Saturday, September 24, 2005

Bolivia’s Would-Be President from Pepsi

I was asked not to say anything publicly about the meeting in my office here last July. But now, since the people involved have revealed the whole tale in a long article in the Bolivian magazine Datos, I think I can share my own little story about Bolivia’s would-be President from Pepsi. It is a story that says something about the odd state of Bolivian politics.

The Man With Pointy Shoes


In early July I received an email note from a fellow in NY, a former UN official who had worked here years back. He said he wanted to come by for a chat about Bolivian politics with a friend of his, Edwin Lozano, a New Yorker of Bolivian decent (but who never lived here) who was a senior vice president of Pepsico, the corporate empire that brings us everything from Fritos to Quaker Oats (and of course that dark syrupy stuff that isn’t Coca Cola). I am generally open to chat with anyone so I responded that they ought to come on by.

To be honest, the first thing that I noticed about Lozano was his shoes. They were these big, long and pointy leather dress shoes that looked like they would actually puncture a soccer ball if they ever kicked one. The pointy style also really extends their length. I have since learned that they are the style now in the US. However, as the owner of size-thirteen feet that CONSTANTLY draw unwelcome attention here in the country with the world’s smallest feet, I just couldn’t imagine why anyone would choose to make their feet look BIGGER.

In any event, after a quick exchange of pleasantries, Lozano said, “Let me cut to the chase. I am looking at running [for office].” His declaration left me a little confused. After a moment of thought I asked him, “Uhh, where, in the US?” “No,” he told me, “Here.” The visitor from Pepsi had come to Bolivia to launch a campaign for President.

Well, I had heard of people visiting Bolivia from the US as “eco-tourists”. I have seen them come as missionaries. I have seen them come to volunteer with kids, to help us in our office, and to climb Andean peaks. But, before that moment, I had never seen anyone pop on down to explore a run for the presidency. It was, to be sure, a novel approach to vacationing.

According to the long article in Datos [only an excerpt is available on-line, here], Lozano and his fellow New Yorker companion spent three weeks talking to everyone in Bolivian politics they could get hold of – from Evo Morales to the remnants of Bolivia’s dieing political parties (MNR and MIR) – as well as ample chats with the US Embassy. The latter, according to Datos, had some hope that a Lozano candidacy might draw away votes from Evo Morales. That only goes to prove that the Embassy has learned remarkably little about Bolivian politics since it almost launched Morales into first place last time around by denouncing him.

Lozano evidently tested the waters on everything from being an independent candidate, to leading Gonzalo Sanchez de Lozada’s fading MNR, to being the Vice Presidential nominee of the equally defunct MIR. In the end it didn’t work out and the would-be President has returned to New York to resume real life.

It is All So Simple

After his wildly pointy dress shoes, the other thing that I noticed about Lozano was that he much preferred to speak in English instead of Spanish, the latter a language he was still hoping to learn better. Hmmm, I thought, doesn’t that make campaigning just a little tough? But I didn’t mention it. In addition, Lozano’s “cut to the chase” line proved to be just the tip of the iceberg of a “can-do” forthright attitude with which he hoped to bring US corporate sensibility to the minefield of Bolivian politics.

“What we need to do is just get everyone in a room together and force them to come to an agreement,” he explained to me, as he described how he would solve Bolivia’s political conflicts. Hmmm, I thought, get everyone into a room and get them to agree. Boy, I bet that no one even thought of trying that before. How simple. How we could we have missed that?

After confidently elaborating his plans for a good deal of time to my co-worker Marcela and I, the New Yorkers finally asked us what we thought. “And please be frank.”

After some pause I explained that I had been working in politics and political campaigns since (as it turns out) about the time he was in the first grade. And from that perspective I told him that I thought what he was planning looked like a really good way to waste a lot of money and that if he really wanted to help Bolivia he ought to do something in business here not in politics. That seemed a message that he did not want to hear so I tried an approach that might have more resonance. I talked market share.

Let’s see, a guy from the US with a background in business with a non-Bolivian wife and a faith in market fundamentalism as the solution to the country’s problems. I think Tuto Quiroga pretty much has that niche covered and he was already president for a year and people know who he is. Looks to me like you are going to end up Tuto-Lite.

Actually, that sounds like a product Pepsi might market.

Then, after pondering the situation some more I noted, “Add in the stiff US accent in Spanish and you are going to look like the second coming of Goni.”

So that is the tale of my conversation with the would-be President of Bolivia from Pepsi. I am not surprised that it didn’t work out and I wish him well in whatever he decides to do. He seemed like a nice enough fellow (but those shoes, Edwin, lose the shoes).

Even Tuto moved himself and his family off to the US as soon as his brief Presidency ended in 2002 and I wouldn’t be surprised if he does so again if he loses in December. With the enticement of good Thai food and six digit corporate salaries, for some folks it really only makes sense to live in Bolivia if you can be President. For some, if you can’t have that green, yellow and red sash across your chest, the deal is off.

