments plus Chuquisaca, regional

    politics is currently dominated by

    two relatively evenly matched parties

    (MAS plus a regional party).

    But these regional parties do not ex-

    tend beyond departmental boundar-

    ies and do not work well together to

    form a coherent national opposition.

    Sometimes parties even fragment

    within the region. In Santa Cruz, the

    governorship of the department and

    the mayorship of the capital city were

    won by two different opposition par-ties that did not challenge each other

    in their respective spaces.

    Regional opposition movements

    have achieved their principal goal: the

    institutionalization of constitution-

    ally protected regional autonomous

    governments. Moreover, by acceler-

    ating the process of decentralization,

    Morales has created a complex sys-

    tem of autonomies that is certain to

    make national governance even more

    difficult. Devising a legal framework

    for transferring competencies (health

    care, education, roads, etc.) and fiscal

    transfers from the central govern-

    ment to the four various subnational

    units will be a significant challenge.

    This will be made even more diffi-

    cult by the tendency for departmen-

    tal legislative caucuses (or brigades)

    to cross party lines to band together

    in Congress to defend regional inter-

    ests. A recent example is the move by

    MAS and opposition legislators from

    Chuquisaca to demand that the gov-

    ernment move the electoral court to

    Sucre. The move, supported by the

    newly elected MAS governor and the

    civic organizations that backed his op-

    ponent, seems likely to reignite the

    conflict between Sucre and La Pazthat nearly derailed the constituent

    assembly process in 2008.

    As other unitary states look to Bo-

    livia as a potential model, the jury is

    still out on whether such radical de-

    centralization is a positive force for

    democracy and socioeconomic devel-

    opment. The elections of 2010 have

    revealed a highly fragmented politi-

    cal landscape. Decentralization can

    bring government closer to citizens,

    which is a boon for democracy. But it

    can also encourage a hyper-localism

    that makes coherent policymaking at

    the national level difficult. Would-be

    imitators will need to decide the ex-

    tent to which greater participatory

    democracy can trump governability.

    Miguel Centellasis Croft VisitingAssistant Professor of Political Sci-

    ence at the University of Mississippi.

    His research focuses on institutional

    reform and electoral politics in Bolivia.

    2010 ELECTION RESULTS

    Department Gubernatorial Winner Capital City Mayoral Winner

    Beni Primero Beni Trinidad Primero Beni

    Chuquisaca MAS Sucre PAIS (Pacto de Integracin Social)

    Cochabamba MAS Cochabamba MAS

    La Paz MAS La Paz* MSM

    Oruro MAS Oruro MAS

    Pando MAS Cobija MAS

    Potos MAS Potos AS (Alianza Social)

    Santa Cruz Verdes Santa Cruz SPT (Santa Cruz para Todos)

    Tarija CC (Camino al Cambio) Tarija UNIR (Unidos para Renovar)

    *MAS won the mayorship of El Alto, a suburb of La Paz.

    NUMBER OF PARTIESPARTICIPATING IN

    BOLIVIAN ELECTIONS

    Year National Municipal Regional

    1985 11

    1989 10

    1993 14

    1995 13

    1997 10

    1999 18

    2002 11

    2004 425

    2005 8 18

    2009 8

    2010 191 24