Bolivian economics 101: results and expectations with current gov policies… August, 2012

To better illustrate how prepared we are to secure our daily lives, the following graphs and cartoons should serve us to think over what to expect and what to do in 2014…

These graphs are from IBCE, see direct link for more info here

Silver, Tin and Zinc international prices are going down, internally a large number of violent anarchical takeovers of the most profitable mine sites continue.

This government should think twice and change its actions, as there will be a large group of mislead, hungry, violent miners, farmers who believe that by assaulting those mine sites, working for Comibol or cooperatives will have a steady flow of income.

This is  from El Diario, June 11, 2012:

Unclear property rights, lack of law compliance and increasing numbers of illegal takeovers on urban and rural land, mines and no sign of relief.

The new law of property rights as shown here, has little information, unclear and only adds to the chaos.

On top of these, a new request to report who lives inside Santa Cruz condos, information regarding the price, type of car that uses those garages are also additional tension for the legal owner. To see this type of demand, and just in Santa Cruz gives the idea that this new regulatory, ‘bog brother’ control is just another attempt of current government to show how much it cares about the most entrepreneurial and successful city in Bolivia.

This is from El Dia, June 13, 2012:

Government send the signal that the ATMs will only offer Bolivian currency and not dollars, as it always have been happening.

Another unnecessary source of discomfort to the Bolivian population. Another irrelevant action which to date did not happen but served to cause distress.


This is from El Diario, June 20, 2012:

Another sign of political-economical wrongdoings from current government.

Ametex, the best textile factory we ever had, went belly up as a result of this government’s hate towards USA, by expelling the DEA, having large production of illegal coca and a booming narco trafficking, the ATPDEA which served to sell our textile production, is not being halted.

Government ‘tried’ to come in aid for the hundreds of workers, now unemployed by offering to rent the facilities of Ametex. It is inconceivable that such a government exists in the face of earth. Why embark in a business they know nothing about? why pretend to solve huge problems with band-aids? Only a populist, demagogue government, led by coca growers could have made this happen.

This is from El Diario, July 1, 2012:

Foreign markets remain closed to our textiles and chances are will remain like that for more time.

This government after seven years continues to send the worst possible message to the markets worldwide.

How could we expect to recover the time lost, the best possible conditions to fight poverty? Our commodities’ incredible higher prices served for nothing? Net loss on employment figures, no investments around, will the people begin to notice anytime soon? I’d say that given the large proportion of the informal sector, money laundering and corruption at all levels, still tends to disguise how badly we are going, economically.

This is from El Diario, July 18, 2012:

Jindal is out, El Mutun remains like thousand of years ago and our largest, most desirable steel industry remains in the dark.

“until it broke” reads the cartoon, both the government and the company mismanaged the relationship. It adds to a long list of international lawsuits for breaking contracts, nationalisations and illegal takeovers.

This is from Los Tiempos, July 31, 2012:

newspaper reads “6% of the found Spanish treasure will belong to our country”

Avernoy: “did you hear, brother Adan? a 6% of the gold and silver coins, rescued from the Spanish ship “Nuestra Señora de La Merced” could may well be ours!”

Adan: “we could buy airplanes and helicopters for our beloved president and great steering leader and all our ‘pluri’ national cabinet, Avernoy!”

dog: “its proven that the wealth and power makes you drunk!”

This is from La Prensa, July 31, 2012:

This cartoon portrays how earlier and current strong men of the political party in power, are involved in corruption.

This time, Santos Ramirez, number two of the MAS, from jail speaks about current YPFB president Carlos Villegas, saying he lies and misled. YPFB is the jewel of this government’s crown and despite announcements of billions of dollars dumped inside it, no single well has entered production nor our international reserves of natural gas have been increased. Like El Mutun, there are other industries that need badly cheap energy, to date, nothing happen to revert that increasing demand. Like food, we began to import gasoline and diesel… and there is people who dare to think we are doing OK…

The cartoon reads “from the grave he tries a knock-out, playing with Spanish words…

This is from El Diario, August 8, 2012:

Two days after the presidential speech on our independence day, this cartoon portrays all the presidential promises, great expectations of wealth and success.

While the common Bolivian is at a market place without money in his pockets.

Demagogue is present in governments where there is nothing better to show. Unfortunately, still a large portion of Bolivian citizens continue to embrace current promises as if they were real. Some of them support current president just because he looks and sounds like them. It will be a greater disappointment for them over the long run and could may well be the doomsday of our existence.

