Daily Archives: September 20, 2012

Santa Cruz is competitive and produces, despite its detractors!

Milenio Foundation released a very interesting report, No.163, September 14, 2012:

Santa Cruz economy, Bolivia sustainable growth

Santa Cruz economy continues to be the first to contribute to the growth of the GDP, with 27.1 per cent, although it continues to decline their participation. Its exports exceeded $2,120 million in 2011, surpassing levels reached in 2008 of $1,896 million.

Main products exported are non-traditional, stands the soy that has managed to grow both in value and in volume, taking advantage of the growing demand for international and rising prices.

The Department of Santa Cruz is still the first to produce food for the country between grains, cereals, tubers and livestock sector generates 70 percent of the total and guarantee food security to the country.

The behavior of the main economic indicators of Santa Cruz, concluding that its economy is the fundamental pillar of the national economy.

According to the data of the INE, in the 2001 Santa Cruz had 2.08 million inhabitants and in 2012 is projected a population of 2.94 million, of which 78 per cent is located in urban areas and 22 per cent in rural areas, sharing first place with the greatest concentration of Bolivian population with the Department of La Paz.

Product and product per capita

Since the 1980s, Santa Cruz Department stood together with La Paz in the first venture of the national gross domestic product (GDP), with an average of 28.4 per cent, due to the natural resources and the participation of the private sector in the economy. Between 1998 to 2005, its efforts in the participation in national GDP, the Department of Santa Cruz was about 30 percent, from the year 2006 this share declined to 27.1 per cent.

From the year 1989 to 2011, the Department of Santa Cruz had an average growth (4.4 percent) higher to the average growth of Bolivia (3.9 per cent). In 2011, the Santa Cruz GDP growth was 5.7 per cent, well over the growth of the national GDP, which reached 5.2 per cent (see Figure 1).

In 2011, the GDP growth of the country was $23,869 million dollars and Santa Cruz contributed with 27.0 percent, $6,456 million dollars (see Figure 2).
The main economic activities contributing to the Santa Cruz GDP were, agriculture and forestry (15.1 per cent), manufacturing (14.3 per cent), transport and communications (9.4 per cent) and banking (8.5 per cent) (see Figure 3).
With regard to income per capita of Santa Cruz, measured in current dollars, is observed that each year has been above the national average. 2010 Departmental capita income grew 10.3 percent compared with year 2009, which meant reaching the $1,910, higher than the national average of $1,870, and in 2011 grew up by 17.5 per cent, i.e. that were reached $2,245 exceeding the $2,237 achieved by the national average (see Figure 4).
Between 2001 and 2011, Santa Cruz participated in Bolivian exports between 25 and 40 per cent. In the 2001 Santa Cruz region generated $494 million dollars, of which 78 per cent corresponded to non-traditional products (meat, sugar, soybeans, wood, cotton, jewelry) and 22 percent to traditional products (minerals and hydrocarbons).
In 2010 Santa Cruz generated $1,745 million, of which 55 per cent corresponded to non-traditional products and 45 percent to traditional products from the sale of 3,970 million metric tons. Between the year 2010 and 2011 the Department exports grew by 21.7 per cent, reaching $2,123 million dollars, of which 54 per cent corresponds to traditional products and 45 per cent to non-traditional products (see Figure 5).
Agricultural production
The gross value of agricultural production for 2011 registered a growth of 13.8 per cent in 2010, primarily due to two factors, one is the increase in the price of most of the industrial grain during the first half of 2011 and the second part; another increase of the volumes of production by 20 per cent. This meant an economic movement in production of $2,155 million dollars, of which the agricultural sector contributed $1,511 million, equivalent to 70.1 per cent, while the livestock sector contributed the 29.9 per cent (see Figure 6).
After having experienced one fall in the level of production (20 percent) and the surface cultivated (8 per cent) in 2010, the agricultural sector again experienced levels of growth both in the level of production (14 per cent) equivalent to 10.6 million metric tons and the acreage (15 per cent) equivalent to 2.1 million hectares in the management 2011. Currently in the farm management 2012 warns that the acreage will reach 2.2 million hectares and the agricultural production would reach the 12.2 million metric tons, i.e. a growth of 5 and 15 per cent respectively (see Figure 7).
[had current government not caused chaos by the end of 2010 with the mixed signals of gasoline price increase and the quotas/ban imposed on agricultural production for export; with a better management on mining -El Mutun- and hydrocarbon foreign investment, Santa Cruz and the country would have been at a better economic/productive stage]