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The political scenario in Bolivia is known among experts for its high instability[1]. Although the beginning of the negotiations between Bolivia and Brazil for the importation of natural gas, occurred in a period of greater stability (1990-1996), Bolivia’s political history has constantly presented periods of instability. The issue came out to the public opinion in Brazil and in the South American region when Evo Morales took over the presidency and, even more strongly, when Decree number 28,701, of May,1, 2006 was issued for the "nationalization" of the natural gas sector.

The decision of "nationalization" brought a new wave of instability in the region’s political relations, as it interfered in the form of organization of the economic chain for the natural gas sector in Bolivia and, therefore, in the conditions for providing of an essential good – energy – to sectors of the economy and to the population in Brazil, specially.

[1] ANDRADE, Everaldo de Oliveira. A revolução boliviana, Coleção Revoluções do Século XX, COSTA, Emilia Viotti da. São Paulo: Editora Unesp,2007. In the period between 2001 and 2006, for instance, over five presidents occupied the presidency: Jorge Quiroga Ramírez (2001-2002); Gonzalo Sánchez de Lozada (2002-2003); Carlos Mesa Gisbert (2003-2005); Eduardo Rodríguez Veltzé (2005); Evo Morales Ayma.


Paper delivered at SELA 2008, Property Rights, in Buenos Aires, Argentina, as part of the panel on “Property Rights, Development and the Environment.”