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Leftist Government in : A Comparison of Bolivia, , , and by R a ú l M a d r i d

In much of Latin America, the left is The former president of Chile, Ricardo Lagos, kicked off the confer- resurgent. During the 1990s, conservative poli- ence by delivering the 2008 Lozano Long lecture entitled: “, cies held sway in much of the region, as even Equity, and Growth: 18 years of Democratic Coalition Government traditionally populist parties came to embrace the in Chile.” In his speech, Lagos linked the left to social justice and to I market-oriented paradigm. The new millennium, the idea of giving “more power to the citizens.” He argued that the however, saw the region move in a different direction, driven in part by left could be distinguished from the right in part based on beliefs disenchantment with the traditional parties and their record of gover- about whether society should be fundamentally shaped by citizens or nance. By early 2008, left-of-center parties or movements had come to consumers. Lagos acknowledged the benefits of a market economy, power in , Bolivia, Brazil, Chile, , , , but he argued that if society is shaped only by consumers, then it will , , and Venezuela, and, nearly, and as well. reproduce the inequities that exist in markets. Citizens, he argued, are The new left-of-center governments are often said to represent a equal in rights and duties, while consumers are unequal because their wide variety of tendencies, yet we still have relatively little systematic rights and influence “depend on the size of their pockets.” and comparative information on their policy programs. To help fill Although there may be widespread agreement on the left about the this gap, the Teresa Lozano Long Institute of Latin American Studies need for greater social justice and citizen participation, there has been brought together distinguished academics from Latin America and a great deal of variation in how leftist governments have chosen to the for a two-day conference entitled The Performance achieve these aims. Venezuela has carried out the most far-reaching of Leftist Governments in Latin America: What Does the Left Do Right? changes to date. The administration of Hugo Chávez has dramatically This conference focused on four countries—Bolivia, Brazil, Chile, and overhauled the country’s existing political institutions, expanded state Venezuela—and covered a wide range of policy areas from economic intervention in the economy, and boosted social spending significantly. and social policy to the reform of political institutions. The conference Left-of-center governments in Brazil and Chile, by contrast, have largely organizers, Wendy Hunter, Raúl Madrid, and Kurt Weyland of the Dept. worked within the existing policy institutions and have embraced the of Government at the University of Texas at Austin, hope to publish the existing market-oriented economic policy model. Finally, the government proceedings of this conference in a forthcoming volume. of in Bolivia represents an intermediate point between

llilas portal 14 these two poles, although it leans more in the expanded social spending. Given the limited Jennifer Pribble, and John Stephens points out, direction of Chávez. The Morales administra- resources available, they have adopted many the Lagos administration enacted reforms in tion has sought to dramatically reform the programs that target the poorest sectors of 2005 that eliminated the appointed senators, constitution and has expanded the role of the the population, an approach in line with gave the president the power to remove the state in the economy, but so far it has employed recent prescriptions by the Bank and heads of the armed services, and reduced the Leftist Government in Latin America: rather cautious fiscal and wage policies. other international development organiza- authority of the National Security Council. The differences between the four countries tions. Nevertheless, they have implemented Nevertheless, by and large, the Concertación have been sharpest with regard to political some universalistic programs as well. The has respected existing political institutions and reforms and rhetoric. Whereas center-left left-of-center governments in all four coun- those institutional reforms that it has enacted A Comparison of governments in Brazil and Chile have largely tries also have focused on state-directed social have been undertaken with the support of maintained the existing constitutions, sought policy initiatives, rather than the privately significant sectors of the opposition. out common ground with the opposition, managed social programs embraced by some The Concertación also has employed rela- Bolivia, Brazil, Chile, and avoided polarizing rhetoric, populist left of their predecessors. tively conservative economic policies, opting and Venezuela Although there may be widespread agreement on the left about the need for greater social justice and citizen participation, there has been a great deal of variation in how leftist governments have chosen to achieve these aims.

