Luis Arce

Luis Alberto Arce Catacora (born 28 September 1963), also known as Lucho Arce, is a Bolivian politician who has served as the 67th President of Bolivia since 2020.[1] He served as Minister of Economy and Public Finance from 2006 to 2017 and in 2019 during the administration of Evo Morales.[2] He is a member of the Movement for Socialism (MAS-IPSP) political party.


Luis Arce Catacora
67th President of Bolivia
Assumed office
8 November 2020
Vice PresidentDavid Choquehuanca
Preceded byJeanine Áñez (interim)
Minister of Economy and Public Finance
In office
23 January 2019  10 November 2019
PresidentEvo Morales
Preceded byMario Guillén Suárez
Succeeded byJosé Luis Parada Rivero
In office
23 January 2006  24 June 2017
PresidentEvo Morales
Preceded byWaldo Gutiérrez Iriarte
Succeeded byMario Guillén Suárez
Personal details
Born
Luis Alberto Arce Catacora

(1963-09-28) 28 September 1963
La Paz, Bolivia
Political partyMAS-IPSP
Spouse(s)Lourdes Brigida Durán Romero
Children
  • Luis Marcelo
  • Rafael Ernesto
  • Camila Daniela
ParentsCarlos Arce
Olga Catacora
Alma materHigher University of San Andrés
University of Warwick
Signature

Arce was born in La Paz to a middle-class family. He graduated as an accountant from Bank Education Institute in La Paz in 1984 before obtaining degrees in economics at the Higher University of San Andrés and the University of Warwick in England. He spent most of the 1990s as a public official in a succession of posts, also teaching classes on economics at various universities. In 2006 he was appointed Minister of Finance by the newly elected president, Evo Morales. Arce oversaw a period of economic growth in Bolivia, and as a member of MAS gained a reputation for being a technocrat.

Following the disputed 2019 general election and the ensuing unrest, Morales agreed to calls for his resignation and Jeanine Áñez became interim president. Áñez oversaw the 2020 general election, which Arce won.

Early life

Luis Arce was born on 28 September 1963 in La Paz.[3] He is the son of Carlos Arce Gonzales and Olga Catacora, both teachers.[3] Arce grew up in a middle-class family, beginning his school studies in 1968 and graduating from high school in La Paz in 1980. He studied at the Bank Education Institute in La Paz, initially graduating as an accountant in 1984. In 1991, he received a bachelor's degree in economics from the Higher University of San Andrés before completing his studies abroad at the University of Warwick at Coventry, United Kingdom, where he graduated in 1997 with a master's in economics. He also holds an honorary doctorate from the University of los Andes (UNANDES) and the Franz Tamayo Private University (UNIFRANZ) in Bolivia.[4][5]

Career

Arce has spent most of his working life as a public official, beginning in 1987 at the Central Bank of Bolivia, where he spent much of his professional career. From 1992 to 2005, he worked in the International Operations Management of the Central Bank of Bolivia as Deputy Manager of Reserves. Between 1994 and 1995, he was promoted to head of the Department of Information and Publications, of the Research and Analysis Sub-management, under the Management of Economic Studies of the Central Bank of Bolivia.

Arce also started working in academia as an undergraduate and postgraduate professor at various Bolivian public and private universities. He has given lectures at universities in Europe, North America, and Latin America, including Columbia University in New York, the University of Buenos Aires, and Harvard University.[6]

Minister of Economy and Public Finance

On 23 January 2006, President Evo Morales appointed Arce Minister of Finance. Three years later, he assumed command of the new Ministry of Economy and Public Finance. Some Bolivian media called Arce the mastermind of Bolivia's economic resurgence.[7] He oversaw Bolivia's nationalization of hydrocarbon, telecommunications, and mining companies, as well as the creation of BancoSur.[8] He oversaw the rapid expansion of the Bolivian economy, with GDP increasing by 344% and extreme poverty reduced from 38% to 15%.[9][10]

In 2011, the American Economy Magazine ranked Arce the region's 8th-best minister of the economy out of 18.[11] Crowded International Organization has highlighted Arce's work driving the Bolivian economy. Ahead of the 2014 Bolivian general election, The Wall Street Journal considered him the calling card in Morales's reelection.[12]

On 24 June 2017, Arce was forced to give up his position and travel to Brazil to undergo surgery to treat severe kidney cancer.[13] He remained there for a mandated recovery period before returning to his post as Minister of Economics on 23 January 2019.