This is from Los Tiempos, August 9, 2012:

newspaper “Arce [econ minister] says that the crisis “is not felt”

Avernoy: “it depends on the angle and the distance that exists between the subject and the object, in order for the reality does not get distorted and lose focus, mate”

person: “and if that angle is in power, imagine how far away is reality!”

dog: “we can only trust housewives and family fathers, who are in the center of the economy”

And government keeps on telling only what is in favor of their own message…

This is from Los Tiempos, August 8, 2012:

newspaper: “for traveling, sell a factory at a banana price”

person: “and you understand what is into demonizing the capitalism in the speech, and then ask for private investments and following with the nationalization of companies, Avernoy?”

dog: “shut… if you really think hard, then it is a comprehensible logic!”

This cartoon clearly defines the doings of current government…

This is from El Diario, August 14, 2012:

Using the recent olympics, a person asks “ is it possible?” as the weight of the private muscle arm is being bent as opposed to the state-owned companies’ arm muscle.

The way current politicians in power try to explain their doings, is more and more obvious, to the ones who are willing to see…

Published by Bolivian Thoughts

Senior managerial experience on sustainable development projects.

4 thoughts on “Bolivian economics 101: results and expectations with current gov policies… August, 2012

  1. Interesting collection of cartoons and graphs, commodity prices go up and down, its cyclic, all the rest its typical fearmongering, while its true somethings this govt does makes you ponder, and I’m sure there are elements in it that are in it to line up their pockets if they get the chance, what are you aiming for?? exposing this evil govt so we can clearly vote him out next round? can you at least try to be a little “equilibrado”, mentioning for instance the level of reserves, the new plants being built or is it all just as you expose?? what are the alternatives? Manfred, is a joke, Medina, he’s digging his own political grave all by himself, Tuto, too white for the peasant populace. What do you propose? nothing riiiiight. Just stick to collecting cartoons from the oposition site

    1. Interesting remarks, thank you. The primary purpose is that the rest of the world is aware of how Bolivians work and experience their daily lives. WIth regard to the state-owned industries, they are certainly non competitive, look at tomorrow’s post. Reserves… well those were made outside the direct control of current gov, right? Had it not been for the loans foregone by the international donors, which started long before current president was even a congressman and the incredible high prices on our commodities, made that happen.
      If you ever used public transportation in the main cities of Bolivia, you may have had the chance to hear how people talk, how they are misled with the expensive campaign this government uses to control the media. Cartoons do show what people feel, articles written by reputable journalists add to showing the world how are we doing. I find these type of information needed for current and future governments to do their job.
      I do not intend to support any particular politician, I do believe in private innovation and competitiveness. I do hope my country reaches the levels our neighbors are. I think we need to be efficient, honest, competitive. And that comes from entrepreneurial activity where a government must support, it happened worldwide, why repeat the obsolete, impractical views of dictators and demagogue leaders? I do not believe Chavez, Correa or Iran’s, Syria’s leaders bring any value added to our western culture.
      Again, your comment Hector is respected, thank you.

      1. I don’t think there’s a competitive state owned industry anywhere, they all tend to be bloated, bureaucratic and inefficient but it is ok up to a certain level. better that, than a foreign competitive company that moves all its profits abroad. Yes the reserves are an product of a lot of factors that colluded just at a time of this government, that and the nationalization made that happen. Media largely owned by opositors and publicity is managed by booth sides, its is not just the govt, your cartoons are proof of that. I am and entrepreneur and I experience some maddening things every day living here, but I have a positive outlook and I feel good about Bolivia, it will grow and prosper, Bolivia is a young nation, we just need to invest in educating them. I have met some admirable people that have risen from
        being the lowest of the low like cargadores and street cleaners at the market risen to doctors and university rectors, without government help, these are the type of people with potential that we have and we need to encourage them.
        Bolivia is a mix of western and andean cultures which has always been semi-socialist, we need to respect that along with the capitalist spirit that many hold.

      2. Hector: Thank you again for your comments. Some of the media is in control of current government, which is following the strategies of Venezuela and Ecuador, regarding media control.
        Indeed, our public education system has allowed people like Victor Hugo Cardenas, Joaquino and Untoja to be great contributors on public policy implementation. Not to forget other entrepreneurs like the current president of ANAPO/CAO which arrived on a tip of a truck, with nothing else than his t-shirt and now owns more than 400 hectares and leases another bunch, is a very competitive soy producer and an interesting entrepreneur.
        My main concern is how current gov managed to start up fights among all of us: rich vs poor; lowlands vs highlands; rural vs urban; you name it. The sense of being Bolivian is fading away. On top of that, anarchy begins to rule, just yesterday two people were burned to death in San Matias. Now, everyone tends to look over their own interests. And if you add money laundering, drug trafficking, smuggling and see dozens of towns country wide with no law… the sense of frustration is so saddening, to see your country being torn away… although I am also hopeful like you are that we deserve better!

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: