Current Bolivian government portrays itself as an ‘economics’ expert, shows a large international reserves as if they were the ones who made that happen… the reason why we are doing relatively good in macroeconomic terms are the extraordinary higher international prices of our minerals and natural gas. Not a single job nor a ton of mineral was produced as a result of current Bolivian government’s policies. In fact, large companies on very profitable projects were driven out (Jindal, South American Silver, Glencore). Over a 100 mine operations were taken by force in an unprecedented violent anarchy over the last two years. Contracts are not honored, no real incentives are made to attract or at least keep investment in Bolivia.
The following news is from El Diario, it is a warning signal that should make our government make better, log-term decisions to avoid chaos and increased poverty. It appears that the MAS’ core of militants, the coca growers of Chapare, had to be laid of the state-owned mining as a result of their inefficiency and higher-subsidized production costs, which made our minerals non-competitive. Most of current coca growers abandoned mining towns in the highlands and started growing coca, which now supplies to the cocaine illegal and dangerous trade.
We do not want to wait more for proper actions to amend and get us ready for the loss of revenues. Bolivia needs to abandon its demagogic political policies and embark in serious long-term economic policies towards sustainability. It is nor hard, take a look at Chile or Peru…
El Diario reports:
The decline in the price of Tin starts to worry
The price of the fine pound of tin fell more than four dollars in a year and operating costs would outweigh those of sale, implying a loss of revenue for the State. [and the pockets of all those Bolivians engaged in that activity]
Yesterday, this mineral is quoted at $8.08 the fine pound, while on July 25, 2011 was in $12.76 dollars, when the price was appealing, implying that in a year, the price fell by $4.68 dollars the fine pound.
The slowdown in emerging economies, especially China, would be the cause of the decline in the prices of minerals, although this Tuesday, the Asian country’s economy showed “a slight improvement,” noted analysts of the national economy.
In accordance with the opinion of the economic critic Humberto Vacaflor: “this measure can seriously affect Bolivia, to the incomes obtained by this item and, ultimately, to the country’s economy”.
The President of Comibol, Hector Cordova said in September last year that the cost of operation of the State mining working at loss when this ore was $9.13 per fine pound. [despite what he says, violent pressure to take over mines, where investments have been made to identify the economic potential and type of extraction, are in fact encouraging more state-owned mines and those who by being labelled as cooperatives, do not take care about environmental damage, nor do they pay proper taxes]
Other minerals also experienced falls, such is the case of zinc, publicly traded by $81 cents per fine pound, the lead $82 cents and copper at $3.35, according to the registry of this Tuesday.
Deputy Minister of productive mining development, Freddy Beltrán, reported that the State company Minera Huanuni is “near the border, but not in danger”. [and yet the demagogue takes over and still encourages those people, rather, misleads them that with their resources will make as much profit as large companies…]
Some people say that our economy is so little that we are not going to be affected by the European or Asian economic and political debacles… let me tell you they are dead wrong. If we were lucky enough, the time is running out to make proper changes!