As the Minister of Economics, Arce maintained a relatively low profile. Christopher Sabatini, a senior researcher fellow for Latin America at Chatham House and founder of Americas Quarterly, called Arce "one of the few technocrats in MAS." "He’s level headed" and "doesn’t engage in inflammatory rhetoric", Sabatini wrote.[14] Bolivian media often credited Arce with steering the nation through a period of economic growth. His policies were salient in slashing Bolivia's poverty rate during his terms and facilitating large amounts of economic growth as a result of rising gas exports.[15]

2020 presidential campaign

After the 2019 Bolivian political crisis that saw President Evo Morales's resignation, Interim President Jeanine Áñez called new elections. On 19 January 2020, Morales announced that after eight hours of meetings in Argentina, Arce and former Foreign Minister David Choquehuanca were the Movement for Socialism (MAS) candidates in the 2020 elections.

Some MAS opponents said Arce was a puppet of Morales but Arce distanced himself from Morales during the campaign. A MAS leader from El Alto, David Apaza, said, "Categorically, Evo will not interfere in the government of brother Luis Arce ... [W]e believe our comrade [Morales] should rest, while brother Luis Arce takes the lead".[16] Arce said that Morales "will not have any role in our government" but will still be the president of the party."[17]

Most public opinion polls showed Arce with a lead, but not one big enough to avoid a November runoff. By election night, the divided candidates of the right had managed to partially consolidate around former president Carlos Mesa as Áñez and former president Jorge Quiroga dropped out. Early results favored Mesa, but polling firm Ciesmori's quick-count of the vote on the morning of 19 October indicated that Arce had won 52.4% of the vote, enough to win the election outright without a runoff.[18] Arce and his party declared victory, which Áñez soon confirmed on Twitter.[19] Carlos Mesa, Arce's primary opponent, conceded the election at a news conference, saying that initial counts showed a "strong and clear" win for Arce.[20] The final tally gave Arce 55.1% of the vote and Mesa 28.8%.[21]

Bolivian newspaper El Deber called Arce's victory "clear and crushing" and praised him for his conciliatory statements after the result, while also stating that the new president will have to appease MAS's radical wing.[22] Writing on Los Tiempos, Oscar Díaz Arnau attributed Arce's victory to MAS's strong support in rural areas, the weakness of Mesa's candidacy, Arce's moderation, lack of connection between the opposition and rural inhabitants and the candidacy of Luis Fernando Camacho splitting anti-MAS voters and weakening the opposition.[23]

Arce officially became president-elect of Bolivia on 23 October 2020, after the completion of the official vote count and an announcement by the TSE.

On the night of 5 November, MAS spokesman Sebastián Michel denounced an attack committed against president-elect Arce. The statement came after a stick of dynamite was detonated at the party's campaign headquarters in La Paz. Though Arce suffered no physical damages, Michel pointed out that Arce still had not yet received state protection.[24]

Two-thirds controversy

While Arce was successful in his presidential bid, the general election resulted in the loss of the supermajority of more than two-thirds in both chambers of government which MAS had enjoyed since 2009. In order to mitigate this loss, MAS legislators in the outgoing assembly used their final days of control over both chambers of government to amend regulations governing both bodies so that motions that previously required the agreement of two-thirds would now only require a simple majority, an action Página Siete described as "neutralising the opposition for the next five years."[25][26]

For his part, Arce endorsed the changes, saying that the decision "wakes up [the government]" for the incoming assembly. "What our Assembly has done is maintain legality. There are many laws that are going to be approved with two-thirds. That is established by the regulations and there should be no concern."[26]

President of Bolivia (2020–present)

Inauguration of Arce and David Choquehuanca on 8 November 2020

Inauguration

He was symbolically inaugurated in Tiwanaku during a private ceremony on 6 November as part of an indigenous ritual.[27] He was officially inaugurated on 8 November.[1] The event was attended by former presidents Eduardo Rodríguez Veltzé and Carlos Mesa as well as various presidents of neighbouring countries. Presidents Mario Abdo Benítez of Paraguay, Iván Duque Márquez of Colombia and Alberto Fernández of Argentina attended the inauguration.[28] King Felipe VI of Spain also attended and was honored as the most "illustrious guest."[29] Presidents Nicolás Maduro of Venezuela and Sebastián Piñera of Chile announced their intent to attend but shortly thereafter declined, sending their foreign ministers in their place.[28]

