DJ Bolivia Pres: $150M Revenue From Energy Nationalization

NEW YORK (Dow Jones)--Bolivia's nationalization of its hydrocarbons industry in May has generated $150 million in additional revenue for the state, President Evo Morales said Thursday.

Morales, who spoke at Columbia University's World Leaders Forum in New York, gave no details on how he planned to spend the income. In his speech, the former coca-growers union leader gave an overview of the reforms he is planning to restore dignity to Bolivians and improve income distribution, and called for greater social equality in his country.

Bolivia is a nation "with so much wealth, but so much poverty," Morales said. "Wealth is poorly distributed, and we've started to recover control of those natural resources."

In May, Morales announced a nationalization of the Andean nation's hydrocarbons sector, giving majority control of the industry to state energy company Yacimientos Petroliferos Fiscales Bolivianos, or YPFB.

The company, however, faces financial and staffing issues. Last month, the government said YPFB has asked the central bank for $180 million in financing. Morales reiterated his rejection of Western economic models, saying those policies have exacerbated socioeconomic inequities in Bolivia and elsewhere in the region. But he did express support for private property rights.

"An economic model oriented fundamentally toward concentrating wealth in the hands of the few is not going to work in our country," he said.

"(But) we respect and have always respected that there's economic diversity in our country. We respect private property."

Morales also said he was pleased to have such a warm reception in New York. An easy and relaxed speaker in front of a packed auditorium of mostly students, the Bolivian president joked that he had to leave shortly because the U.S. government issued him a very short-term visa.

-By Wailin Wong, Dow Jones Newswires; 201 938 5240;
wailin.wong@dowjones.com (END) Dow Jones Newswires 09-22-06 0730ET
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