Alternatively, however, maybe Bolivia needs a President who, at least, is willing to stick around win or lose.

40 Comments:

Blogger mapletree7 said...

There's a certain reason some people might make their feet look bigger....it's said to indicate a large.... never mind.

11:52 PM  
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6:35 AM  
Blogger Chaz said...

Wow that was long! Good post, though. But give the guy with the shoes a break, lol!

chazinc.blogspot.com

1:29 PM  
Blogger LmE said...

Stumbled upon your blog thanks to the "blogs of note" list, and am so glad I did! I lived in CBBA back in 91, and traveled thru the country. I still have fond memories of the people and places and it's wonderful to catch up on the current happenings. I still have my miniatures from the Alasitas festival. Chau!

2:50 PM  
Anonymous Anonymous said...

It never ceases to amaze me, the arrogance of some people. A foreigner (a Bolivian-American, who has never lived in Bolivia) running for political office? Imagine. It's almost incredible. Worse yet he's a former CEO!! Oh yeah, he'll do a lot of good for the people of Bolivia. Let's really cut to the chase: he's only interested in profit, as well as the suggested political ploy. I wonder in what social circles and with whom he mingles in the States? Who put him up to this?

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Anonymous Anonymous said...

Bolivia: Natural Gas and Demagoguery
September 26, 2005
Carlos Sabino

Carried away by an anachronistic nationalism fed by agitators and demagogues like opposition leader Evo Morales, the Bolivian people recently rescinded the contracts they had signed with foreign companies to start exporting their incalculable reserves of natural gas.

Bolivians said they did not want foreigners to take away their wealth and amass excessive gains by profiting from Bolivia’s resources. Bolivians would rather wait, would rather leave the gas just where nature had placed it, while the conditions were created for some national public enterprise to extract it.

Now, in a sad paradox, it has been announced that Bolivia will have to endure electrical power blackouts in La Paz and in six of the 10 provincial capitals “due to an insufficient supply of natural gas.” The gas continues to be Bolivian-owned, no question about that, but remains useless underground. Many are questioning the point of owning these huge riches if they can’t be used for one of the minimum requirements of modern life: a dependable supply of electricity.

Similarly, with protests fueled by “social activists” of the most varied kinds, a project to build a hydro-electrical plant in Guatemala has been paralyzed, oil strikes have been staged in Peru and Ecuador, and mining is attacked everywhere as the cause of awful ecological and social ills (despite the new non-contaminant technologies being utilized and the many jobs being created).

The supply of crude oil, the price of which has reached unprecedented heights (thus increasing the cost-of-living of millions of people and worrying businessmen), has also been the victim of an ill-conceived ecological and nationalistic zeal that has affected oil production and refining.

It seems to us, therefore, that this is a good time to examine certain economic theories about growth, which, although they have proved wholly false and have been rebutted in practice, are still in vogue throughout much of Latin America and serve only to condemn us to perpetual poverty.

Many people think that our countries are immensely rich because they contain great natural reserves of minerals of all types. We have gas and crude, iron, copper, tin and aluminum as well as a variety of climates and altitudes that permit the production of all kinds of valuable crops.

Despite this impressive blessing of resources—about which we never stop talking—a tour of any of our cities reveals a sad landscape of poverty and unhealthy living conditions, of abandonment and overcrowding.

How is it that we haven’t been able to overcome this depressing reality, despite enjoying an abundance of such coveted goods?

The first thing we must remind those who boast of our potential wealth is that natural resources by themselves do not guarantee either economic growth or the welfare of the people. Conversely, countries like Japan and Finland, which are truly punished by their inclement geography, show levels of economic and human development that rightly justify the envy of some observers.

In contrast, nations that derive enormous revenue from the sale of crude—such as Iran, Iraq, Venezuela and Nigeria—wallow in a chronic stagnation that, to make things worse, exhibits frequent episodes of backwardness and crisis.

This is not a question, therefore, of owning great resources belowground but of achieving functional and highly productive economies, something that can be done only when there is sufficient investment as well as a political environment of peace, confidence and stability. With few exceptions, none of these conditions can be found in our burdened countries, hamstrung still by ideas and attitudes that have proved to be erroneous and serve only to aggravate our misery.

Lamentably, our America remains anchored in old-fashioned ideas, under the influence of populist leaders who seem still unaware of the gigantic fiasco the Soviet Union turned out to be. These are the leaders who threaten to walk once more down the road of economic nationalism—the very protectionist policies, state-run enterprises and anti-capitalist mentality that pushed us to the back of the line in our process of development.

To combat poverty—something we all want—it is necessary to understand that we need investment, the capital that will furnish us with a modern technology capable of boosting the productivity of our workers. This will mean that, with the same effort, a greater number of goods and services can be created for the benefit of consumers.

With greater productivity, workers will earn higher wages in line with those paid in the developed world, where wages flow not from social laws or government intervention but from the immense capacity for production industrialized economies enjoy.

