Daily Archives: July 13, 2013

Bolivia: penultimate in growth and higher inflation of the CAN

From El Diario:

Bolivia: penultimate in growth and higher inflation of the CAN

2013-07-11 11.00.07 amAccording to the latest report of the Andean Community of Nations (CAN) “The CAN in 2013 figures”, Bolivia shows an economic performance below their partners in the integration Agency, presents lower growth rates and greater accumulated variation of the CPI, in this case used to measure inflation.

The website specialising in finance, “Economiabolivia.net” indicates the performance of the growth variable is not only inferior to the rest of the countries, except Colombia, which make up the CAN, that is also below the average of the entire block. The average growth rate of the whole of the CAN 2012 stood at 5.3%, while the average national growth rate was only 4.2 percent, according to the CAN.

In the same way, inflation is placed on the middle of the block, being the highest of the four countries members of CAN.

According to the Bolivian Institute of Foreign Trade [IBCE], these data, especially the one belonging to inflation, are due to the inflationary “bud” experienced by Bolivia in 2012 in the sectors, mainly of food and services. That also were encouraged by this excessive liquidity within the economic circuit.

During 2013, the portfolio of the Economics and Finance Ministry and the Central Bank of Bolivia decided to carry out the policy of open market to tackle, to some extent, the impact of previous credit expansion which was reflected, indeed, in higher inflation. Result of this we can already observe a stabilization of prices during the first half of 2013. However, in comparison, Bolivia still has much to improve from its bloc partners.

The Andean Community is composed of bodies and institutions that are articulated in the Andean Integration System, better known as the SAI.

This system makes that the CAN be able to operate almost as a State does. That is, each of these instances has its role and performs specific functions, for example: the Andean Presidential Council, composed of the Presidents of Bolivia, Colombia, Ecuador and Peru, is in charge of political leadership of the CAN; the Andean Council of Ministers for Foreign Affairs formulated the foreign policy of the Andean countries on issues related to integration and, if necessary, coordinates joint positions in forums or international negotiations; the Commission, formed by Plenipotentiary delegates, or with full powers, are responsible for formulate, implement and evaluate the policy of integration on issues of trade and investment and create rules that are binding for the 4 countries.

http://www.eldiario.net/noticias/2013/2013_07/nt130709/economia.php?n=67&-bolivia-penultimo-en-crecimiento-y-con-la-mayor-inflacion-de-la-can

Given the alliances across the Pacific, I believe the CAN has a major role along those lines, we had a sea-coast on the Pacific and are in the effort to recuperate it. We should be supporting more the CAN instead of petty organizations like the ALBA.