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During Gonzalo Sánchez de Lozada’s first term (1993–97), his Revolutionary Nationalist Movement (mnr) government undertook a series of legal, political, and economic measures that continued to roll back the reforms introduced by the mnr during the National Revolution of 1952. While his political and cultural policies were ambitious, Sánchez de Lozada was most intent on ending state ownership of key sectors of the economy. International financial institutions were already pushing this agenda, yet Sánchez de Lozada pursued it through a novel scheme known as “capitalization.” Rather than simply selling off state-owned industries to the highest bidder, the Bolivian...

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