For all this to happen, governments must put aside protectionism, eliminate tariffs and open their nations to the many exchanges of the modern world. Investments are indispensable, but they will be unattainable if governments don’t respect the contracts they sign, and guarantee—credibly and consistently—the private property of those investors, be they national or foreign, who are willing to run the risk of creating new enterprises or expanding the existing ones.


--------------------------------------------------------------------------------
Carlos Sabino is a fellow of the Francisco Marroquín Foundation in Guatemala, a director at CEDICE, a public policy institute in Venezuela, and the author of many books on development.
--------------------------------------------------------------------------------
This article was written for The Center on Global Prosperity at the Independent Institute.

1:33 PM  
Blogger Originalexplorer said...

Carlos Sabino or whoever posted that crap -- How can you spew such tired free-market garbage about Bolivia. Bolivia, since 1985 and the glory days of Jeff Sachs, has followed IMF liberalization schemes to a T. You can see the results. Don't disparage the people of Bolivia for wanting nationalization. They have lived through the pillaging of their country's natural resources for the last 400 years, they have a right to doubt the benefits of opening their country up to foreign corporations.

-alex

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Este, Lozano, what a joker

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Blogger Myrtle Beach Stuff said...

I Think most countries should be run by Americans! I know a little spanish: Casas Del Estudiante de los USA De la Playa Del Myrtle
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11:37 AM  
Blogger Dan said...

I'm going to Bolivia on Friday, and I WAS planning on just doing some volunteer work. But now I'm rethinking my plans. If anyone wants to make a large donation to the "Dan for Presidente" campaign, please contact me - umm, make that contact in English, though. And I'll wear whatever shoes you want me to.

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Anonymous Richard Blair said...

I wonder in what social circles and with whom he mingles in the States? Who put him up to this?

That was my absolute first thought.

I'll do a bit of digging around on campaign finance contributions and see what I can turn up.

American hubris, indeed.

2:57 PM  
Blogger Michele's Mumblings said...

I was once the ruler of a small planet in the next solar system ,but South America? That's just too far.

11:49 PM  
Anonymous Anonymous said...

I wonder in what social circles and with whom he mingles in the States? Who put him up to this?

That was my absolute first thought.


That's easy Richard: Can you think of another group with more hubris, arrogance and can-do attitude than a corporate elite?
I wonder if Mexico's Fox had the same moment of "enlightment" at some point.

In the near future, we might just vote for corporations to run our political system, perhaps that would take us a step closer to have some form of democracy. That would be nice, wouldn't it?

2:11 AM  
Anonymous Torsten Kolind said...

First time i read your excellent blog, Jim, after a tip from a friend. I worked in La Paz last year, and am in London now. Your judgment that neither Evo nor any of the other tickets appear to solve Bolivia's problems seems absolutely sensible. But I would like your take on what would, then? A country so rich in natural and cultural resources surely has the potential to improve on today's situation. What are the obstacles, and what may lead to overcome these? Surely, a day's blog could be devoted to applying your extensive experience into a constructive plan for a better Bolivia, however unlikely it is to materialise?

7:00 AM  
Blogger zona boy said...

Torsten,

The last effective govt in Bolivia was a dictatorship.

South American countries have seemed to prosper the most when a strongman was in power.

Just like the Middle East. Just like Africa. Topple the totalitarian govt and the massacres on all sides start as the tribal/regional powers emerge.

I'm NOT advocating totalitarianism. I'm just trying to point out that there isn't a solution in Bolivia. Too many parties, too fractured a vote, and too much corruption in govt.

3:25 PM  
Anonymous Anonymous said...

That guy sounds like an arrogant bastard... Btw, pointy shoes aren't in style for men in the US. But that's not to say there aren't a lot of terrible styles, mainly for teenagers, in the US right now.

9:24 PM  
Blogger The Pagan Temple said...

Didn't Mexican President Vincente' Fox once work for Pepsi? Or was that Coke? Whatever, it seems to me that this is a corporate maneuver aimed at taking advantage of a market potential, more than it is a serious stab at a presidential run. This could have been a way of discerning the political mindset of Bolivians (I doubt you are the only one he talked to)as a means of deciding on who-or what party-to back in the coming elections. Sure, it would probably be illegal, but whos' realy watching.They get their guys in power, through corporote graft, then they can open up bottling plants, factories, etc., and take advantage of yet another cheap labor market.

11:49 AM  
Anonymous Banzer said...

Yes my government was effective at dissapearing pesky leftists, giving away huge tracts of land to my family and buddies in the East, overlooking the nascent drug trade in which many of my family members took place, and geometrically increasing Bolivia's foreign debt.

We also built a few schoolrooms here and there.

10:56 AM  
Anonymous Anonymous said...

Without a doubt - he was hired by either MI-5 or the CIA. Perhaps a movie is not too far beyond.

1:16 AM  
Anonymous Anonymous said...

Interesting Article... take a look at "Our Brand is Crisis" if you haven't already seen it I highly suggest that you do. It is a documentary film showing how James Carville's consulting firm was able to bring Goni up from 5th place to win the presidency.

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6:05 PM  

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