Briefs on governmental mistakes, Nov Economics 101

Follow a few but significant signals that continue to damage the Bolivian citizens’ development. Current government, relentlessly and blind-minded continues to either enforce existing laws, neglect to take appropriate action or use plain common sense:

Iron – Mutun: Supposedly the largest iron concentration, at least in this hemisphere, hired an Indian company, Jindal, the intention was to not only export iron concentrates but also to produce steel. After many years, El Mutun, close to Puerto Suarez, border with Brazil, was exporting concentrates, as there is not enough power sources to install a foundry. The case is that export of concentrates was stopped because the government has no supervisory capacity to oversee such export. Not so long ago, a Paraguayan foundry decided not to buy our iron, with this news, they just validated their decision. It is unimaginable to get El Mutun operational, and it is outrageous that the limited capacity of the government to supervise those exports, also prevents us from income. The following link illustrates that municipalities nationwide will be loosing at least 20% of their revenues to implement their work plans, why? simply because our government cannot supervise these exports.

http://www.hoybolivia.com/Noticia.php?IdNoticia=54707&tit=gobernacion_exige_no_frenar_exportacion_del_hierro_del_mutun

Construction: Private sector questions the new governmental decision (Supreme Decree 1020), to create the Bolivian Strategic Company for Construction and Civil Infrastructure Conservation (EBC). It is unclear if this company will replace private companies in the construction of public funding infrastructure. It is also unclear if EBC will award bidding of such public works.

http://eldia.com.bo/index.php?c=Portada&articulo=Nueva-competencia-estatal-para-privados:-Gobierno-crea-la-empresa-boliviana-de-la-construccion&cat=1&pla=3&id_articulo=77414

Border conflict: The conflict between Potosi and Oruro continues and tension is building up, government fails to enforce a quick solution to this border problem between Coroma and Quillacas communities. Potosi requests military presence as there was previous violent fights over agricultural lands (income source) between these two communities. Remember the TIPNIS? government failed to reach an agreement (66 days and lots of violence). Last year Potosi had to go on strike for 19 days, and current president offered to intervene and provide solution, well Potosi and Oruro are still waiting.

http://www.paginasiete.bo/2011-11-01/Nacional/Destacados/4Nac00101-nov.aspx

Money laundering, terrorism: Los Tiempos continues to wait for a reply for the government on this serious issue, for details look at an earlier post here: https://bolivianthoughts.wordpress.com/2011/10/30/anti-money-laundering-combating-the-financing-of-terrorism/

Los Tiempos today’s article:

http://www.lostiempos.com/diario/actualidad/economia/20111101/el-gobierno-calla-sobre-informe-del-gafi_147795_305933.html

Quinoa: One of the most valuable cereals for its nutrition in the world and from Bolivian origin is smuggled to Peru, at least 20% of its production crosses the board as there is simply no control, no support for the production and commerce; around 30K tons is produced annually. (Bolivian minerals also go smuggled to Peru for similar problems). Regarding sugar, this government continues to ban sugar exports but authorizes the export of sugar-cane from Bermejo, Tarija; thus loosing value added; sugar mills have stated that the demand for domestic consumption is guaranteed, but still the ban is there. Government say they will come to a decision after All Saints day, since the government believes sugar consumption is higher during that holiday. Private sector continues to wait over an issue that has been in the table for months!

http://www.la-razon.com/version.php?ArticleId=140352&EditionId=2702

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