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Bolivia Caps Pensions After Blast

BBC News

March 30, 2004

The Bolivian government has changed the country's pension system after a protest by an unemployed miner who blew himself up at the Congress building. 
President Carlos Mesa capped monthly state pensions at $1,000 (£550) to ease pressure on the cash-strapped system and allow more people to get benefits. 

The move came after Eustaquio Picachuri set off dynamite strapped to his body, killing himself and two security men. 

He was one of nearly 30,000 jobless workers not receiving a pension. 
The protest by the 47-year-old former miner came amid continuing efforts by President Mesa to ease tensions in Bolivia after last October's national protests by farmers, workers and miners. 

Mr Mesa left the building shortly before Tuesday's explosion, which happened while Congress was sitting. 

The building had been evacuated and sessions were immediately suspended. 

Tensions 

Thousands of unemployed Bolivian miners are not getting retirement benefits, because of a shortage of public funds and inconsistencies between the old state pension system and the private retirement scheme created in 1997. 

Many miners have lost their jobs with the state-owned mining company since the government allowed private firms to extract the country's reserves of gold and other mineral deposits. 

In October, miners, farmers and workers took part in protests sparked by President Gonzalo Sanchez de Lozada's plan to export natural gas. 
Dozens died in the protests that led to the president's resignation. 

Since taking office, Mr Mesa has worked to ease social tensions in one of the poorest countries in Latin America. 

But he continues to face pressure to turn around a slumping economy and narrow the gap between rich and poor.


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