Juan Evo Morales Ayma (Spanish: [xwan ˈeβo moˈɾales ˈajma]; born 26 October 1959) is a Bolivian politician, trade union organizer, and former cocalero who served as the 65th president of Bolivia from 2006 to 2019. He is widely regarded as the country's first president to come from its Indigenous Bolivian population. Ideologically a socialist, he led the Movement for Socialism (MAS) party from 1998 to 2024.
Born to an Aymara family of subsistence farmers in Isallawi, Orinoca Canton, Morales had a basic education before undertaking mandatory military service. He then moved to the Chapare in 1978, where he started growing coca and became a trade unionist. He rose to prominence in the union of campesinos (rural laborers). In that capacity, he campaigned against joint U.S.–Bolivian attempts to eradicate coca as part of the war on drugs, denouncing these actions as an imperialist violation of Indigenous Andean culture. His involvement in the anti-government direct action protests resulted in multiple arrests. Morales entered electoral politics in 1995. He was later elected to Congress in 1997 and became leader of MAS in 1998. He campaigned on issues affecting indigenous and poor communities, advocating land reform and more equal redistribution of money from Bolivian gas extraction. He gained increased visibility through the Cochabamba Water War and the Gas War. In 2002, he was expelled from Congress for encouraging anti-government protests, before placing second in that year's presidential election.
Once elected president in 2005, his administration implemented left-wing policies, focusing on safeguarding the legal rights and improving the socioeconomic conditions of Bolivia's indigenous majority, and reducing the influence of the United States and multinational corporations. Morales increased taxation on the hydrocarbon industry to bolster social spending and emphasized projects to combat illiteracy, poverty, and racial and gender discrimination. Criticizing neoliberalism, Morales' government moved Bolivia towards a mixed economy, reduced its dependence on the World Bank and International Monetary Fund (IMF), and oversaw strong economic growth, with Bolivia's gross domestic product (GDP) quadrupling between 2006 to 2019. This growth was largely attributed to the nationalization of natural resources, the stability of the exchange rate, the incentive of the domestic market, strong public investment in infrastructure and industrialization of natural resources such as gas and lithium. Bolivia also saw a reduction in poverty, with extreme poverty decreasing from 38.2% to 15.2% between 2006 and 2019 according to the World Bank and ECLAC. The UNDP's 2018 World Human Development Report classified Bolivia as a "high human development Country" for the first time.
Scaling back United States influence in the country, he built relationships with leftist governments in the South American pink tide, especially Hugo Chávez's Venezuela and Fidel Castro's Cuba, and signed Bolivia into the ALBA. His administration opposed the autonomist demands of Bolivia's eastern provinces, won a 2008 recall referendum, and instituted a new constitution that established Bolivia as a plurinational state. Re-elected in 2009 and 2014, he oversaw Bolivia's admission to the Bank of the South and CELAC. Morales' popularity was dented by his attempts to abolish presidential term limits and disregard for a referendum rejecting a fourth term for Morales. Morales won the disputed 2019 election, but it was widely seen as fraudulent, and he agreed to calls for his resignation amid the ensuing unrest. He left Bolivia and was granted political asylum in Mexico initially and then Argentina during the presidency of Jeanine Áñez.
He returned to Bolivia in November 2020, following the return of MAS to power upon the election of his former economic minister Luis Arce. During Arce's presidency, their relations deteriorated in the run-up to the 2025 election in a power struggle for party influence and candidacy. Morales has blamed Arce for the 2024 Bolivian coup attempt (claiming it was a self-coup) and for an assassination attempt in October 2024; Arce has denied both. In February 2025, after MAS barred him from candidacy, Morales left the party to briefly join Front for Victory. However, his membership was voided by the party and disqualified from participation in the election. MAS faced a historic defeat in the 2025 elections. Morales is permanently banned from running for the presidency in future elections and also faces an arrest warrant in a statutory rape investigation on allegations of inappropriate relationships with minors.
Morales' supporters point to his championing of indigenous rights, anti-imperialism, and environmentalism, and credit him with overseeing significant economic growth and poverty reduction as well as increased investment in schools, hospitals, and infrastructure. Critics point to democratic backsliding during his tenure, argue that his policies sometimes failed to reflect his environmentalist and Native American rights rhetoric, and that his defence of coca contributed to illegal cocaine production.
