(i) Democracy evolves through popular struggles. Significant decisions in democracy usually involve conflict between those groups who have exercised power and those who aspire for share in power. (ii) Democratic conflict is resolved through mass mobilisation. Sometimes it is possible that institutions like Parliament or judiciary, which are set up to solve the disputes, themselves get involved in disputes. Then the solution has to come from outside — from the people, which happens in the form of popular struggles. The government of Bolivia sold the right of municipal water supply of the city of Cochabamba to a multinational company. The company immediately raised the price of water by four times.This led to a popular protest and in January 2000, an alliance of labour, human rights and community leaders organised a successful four-day general strike in the city. The government agreed to negotiate and the strike was called off. Instead of resolving the issue, the police resorted to brutal repression and the government imposed martial law. But the power of the people forced the officials of the MNC to flee the city and made the government concede to all the demands of the protestors. The contract with the MNC was cancelled and water supply was restored to the municipality at old rates. This came to be known as Bolivia’s water war.