It is not the nationalization, the prices are

Ovidio Roca AviOvidio Rocala writes in El Dia, a wonderful description of what current central government just brags about:

It is not the nationalization, the prices are

People sees what they want to see and to confirm it and justify it, people consult the sources according to their ideology and way of seeing things and thus find them, they see and read what they like and thus reinforces what you want to believe.

Thus we see how the Government permanently advertise the success of its multinational economy, one which as we know is characterized as a Coca grower, populist, statist, mercantilist and extractive; and demagogically declares that the revenue boom, which comes as never before in the national history, it is product of the nationalization of hydrocarbons and the good management of the economy, forgetting on purpose (although people do not and the Internet even less), when they became the Government, “the table was already served”.

Don’t want to see and less give recognition that when they took over the Government, the gas reserves were already discovered, wells in full production and export in execution contracts. It was a large inheritance which received and which are now wasting, because during this period the reserves of gas or oil and the industry itself, they did not increase but entered into decline.

In addition, 3058 law that increased taxes on hydrocarbons was approved in 2005, before they were Government and was promulgated by the President of Congress, Hormando Vaca Diez of the Andres Ibanez Autonomous Movement, which was vetoed by the then President Mesa.

And finally and most important, that State revenue rose because of oil prices, it is referred to the price of gas exports from Bolivia, were multiplied by five.

During the period of 1990-2001 the average price of gas was $1.46 dollars per MMBtu, climbed somewhat during the period 2002-2005 reaching $2 on average and then a leap occurred in the period 2006-2012, when the average was seven dollars and this year the export price is above $10 dollars per MMBtu.

As we see, the Government got a free-ride, the “seven fat years”, receiving huge income product bonanza caused by speculative prices of hydrocarbons and minerals, and instead of planting for the future, to create the institutional conditions and infrastructure for the development of entrepreneurial and productive activities, they have squandered the resources with a monstrous and outrageous spending and persists with the failed prescription of the nationalization.

With its policy of nationalizations and expulsion of investors, what we have is becoming increasingly more inefficient State enterprises, whose production declines, whose costs increase and requiring more and more public resources to finance their deficits. And what is predictable is to measure that increases the nationalization and the export prices falling; the formal economy will tend to disappear and drug trafficking and the crime and informal economy to take full control of the country.

When the people, tired of the insecurity and poverty, starts to react, the Government, repeating the history of what happened in the nazi, communist, Castrista and Chavista regime, starts the control and closure of the media, strengthening and supplies of the political police; black, brown, red shirts, red ponchos and huairuros [red/black seeds]. Then comes rampant the thought-police and we feel the comprehensive presence of the big brother, which sees and controls everything and puts everyone under trial. And there we found to illuminate us, the recipe of G. Marx, “Free thinkers of the world, unite”.,-son-los-precios&cat=162&pla=3&id_articulo=123356

Published by Bolivian Thoughts

Senior managerial experience on sustainable development projects.

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