Early life and activism
Childhood, education, and military service: 1959–1978
Morales was born in the small rural village of Isallawi in Orinoca Canton, part of western Bolivia's Oruro Department, on 26 October 1959, to an Aymara family. One of seven children born to Dionisio Morales Choque and his wife María Ayma Mamani, only he and two siblings, Esther and Hugo, survived past childhood. His mother almost died from a postpartum haemorrhage following his birth. In keeping with Aymara custom, his father buried the placenta produced after his birth in a place specially chosen for the occasion. His childhood home was a traditional adobe house, and he grew up speaking the Aymara language, although commentators remarked that by the time he became president he was no longer an entirely fluent speaker.
Morales' family were farmers; from an early age, he helped them to plant and harvest crops and guard their herd of llamas and sheep, taking a homemade soccer ball to amuse himself. As a toddler, he briefly attended Orinoca's preparatory school, and at five began schooling at the single-room primary school in Isallawi. At age 6, he spent six months in northern Argentina with his sister and father. There, Dionisio harvested sugar cane while Evo sold ice cream and briefly attended a Spanish-language school. As a child, he regularly traveled on foot to Arani province in Cochabamba with his father and their llamas, a journey lasting up to two weeks, in order to exchange salt and potatoes for maize and coca. A big fan of soccer, at age 13 he organized a community soccer team with himself as team captain. Within two years, he was elected training coach for the whole region.
After finishing primary education, Morales attended the Agrarian Humanistic Technical Institute of Orinoca (ITAHO), completing all but the final year. His parents then sent him to study for a degree in Oruro; although he performed poorly academically, he finished all of his courses and exams by 1977, earning money on the side as a brick-maker, day laborer, baker, and a trumpet player for the Royal Imperial Band. The latter position allowed him to travel across Bolivia. At the end of his higher education, he failed to collect his degree certificate. Although interested in studying journalism, he did not pursue it as a profession.
Morales served his mandatory military service in the Bolivian Army from 1977 to 1978. Initially signed up at the Centre for Instruction of Special Troops (CITE) in Cochabamba, he was sent into the Fourth Ingavi Cavalry Regiment and stationed at the army headquarters in the Bolivian capital La Paz. These two years were one of Bolivia's politically most unstable periods, with five presidents and two military coups, led by General Juan Pereda and General David Padilla respectively; under the latter's regime, Morales was stationed as a guard at the Palacio Quemado (Presidential Palace).
Early cocalero activism: 1978–1983
Following his military service, Morales returned to his family, who had escaped the agricultural devastation of 1980s El Niño storm cycle by relocating to the Tropics of Cochabamba in the eastern lowlands. Setting up home in the town of Villa 14 de Septiembre, El Chapare, using a loan from Morales' maternal uncle, the family cleared a plot of land in the forest to grow rice, oranges, grapefruit, papaya, bananas and later on coca. It was here that Morales learned to speak Quechua, the indigenous local language. The arrival of the Morales family was a part of a much wider migration to the region; in 1981 El Chapare's population was 40,000 but by 1988 it had risen to 215,000. Many Indigenous Bolivians hoped to set up farms where they could earn a living growing coca, which was experiencing a steady rise in price and which could be cultivated up to four times a year; a traditional medicinal and ritual substance in Andean culture, it was also sold abroad as the key ingredient in cocaine. Morales joined the local soccer team, before founding his own team, New Horizon, which proved victorious at the 2 August Central Tournament. The El Chapare region remained special to Morales for many years to come; during his presidency he often talked of it in speeches and regularly visited.
In El Chapare, Morales joined a trade union of cocaleros (coca growers), being appointed local Secretary of Sports. Organizing soccer tournaments, among union members he earned the nickname of "the young ball player" because of his tendency to organize matches during meeting recesses. Influenced in joining the union by wider events, in 1980 the far-right General Luis García Meza had seized power in a military coup, banning other political parties and declaring himself president; for Morales, a foundational event in his relationship with politics occurred in 1981, when a campesino (coca grower) was accused of cocaine trafficking by soldiers, beaten up, and burned to death. In 1982 the leftist Hernán Siles Zuazo and the Democratic and Popular Union (Unidad Democrática y Popular – UDP) took power in representative democratic elections, before implementing neoliberal capitalist reforms and privatizing much of the state sector with United States support; hyperinflation was brought under control, but unemployment rose to 25%. Becoming increasingly active in the union, from 1982 to 1983, Morales served as the general secretary of his local San Francisco syndicate. In 1983, Morales' father Dionisio died, and although he missed the funeral, he temporarily retreated from his union work to organize his father's affairs.
