Daily Archives: August 10, 2013

Bolivia is NOT growing at 6.5% – cheap blind demagogue politics!

Ismael Luna reports for El Dia:

According to the Government feels the bonanza

Analysts see doubts in the growth of 6.5 %

Index. The data shows that between 2005-2012, extreme poverty has fallen by 22%. They noted the absence of other reports.

2013-08-09 07.25.14 am

Economic growth, according to the latest report of the Ministry of Economy and Finance, was set at 6.5% as of March this year; is considered by experts as remarkable, but at a sensible appreciation by analysts, that pace is thanks to good international prices and exports of gas, minerals and non-traditional products.

“I would say that we are all benefiting with this growth, obviously not in the same way, that’s the difference.” “The important thing is that all Bolivians are living a basic indicator of full employment”, said economist Armando Mendez.

Mendez, qualifies that public expenditure which is not executed by one hundred percent every year is a sign of good fiscal discipline and that strengthens domestic savings.

2013-08-09 07.25.34 am

The journalist Pedro Vacaflor in economics, said that the data handled by the Government are too optimistic, since two years data on poverty and unemployment are not reflected.

“The INE has stopped working those data. Then the Government manages these figures based only on exports”, he said.

Economic and social programs. It’s reflected in the remarkable decline in extreme poverty in an average of 22% in the past seven years from 2005.

According to the World Bank (WB) extreme poverty means that a person has less than a dollar of income a day to survive. While poverty is moderate when a person lives on less than $2 per day. For analysts this is good sign referred to the social policies implemented by the Government, like bonds: Juancito Pinto [for children attending school], dignity [for the elderly] and Juana Azurduy de Padilla [pregnant women and babies], which benefited directly the poorest of the country. [bonuses are present in most of the demagogue populist governments worldwide, over the long-run refrain private initiative from prosperity]

Reactions to the macro economy. Criticism points out that corruption and drug trafficking has mobilized an unquantifiable flow of money. “Meaning that the only ones who have improved their situation are drug trafficking businessmen, current politicians who manage public authority and some businessmen of the macro economy segment”, said José Luis Santistevan.

The Assemblyman of La Paz, Roberto de la Cruz, believes that although the macro economy of Bolivia with reserves is going well, this is not felt in the pockets of the population. “The Government only likes to talk of the sympathetic external picture of the country and says nothing about the painful internal tomography of the population,” he said.

Notes

Growth in other data that incorporates this reality

Results. In the first quarter of 2013, the Bolivian economy experienced a growth of 6.5%, a performance that is above that of countries such as Peru (4.8%), Chile (4.1%) and United States (1.6%).

Projection. In the 2013 General State budget (PGE), Bolivia projected a growth of the Bolivian economy of 5.5%. International organizations emphasized the importance of the Bolivian economic growth. For example, in June 2013, the representative in Bolivia of the Bank World (BM), Faris Hadad-Zervos, said that “we know that Bolivia is now enjoying a very positive period in terms of economic development”.

Sustainability. The production of raw materials deserves industrialization and diversification of products. It is a pending issue.

http://eldia.com.bo/index.php?c=Portada&articulo=Analistas-ven-dudas-en-el-crecimiento-del-6,5%25&cat=1&pla=3&id_articulo=124128