Notably not present was still-president Jeanine Áñez who had already left La Paz and settled in her home department of Beni a day prior.[30] Also not in attendance was Evo Morales who was invited but would not return from exile in Argentina until the day after.[31][32]

The Arce Cabinet
OfficeNamePartyTerm
PresidentLuis Arce2020–present
Vice PresidentDavid Choquehuanca2020–present
Minister of the PresidencyMaría Nela Prada2020–present
Minister of Foreign AffairsRogelio Mayta2020–present
Minister of GovernmentCarlos del Castillo2020–present
Minister of DefenseEdmundo Novillo2020–present
Attorney GeneralWilfredo Chávez2020–present
Minister of Development PlanningFelima Gabriela Mendoza2020–present
Minister of EducationAdrián Quelca Tarqui2020–present
Minister of Rural DevelopmentWilson Cáceres Cárdenas2020–2020
Edwin Ronald Characayo2020–present
Minister of Economy and FinanceMarcelo Alejandro Gómez2020–present
Minister of Public WorksEdgar Montaño2020–present
Minister of MiningRamiro Félix Villavicencio2020–present
Minister of JusticeIván Lima2020–present
Minister of HealthÉdgar Pozo Valdivia2020–2021
Jeyson Marcos Auza Pinto2020–present
Minister of WorkVerónica Navia Tejada2020–present
Minister of HydrocarbonsFranklin Molina Ortiz2020–present
Minister of Environment and WaterJuan Santos Cruz2020–present
Minister of Productive DevelopmentNéstor Huanca Chura2020–present
Minister of CulturesSabina Orellana2020–present

Cabinet

16 members of the ministerial cabinet were inaugurated on 9 November. Arce's cabinet comprises thirteen men and four women.[33][34][35] A Minister of Energy remained unappointed until 13 November when the position was merged with that of Minister of Hydrocarbons. Both Ministries are managed by Franklin Molina Ortiz.[36]

Bolivian indigenous politician Felipe Quispe criticized Arce for creating a cabinet that did not contain any indigenous members. However, the addition of Sabina Orellana, who is Quechua, to head the Ministry of Cultures would mean that there would be one indigenous representative.[37][38] By decree on 20 November, Arce reinstated the Ministry of Cultures which had been merged with the Ministry of Education by Áñez in June.[39] As part of this, the office was renamed from Ministry of Cultures and Tourism to Ministry of Cultures, Decolonization and Depatriarchalization with the expanded task of combating "inequality between nationalities, as well as between men and women."[40]

Arce also returned the official residency of the president and his ministers to the Casa Grande del Pueblo. The building had been constructed during the presidency of Evo Morales to replace the historical Palacio Quemado but the Áñez government had refused to use it.[41] Arce's government indicated plans to convert it into a museum.

Foreign policy

As part as his first diplomatic act, Arce restored diplomatic relations with Iran and recognised the government of Nicolás Maduro, reverting the previous administration's recognition of Juan Guaidó. In a ceremony on 11 November at the Plaza Murillo in La Paz, ambassadors Mortessa Tabreshi of Iran and Alexander Yánez of Venezuela presented their credentials to the Bolivian president. The reversal of course was particular for Venezuela as Áñez had granted diplomatic distinctions to José Cumare, sent by the Guaidó government just two weeks prior.[42]

Arce also directed the Ministry of Foreign Affairs to reinstate the country's membership in the Bolivarian Alliance for the Peoples of Our America (ALBA) which the previous government had withdrawn from.[43] In terms of regional integration, he noted the Community of Latin American and Caribbean States (CELAC) as the "best way" to integrate Latin America. He also proposed "the recovery of UNASUR (Union of South American Nations)" which in 2018 and 2019 saw most of its members either withdraw or suspend their membership amid growing concern about Venezuelan President Nicolás Maduro.[44]

On 13 December, Arce flew to Brazil for a routine medical check-up as part of the treatment he underwent in the country for kidney cancer.[45] Vice President Choquehuanca became acting president for 3 days until Arce's return on 15 December. Notably, Arce chose to take a commercial flight from Bolivia to Brazil and not use the presidential plane that Morales used, arguing issues of savings and efficiency.[46]