As part of the War on Drugs, the United States government hoped to stem the cocaine trade by preventing the production of coca. It pressured the Bolivian government to eradicate it, sending troops to Bolivia to aid the operation. Bolivian troops burned coca crops and, in many cases, beat coca growers who challenged them. Angered by this, Morales returned to cocalero campaigning. Like many of his comrades, he refused the US$2,500 compensation offered by the government for each acre of coca he eradicated. Deeply embedded in Bolivian culture, the campesinos had an ancestral relationship with coca and did not want to lose their most profitable means of subsistence. For them, it was an issue of national sovereignty, with the United States viewed as imperialists; activists regularly proclaimed "Long live coca! Death to the Yankees!" ("Causachun coca! Wañuchun yanquis!").
General Secretary of the Cocalero Union: 1984–1994
From 1984 to 1985, Morales served as Secretary of Records for the movement, and in 1985 he became General Secretary of the August Second Headquarters.
From 1984 to 1991, sindicatos embarked on a series of protests against the forced eradication of coca by occupying local government offices, setting up roadblocks, going on hunger strike, and organizing mass marches and demonstrations. Morales was personally involved in this direct activism and in 1984 was present at a roadblock where three campesinos were killed. In 1988, Morales was elected to the position of Executive Secretary of the Federation of the Tropics. In 1989, he spoke at a one-year commemoration of the Villa Tunari massacre, in which 11 coca farmers had been killed by agents of the Rural Area Mobile Patrol Unit (Unidad Móvil Policial para Áreas Rurales – UMOPAR). The following day, UMOPAR agents beat Morales up, leaving him in the mountains to die, but he was rescued by other union members. To combat this violence, Morales concluded that an armed cocalero militia could launch a guerrilla war against the government, but he soon chose to pursue an electoral path. In 1992, he made various international trips to champion the cocalero cause, speaking at a conference in Cuba and also traveling to Canada, during which he learned of his mother's death.
In his speeches, Morales presented the coca leaf as a symbol of Andean culture that was under threat from the imperialist oppression of the United States. In his view, the United States should address its domestic cocaine abuse problems without interfering in Bolivia, arguing that the United States had no right trying to eliminate coca, a legitimate product with many uses which played a rich role in Andean culture. In a speech, Morales told reporters "I am not a drug trafficker. I am a coca grower. I cultivate coca leaf, which is a natural product. I do not refine (it into) cocaine, and neither cocaine nor drugs have ever been part of the Andean culture". Morales has stated that "We produce our coca, we bring it to the main markets, we sell it and that's where our responsibility ends".
Morales presented the coca growers as victims of a wealthy, urban social elite who had bowed to United States pressure by implementing neoliberal economic reforms. He argued that these reforms were to the detriment of Bolivia's majority, and thus the country's representative democratic system of governance failed to reflect the true democratic will of the majority. This situation was exacerbated following the 1993 general election when the centrist Revolutionary Nationalist Movement (Movimiento Nacionalista Revolucionario – MNR) won the election and Gonzalo Sánchez de Lozada became president. He adopted a policy of "shock therapy", implementing economic liberalization and widescale privatization of state-owned assets. Sánchez also agreed with the U.S. DEA to relaunch its offensive against the Bolivian coca growers, committing Bolivia to eradicating 12,500 acres (5,100 ha) of coca by March 1994 in exchange for US$20 million worth of United States aid, something Morales stated would be opposed by the cocalero movement.
In August 1994, Morales was arrested; reporters present at the scene witnessed him being beaten and accosted with racial slurs by civil agents. Accused of sedition, in jail he began a dry hunger strike to protest his arrest. The following day, 3000 campesinos began a 360 mi (580 km) march from Villa Tunari to La Paz. Morales would be freed on 7 September 1994, and soon joined the march, which arrived at its destination on 19 September 1994, where they covered the city with political graffiti. He was again arrested in April 1995 during a sting operation that rounded up those at a meeting of the Andean Council of Coca Producers that he was chairing on the shores of Lake Titicaca. Accusing the group of plotting a coup with the aid of Colombia's FARC and Peru's Shining Path, a number of his comrades were tortured, although no evidence of a coup was brought forth and he was freed within a week. He proceeded to Argentina to attend a seminar on liberation struggles.
