Bolivian Province Seeks Greater Autonomy

Wed Jan 26, 3:35 AM ET World - AP Latin America

By KEVIN GRAY, Associated Press Writer

SANTA CRUZ, Bolivia - Across the low-lying plains in this eastern
Bolivia city, green and white flags hang from storefronts and drape
from cars symbols of a growing push for greater political
autonomy
in the country's most prosperous region.

Handwritten signs near the city's plaza read "Autonomy now!" Civic
and business leaders talk openly of wanting new political rights and
economic benefits. The issue is on everyone's lips in Santa Cruz,
Bolivia's largest city and economic powerhouse.

Over the last two weeks, angry street protests set off by government-
ordered gas hikes have revived an old demand: calls for loosening
the region's ties to La Paz, the seat of Bolivia's government.

The rift between this resource-rich region and the government in La
Paz highlights the ails plaguing South America's poorest country,
one riven by simmering social tensions between an Indian majority
gaining political power in La Paz and its traditional white and
mixed-race ruling elite in Santa Cruz.

"We feel like we have no input," said Juan Ortiz, a Santa Cruz small
business owner. "And we feel like we should have some say, given
what we represent for Bolivia."

The push for greater self-governance presents President Carlos Mesa
with his most serious challenge since he took power 15 months ago.
Mesa assumed office after his predecessor, Gonzalo Sanchez de
Losada, resigned following a deadly Indian-led popular revolt
triggered by a plan to export the country's natural gas reserves.

Since then, Mesa has sought to juggle demands from increasingly
vocal indigenous groups opposed to free-market economic reforms and
business leaders who support them.

Just how much independence the proponents of the move in Santa Cruz
are seeking remains unclear.

Business and political leaders in Santa Cruz argue they generate
nearly a third of the country's gross domestic product along with a
large portion of Bolivia's tax revenue. Yet they insist they are
paying out more than they receive from the central government.

The region's governor and other officials are now appointed by La
Paz, a power local officials say they want as part of greater
regional control over the finances and government of Santa Cruz.

And it appears the push for more autonomy has given impetus to other
regions. Leaders in the gas-rich southern part of the country,
Tarija, say they too plan a push for increased regional autonomy.

Many people in both regions say they feel disconnected from the
Indians who live in the Bolivian highlands who have risen in protest
in recent years over the country's economic policies, gaining
increased political power.

Here, residents known as Crucenos have long claimed
cultural and
social differences with the country's poorer and Indian-dominated
western highlands, pointing to the city's gleaming new buildings and
cafe-lined avenues as signs of its economic success.

Only 50 years ago, Santa Cruz was a barren outpost of unpaved
streets with a population of some 50,000 people. But discoveries of
oil deposits and the development of the region's fertile farm land
produced an economic boom that has seen its population swell to 1.4
million.

Now home to nearly a quarter of the country's population, Santa Cruz
has succeeded in attracting foreign investment at time when it has
fallen in the rest of the country. Persistent protests over free-
market economic policies have scared off potential investors.

"It seems the government is more concerned with what happens in the
western part of the country and less with what happens here," said
Carlos Dabdoub, a former health minister who is leading the Santa
Cruz autonomy movement.

Mesa on Tuesday called the autonomy push "unacceptable," saying it
was unconstitutional and urging Santa Cruz leaders to negotiate.

But leaders of a civic group heading the protests in Santa Cruz say
they intend to hold a town hall meeting on Friday to determine how
they should move forward with plans to establish a provisional
autonomous government.

On the streets, some Crucenos expressed concern about the move.

"It seems this all may end up bringing more uncertainty at a time
when Bolivia doesn't need it," said Juan Sanchez, a bank employee.