governments in Bolivia and Venezuela have The Moderate Left to maintain the market-oriented economic created new constitutions, swept away existing Chile has the longest-standing left-of-center strategy initiated under Pinochet. As Huber, political institutions, and maintained hostile government in Latin America, excluding . Pribble, and Stephens discuss, the Concertación relations with the opposition. The Concertación, a center-left alliance that government has kept the economy relatively Notable differences among the leftist includes the Christian Democratic Party (PDC), open to foreign trade and investment, and governments also have emerged with regard to the (PS), the Party for Democ- it has generally refrained from interven- economic policy. Left-of-center governments in racy (PPD), and some smaller parties, first ing in the economy. The Concertación also Brazil and Chile largely have maintained the took power in 1990, after seventeen years of has practiced fiscal conservatism and wage market-oriented model bequeathed to them by under General Augusto Pinochet. restraint, although it has regularly boosted their predecessors, but Bolivia and, especially, The first two Concertación governments were the minimum wage and it initially raised taxes Venezuela have increased state intervention in headed by leaders of the centrist Christian to finance increased social spending. These their economies. Nevertheless, neither of the Democratic Party, but in 2000 the Socialist policies have kept inflation low and have latter two countries has moved to national- Party leader, Ricardo Lagos, was elected presi- generated steady economic growth. Indeed, as the ize the economy, run up huge fiscal deficits, dent. In 2006, Lagos was succeeded by another conference paper by Ricardo Ffrench-Davis dramatically reduced their foreign trade Socialist leader, Michelle Bachelet, who became points out, the macro-economic performance with the United States, or carried out other the first female president of Chile. of the Concertación government has been sweeping reforms associated with left-wing The Concertación charted a moderate politi- considerably better than that of the military governments in previous eras. Thus, the differ- cal course from the outset, seeking common regime that preceded it. Whereas annual GDP ences between the leftist governments in this ground where possible with the right-wing growth averaged 2.9 percent between 1974 policy , while significant, are not vast. opposition and agreeing to abide for the most and 1989, it averaged 5.4 percent between The smallest differences have emerged part by the terms of Pinochet’s 1980 consti- 1990 and 2007. The inflation and unemploy- in the area of social policy. Left-of-center tution. The Concertación has not eschewed ment rate, meanwhile, has been significantly governments in all four countries have intro- constitutional reform altogether. Indeed, as the lower under the Concertación than during the duced new social policy initiatives and have conference paper delivered by Evelyne Huber, Pinochet regime.

llilas portal 15 According to Huber, Pribble, and Stephens, According to Kingstone and Ponce, in the level of state intervention in the economy, the Concertación has departed importantly area of social policy, the Lula administration returning Venezuela to the populist and statist from the previous regime in terms of its social has deepened or expanded policies established policies of the and 1980s. The govern- and labor policies. The Lagos administration, by the Cardoso administration. Lula, like ment has announced the nationalization of for example, introduced unemployment insur- Cardoso, carried out pension reforms designed the electricity and telephone companies and ance, legalized divorce, initiated universal to restore the financial health of the troubled has sought to boost state control of the oil health care coverage for certain common and inequitable public pension system. The industry via various measures. The Chávez illnesses (Plan AUGE), and created a Lula administration also introduced a major administration also has embarked upon a program for the poorest sectors of the popu- conditional cash transfer program, Bolsa spending spree and has sought to diversify lation that involves cash transfers as well as Família, that dramatically expanded the Bolsa its sources of foreign trade and investment. counseling (Chile Solidario). The Bachelet Escola program initiated at the federal level These policies have generated mixed macro- administration, meanwhile, has expanded by the Cardoso government. By 2006, 11 economic results. Venezuela went through a the provision of public daycare and created million families were benefitting from this serious economic crisis in 2002–2003, but two new state-funded pensions for people program, up from only 3.6 million in 2003. economic growth in recent years has been who either have not contributed to the private As the paper by Pedro Luiz Barros Silva, José very strong thanks largely to high oil prices. pension system or have not contributed Carlos de Souza Braga, and Vera Lúcia Cabral The level of inflation in Venezuela has been enough to earn a decent pension. These Costa argues, this combination of pro-market among the highest in the region in recent reforms, taken as a whole, represent signifi- economic policies and pro-poor social poli- years, however. cant social