Daily Archives: June 9, 2013

In Bolivia, the failure of the State is more evident, day by day…

Manfredo Kempff Suarez writes for El Deber:

Failure of the State

Manfredo KempffThe political opposition has not been the one, which has launched the alarm on the dangerous road that are gaining businesses that are in the hands of the State, it is the Government itself, mentor of nationalisations and nationalisations, who has seen how a thing is to write something nice in the Constitution or bragging with patriotic Bravados about the virtues of ‘recover’ for the country the national foreign or private investments.

The long strike by the miners in Huanuni, the main State producer of tin, proved pathetically as manages state enterprises, and own Ministers, in addition to H.E. [His Excellency] and the ‘vice’ [VP], have had to recognize that, while things are going, the economic collapse of Huanuni is on the doorstep. As if you could expect something other than demagogic, inefficient form with which the country is being administered.

The Government has recognized that has tripled the number of workers at Huanuni without having increased its production. With that alone, it would be enough to send to hell any business. You don’t have to have studied economics to realize such folly. But, in addition to the high production costs, it turns out that it has declined significantly the price of ore in the international market. And on top of that, miners have the luxury of stopping for two weeks or whatever the time may be, when they themselves say that the mine lost half a million dollars per day not worked.

We don’t know what will happen if prices of hydrocarbons or grains, which are unusually high fall like mining ones. Are you going to make Bolivia as Huanuni? Lets agree that, in the middle of the ‘process of change’, the country has not changed anything to improve. The economic bonanza that exists today is not the Fiery speeches of H.E. or misleading the ‘Vice’ verb, and much less questionable talent of the Minister of the economy, but the high prices of raw materials. We have not said anything new, but yes it is something very dangerous.

YPFB has done something noteworthy, with the risk of a shortage of gas in the medium term, nor has left the Mutun, much vaunted project for half a century, as Karachipampa is paralyzed turned into an expensive ‘white elephant’ and the Papelbol company, which announced its presence five years ago, still does not boot. And the rest? What about the rest? Nothing!


Over this week, much has been about current government’s relentless electoral campaign, offering soccer fields left right and center. Dozens of infrastructure scattered across the country, incomplete and abandoned… the Bolivian society will end up paying… for what? the incredible and useless egocentrism of current president!