Economy of Intimidation | Economía de matonaje

Editorial, El Dia:

Instead of applauding, encouraging, and asking exporters what they need to continue exporting, increase foreign sales, and providing support to seek new markets, the government of Luis Arce opts for intimidation policies and threatens producers who, according to him, are not bringing 100 percent of the dollars they earn from their transactions back to the country.

Until the dollar shortage began, the government didn’t care about capital flight. It never said anything about the hundreds of national and foreign companies that fled from the hostility of the “process of change,” which aimed to replace the private sector with a fully state-run economy. This approach has left the national economy in ruins and destroyed the gas industry, the main generator of foreign currency.

Instead of showing this ridiculous desperation for a few dollars, the government should be desperate about the massive drop in foreign investments and the drought of external capital. Investors don’t want to come to Bolivia because they fully understand the reality of the country. They don’t believe in Luis Arce’s fantasies and are convinced that under his management and with the economic model he staunchly supports, a historical catastrophe is looming.

Since his Minister of Government openly expresses a desire to imitate Bukele, perhaps the President should imitate his colleague Milei, who is swiftly turning around a disastrous situation, controlling the fiscal deficit, reducing inflation, and most importantly, bringing back hundreds of foreign companies that had fled from Peronism and are now willing to reinvest in the country.

Bolivian exporters have endured the most aggressive environment over these 18 years, with bans, restrictions, price controls, and all kinds of coercive measures from a government hostile to the private sector. The government has shown no signs of changing its abuse-ridden policies. They refuse to fully liberalize exports, resist eliminating quotas, continue to tolerate land invasions, and refuse to open up to biotechnology, leaving producers at a disadvantage compared to neighboring countries.

If Bolivian producers haven’t moved to Brazil, Paraguay, or Peru—where they are given all the conditions to work, increase exports, and create jobs—it’s because they are patriots. They have all their assets invested in the country and intend to continue contributing to generate wealth for the benefit of Bolivians.

The decisions made by entrepreneurs always aim to preserve jobs, production, increase collective wealth, ensure societal well-being, and maintain market health. This is the opposite of what the state does, which acts in the heat of politics, squanders public resources, appropriates others’ property to distribute it among unproductive and parasitic individuals. Luis Arce is desperate for money, but not to benefit the citizens; it’s to continue with his reckless plan that will persist until the country is left in ruins. When that happens, it will be the private sector, the producers, the exporters, and ordinary Bolivians who will bear the brunt and support the nation.

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