Daily Archives: August 25, 2012

Do mixed messages incentive production and employment in Bolivia?

Are contradictory messages a result of intentional purposes or just a reflection of how ‘well’ governmental units coordinate? if it is the latter, maybe the pre-dawn meetings forced onto many government officials are damaging to their understanding? In any case, here is a very illustrative case on the almost seven years of ‘learning’ how to govern a country…

El Dia reports:

Contradictory discourse towards producers

Sectors. Vice President announces progress with productive sector and Deputy Ministers speak to suspend exports of soy flour.

The Vice President of the State, Alvaro García Linera, held a meeting with the agricultural Chamber of the East (CAO), where he noticed the advance of the productive sectors,  emphasized the issue of exports of meat, soy, sugar and rice. On the other hand, the Chamber of exporters of Santa Cruz (Cadex), has expressed its concern at the possible suspension to the license of soy flour exports.

Progress with the productive sector. In this framework Vice President said there has been having advances with the productive sector, the issue of exports, once the domestic market is secured, products can go outside, to take advantage of good international prices, mentioned. In addition, in support of the financial system, which has come to the agreement that 15% of the system resources to be directed to support agricultural and livestock activity. The pending issue is the role of the economic and Social functions (FES) and the clearing of forest land.

“From Santa Cruz, the largest number of Bolivia food is generated, it is our duty to work together with our producers.” “We have to be prepared for an event of international food prices increase, and for this we have to have greater productive capacity, greater diversification of food,” said García Linera.

Fear by exporters. In this context, the Cadex expressed its concern at a possible suspension in exports of soy flour, which would have been communicated orally by the Deputy Minister of interim trade and exports, Huascar Ajata, to producer of oilseeds sector industries. In accordance with the Deputy Minister of agriculture and Rural Development, Victor Hugo Vasquez, who warned  with a review of the soy flour export permits and restrict their export.

“We have no more than to express our concern at the possibility that the authorities may decide to suspend licences for the export of soy flour”. “We consider that a measure of this nature would adversely affect the country as a whole,” said President of the Cadex, Wilfredo Rojo.

New law to attract investment. On the other hand, the President Evo Morales and representatives of the Confederation of Private Entrepreneurs of Bolivia (CEPB), agreed to draft a new law to attract more domestic and foreign investment. Given that these new standards will be developed by technical teams of the CEPB and the ministries of economy, planning and productive development, projects which should be submitted at a next meeting on September 29.

http://eldia.com.bo/index.php?c=Portada&articulo=Contradictorio-discurso-hacia-los-productores&cat=1&pla=3&id_articulo=97628

Uncertainty and mixed messages are the worst possible outcomes for food security, investment and employment.