Daily Archives: May 29, 2014

What to do with the informal economy that destroys Bolivia?

An Editorial from El Diario:

Informal economy destroys the country

El Diario logoInformal economy or for better words, illicit trade, has been since ancient times, contrary to the interests of nations. Its validity has led the best efforts, dedication to work and production to faint, placing the validity of the convictions on decline or weaken laws; finally, they have been the cause of failure of many tax provisions that have allowed governments with the resources needed to meet state interests; but above all, illegal trade involves undermining the morale and morality of the people because it destroys or weakens the values ​​and principles.

In poor and underdeveloped countries, the biggest excuse sometimes given to allow the informal economy is no work or employment that allows the community to meet the needs of its members. False premise that no government should wield as a justification, and indirectly, the presence of the illegal, what is contrary to morality and the laws that govern the life of the people.

The fact that there is no job has only one explanation: governments do not always give the necessary guarantees to businesses to expand and to diversify their sources of production which its initial result, is to create jobs and, as advance or improve their facilities, produce more and better, create jobs, aside from giving the best existing conditions.

Smuggling, which follows the informal economy, is contrary to every principle or moral base, plots against the laws and institutions legally established by the  authorities; to extend its activities and engage more people because their utilities allow the person to have more money, better organization systems and in cases of moral plot against officials who are then corrupted; does not have employees nor does it have obligations with anyone, does not pay taxes or pay rents or services; in other words, the results of the unlawful activity allow all the informal economy earn much money and improve their activities. [but most of that people are the first ones to demand services from the country, in violent, intransigent ways]

The informal economy plots against the state because it does not allow governments to act with efficiency, discipline, honesty and responsibility necessary to combat or at least reduce it to levels that allow their total failure. The enforcement is difficult because the illegality is contagious and enables the growth of any unlawful activity that enters and inserts in the most important podiums of governments and even the private sector, since many legal traders are unscrupulous and smuggling accomplices because they buy goods coming into the country by illegal means and is sold in legal trade, which means a “laundering” that make something illegal into the legal economy, invading homes and institutions. Combating the illegal should be paramount government action and of the same people.


Bolivia is under a very permissive ochlocracy that has boosted smuggling and narcotrafficking activities. The so-called “community justice” now serves to murder people without fair trial, in fact this government feeds anarchy. All of the above are just grounds to have Bolivia become a Somalia, an Afghanistan. We are under the worst government possible in the best economic time of our history!