Political rise
ASP, IPSP, and MAS: 1995–1999
Members of the sindicato social movement first suggested a move into the political arena in 1986. This was controversial, with many fearing that politicians would co-opt the movement for personal gain. Morales began supporting the formation of a political wing in 1989, although a consensus in favor of its formation only emerged in 1993. On 27 March 1995, at the 7th Congress of the Unique Confederation of Rural Laborers of Bolivia (Confederación Sindical Única de Trabajadores Campesinos de Bolivia – CSUTCB), a "political instrument" (a term employed over "political party") was formed, named the Assembly for the Sovereignty of the Peoples (Asamblea por la Sobernía de los Pueblos – ASP). At the ASP's 1st Congress, the CSUTCB participated alongside three other Bolivian unions, representing miners, peasants and indigenous peoples. In 1996, Morales was appointed chairman of the Committee of the Six Federations of the Tropics of Cochabamba, a position that he retained until 2006.
Bolivia's National Electoral Court (Corte Nacional Electoral – CNE) refused to recognize the ASP, citing minor procedural infringements. The coca activists circumvented this problem by running under the banner of the United Left (IU), a coalition of leftist parties headed by the Communist Party of Bolivia (Partido Comunista Boliviano – PCB). They won landslide victories in those areas which were local strongholds of the movement, producing 11 mayors and 49 municipal councilors. Morales was elected to the Chamber of Deputies in the National Congress as a representative for El Chapare, having secured 70.1% of the local vote. In the national elections of 1997, the IU/ASP gained four seats in Congress, obtaining 3.7% of the national vote, with this rising to 17.5% in the department of Cochabamba. The election resulted in the establishment of a coalition government led by the right-wing Nationalist Democratic Action (Acción Democrática Nacionalista – ADN), with Hugo Banzer as president; Morales lambasted him as "the worst politician in Bolivian history".
Rising electoral success was accompanied by factional in-fighting, with a leadership contest emerging in the ASP between the incumbent Alejo Véliz and Morales, who had the electoral backing of the social movement's bases. The conflict led to a schism, with Morales and his supporters splitting to form their own party, the Political Instrument for the Sovereignty of the Peoples (Instrumento Político por la Soberanía de los Pueblos – IPSP). The movement's bases defected en masse to the IPSP, leaving the ASP to crumble and Véliz to join the center-right New Republican Force (Nueva Fuerza Republicana – NFR), for which Morales denounced him as a traitor to the cocalero cause. Continuing his activism, in 1998 Morales led another cocalero march from El Chapare to la Paz, and came under increasing criticism from the government, who repeatedly accused him of being involved in the cocaine trade and mocked him for how he spoke and his lack of education.
Morales came to an agreement with David Añez Pedraza, the leader of a defunct yet still registered falangist party named the Movement for Socialism (MAS). Under this agreement, Morales and the Six Federaciónes could take over the party name, with Pendraza stipulating the condition that they must maintain MAS's own acronym, name and colors. Thus, the MAS and IPSP merged, becoming known as the Movement for Socialism – Political Instrument for the Sovereignty of the Peoples. The MAS would come to be described as "an indigenous-based political party that calls for the nationalization of industry, legalization of the coca leaf ... and fairer distribution of national resources." The party lacked the finance available to the mainstream parties, and so relied largely on the work of volunteers in order to operate. It was not structured like other political parties, instead operating as the political wing of the social movement, with all tiers in the movement involved in decision-making; this form of organisation would continue until 2004. In the December 1999 municipal elections, the MAS secured 79 municipal council seats and 10 mayoral positions, gaining 3.27% of the national vote, although 70% of the vote in Cochabamba.
Cochabamba protests: 2000–2002
In 2000, the Tunari Waters corporation doubled the price at which they sold water to Bolivian consumers, resulting in a backlash from leftist activist groups, including the cocaleros. Activists clashed with police and armed forces, in what was dubbed "the Water War", resulting in 6 dead and 175 wounded. Responding to the violence, the government removed the contract from Tunari and placed the utility under cooperative control. In ensuing years further violent protests broke out over a range of issues, resulting in more deaths both among activists and law enforcement. Much of this unrest was connected with the widespread opposition to economic liberalization across Bolivian society, with a common perception that it only benefited a small minority.
