Consultation, Compensation and Extraction in Bolivia after the ‘Left Turn’: The Case of Oil Exploration in the North of La Paz Department

Abstract Bolivia is part of the left-turn that Latin America has seen since the end of the 1990s. The country was traditionally ruled by a conservative establishment and political instability characterized a decade of conflicts that culminated in the ascendency of the Movement towards Socialism (Movimiento al Socialismo, MAS) and, in 2006, of the first indigenous president -Evo Morales. The election of Morales and the subsequent changes to the Bolivian state have been praised by some scholars as revolutionary, while others have argued that these changes essentially consist of a continuation and re-constitution of neo-liberal regimes. This paper highlights the changes in compensation and redistribution policies that have accompanied the nationalization of hydrocarbons and the institutionalization of consultation processes for indigenous peoples affected by hydrocarbons activities. In this context, we analyse an oil exploration project that took place in the north of the La Paz Department. In particular, focus is on how the compensation and consultation frameworks debilitated opposition to the project. We conclude that the government's priorities are intertwined with the continuation of the extractive economic model. In these circumstances questioning extractive projects is not an option.