Liberalizing the economy

Gonzalo Sánchez de Lozada pursued an aggressive economic and social reform agenda. The most dramatic reform was the "capitalization" program, under which investors, typically foreign, acquired 50% ownership and management control of public enterprises, such as the state petroleum corporation, telecommunications system, airlines, railroads, and electric utilities, in return for agreed upon capital investments.

The reforms and economic restructuring were strongly opposed by certain segments of society, which instigated frequent and sometimes violent protests, particularly in La Paz and the Chapare coca-growing region, from 1994 through 1996. The de Lozada government pursued a policy of offering monetary compensation for voluntary eradication of illegal coca by its growers in the Chapare region. The policy produced little net reduction in coca, and in the mid-1990s Bolivia accounted for about one-third of the world's coca that was being processed into cocaine. The coca leaf has long been part of the Bolivian culture, as indigenous workers have traditionally used the leaf for its properties as a mild stimulant and appetite suppressant.

During this time, the umbrella labor-organization of Bolivia, the Central Obrera Boliviana (COB), became increasingly unable to effectively challenge government policy. A teachers' strike in 1995 was defeated because the COB could not marshal the support of many of its members, including construction and factory workers. The state also used selective martial law to keep the disruptions caused by the teachers to a minimum. The teachers were led by Trotskyites, and were considered to be the most militant union in the COB. Their downfall was a major blow to the COB, which also became mired in internal corruption and infighting in 1996.

In the 1997 elections, General Hugo Banzer, leader of the Nationalist Democratic Action party (ADN) and former dictator (1971–1978), won 22% of the vote, while the MNR candidate won 18%. General Banzer formed a coalition of the ADN, MIR, UCS, and CONDEPA parties, which held a majority of seats in the Bolivian Congress. The Congress elected him as president, and he was inaugurated on 6 August 1997. During the election-campaign, Banzer had promised to suspend the privatization of the state-owned oil-company, YPFB. But this seemed unlikely to happen, considering Bolivia's weak position globally. The Banzer government basically continued the free-market and privatization-policies of its predecessor.

The relatively robust economic growth of the mid-1990s continued until about the third year of its term in office. After that, regional, global and domestic factors contributed to a decline in economic growth. Financial crises in Argentina and Brazil, lower world prices for export-commodities, and reduced employment in the coca-sector depressed the Bolivian economy. The public also perceived a significant amount of public-sector corruption. These factors contributed to increasing social protests during the second half of Banzer's term.[31]

At the outset of his government, President Banzer launched a policy of using special police-units to physically eradicate the illegal coca of the Chapare region. The policy produced a sudden and dramatic four-year decline in Bolivia's illegal coca-crop, to the point that Bolivia became a relatively small supplier of coca for cocaine. Those left unemployed by coca-eradication streamed into the cities, especially El Alto, the slum-neighborhood of La Paz. The MIR of Jaime Paz Zamora remained a coalition-partner throughout the Banzer government, supporting this policy (called the Dignity Plan)

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Hazardous Environment Approvals

Air motors are well known for being a "safe" drive choice in potentially explosive environments. They normally do not overheat or “burn out” and do not throw sparks. Many engineers use them in hazardous areas without a second thought. We all know a risk assessment should be done on any piece of equipment going into a workplace; however we see people automatically assuming that all air motors are safe. When certain gases are present, equipment that generates over 90OC surface temperature are not acceptable.

If the work place is likely to have an explosive atmosphere due to dust or gases, the use of ATEX approved air motors will give the risk assessor a higher level of confidence about the motor. The ATEX approval is a European standard for equipment that is used in explosive atmospheres. An approved motor will have a code on it that shows what environment it is suited to (eg mining or industrial), what form of hazardous materials it is safe for (eg gas or dust) as well as the rated surface temperature of the motor.

To use the approval, the motor manufacturer has to supply motors and operating instructions to an independent testing facility. The motors are then tested and rated according to their maximum surface temperature. Information about recommended maintenance intervals and surface temperature testing must also be included in the operating instructions.


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ATEX approved air pneumatic motors hazardous areas