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Gonzalo Sánchez de Lozada
Gonzálo Sánchez de Lozada-Agencia BrasilAntonio Cruz.jpg
Sánchez de Lozada in 2003
61st President of Bolivia
In office
6 August 2002 – 17 October 2003
Vice President Carlos Mesa
Preceded by Jorge Quiroga
Succeeded by Carlos Mesa
In office
6 August 1993 – 6 August 1997
Vice President Víctor Hugo Cárdenas
Preceded by Jaime Paz Zamora
Succeeded by Hugo Banzer
Minister of Planning and Coordination
In office
22 January 1986 – 20 September 1988
President Víctor Paz Estenssoro
Preceded by Guillermo Bedregal Gutiérrez
Succeeded by Fernando Romero Moreno
Personal details
Born
Gonzalo Daniel Sánchez de Lozada Sánchez Bustamante

(1930-07-01) 1 July 1930 (age 94)
La Paz, Bolivia
Nationality Bolivian, American
Political party Revolutionary Nationalist Movement
Spouse Ximena Iturralde
Parents Enrique Sánchez de Lozada
Carmen Sánchez Bustamante
Relatives Daniel Sánchez Bustamante (grandfather)
Alma mater University of Chicago (A.B.)
Awards Order of the Condor of the Andes
Signature

Gonzalo Daniel Sánchez de Lozada Sánchez Bustamante (born 1 July 1930), often called Goni, is a Bolivian-American businessman and politician. He served as the 61st president of Bolivia two times. His first term was from 1993 to 1997, and his second was from 2002 to 2003. He was a member of the Revolutionary Nationalist Movement (MNR) political party.

Before becoming president, Sánchez de Lozada was a minister of planning. In 1985, he helped to fix Bolivia's economy by using a plan called "shock therapy." This plan quickly reduced very high inflation (prices rising very fast) from about 25,000% to a very low number in less than six weeks. During his first time as president, he started many important changes in Bolivia's society, economy, and laws.

In his second term, he faced big protests in October 2003, known as the Bolivian gas conflict. Many people died during these events. Because of the violence, Sánchez de Lozada resigned and moved to the United States.

Early Life and Political Beginnings

Gonzalo Sánchez de Lozada's family had a history in Bolivian politics. His grandfather, Daniel Sánchez Bustamante, was a Minister of Foreign Affairs. His great-great-grandfather, Mariano Calvo, and his great-great-grandmother's brother, Tomás Frías, were also presidents of Bolivia.

Gonzalo's father was a professor and diplomat. Because of this, Gonzalo spent his early years in the United States. He grew up in Iowa and studied at the University of Chicago. This is why he speaks Spanish with an American accent.

In 1951, when he was 21, he returned to Bolivia. This was just before the 1952 revolution, which changed Bolivia from a system where a few rich families had all the power to a democracy. This revolution gave everyone the right to vote.

In the 1950s, Sánchez de Lozada worked in filmmaking. He even filmed parts of Bolivia's 1952 Revolution. His film Voces de la Tierra (Voices from the Earth) won an award in 1957. Later, he started a successful mining company called COMSUR in 1966.

Bolivia was ruled by military leaders for almost 20 years. When democracy returned, Sánchez de Lozada was elected to Congress. In 1985, he became a senator and then the President of the Senate of Bolivia. Soon after, President Víctor Paz Estenssoro made him Planning Minister. In this role, he helped change Bolivia's economy from being controlled by the state to a mixed economy. He is famous for stopping the very high inflation with "shock therapy."

In 1989, he ran for president but did not win.

First Time as President (1993–1997)

In 1993, Sánchez de Lozada ran for president again. This time, he teamed up with an indigenous party, and Víctor Hugo Cárdenas became his vice-president candidate. They won, and Cárdenas became the first elected indigenous vice president in South America.

