Daily Archives: January 14, 2013

Bolivian economics 101: A good analysis of 2012 & what to expect for 2013

Gary Rodriguez writes wonderfully for La Razon:

One more year, one less year…

Gary RodriguezEach time that you start a new year, it is advisable to look back and analyze what good things did, to repeat them and improve them even more, but also to not make the same mistakes in the future.

I’ve seen fear in many people for 2013, associated with the Kabbalistic “13” which for some brings bad luck; something I  do not agree, because each man forges his destiny. And while the past cannot be changed now, yes it may impair the future: the future is not – but- the consequence of good or bad decisions we took yesterday, and which we take from here onwards. Of what you sow today therefore, will depend on the harvest of tomorrow.

Particularly, 2013 does not worry me. Rather: I proclaim and decree to establish that with God’s blessing, it will be an excellent year for Bolivia, if it is for rulers and ruled, I encourage you to make the right decisions based on the “lessons learned” from 2012, particularly the economic ones.

Bolivia begins 2013 with a buoyant economy: GDP grows at 5%, exceeding the average for Latin America; inflation does not reach 5%; the INR [international net reserves] are at their best with $14 billion dollars; regardless to say about exports which exceeded the $11 billion, achieving a surplus trade balance  of $3 billion; refers to a primary fiscal surplus, etc., etc., etc. By now, we even seem  the richest in the neighborhood! Unfortunately, it is not the case.

Macroeconomically we seem an almost perfect country; however, there are still two million compatriots who will be going to sleep every night with hunger, and there are four million Bolivians who live in poverty.

Therefore, 2013 should be the year of microeconomics, do things right to affect also the “day by day” of the citizens: generating more jobs of quality, improving their remuneration to allow more exports, and selling more in the domestic market, for which, the scourge of smuggling must be combated with greater determination.

A good investment law that gives credibility and then appeal for Bolivia is what many domestic and foreign entrepreneurs look forward to.

Someone said that there is no better incentive for an investor to guarantee his recovery and capital gain on time, and it is the truth. As well as in a marriage, also in business certainty is priceless…

If intelligent policies to improve the environment are added to the predictability of the rules of the game, with safety we will not need to go abroad to put more bonds and borrow, but those billions of dollars will come here by themselves.

As we have already heard so many times, “the capital does not have neither God nor homeland”. The rationality of the same is their reproduction and for this on-demand security.

And if to this, we add incentives, we will no longer dream with a country that industrializes its natural resources and offer better opportunities for employment and a more dignified life to its citizens, but we will be it!

2012 is already history. We grew economically, certainly so, but we could also have developed more. Learn from others successes is good, and from our own errors, it’s wise. Sometimes it is better to grow less and have more progress in the social sphere, although what’s optimal is doing both things at the same time. Let us not forget that “one more year” will always be at the same time “one year less”, especially when is in a fight against time to lift people out of poverty.

http://www.la-razon.com/opinion/columnistas/ano_0_1756024383.html

Crystal clear! Just hope current government: national, regional, and local would learn from this!!