Bolivian nationalisation may spur Andean leftists
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LA PAZ, Bolivia (Reuters) - Evo Morales' sudden energy nationalization in Bolivia could fuel growing demands for an end to the free-market economic policies that have done little to ease grinding poverty across the Andean region.
For Bolivia's indigenous majority, this week's nationalization decree an troop deployment at gas fields is the culmination of a struggle for the control of natural resources that is being played out in Ecuador and Peru too.
It also comes against the backdrop of growing state control of the oil sector in Venezuela, orchestrated by Morales' main foreign ally, leftist President Hugo Chavez.
…His decision resonated in Peru, where the camp of nationalist Ollanta Humala, the first round winner of a presidential race, applauded the move.
…By nationalizing vast natural gas reserves, Bolivia's first indigenous president has taken up the baton of increased state control from Chavez, even at the risk of alienating Brazil, its massive neighbor whose energy investments will suffer.
The hardline stance against Washington's free-market prescriptions, which have done little for the 100 million Latin Americans living on $1 a day, is popular.
…In unstable Ecuador, indigenous peasants have blocked roads in recent months to protest negotiations on a U.S. free trade pact.
Indigenous groups have also called for nationalization of the energy sector and particularly the expulsion of U.S. companies from South America's No. 5 oil producer.
"(Bolivia's nationalization) represents an important outside reference point for Ecuador's indigenous movements that have lost power in recent years," said Hernan Reyes, sociology professor at Ecuador's branch of the Latin American Faculty of Social Sciences.