In the Andean High Plateau, a cocalero group launched a guerrilla uprising under the leadership of Felipe Quispe; an ethnic separatist, he and Morales disliked each other, with Quispe considering Morales to be a traitor and an opportunist for his willingness to cooperate with White Bolivians. Morales had not taken a leading role in these protests but used them to get across his message that the MAS was not a single-issue party, and that rather than simply fighting for the rights of the cocalero, it was arguing for structural change to the political system and a redefinition of citizenship in Bolivia.
In August 2001, Banzer resigned due to terminal illness, and Jorge Quiroga took over as president. Under U.S. pressure, Quiroga sought to have Morales expelled from Congress by saying that Morales' inflammatory language had caused the deaths of two police officers in Sacaba near Cochabamba. He was unable to provide any evidence of Morales' culpability. 140 deputies voted for Morales' expulsion, which came about in 2002. Morales said that it "was a trial against Aymara and Quechas". MAS activists interpreted it as evidence of the pseudo-democratic credentials of the political class.
The MAS gained increasing popularity as a protest party, relying largely on widespread dissatisfaction with the existing mainstream political parties among Bolivians living in rural and poor urban areas. Morales recognized this, and much of his discourse focused on differentiating the MAS from the traditional political class. Their campaign was successful, and in the 2002 presidential election the MAS gained 20.94% of the national vote, becoming Bolivia's second largest party, being only 1.5% behind the victorious MNR, whose candidate, Gonzalo Sánchez de Lozada, became president. They won 8 seats in the Senate and 27 in the Chamber of Deputies. Now the leader of the political opposition, Morales focused on criticising government policies rather than outlining alternatives. He had several unconstructive meetings with Sánchez de Lozada but met with Venezuela's Hugo Chávez for the first time.
Just prior to the election, the U.S. ambassador to Bolivia Manuel Rocha issued a statement declaring that U.S. aid to Bolivia would be cut if MAS won the election. However, exit polls revealed that Rocha's comments had served to increase support for Morales. (Ambassador Rocha was later arrested by the U.S. Department of Justice on criminal charges of being an agent for the Cuban government.) Following the election, the U.S. embassy characterised Morales as a criminal and encouraged Bolivia's traditional parties to sign a broad agreement to oppose the MAS; Morales himself began alleging that the U.S. Central Intelligence Agency was plotting to assassinate him.
Rise to prominence: 2003–2005
In 2003, the Bolivian gas conflict broke out as activists – including coca growers – protested against the privatization of the country's natural gas supply and its sale to U.S. companies below the market value. Activists blocked off the road into La Paz, resulting in clashes with police. 80 were killed and 411 injured, among them officers, activists, and civilians, including children. Morales did not take an active role in the conflict, instead traveling to Libya and Switzerland, there describing the uprising as a "peaceful revolution in progress". The government accused Morales and the MAS of using the protests to overthrow Bolivia's parliamentary democracy with the aid of organized crime, FARC, and the governments of Venezuela, Cuba, and Libya.
Morales led calls for President Sánchez de Lozada to step down over the death toll, gaining widespread support from the MAS, other activist groups, and the middle classes; with pressure building, Sánchez resigned and fled to Miami, Florida. He was replaced by Carlos Mesa, who tried to strike a balance between U.S. and cocalero demands, but whom Morales mistrusted. In November, Morales spent 24 hours with Euro-Cuban President Fidel Castro in Havana, and then met Argentinian President Nestor Kirchner. In the 2004 municipal election, the MAS became the country's largest national party, with 28.6% of all councilors in Bolivia. However, they failed to win the mayoralty in any big cities, reflecting their inability to gain widespread support among the urban middle-classes. In Bolivia's wealthy Santa Cruz region, a strong movement for autonomy had developed under the leadership of the Pro Santa Cruz Committee (Comite Pro Santa Cruz). Favorable to neoliberal economics and strongly critical of the cocaleros, they considered armed insurrection to secede from Bolivia should MAS take power.
