Bolivia gov neglects to acknowledge we are entering economic crisis!

Humberto Vacaflor writes in El Diario:

The economic adjustment

Humberto VacaflorThe government does not accept the crisis, is taking steps to try to reduce its effects but certainly their habit makes them insists and announce monumental works such as Palacio Quemado 2.

Using wrong numbers by mistake or on purpose, it does not seem advisable. Probably the Bolivian opposition does not identify these errors and the audiovisual media overlooked, but very diligent international organizations do.

ECLAC, for example, they just belied the government regarding foreign direct investment (FDI) which did not grow at 12%, as the minister Catacora says but declined 1.2%. A small detail, a negative rather than a positive one and a comma that separates one from both.

On the other hand, it is known that the government has instructed the mayors and governors that from now on any investment project, they must have a local counterpart, counterpart, equivalent to 50% of the amount required and not 30% as was util now. The Catacora minister says, despite all this, the crisis has not affected Bolivia.

And leaders of mining unions say 5,000 of them could lose their jobs in the coming weeks due to the falling price of minerals, the minister of industry estimates that reaches 30% on average. And Catacora minister says crisis should not affect Bolivia.

The selling price of gas to Brazil and Argentina will fall by 20% from January 2015 and revenues will be reduced by 400 million dollars, to the distress of departmental governments and municipalities that receive less amounts of IDH [hydrocarbons tax]. But the minister says crisis will not come to Bolivia.

The price of soybeans has collapsed and quinoa producers expect the government to help them, now that the price dropped by half and the Peruvian competition takes over the world grain market. But the minister says there is no problem.

Perhaps the optimism of Minister Catacora refers to the submerged activities of the economy, the illegal sector, which is itself having a good time and has a very solid economic and political shield sector.

Different ways of seeing things.

Published by Bolivian Thoughts

Senior managerial experience on sustainable development projects.

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