Monthly Archives: December 2012

What Bolivia needs starting tomorrow? January 1st, 2013?

Henrry Ugarte A. writes for El Deber:

Entrepreneurs see five challenges to continue growing in 2013

2012-12-24 07.38.32 amThey believe that the ideal is to hold 5%, but suggest on agreeing on important laws, such as the banking and investment. They ask for either negotiate with the CAN before deciding admission to Mercosur.

Linked to the trade, industrial, and private entrepreneurs identified five challenges that must be addressed to continue on the path of growth and, in addition, enhance them in 2013: holding 5%, the law of banks, investment law, further coordination with the Government and admission to Mercosur.

The Chamber of industry, Commerce, Services and Tourism of Santa Cruz (Cainco) believes that in the next year, the economy will tend to remain at growth levels of 5%, which gives a guideline that, in general terms, the macroeconomic data will continue at current levels.

However, there are fears in connection with a banking law that can collapse the growth and strength of the financial sector, if it is sought to have a suffocating control that prevents the ease of generating loans to the business sector.

Another challenge, according to the President of the Cainco, Luis Barbery, is to unlock the lack of coordination with the Government on the export issue, so that the same will open and logistics and transport services can be used efficiently.

In addition, the private sector believes that the new investment law, duly agreed with the protagonists, must be born.

On the accession of Bolivia to Mercosur, the Cainco considers that it must first negotiate the presence of Bolivia in the Andean Community of Nations [CAN] to continue taking advantage of tariff preferences. At the same time, the country’s entry into Mercosur as a full member, should be negotiated under principles of economic equilibrium, graduality and flexibility. [so far, current government has not shown no sign to discuss nor take into account the private sector, for this and the banking and investment laws]

Bankers and Government

With respect to the Banking Law, the President of the Association of banks of Bolivia (Asoban), Kurt Koenigsfest, commented that they have initiated the analysis of the project, in order to contribute to its content, seeking to preserve the stability and solvency of the system under the premise to properly manage the resources of savers and offer the consumer financial protection.

Meanwhile, the Vice-President of the State, Alvaro Garcia Linera, said that banks and investment laws will be handled in the next legislature, the economy Minister, Luis Arce, stated that the country will close the year with a growth of 5.2%, thanks to the momentum of domestic demand.

The Government emphasizes exports

The national Government provides a good seal in terms of exports [bureaucratic and useless nonsense, and they say they emphasize exports, come on!]. According to the Minister of productive development, Teresa Morales, this year Bolivia exceed the record in exports exceeded the $10 billion in sales abroad. [could have been greater, had we have a better economic policy! an absurd comparison with the past, given the new trends and values of the international trade that Bolivia is immersed in, despite this government wrongdoings]

According to the figures registered by the Government, to September this year, the exported value was $8,220 million dollars, 21% higher than the figure recorded in 2011.

Historical data say that diversification was also favored with the registration of 1,014 tariff items (products), which have been exported to 10,4 countries in the period 2006-2012.

The trade balance showed, moreover, a historic surplus of $ 2,504 billion, giving continuity to its growth since 2006. This year, the manufacturing sector grew by 16%. [again, it is misleading to attribute this growth to current socialist-populist policies, if they can be called as such…]

ECONOMIC MOVEMENT

SOLID FINANCIAL SYSTEM

The public’s confidence in banking is reflected with deposits in the order of $12 billion. Loans have reached the $10 billion.

INTERNATIONAL RESERVES

Net international reserves, which reached $14 billion have increased.

GOOD WEATHER FOR AGRICULTURE

Hectareage increased this year by 15% and production grew 21%.

REGIONAL GDP IN GROWTH

In the past five years, the GDP grew at a rate of 3.7%.

http://www.eldeber.com.bo/privados-ven-cinco-desafios-para-seguir-creciendo-en-2013/121223215928

The cases of Brazil and Peru should serve to clarify the above figures, neither Lula nor Humala could do more to impose their political views, given the sizes of their economies. Bolivia is experiencing something similar. In other words, regardless of demagogue/populist tendencies, the real growth of a given economy is made by the driving force in any country: innovation, competitiveness which are private efforts in nature.