In March 2005, Mesa resigned, citing the pressure of Morales and the cocalero roadblocks and riots. Amid fears of civil war, Eduardo Rodríguez Veltzé became president of a transitional government, preparing Bolivia for a general election in December 2005. Hiring the Peruvian Walter Chávez as its campaign manager, the MAS electoral campaign was based on Salvador Allende's successful campaign in the 1970 Chilean presidential election. Measures were implemented to institutionalize the party structure, giving it greater independence from the social movement; this was done to allow Morales and other MAS leaders to respond quickly to new developments without the lengthy process of consulting the bases, and to present a more moderate image away from the bases' radicalism. Although he had initially hoped for a female running mate, Morales eventually chose Marxist intellectual Álvaro García Linera as his vice-presidential candidate, with some Bolivian press speculating as to a romantic relationship between the two. MAS' primary opponent was Jorge Quiroga and his center-right Social and Democratic Power, whose campaign was centered in Santa Cruz and which advocated continued neo-liberal reform; Quiroga accused Morales of promoting the legalization of cocaine and being a puppet for Venezuela.
With a turnout of 84.5%, the election saw Morales gain 53.7% of the vote, while Quiroga came second with 28.6%; Morales' was the first victory with an absolute majority in Bolivia for 40 years and the highest national vote percentage of any presidential candidate in South American history. Given that he was the sixth self-described leftist president to be elected in South America since 1998, his victory was identified as part of the broader regional pink tide. Becoming president-elect, Morales was widely described as Bolivia's first Indigenous American leader, at a time when around 62% of the population identified as indigenous; political analysts therefore drew comparisons with the election of Nelson Mandela to the South African Presidency in 1994. This resulted in widespread excitement among the Native American people in the Americas, particularly those of Bolivia. His election caused concern among the country's wealthy and landowning classes, who feared state expropriation and nationalisation of their property, as well as far-right groups, who said it would spark a race war. He traveled to Cuba to spend time with Castro, before going to Venezuela, and then on tour to Europe, China, and South Africa; significantly, he avoided the U.S. In January 2006, Morales attended an indigenous spiritual ceremony at Tiwanaku where he was crowned Apu Mallku (Supreme Leader) of the Aymara, receiving gifts from indigenous peoples across South America and thanking the goddess Pachamama for his victory.
President (2006–2019)
First presidential term: 2006–2009
Morales' inauguration took place on 22 January in La Paz. It was attended by various heads of state, including Argentina's Kirchner, Venezuela's Chávez, Brazil's Lula da Silva, and Chile's Ricardo Lagos. Morales wore an Andeanized suit designed by fashion designer Beatriz Canedo Patiño, and gave a speech that included a minute silence in memory of cocaleros and indigenous activists killed in the struggle. He condemned Bolivia's former "colonial" regimes, likening them to South Africa under apartheid and stating that the MAS' election would lead to a "refoundation" of the country, a term that the MAS consistently used over "revolution". Morales repeated these views in his convocation of the Constituent Assembly.
In taking office, Morales emphasized nationalism, anti-imperialism, and anti-neoliberalism, although did not initially refer to his administration as socialist. He immediately reduced both his own presidential wage and that of his ministers by 57% to $1,875 a month, also urging members of Congress to do the same. Morales gathered together a largely inexperienced cabinet made up of indigenous activists and leftist intellectuals, although over the first three years of government there was a rapid turnover in the cabinet as Morales replaced many of the indigenous members with trained middle-class leftist politicians. By 2012 only 3 of the 20 cabinet members identified as indigenous.
Economic program
At the time of Morales' election, Bolivia was South America's poorest nation. Morales' government did not initiate fundamental change to Bolivia's economic structure, and their National Development Plan (PDN) for 2006–10 adhered largely to the country's previous liberal economic model. Bolivia's economy was based largely on the extraction of natural resources, with the nation having South America's second largest reserves of natural gas. Keeping to his election pledge, Morales took increasing state control of the hydrocarbon industry with Supreme Decree 2870; previously, corporations paid 18% of their profits to the state, but Morales symbolically reversed this, so that 82% of profits went to the state and 18% to the companies. The oil companies threatened to take the case to the international courts or cease operating in Bolivia, but ultimately relented. As a result, Bolivia's income from hydrocarbon extraction increased from $173 million in 2002 to $1.3 billion by 2006. Although not technically a form of nationalization, Morales and his government referred to it as such, resulting in criticism from sectors of the Bolivian left. In June 2006, Morales announced his plan to nationalize mining, electricity, telephones, and railroads. In February 2007, the government nationalized the Vinto metallurgy plant and refused to compensate Glencore, which the government said had obtained the contract illegally. Although the FSTMB miners' federation called for the government to nationalize the mines, the government did not do so, instead stating that any transnational corporations operating in Bolivia legally would not be expropriated.