COVID-19 pandemic

Meetings between Arce and the governors of the nine Departments of Bolivia in the Casa Grande del Pueblo in order to coordinate actions against the coronavirus pandemic were held on 23 December 2020.[47] In his Christmas address, Arce praised "the heroes of the health personnel who, from the front line of combat against the pandemic, saved so many Bolivians."[48] On 30 December, the Arce government granted emergency approval for the use of the Russian Sputnik V vaccine based on Phase III clinical trials in Russia.[49] Both governments signed a contract to acquire 5.2 million doses in order to vaccinate 2.6 million people.[49][50]

On 28 December it was announced that Minister of Defense Edmundo Novillo had tested positive for COVID-19 followed soon after by Foreign Minister Rogelio Mayta on 4 January 2021.[51] Presidential spokesman Jorge Richter also stated that multiple deputy ministers had tested positive but that President Arce and Vice President Choquehuanca had both tested negative.[51] Minister of Public Works Edgar Montaño became the third cabinet minister to contract the virus on 11 January 2021 followed four days later by Minister of Health Édgar Pozo who as a result resigned due to his advanced age.[52]

Arce faced criticism for his comments asking the population to "hold out" until vaccines could arrive, with former president Jeanine Áñez calling him "irresponsible and incapable" of dealing with the second wave of the pandemic.[53] Former presidential opponent Luis Fernando Camacho called Arce's comments hypocritical when he himself had weeks earlier travelled to Brazil to receive medical care.[54] At the possession of new Health Minister Jeyson Auza on 16 January, Arce pushed back against his detractors stating that "the solution is vaccination. [...] That is the country's strategy, and we are doing it."[53] He further outlined that "holding out now means applying a strategy in all sub-national instances" and to "not resist without a strategy, which we have been announcing for a long time, including in meetings with governments and municipalities." Arce also called back to the previous administration, stating that "we have endured a de facto government and we have resisted until democracy is restored, today we have to endure the coronavirus" and blamed the Áñez government for causing a delay of four months in vaccine acquisition negotiations.[53]

Publications

Arce has published several books and articles on economics, including The Bolivian Economic Social Communitarian Productive Model (2015), "Uncertainty and Dollarization in Bolivia",[55] "Is the Mechanism of Bolsin Appropriate (Central Bank’s currency market)?", "Brief Assessment of Bolivian Exchange Rate Regime", "Contribution to the Debate on Dollarization", "Demand for Money in Bolivia", and "Financial Liberalization and Concentration in the Banking System".[11]

Personal life

Arce is married to Lourdes Brigida Durán Romero. They have three children; Luis Marcelo, Rafael Ernesto, and Camila Daniela.[56]

