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Reiterated problem solving in neoliberal and counter-neoliberal shifts: the case of Bolivia’s hydrocarbon sector

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Abstract

Scholars examining neoliberalization often attribute its resilience to powerful actors’ access to resources and their ability to embed their interests in local, national, and global forms of governance. While scholars have recognized how less powerful actors attempt to resist processes of neoliberalization, observations of emergent alternatives have been more limited. In this article I argue that scholars’ focus upon the resilience of neoliberalization has often caused them to overlook the resilience of older and alternative forms of socioeconomic organization that can underpin the power of less powerful actors and serve as the foundation for counter-neoliberal shifts. I suggest that one way to resolve this oversight is through the use of a reiterated problem solving approach. Such an approach can help scholars to better historicize neoliberal and counter-neoliberal turns and recognize the ability of a greater array of actors to influence socioeconomic change. To demonstrate the utility of such an approach in studies of neoliberalization and counter-neoliberalization, I examine Bolivia’s hydrocarbon sector—or what could be called Bolivia’s enduring hydrocarbon problem—over the past century.

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Notes

  1. Erik Wright (1994, p.100; see also Przeworski 1985) has made a similar observation in his examinations of class and capitalism. According to Wright, as long as capitalism is the dominant game being played all actors have an interest in capitalists making a profit. Unless a group has the capacity to overthrow the system completely, their material interests are dependent upon continued capitalist accumulation.

  2. The only similar action to have occurred was the nationalization of the hydrocarbon sector in the Soviet Union after the Bolshevik revolution in 1918.

  3. Export discounting guaranteed YPFB payment for its obligatory sales to Argentina and Brazil that were dictated by bilateral agreements.

  4. Mariaca had previously been President of YPFB but resigned after the company’s funding was cut in the 1950s. In 1966, he authored a book titled Mito y Realidad del Petroleo Bolivano in which he outlined what he saw as Gulf Oil’s imperialistic tendencies in Bolivia. Quiroga Santa Cruz was a socialist politician who was jailed in the early 1960s for his outspoken critique of the government.

  5. See Likosky (2009) for a discussion of changing forms of contracts and concessions in the hydrocarbon industry across the globe.

  6. In 1990, the Ley General de Hidrocarburos DL N° 10170 was replaced by the Ley de Hidrocarburos N° 1194. The new law only made minor changes to the regulations surrounding Bolivia’s hydrocarbon sector. Most notably, the law clarified how firms could sign “contracts of association” with YPFB and each other. However, all royalties, taxes, and oil/gas-share agreements remained the same. In addition, all allowable forms of dispute settlement remained the same (GOB 1990).

  7. Brazil first expressed interest in purchasing natural gas from Bolivia in the 1930s (Law and de Franco 1998). This interest was rekindled in the 1970s and again in the 1980s (YPFB 2011, p. 135). Initial studies to build a pipeline between the Bolivian city of Santa Cruz and the Brazilian city of Sao Paulo were approved in the early 1980s (GOB 1981). However, no purchasing agreements were signed until 1992.

  8. The Bolivian Constitutional Tribune was established in 1998 through the Ley de Tribunal Constitucional N° 1836 to oversee and insure that the Bolivian government acted in accordance with the Bolivian constitution. It is composed of five members chosen by the Bolivian Congress with a 2/3 vote of approval.

  9. Some transnational oil and natural gas companies preferred not to work in joint-ventures with YPFB and sold the state all of their shares.

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Acknowledgments

I gratefully acknowledge Amy A. Quark and the Theory & Society Editors and reviewers for providing pointed critiques of this manuscript. I also thank Adam Slez, Thomas J. Linneman, and Jennifer Bickham Mendez for engaging in useful discussions about historical methods and social movements. Over the years, the Social Science Research Council, the National Science Foundation, and the Fulbright Institute of International Education have generously funded my research on this project.

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Kaup, B.Z. Reiterated problem solving in neoliberal and counter-neoliberal shifts: the case of Bolivia’s hydrocarbon sector. Theor Soc 44, 445–470 (2015). https://doi.org/10.1007/s11186-015-9257-4

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