Bolivians celebrate autonomy move

Self-rule would mean less tax revenue going to La Paz

Tens of thousands of people have been celebrating at an open meeting in the Bolivian province of Santa Cruz which has initiated moves towards autonomy.

The meeting agreed to set up a provincial assembly, but stopped short of unilaterally declaring self-rule.

The decision came after the government said on Thursday it would let regions elect governors and hold a referendum on approval of regional autonomy.

The protests have put President Carlos Mesa under intense pressure.

He came to power after his predecessor was toppled in October 2003.

Under fire

Tens of thousands of people, many waving the green and white regional flag, turned up to the "cabildo," a type of popular assembly dating back to colonial times.

This is part of a peaceful revolution Ruben Costas Santa Cruz Civic Committee president

They were addressed by Ruben Costas, the president of the Santa Cruz Civic Committee, which has been spearheading local demands for self-rule.

Mr Costas announced to the cheering but peaceful crowd the creation of a provisional autonomous assembly.

"This is part of a peaceful revolution," he told the crowds, quoted by AP news agency. "This will give a voice to the country's most productive region, which it seems has been ignored."

The assembly, he said, would ensure that the central government carried through its commitment to give in to the two key demands on governor elections and the autonomy referendum.

Earlier this week, Mr Mesa said he would try to find a compromise to allow Santa Cruz residents to choose their governor without having to amend the Constitution.

The crisis is his most serious since he came to power 15 months ago.

Impact abroad

The president is under pressure both from powerful business leaders, who accuse him of ruining the country's economy, and indigenous and leftist groups calling for the nationalisation of Bolivia's utility and gas companies.

Self-rule could have a major impact on Bolivia's economy, but renowned Peruvian writer Mario Vargas Llosa warned it might even affect other countries across Latin America.

The Santa Cruz region is home to some of the country's most important oil, sugar and soybean companies.

It accounts for 33% of the country's economic output.

But local business and political leaders say they are receiving too little from the central government in return for the region's economic contribution to the state coffers.