Bolivian blockades begin to ease after 46 days of unrest

(Bloomberg) — Road blockades that have led to shortages of food and medicine across Bolivia have begun to ease after 46 days in a conflict that has tested the new president’s staying power.

The number of road closures had dropped to about 50 by Monday morning from more than 100 in recent days, Bolivia’s highway administrator said. Protesters retreated in parts of La Paz, Cochabamba, El Alto and other regions where the government sent machines to clean roads and repair damaged sidewalks. In other areas, citizens removed stones, logs and other debris by hand. The movement of goods has resumed in some parts of the country, although disruptions remain.

The unrest’s momentum began to fade as differences emerged among protesters and the economic impact took its toll: According to the National Chamber of Industry, losses reached $2.8 billion, equivalent to about 5.5% of Bolivia’s GDP.

The national union, the La Paz Farmers’ Federation and former leader Evo Morales have led weeks of protests, notably calling for the resignation of President Rodrigo Paz. But some factions within each union—teachers and factory workers, for example—have signed labor contracts with the government. Five regional unions asked their national leaders to open talks. And it seems others are now willing to get involved.

“We will send a letter to the government outlining the conditions for dialogue,” said Rolando Choque, secretary general of the farmers’ federation. “If these conditions are not met within 24 hours, the blockades will certainly escalate.”

According to Choque, the president’s resignation is missing from the list of conditions. Last week, Paz signed a law that makes it easier for the state to impose emergency measures to quell the unrest. His administration also said it was closing in on a $3 billion financing program with the International Monetary Fund.

Despite initial signs of de-escalation, it is too early to be certain that the crisis will end. On Sunday, some union leaders were met in downtown La Paz by angry citizens who threw tomatoes and accused them of damaging the economy. Former president Morales, who still has a huge support base in the country, criticized those willing to deal with the government in a speech broadcast on a local radio station.

The economic impact is likely to persist even after the blockades are lifted, Gary Rodríguez, manager of the Bolivian Institute of Foreign Trade, said during a Monday webcast.

The nearly two-month-old blockades have severely disrupted the flow of supplies to La Paz, driven up the cost of dwindling essential goods and sparked kilometer-long queues at petrol stations, with some drivers waiting a week to refuel. Some businesses have closed and others have placed employees on furloughs.

“The consequences will be felt in the coming months until the end of the year, even if the blockades end immediately,” Rodríguez said. “There are units that operate on credit, and if there is a loss of production, they are left with that debt.”

La Paz’s industrial sector remains optimistic that the blockades will end soon, although many road closures continue to disrupt exports and domestic distribution. The head of the Chamber of Industry of La Paz, José Eduardo Iriarte, said that 70% of industries in the department have stopped operating due to the blockades.

He said some manufacturers in rural areas – including members of the groups that organized the protests – were pushing their leaders to return to work after seeing their own economic activity affected by the road closures.

“We hope that a complete solution will be found soon, but we ask that we think about the future so that this cannot happen again,” he said. “We cannot be held hostage.

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