Daily Archives: June 29, 2011

Negative government intervention and anarchy – UPDATE

Regarding this government’s intention to control prices, a reaction came from the International Monetary Fund (IMF):

Gabriel Lopetegui, Chief of Mission for the IMF in Bolivia, said yesterday that world food prices in the last years, were consistently high and that generates social negative impacts. He also stated that a solution to that problem is not to implement a range of prices, or restricting exports. But generating social policies aimed at specific groups and to let the market forces work. “… we believe that markets must function with clear rules of the game, and with free pricing to have an increase in production…”

http://www.paginasiete.bo/2011-06-29/Economia/NoticiaPrincipal/7Eco01-290611.aspx

The IMF considers important to boost the economic development without regulations and with more public and private investment to overcome poverty.

http://www.la-razon.com/version.php?ArticleId=132885&EditionId=2574

It is worth noting that in the past, current public officials from the ruling political party, were very negative and antagonist to the IMF’s recommendations. In the last two years, this government “accepted graciously” IMF’s remarks regarding Bolivian macroeconomic performance. I wonder how will they react to yesterday’s opinion.