References

  1. "Copa announces that Arce will be inaugurated on November 8" (in Spanish). 23 October 2020.
  2. "Who is Luis Arce, the President Elect of Bolivia?" (in Spanish). 19 October 2020.
  3. "Luis Arce, un delfín que nada sobre el capital político de Evo Morales". France24. 25 September 2020.
  4. VILLALOBOS, Tania (5 May 2016). "Luis Alberto Arce Catacora". Trigésimo sexto período de sesiones de la CEPAL (in Spanish). Retrieved 19 October 2020.
  5. "UNIFRANZ website". www.unifranz.edu.bo.
  6. "Luis Arce: 'No hay una desaceleración profunda de la economía' - La Razón". web.archive.org. 5 April 2017. Retrieved 19 October 2020.
  7. "Economía y finanzas - El milagro económico de Bolivia". RFI. 1 July 2015. Retrieved 19 October 2020.
  8. Bolivian-American Chamber of Commerce
  9. González, Diego. "¿Cuáles son las claves del éxito económico boliviano? | DW | 12 July 2019". DW.COM (in Spanish). Retrieved 12 May 2020.
  10. Lazcano, Miguel (26 January 2020). "Bolivia redujo a mayor ritmo la pobreza extrema - La Razón". La Razón (in Spanish). Archived from the original on 26 January 2020.
  11. "Luis Alberto Arce". World Bank Live. 15 March 2016. Retrieved 12 May 2020.
  12. Otis, John (9 October 2014). "Bolivian Leader's Re-Election Calling Card: Socialist Economy Minister". The Wall Street Journal. Retrieved 20 October 2020.
  13. "Ateo y poderoso, Arce llegó a creer en la energía de la oración" (in Spanish). www.paginasiete.bo. Retrieved 19 October 2020.
  14. Nugent, Ciara (20 October 2020). "The Far-Left Wins Back Power in Bolivia. What Does That Mean for the Country's Future?". Time Magazine. Retrieved 22 October 2020.
  15. "Bolivia's ex-economy minister takes asylum in Mexico". RTL Télé Lëtzebuerg. 12 August 2019. Retrieved 22 October 2020.
  16. Phillips, Tom; Collyns, Dan (19 October 2020). "Bolivia election: exit polls suggest thumping win for Evo Morales's party". The Guardian. ISSN 0261-3077. Retrieved 19 October 2020.
  17. Rochabrun, Marcelo (20 October 2020). "Exclusive: Bolivia's President-elect Arce says 'no role' for Morales in new government". Reuters. Retrieved 20 October 2020.
  18. Rochabrun, Marcelo; Ramos, Daniel (19 October 2020). "Bolivia's socialists claim victory as unofficial count shows big win". Reuters. Retrieved 19 October 2020.
  19. @jeanineanez (19 October 2020). "Aún no tenemos cómputo oficial, pero por los datos con los que contamos, el Sr. Arce y el Sr. Choquehuanca han ganado la elección. Felicito a los ganadores y les pido gobernar pensando en Bolivia y en la democracia" [We still do not have an official count, but from the data we have, Mr. Arce and Mr. Choquehuanca have won the election. I congratulate the winners and ask them to govern with Bolivia and democracy in mind.] (Tweet) (in Spanish) via Twitter.
  20. Reeves, Philip (19 October 2020). "Ally Of Socialist Evo Morales On Track To Win Bolivia's Election As Rival Concedes". NPR.org. Retrieved 19 October 2020.
  21. "Resultados Elecciones Nacionales 2020". computo.oep.org.bo. Retrieved 28 October 2020.
  22. "Una clara y aplastante victoria | EL DEBER". eldeber.com.bo (in Spanish). Retrieved 27 October 2020.
  23. "Razones para una victoria y para una derrota". Los Tiempos (in Spanish). 26 October 2020. Retrieved 27 October 2020.
  24. "Bolivia: el MAS denunció un atentado con dinamita en contra del presidente electo Luis Arce". www.clarin.com (in Spanish). 6 November 2020. Retrieved 26 November 2020.
  25. "MAS launches trial against 20 Añez management authorities" (in Spanish). 27 October 2020.
  26. "MAS neutralizes the opposition for 5 years with the endorsement of Arce" (in Spanish). 28 October 2020.
  27. "Arce y Choquehuanca son posesionados de forma simbólica en Tiwanaku". www.paginasiete.bo (in Spanish). Retrieved 25 November 2020.
  28. "Tres presidentes, 15 misiones y nutrida guardia sindical en la asunción de Arce". Los Tiempos (in Spanish). 8 November 2020. Retrieved 25 November 2020.
  29. "El Rey de España llega a Bolivia y lo declaran "Huésped Ilustre"". Los Tiempos (in Spanish). 7 November 2020. Retrieved 25 November 2020.
  30. "Áñez deja La Paz un día antes de la transmisión de mando y se instala en Beni". Correo del Sur (in Spanish). Retrieved 25 November 2020.