policy changes. cies has helped Lula win widespread support As Ellner details, the Chávez administration The Lula administration in Brazil has from both poor and well-off sectors of the has used its growing oil wealth to boost social resembled the Concertación governments in population. spending considerably. Chávez, for example, Chile in terms of its moderate policies. Indeed, has boosted social security pensions by tying there has been a great deal of continuity in The Contestatory Left them to the minimum wage, which has gone policies between the Lula administration, The contestatory left, by contrast, has broken up significantly during his administration. which took power in 2003, and its prede- much more dramatically with past policies and The government also has doubled the pay- cessor, the centrist government of Fernando institutions. Nowhere is this clearer than with ment pensioners receive at Christmas. In Henrique Cardoso. The Lula administration the Chávez administration in Venezuela, which the area of education, the government has has not sought to carry out major constitu- took power in 1999. As Steve Ellner discussed created “Missions” that provide basic tional reforms, and it has been relatively in his conference paper, Chávez has moved training as well as high school, college, and pragmatic in terms of reaching across the to overhaul existing political institutions graduate school programs for underserved political spectrum in order to get legislation and consolidate control of the Venezuelan constituencies. In addition, the government approved. In the 2002 and 2006 elections, government. Shortly after taking office, has sponsored cooperatives and has created it even ran in alliance with more conserva- Chávez convened a constituent assembly community councils that are eligible for state tive parties. dominated by his supporters, which dissolved aid to carry out local projects. As the conference paper by Peter Kingstone the existing legislature and the supreme court, To a large degree, the Morales admin- and Aldo Ponce shows, the Lula administra- extended the president’s term, and allowed istration in Bolivia, which took office in tion has exhibited a great deal of continuity for immediate presidential re-election. Chávez early 2006, has followed Chávez’s model. in its economic policies. From the outset, also stacked his supporters in institutions that Like Chávez, Morales has used intemperate the Lula administration employed fairly were traditionally nonpartisan, such as the rhetoric at times, and he has sought to create restrictive monetary policies and made efforts Attorney General’s Office, the Comptroller’s a new constitution in order to consolidate his to balance Brazil’s fiscal accounts, in keeping Office, and the National Electoral Council, in control of the country. The new constitution, with the policies of the Cardoso administra- order to weaken horizontal accountability. which still needs to be approved in a refer- tion. The Lula administration also has kept its Chávez also has used political mobilizations endum, would allow presidents to serve two economy relatively open to foreign trade and to put pressure on the opposition, and he has consecutive five year terms, allowing Morales has expanded the country’s openness to inter- frequently employed incendiary rhetoric in to stay on for another ten years. It also seeks to national capital. These policies, combined with denouncing his political opponents. Partly as weaken the opposition’s control of the senate, a favorable international economic climate, a result, political polarization has worsened the prefects, and the judiciary by expand- have yielded relatively good macroeconomic considerably during his administration. ing the size of the senate, creating direct results to date. Between 2003 and 2007, Chávez’s economic policies also repre- elections to fill the Supreme Court, and economic growth averaged 3.7 percent annu- sent a departure from past policies, but here allowing elected officials to be subject to ally, compared to only 2.3 percent during the the break is only sharp if compared to the recall elections. Finally, the new constitution Cardoso administration. Inflation, meanwhile, market-oriented policies implemented by would increase the government’s control of averaged only 8.1 percent during the Lula Carlos Andrés Pérez’s administration in the other institutions such as the Human Rights administration, as opposed to 14.6 percent early 1990s. As Javier Corrales notes in his Ombudsman, the Comptroller General’s Office, under Cardoso. paper, Chávez has substantially increased the and the National Electoral Court, by lowering

