Over the past 13 years, Morales has tried to build a different relationship between his country and its resources. He has not wanted the resources to benefit the transnational mining firms, but rather to benefit his own population. Part of that promise was met as Bolivia’s poverty rate has declined, and as Bolivia’s population was able to improve its social indicators. Nationalization of resources combined with the use of its income to fund social development has played a role. The attitude of the Morales government toward the transnational firms produced a harsh response from them, many of them taking Bolivia to court.

Over the course of the past few years, Bolivia has struggled to raise investment to develop the lithium reserves in a way that brings the wealth back into the country for its people. Morales’ Vice President Álvaro García Linera had said that lithium is the “fuel that will feed the world.” Bolivia was unable to make deals with Western transnational firms; it decided to partner with Chinese firms. This made the Morales government vulnerable. It had walked into the new Cold War between the West and China. The coup against Morales cannot be understood without a glance at this clash.

Clash With the Transnational Firms

When Evo Morales and the Movement for Socialism took power in 2006, the government immediately sought to undo decades of theft by transnational mining firms. Morales’ government seized several of the mining operations of the most powerful firms, such as Glencore, Jindal Steel & Power, Anglo-Argentine Pan American Energy, and South American Silver (now TriMetals Mining). It sent a message that business as usual was not going to continue.

Nonetheless, these large firms continued their operations—based on older contracts—in some areas of the country. For example, the Canadian transnational firm South American Silver had created a company in 2003—before Morales came to power—to mine the Malku Khota for silver and indium (a rare earth metal used in flat-screen televisions). South American Silver then began to extend its reach into its concessions. The land that it claimed was inhabited by indigenous Bolivians, who argued that the company was destroying its sacred spaces as well as promoting an atmosphere of violence.