During his first presidency, Sánchez de Lozada's government made many big changes:

  • The country's Constitution was updated to say that Bolivia is a nation with many different ethnic groups and cultures. It also protected indigenous rights.
  • The Popular Participation Act was passed. This law gave more power to local governments (municipalities) and allowed people to vote directly for local leaders. It also gave 20% of federal money to these local governments.
  • Education was reformed to include teaching in local indigenous languages.
  • New health programs were started for mothers and young children.
  • An annual payment was given to older people, especially those in rural areas.
  • Electoral laws were changed to make elections more open and fair.

Capitalization Program

One of the most talked-about programs was called "capitalization." This program aimed to sell parts of government-owned companies to private companies. The idea was that private companies would invest money directly into these new businesses, which would help them grow. This was meant to bring money for development in Bolivia, as the government did not have enough funds.

Five large state-owned companies were part of this program: the national oil company, phone company, electric company, airline, and train system. Later, water services were also included.

This program was controversial. Some people thought it was good because it brought in new investments and reduced corruption. Others worried that it meant selling off important national resources to foreign companies. They also felt that the money from these sales did not always help the poor people as much as promised. For example, the sale of the national oil company led to less profit for Bolivia. Prices for electricity also went up. The privatization of water led to big protests, like the Cochabamba Water War.

Second Time as President (2002–2003)

In 2002, Sánchez de Lozada ran for president again. He chose Carlos Mesa, a historian and journalist, as his running mate. He won the election and formed a government with other political parties.

When he started his second term, Bolivia was facing economic and social problems. The economy was not growing much, and there was a large government debt.

The Gas War and Resignation

From late 2002, protests began to grow. Different groups, including coca farmers, urban workers, miners, and indigenous farmers, joined together. They blocked roads and stopped cities. Some protests were about local issues, while others were against the government. In February 2003, a conflict between police and army units in La Paz led to deaths.

The main reason for the protests was the country's economic problems. Many people were also upset about how Bolivia's natural gas resources might be used. They wanted the government to control these resources, not foreign companies. Protesters also demanded that Sánchez de Lozada resign.

In late September, a fight broke out in Warisata between protesters and the army. Six people died, including an 8-year-old child.

In early October, it was reported that President Sánchez de Lozada planned to export Bolivia's natural gas through a port in Chile. Many Bolivians were angry about this because Bolivia had lost its coastal land to Chile in a war long ago. Protesters blocked the main highway from El Alto to La Paz, leading to a huge demonstration and a virtual siege of La Paz.

Fuel and other important supplies became very low in La Paz. On October 11, President Sánchez de Lozada ordered the military to protect gas plants and transport fuel. Soldiers were sent into crowded neighborhoods to clear the way for fuel trucks. Protesters tried to stop the convoys. Some residents reported that soldiers started shooting, killing a five-year-old child and a pregnant woman.

The Vice-President, Carlos Mesa, publicly disagreed with Sánchez de Lozada, saying he could not accept that the government's response to protests was death. Other ministers also resigned. Thousands of Bolivians marched on La Paz, demanding the President's resignation.

Faced with growing anger and losing political support, Sánchez de Lozada resigned on October 17, 2003. He then left Bolivia on a flight to the United States. Official reports stated that 65 civilians died during the Gas War, and about 400 people were injured.

Life After Presidency (2003–Present)

After his resignation, there were efforts to hold Sánchez de Lozada responsible for the events of 2003. Bolivia's Congress voted to allow an investigation into his actions. In 2011, the Bolivian Supreme Court sentenced some military members and politicians to prison for their roles in the events.

Bolivia also asked the U.S. government to send Sánchez de Lozada back to Bolivia for trial, but this request was denied.

In the United States, families of some of the Bolivians killed in 2003 filed a lawsuit against Sánchez de Lozada and his former defense minister. They sought money for damages. In 2018, a jury found them responsible for the deaths and ordered them to pay $10 million. However, a judge later overturned this decision. The case was appealed, and in 2020, a higher court ordered the case to be reconsidered. In April 2021, the 2018 jury verdict, including the $10 million payment, was confirmed again by a U.S. District Judge.

See also

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