llilas portal 16 the amount of congressional support neces- not depart from existing land tenure prin- sary to confirm governmental appointees to ciples. Moreover, the Morales administration these posts. The new constitution has been has moved cautiously in the implementation In Memoriam vigorously opposed by the opposition, leading of this reform because of the potential for to growing political polarization in Bolivia. violence. Thus, the Morales administration’s John W. F. Dulles, who taught at the In economic policy, the Morales adminis- social policies do not significantly differenti- University of Texas for more than tration also has followed the Chávez model ate the government from its more moderate forty-five years and was a familiar face to some degree, moving Bolivia in a more neighbors in Brazil and Chile. at LLILAS, died June 23, 2008, in San statist direction. The Morales government has Antonio at the age of 95. His wife of refused to negotiate a free trade agreement Conclusion sixty-eight years, Eleanor Ritter Dulles, with the United States, and it has exerted more Left-wing governments have brought change to preceded him in death four days state control over the economy, particularly in Latin America, but the extent of these changes earlier, on June 19. the sector. As the paper by has varied considerably across countries and Benjamin Kohl and Linda Farthing argues, policy areas. In Brazil and Chile, left-of-center Born in Auburn, New York, in 1913, however, the government’s economic policy governments have been more aggressive than Professor Dulles was the eldest son has been moderate and reformist, rather than their predecessors in using social policies to of former Secretary of State John radical. The Morales administration, for exam- address and inequality, but they have Foster Dulles. His early career was in ple, has limited wage and spending increases, largely embraced the political institutions and , beginning at the Duquesne it has built up its international reserves to economic policies they inherited from previous mine in Patagonia, Arizona, followed record levels, and it has worked hard to main- regimes. In Bolivia and Venezuela, populist by work as assistant general manager tain its existing trade arrangements with the leaders have engaged in fiery rhetoric and at Cia. Minera de Peñoles in Monterrey, United States. Even the country’s vaunted gas sought to radically overhaul their countries’ Mexico. His interest in Mexico led industry “nationalization” plan was hardly political institutions. Nevertheless, even in to his first book, Yesterday in Mex- radical in that it has emphasized renegotia- these countries, the economic and social poli- ico: A Chronicle of the Revolution tion of contracts rather than expropriation, for cies of left-wing governments have been a far 1919–1936. Following his job at Peñoles, the most part. As the paper by George Gray cry from the socialist policies of Fidel he became vice president of Molina points out, the Morales administration in Cuba or Salvador Allende in Chile. Cia. Mineracão Novalimense in Belo has forced the foreign-owned gas companies The performance of these left governments Horizonte, which in turn led to his to pay a larger share of their revenue to the has also varied. Chile is the clearest success lifelong interest in Brazil and more than Bolivian government, threatening them with story with an impressive record of growth, twelve books on its history. expropriation if they fail to comply. Although stability, and social progress. In Brazil too, the Morales’s economic policies represent a depar- left has presided over economic growth and Professor Dulles had just finished his ture from the market-oriented policies of the stability, but the left has been in power for a forty-fifth year of teaching at UT and last two decades, they are not inconsistent much shorter time in Brazil than Chile, and was preparing his fall course mate- with the state-capitalist policies pursued in its accomplishments have been more modest. rial at the time of his death. Among Bolivia prior to 1985. In Bolivia and Venezuela, the record of left his numerous publications was his Nor has the social policy of the Morales government is decidedly mixed. The Venezu- most recent book, the second of a administration represented a dramatic break elan economy has experienced considerable two-volume biography, Resisting with the past. The Morales government, like volatility during the Chávez years, although Brazil’s Military Regime: An Account its counterparts in Brazil, Chile, and Ven- it is currently in the midst of an oil-driven of the Battles of Sobral Pinto, pub- ezuela, has expanded social spending and boom. The Bolivian economy, meanwhile, lished by the University of Texas Press introduced some new social policy initiatives. has generated strong growth so far under the in 2007. These initiatives, however, have built on exist- Morales administration, but there are some ing policies, as Gray Molina discusses. The worrisome signs of inflation. Traditionally Professor Dulles will be remembered Morales administration’s new pension pro- marginalized sectors of the population have as a dedicated scholar and will be gram, Renta Dignidad, simply expands the acquired more influence in Bolivia and Ven- greatly missed by his many friends and non-contributory pension system introduced ezuela in recent years, but both countries colleagues at the University of Texas during the first administration of President have become more polarized and less demo- and throughout Latin America. Gonzalo Sánchez de Lozada. Morales’s major cratic. It may be too soon to conclude that new conditional cash transfer program, the the moderate left is more successful than the Bono Juancito Pinto, was modeled on pro- contestatory left, but the trend certainly points grams introduced earlier in the in that direction. of , Bolivia, as well as in other Latin American nations. Even the agrarian reform Raúl Madrid is Associate Professor of Govern- plan, according to Kohl and Farthing, did ment at the University of Texas at Austin. ✹

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