Bolivia Honors Contracts

Bolivia’s President Eduardo Rodriguez promised that his country would honor its natural gas contracts with Brazil and Argentina, but also pledged to raise taxes on foreign oil companies and to increase government intervention in the oil and gas sector. Carlos Mesa, Bolivia’s last president, resigned earlier this month in the face of mass protests and roadblocks that choked off Bolivia’s main cities. The protesters, led by leftist congressman Evo Morales, demanded a nationalization of Bolivia’s oil and gas industry and more political power for the country’s poor indigenous majority. Rodriguez has promised to call new elections within six months.