Overview of Land and History 41The demands are for indigenous autonomy and economic
enfranchisement, with a rhetoric reminiscent of the Black
Power movement in the USA.
2000: The Cochabamba Water War
The confl ict is catalysed by demands of international fi nancial
institutions. Either Bolivia privatise its water or it will not
receive loans. In October of 1999, Bolivia dutifully legalises
water privatisation, with 40-year concession rights given to a
consortium whose major shareholder is a Bechtel subsidiary.
A law is enacted that requires residents to pay full water costs,
satisfying a World Bank demand. The Bechtel-dominated
water company, called Aguas del Tunari, hikes water prices to
a level that is far beyond the capacity to pay of Cochabamba
residents and small growers.
Led by Oscar Olivera, the Coalition for the Defense of
Water and Life (La Coordinadora) occupies the main plaza of
Cochabamba. Between 4 and 5 February, peaceful marches
are met with tear gas and snipers, with 175 protesters injured,
two of them blinded.
Only by 8 February does the foreign press get wind of the
ongoing drama. Bechtel’s role is exposed by The Democracy
Center in Cochabamba, and a mass e-mail writing campaign
begins, directed at the Bechtel CEO, Riley Bechtel.
Leader Olivera is arrested on 6 March. A State of Siege is
declared by the government and a 17-year-old boy is shot
dead by a Bolivian army captain (trained at the US School
of the Américas). Protests spread, including police mutinies
in La Paz and Santa Cruz, with more deaths.
On 10 April, the Bolivian government gives in to the
tenacious protesters, ceding control of Cochabamba water
to the Coalition (La Coordinadora), with the released Oscar
Olivera signing the agreement that expels Bechtel.
Bechtel, the same corporation that later will lobby for the
Iraq war and then receive the
most lucrative no-bid contract
for the reconstruction of Iraq,
a corporation whose earnings
exceed the combined income of
In an unofficial March
referendum, 96 per cent of
Bolivians want the Bánzer
government to rescind the
contract with Bechtel.