El Diario’s important Editorial:
Bolivia among the last to receive investments
The Economic Commission for Latin America (ECLAC) has made known that Bolivia is among the last of Latin American countries to receive investments because, according to statistics and studies, from a total of $173,361 million, only 0.6% has been received as an investment during the year 2013, that is extremely low. Total received reached just $1,060 million while other countries have received substantial investment: for example, suffice it to point to Peru that received more than 12 times; Chile, 30 or more times; Brazil is 65 times more, that, translated into figures: Peru $12,720 millions of dollars; Chile, $31,820 million dollars; and Brazil, $68,900 million dollars.
The reasons are simple: the Bolivia Government restricts investments because it refuses to approve an investment law that guarantees and give the same assurances. For lack of a legal State, not national or foreigners can invest. Then there is the case of the nationalizations, expropriations or nationalizations that prevent trust since, by effect of the nationalization Bolivia faces a debt exceeding the 12 thousand two hundred million dollars that should honor and, if it does not, runs the risk of arbitration awards and liens with all the consequences that this has.
Statistics published by the ECLAC are the minimum part of what Bolivia could have gotten seven years of Government especially of international organizations and friendly countries that are willing to invest what the country needed: financial, technological and human capital. These organizations, when there are existing guarantees in a country for investment, they recommend, suggest, and even ask for needed investments because, given the experience they have, they can be indirect guarantors of the operations that are made.
The Government is aware – should be – that no one, without some guarantees lends money or commercial operations and this looks at the simple operations that occur in the country among traders. With much more reason, when it comes to loans of millions of dollars, investors demand rely on assurances, seriousness, been and legal guarantees that support operations.
And all this is demonstrated by the multiple testimonies and other mortgage documents that are signed in our country to carry out financial transactions or any other nature. ECLAC shows a very crude reality and makes it surely with the intention that the data provided are examined, studied and, according to their results, wrong policies will be corrected.
The word of current Bolivian is not to be trusted, as they say one thing and turn and do the opposite. From electoral promises that current president was not going to seek re-re-election [click here] to lame guarantees given to investors. Not so long ago, an official trip to Spain was full of speeches about “encouraging” investments and just upon return, another “nationalization” was in order… so… does this government have credibility? … LOL