  31. "Evo Morales será invitado a inauguración de Luis Arce en Bolivia". CNN (in Spanish). 28 October 2020. Retrieved 25 November 2020.
  32. Stefano Pozzebon, Mitchell McCluskey and Ivana Kottasová. "Bolivia's former President Evo Morales returns home after a year in exile". CNN. Retrieved 25 November 2020.
  33. "Who's who in Luis Arce's cabinet: Know the profile of the sixteen ministers which make it up". El Deber (in Spanish). 9 November 2020.
  34. "Who are the ministers of Luis Arce's cabinet". RedUno (in Spanish). 9 November 2020.
  35. "Bolivia: Sabina Orellana, Quechua woman, is the new Minister of Cultures, Decolonization and Depatriarchization". nodal.am (in Spanish). 20 November 2020.
  36. "Minister of Hydrocarbons also assumes control of Ministry of Energy". www.la-razon.com (in Spanish). 13 November 2020.
  37. "El Mallku is disappointed in government and criticizes that there are no indigenous members in the cabinet". EJU.tv (in Spanish). 16 November 2020.
  38. "Arce posesiona a Sabina Orellana como la nueva ministra de Culturas | La Prensa". web.archive.org. 26 November 2020. Retrieved 29 January 2021.
  39. "Arce posesiona a Sabina Orellana como la nueva ministra de Culturas | La Prensa". www.laprensa.com.bo. Retrieved 25 November 2020.
  40. "Se crea el Ministerio de Culturas, Descolonización y Despatriarcalización, para promover la cultura y revertir las desigualdades". Viceministerio de Comunicación - Bolivia (in Spanish). Retrieved 25 November 2020.
  41. "Arce gobernará desde la Casa Grande del Pueblo y prevén que el Palacio Quemado sea museo". La Razón | Noticias de Bolivia y el Mundo. Retrieved 25 November 2020.
  42. "Bolivia cambia su política exterior retomando relaciones con Irán y Venezuela". www.efe.com (in Spanish). Retrieved 25 November 2020.
  43. "Bolivia reanuda su participación en la Unasur, Alba y Celac". Correo del Sur (in Spanish). Retrieved 25 November 2020.
  44. "Arce anuncia regreso pleno a la Celac y plantea recuperar la Unasur". Correo del Sur (in Spanish). Retrieved 25 November 2020.
  45. "Presidente Arce viaja a Brasil para revisión médica". CNN (in Spanish). 13 December 2020. Retrieved 6 January 2021.
  46. Bolivia, Opinión. "Bajo perfil y rebrote de la pandemia marcan los dos meses de gestión de Arce en el Gobierno". Opinión Bolivia (in Spanish). Retrieved 8 January 2021.
  47. Bolivia, Opinión. "Arranca reunión entre Arce y gobernadores para coordinar acciones contra la pandemia". Opinión Bolivia (in Spanish). Retrieved 6 January 2021.
  48. Bolivia, Opinión. "Arce en su mensaje de Navidad: "es momento de que los bolivianos nos hermanemos"". Opinión Bolivia (in Spanish). Retrieved 6 January 2021.
  49. Staff, Reuters (6 January 2021). "Russia says Bolivia has registered Sputnik V vaccine". Reuters. Retrieved 6 January 2021.
  50. "Piden que Arce y Choquehuanca sean los primeros en usar la vacuna Sputnik-V". www.paginasiete.bo (in Spanish). Retrieved 6 January 2021.
  51. "Bolivia's top diplomat tests positive for COVID-19 - Xinhua | English.news.cn". www.xinhuanet.com. Retrieved 6 January 2021.
  52. Bolivia, Opinión. "Ministro Montaño da positivo a la COVID-19 y el Gabinete de Arce suma tres casos". Opinión Bolivia (in Spanish). Retrieved 18 January 2021.
  53. "Arce a Áñez: Se aguantó un gobierno de facto, toca aguantar el coronavirus y recuperar la salud para el pueblo boliviano". La Razón | Noticias de Bolivia y el Mundo. Retrieved 18 January 2021.
  54. Bolivia, Opinión. "Camacho a Arce: Usted en Brasil, Evo en una clínica ¿Y tiene cara para pedirle al pueblo que aguante?". Opinión Bolivia (in Spanish). Retrieved 18 January 2021.
  55. Arce C., Luis Alberto. "Incertidumbre y Dolarización en Bolivia" (PDF). Bolovian Government. Retrieved 12 May 2020.
  56. "¿Quién es Luis Arce, el recién electo presidente de Bolivia?". Milenio Digital (in Spanish). Milenio Televisión. 19 October 2020. Retrieved 26 October 2020.
Political offices
Preceded by
Waldo Gutiérrez Iriarte
Minister of Economy and Finance
2006–2017
Succeeded by
Mario Guillén Suárez
Preceded by
Mario Guillén Suárez
Minister of Economy and Finance
2019
Succeeded by
José Luis Parada Rivero
Preceded by
Jeanine Áñez
Interim
President of Bolivia
2020–present
Incumbent
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