Indebtedness of the country during bonanza

Luis Antezana writes in El Diario, cartoon showing evo’s wastefulness is from Pagina Siete:

The considerable economic income that favored and disposed the Bolivian Plurinational State during the thirteen recent years and that were administered by the governing party, the MAS, led by President Evo Morales Ayma, reached an astonishing 45.5 billion dollars, according to official statements.

The origin of this amazing amount of money for the State was the result of the sale of gas to Brazil and Argentina, in the amount of 37,500 million dollars or about 70 percent of the total amount of foreign currency that entered the state coffers. Mineral export concept and some others.

It must be emphasized that such sum of 45,500 million dollars was the product of the application of the Hydrocarbons Law promulgated in May 2005 and not as an effect of the so-called nationalization of oil, as the government affirms. In this context, the government of Evo Morales applied an obviously irrational policy.

In effect, in 2005 the State only had an external debt of 4,942 million dollars, debt that, fortunately, for the government of Evo Morales was reduced by almost half thanks to debt cancellations for poor countries like Bolivia. That external debt then fell to 2,200 million dollars in 2007.

By then, the masista government affirmed that the Bolivian economy entered into a bonanza stage, although without explaining that the large revenues were due to gas exports and, on the other hand, attributing these profits to providential pro-government measures. But, while those revenues were being produced, the government of Evo Morales began to indebt the Bolivian people in an accelerated manner and of 2,200 million dollars, nothing less went up to 10 billion and some more dollars in 2018.

The debt process at a time when the country received more income, rose between 2006-2013, to 3,400 million dollars, pace and speed that accelerated to produce an indebtedness last year (2018) to 10,178 million, indebtedness never registered in the annals of Bolivian economic history.

What is striking is what would be the cause for this high external indebtedness – never known even in times of armed conflicts – in circumstances in which the country managed to have an almost incredible sum of foreign currency for the sale of gas that reached 37,500 million dollars and that reached the total of 45,500 million dollars for other income from exports of “commodities” (raw materials). Why did the millionaire with so much wealth get into debt at such a high level? And in what were those revenues invested?

The Bolivian people have been indebted unparalleled in their history and rose from 536 dollars in 2005 to 900 dollars in 2018, a fact that is not justified by the semantic juggling of Minister Luis Arce Catacora who maintains that Bolivia can still borrow much more because currently accounts for 23 percent of GDP, without taking into account the domestic debt that almost doubles, an obvious fact that does not stop affecting, that the Bolivian people are victims of this state of affairs.

The current government, which received and administered those 45 billion dollars, should strive to clarify that multimillion dollar dance, even more so when it finds itself with one foot in the stirrup and on the eve of finishing its political management, although it is said that he would not like to do it for fear of informing about the fate of these and other monetary resources.

Published by Bolivian Thoughts

Senior managerial experience on sustainable development projects.

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