Political and economic crisis a year before the bicentennial | Crisis política y económica a un año del bicentenario

By Alejandra Hinojosa, Eju.tv:

Analysts see a country in political and economic crisis a year before the bicentennial

Economist Roberto Laserna believes the crisis is in its early stages and may worsen. Therefore, it should be noted that the longer it takes to address it, the higher the social and economic cost will be.

Source: lostiempos.com

One year before Bolivia’s bicentennial of independence, to be celebrated on August 6, 2025, the country is facing an economic, political, judicial, and institutional crisis. Therefore, analysts agree that it is time to change the economic model and undertake a major national agreement.

The lack of dollars, fuel shortages, and disinstitutionalization are generating social conflict, reflected in blockades, marches, and protests from different sectors, such as traders, transport workers, doctors, and teachers.

Early Stages

Economist Roberto Laserna believes the crisis is in its early stages and may worsen. Therefore, it should be noted that the longer it takes to address it, the higher the social and economic cost will be.

In Laserna’s view, a minimal and emergency program must be undertaken, which involves reducing fiscal spending, eliminating regulations, opening borders, freeing markets, and quickly reforming the judicial and electoral systems.

Political scientist María Teresa Zegada pointed out that the first signs of the economic crisis appeared in 2014 with the depletion of hydrocarbon reserves. “Economists establish 2014 and 2015 as the beginning of the downward economic curve in the country,” she explained.

Zegada indicated that the crisis has escalated this year in an almost uncontrollable way and that the government’s efforts for economic recovery have not achieved the expected results.

Weakened Democracy

The political scientist said that another negative indicator is the public’s distrust in democracy. This began about two decades ago but worsened with the breach of the February 21 referendum that rejected the re-election of former President Evo Morales, with fraud allegations in the 2019 general elections, and due to the lack of transparency in investigating the post-electoral conflict. “Since the beginning of the century, surveys have shown that distrust in democracy, institutions, political parties, and even electoral processes has increased in Bolivia,” said the professional.

Crisis

The crisis of institutionalism is reflected in the lack of separation of powers. Zegada questioned, for example, the role of the Plurinational Constitutional Court (TCP), as it lacks independence and is functional to the Executive Branch. “The TCP began to act politically, and that has never been seen in the country’s history, generating distrust in justice and the Electoral Branch,” she indicated.

The high authorities of the TCP and the Supreme Court of Justice (TSJ) are criticized for having indefinitely extended their terms and for blocking judicial elections through resolutions and precautionary measures.

Political Crisis

To all the above, we must add the political leadership crisis of the current government. “We have seen the division between the two factions of the MAS, and the internal fights are showing us that the political model is exhausted, putting us in a situation of uncertainty,” she said.

As a result, there is a decline in people’s hope. The sense of malaise and crisis has been sharpening, and no improvement is seen until next year’s elections unless the government makes a policy shift. “It is a situation that dangerously disrupts social coexistence in the country, jeopardizing democratic rules and civic coexistence,” she concluded.

State Fragility

Political scientist Franklin Pareja spoke about the fragility of the state. He said that constitutional institutionalism has been destroyed, corruption has worsened, democracy has weakened, and the judicial system has not been reformed. “We will reach the bicentennial, having missed the opportunity that would have allowed us to make leaps in development and integration, and cultural revaluation,” he lamented.

According to Pareja, the country is more divided, more confrontational, and more insolvent, which is the result of a populist, demagogic, irresponsible, and “wasteful” policy.

He noted that Bolivia lost the great opportunity to transform its economic base and project towards stable, sustained, and democratic development because in the last two decades, it had more money than the entire last century. There was a time of prosperity that was wasted and probably won’t be repeated for decades.

The political scientist criticized the annulment of institutionalism.

Political scientist Claudia Mallón stated that one year before the bicentennial, we are in the midst of an economic crisis and on the verge of inflation.

She mentioned the urgency of making decisions that involve changing the economic model.

One of the decisions is to withdraw the hydrocarbon subsidy. “The fuel subsidy must be released because without these changes, the government will hardly be able to complete its term,” she warned.

She criticized the ruling party for internal division and early electoralization, which accelerated the country’s crisis.

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