Under Morales, Bolivia experienced unprecedented economic strength, resulting in an increase in value of its currency, the boliviano. Morales' first year in office ended with no fiscal deficit, which was the first time this had happened in Bolivia for 30 years. During the 2008 financial crisis, Bolivia maintained one of the world's highest levels of economic growth. Such economic strength led to a nationwide boom in construction, and allowed the state to build up strong financial reserves. Although the level of social spending was increased, it remained relatively low, with a priority being the construction of paved roads and community spaces such as soccer fields and union buildings. In particular, the government focused on rural infrastructure improvement, to bring roads, running water, and electricity to areas that lacked them.
The government's stated intention was to reduce Bolivia's most acute poverty levels from 35% to 27% of the population, and moderate poverty levels from 58.9% to 49% over five years. The welfare state was expanded, as characterized by the introduction of non-contributory old-age pensions and payments to mothers provided their babies are taken for health checks and that their children attend school. Hundreds of free tractors were also handed out. The prices of gas and many foodstuffs were controlled, and local food producers were made to sell in the local market rather than export. A new state-owned body was also set up to distribute food at subsidized prices. All these measures helped to curb inflation, while the economy grew (partly because of rising public spending), accompanied by stronger public finances which brought economic stability.
During Morales' first term, Bolivia cut ties with the World Bank and International Monetary Fund (IMF) a unsuccessful theme of previous regimes who tried to refuse their financial aid and subsequent conditions. In May 2007, it became the world's first country to withdraw from the International Center for the Settlement of Investment Disputes, with Morales stating that the institution had consistently favored multinational corporations in its judgments. Bolivia's lead was followed by other South American nations. Despite being encouraged to do so by the U.S., Bolivia refused to join the Free Trade Area of the Americas, deeming it a form of U.S. imperialism.
A major dilemma faced by Morales' administration was between the desire to expand extractive industries in order to fund social programs and provide employment, and to protect the country's environment from the pollution caused by those industries. Although his government professed an environmentalist ethos, expanding environmental monitoring and becoming a leader in the voluntary Forest Stewardship Council, Bolivia continued to witness rapid deforestation for agriculture and illegal logging. Economists on both the left and right expressed concern over the government's lack of economic diversification. Many Bolivians opined that Morales' government had failed to bring about sufficient job creation.
ALBA and international appearances
Morales' administration sought strong links with the governments of Cuba and Venezuela. In April 2005 Morales traveled to Havana for knee surgery, there meeting with the two nations' presidents, Castro and Chávez. In April 2006, Bolivia agreed to join Cuba and Venezuela in founding the Bolivarian Alternative for the Americas (ALBA), with Morales attending ALBA's conference in May, at which they initiated with a Peoples' Trade Agreement (PTA). Meanwhile, his administration became "the least US-friendly government in Bolivian history". In September Morales visited the U.S. for the first time to attend the UN General Assembly, where he gave a speech condemning U.S. President George W. Bush as a terrorist for launching the War in Afghanistan and Iraq War and called for the UN Headquarters to be moved out of the country. In the U.S., he met with former presidents Bill Clinton and Jimmy Carter and with Native American groups. Relations were further strained between the two nations when in December Morales issued a Supreme Decree requiring all U.S. citizens visiting Bolivia to have a visa. His government also refused to grant legal immunity to U.S. soldiers in Bolivia; hence the U.S. cut back their military support to the country by 96%.
In December 2006, he attended the first South-South conference in Abuja, Nigeria, there meeting Libyan leader Muammar Gaddafi, whose government had recently awarded Morales the Al-Gaddafi International Prize for Human Rights. Morales proceeded straight to Havana for a conference celebrating Castro's life, where he gave a speech arguing for stronger links between the Americas and the Middle East to combat U.S. imperialism. Under his administration, diplomatic relations were established with Iran, with Morales praising Iranian President Mahmoud Ahmadinejad as a revolutionary comrade. In April 2007 he attended the first South American Energy Summit in Venezuela, arguing with many allies over the issue of biofuel, which he opposed. He had a particularly fierce argument with Brazilian President Lula over Morales' desire to bring Bolivia's refineries – which were largely owned by Brazil's Petrobrás – under state control. In May, Bolivia purchased the refineries and transferred them to the Bolivian State Petroleum Company (YPFB).
