Bolivian Thoughts opinion: It is more evident than ever how inept is the coca caudillo government! This failed and ill-conceived venture was doomed from the start … the egocentric president carries us to the cliff and we waste our invaluable resources! He must finish his term and leave!
Mauricio Vasquez reports for El Deber:
They see that lack of planning took the setback to state Quipus
A report of 2017, given by Freddy Murillo, then manager of the company, revealed that Quipus in two years only managed to generate Bs5.2 million of profits.
Experts see that poor planning and strategies impacted the state-owned Quipus, which recently, through the holder of the Productive Development portfolio, Eugenio Rojas, announced that this year will stop producing cell phones because it is difficult to compete with the devices coming from China and Korea.
“For the production of cell phones, two factors are needed, high-level technology and trained technical personnel. Unfortunately, Bolivia lacks both factors,” said economist Marcelo Núñez.
For the president of the College of Economist of Santa Cruz, Jorge Akamine, the global cell phone market is highly competitive and with large investments in research and development. In the case of Quipus, the decision not to manufacture more telephones in 2018 is a wise move even though it took a little late. “What remains is to try to recover the investment as soon as possible, so as not to incur economic damage to the State,” he said.
According to Jorge López, CEO of Jalasoft, Quipus made two mistakes: having the ambition of wanting to produce a product and not having all the technology to do it, and trying to assemble in Bolivia, where economic conditions do not exist for this, since 45% of taxes are paid on the import of inputs.
Lopez said that the state company also has a local vision. “The national market is small (about six million cell phones) to invest in a factory,” he said.
“I think that a company where you have to put a lot of emphasis on a technological vision and sales sustainability, has to be Quipus. It is clear what is involved is entering the market and competing,” said the former Minister of Economy, Luis Arce, in an interview in August 2017.
According to a report given in May 2017 by Freddy Murillo, then manager of Quipus, the firm in two years only managed to generate a net result of Bs5.2 million, that is, 1% of profit with respect to the investment in it.
El Deber communicated with Minister Rojas to talk about the issue, but he said he is preparing reports and will not speak until next week.