benefited directly based on the size of their populations. The Plan de Todos inspired the development of a market democracy with minimally regulated capitalist economy. The Plan explicitly stated that Bolivian citizens would own a minimum of 51% of enterprises; under the Plan, most state owned enterprises (SOEs), besides mines, were sold. This privatization of SOEs led to innovative neoliberal structuring that acknowledged a diverse population within Bolivia.
The Law of Popular Participation gave municipalities the responsibility of maintaining various infrastructures (and offering services): health, education, systems of irrigation, which stripped the responsibility away from the state. The state provides municipalities with twenty percent of federal tax revenue so that each municipality can adequately maintain these infrastructures. The Law also redistributes political power to the local level.
The Plurinational State of Bolivia
The main candidates for the 2005 Bolivian presidential election held on 18 December 2005 were Juan Evo Morales Ayma of the MAS Party and Jorge Quiroga, leader of the Social and Democratic Power (PODEMOS) Party and former head of the Acción Democrática Nacionalista (ADN) Party. Morales won the election with 53.7% of the votes, an absolute majority, unusual in Bolivian elections. He was sworn in on 22 January 2006, for a five-year term. Prior to his official inauguration in La Paz, he was inaugurated in an Aymara ritual at the archeological site of Tiwanaku before a crowd of thousands of Aymara people and representatives of leftist movements from across Latin America. Though highly symbolic, this ritual was not historically based and primarily represented native Aymaras — not the main Quechua-speaking population. Since the Spanish conquest in the early 16th century, this region of South America, with a majority native population, has been ruled mostly by descendants of European immigrants.
On 1 May