Social reform
Morales' government sought to encourage a model of development based upon the premise of vivir bien, or "to live well". This entailed seeking social harmony, consensus, the elimination of discrimination, and wealth redistribution; in doing so, it was rooted in communal rather than individual values and owed more to indigenous Andean forms of social organization than Western ones.
Upon Morales' election, Bolivia's illiteracy rate was at 16%, the highest in South America. Attempting to rectify this with the aid of left-wing allies, Bolivia launched a literacy campaign with Cuban assistance, and Venezuela invited 5,000 Bolivian high school graduates to study in Venezuela for free. By 2009, UNESCO declared Bolivia free from illiteracy. The World Bank stated that illiteracy had declined by 5%. Cuba also aided Bolivia in the development of its medical care, opening ophthalmological centers in the country to treat 100,000 Bolivians for free per year, and offering 5,000 free scholarships for Bolivian students to study medicine in Cuba. The government sought to expand state medical facilities, opening twenty hospitals by 2014, and increasing basic medical coverage up to the age of 25. Their approach sought to utilize and harmonize both mainstream Western medicine and Bolivia's traditional medicine.
The 2006 Bono Juancito Pinto program provided US$29 per year to parents who kept their children in public school with an attendance rate above 80%. 2008's Renta Dignidad initiative expanded the previous Bonosol social security for seniors program, increasing payments to $344 per year, and lowering the eligibility age from 65 to 60. 2009's Bono Juana Azurduy program expanded a previous public maternity insurance, giving cash to low-income mothers who proved that they and their baby had received pre- and post-natal medical care, and gave birth in an authorized medical facility. Conservative critics of Morales' government said that these measures were designed to buy off the poor and ensure continued support for the government, particularly the Bono Juancito Pinto which is distributed very close to election day.
Morales announced that one of the top priorities of his government was to eliminate racism against the country's indigenous population. To do this, he announced that all civil servants were required to learn one of Bolivia's three indigenous languages, Quechua, Aymara, or Guaraní, within two years. His government encouraged the development of indigenous cultural projects, and sought to encourage more indigenous people to attend university; by 2008, it was estimated that half of the students enrolled in Bolivia's 11 public universities were indigenous, while three indigenous-specific universities had been established, offering subsidized education. In 2009, a Vice Ministry for Decolonization was established, which proceeded to pass the 2010 Law against Racism and Discrimination banning the espousal of racist views in private or public institutions.
Various commentators noted that there was a renewed sense of pride among the country's indigenous population following Morales' election. Conversely, the opposition accused Morales' administration of aggravating racial tensions between indigenous, white, and mestizo populations, and of using the Racism and Discrimination law to attack freedom of the press.
On International Workers' Day 2006, Morales issued a presidential decree undoing aspects of the informalization of labor which had been implemented by previous neoliberal governments; this was seen as a highly symbolic act for labor rights in Bolivia. In 2009 his government put forward suggested reforms to the 1939 labor laws, although lengthy discussions with trade unions hampered the reforms' progress. Morales' government increased the legal minimum wage by 50%, and reduced the pension age from 65 to 60, and then in 2010 reduced it again to 58.
While policies were brought in to improve the living conditions of the working classes, conversely many middle-class Bolivians felt that they had seen their social standing decline, with Morales personally mistrusting the middle-classes, deeming them fickle. A 2006 law reallocated state-owned lands, with this agrarian reform entailing distributing land to traditional communities rather than individuals. In 2010, a law was introduced permitting the formation of recognized indigenous territories, although the implementation of this was hampered by bureaucracy and contesting claims over ownership. Morales' government also sought to improve women's rights in Bolivia. In 2010, it founded a Unit of Depatriarchalization to oversee this process. Further seeking to provide legal recognition and support to LGBT rights, it declared 28 June to be Sexual Minority Rights Day in the country, and encouraged the establishment of a gay-themed television show on the state channel.