LAND REFORM SOWS CONFLICT

UNCLAS LA PAZ 002600 SIPDIS SENSITIVE SIPDIS STATE FOR WHA/AND TREASURY FOR SGOOCH ENERGY FOR CDAY AND SLADISLAW E.O. 12958: N/A TAGS: EAGR ECON BL SUBJECT: LAND REFORM SOWS CONFLICT REF: A. LA PAZ 2557 ¶B. LA PAZ 2562 ¶C. LA PAZ 1651 ¶1. (SBU) Summary: The MAS administration has presented a bill to Congress to modify the 1996 Agrarian Reform (INRA) law, in line with its pre-election promises to redistribute land to the landless. Members of the administration have encouraged social sectors to mobilize marches and blockades to force Congress to approve the bill in October. Large agricultural producers in the eastern regions are worried that the bill could create legal uncertainty over land title, which could lead to disinvestment, diminished production, and violent conflicts. End summary. Congress Considers Land Reform Bill -------------- ¶2. (SBU) The MAS administration has presented a bill to Congress to modify the 1996 National Institute of Agrarian Reform (INRA) law, in line with its pre-election promises to redistribute land to the landless. A congresswoman from an opposition party told Econoff on September 21 that the opposition was trying to block the bill, as it lacked social consensus. The GOB's Double Discourse -------------- ¶3. (SBU) On September 20, Vice President Garcia Linera asked social sectors in Santa Cruz to mobilize through marches and blockades to pressure Congress to modify the INRA (land reform) law by early October (ref A). Soon after, he told the same groups to call off the blockades (ref B). On September 25, the Vice Minister of Lands, Alejandro Almaraz, reportedly encouraged indigenous leaders in Sucre to mobilize to force Congress to approve the INRA modification bill. Social sector leaders from the East expressed confusion over the conflicting GOB directives and demanded clarity. Santa Cruz Producers Concerned -------------- ¶4. (SBU) The President of the Oil Seed Producer's Association (ANAPO) in Santa Cruz, Carlos Rojas, told Econoff on September 22 that soy producers were concerned about the INRA modification bill, which would enable the government to review whether or not a parcel of land was fulfilling a social and economic function at any time. Producers feared that the GOB would use the new law as a pretext to take over fallow land that was not planted to enable regeneration of soil quality. Without legal certainty over title, the producers were unwilling to make large investments in their land, Rojas explained. Producers were also worried that the new law would only allow for community title, rather than individual. According to Rojas, the draft law would also diminish land holders' rights to legally defend their property ownership, and would require owners of large estates to obtain a permit prior to sale. Rojas also complained that the GOB's centralization of processes for the reversion, expropriation, and titling of land was taking away the ability of municipal governments to determine appropriate policies in their areas. ¶5. (SBU) Mauricio Roca, President of the Eastern Agriculture Chamber (CAO),told the Charge on September 22 that the GOB was mistaken in its belief that land redistribution would solve poverty, as land alone did not equal wealth. Land would have to come together with productive capacity, equipment, and markets to generate income, he said. Roca complained that the decrees issued in June to redistribute land (ref C) and the INRA reform bill gave the GOB too much discretion to redistribute land with little protection for land owners. He also questioned why the GOB sought to push the INRA modifications through Congress in October, when the Constituent Assembly would consider the land reform issue and possibly invalidate any prior decisions made by Congress. He added that land owners in the Beni and Santa Cruz were prepared to "go to any lengths" to protect their land. ¶6. (SBU) Comment: The GOB has already redistributed some state-held lands, including lands over which private companies held forestry concessions (ref C). Additional land redistribution, particularly of privately-held lands, and legal reforms are likely to engender explosive conflicts during the next several months. We will continue to follow this issue closely. End comment. URS