Arce’s demagogue speech shows that he will not solve the economic crisis | El discurso demagogo de Arce demuestra que no resolverá la crisis económica

Source: ANF, Eju.tv:

Experts agree that none of the measures announced by the president will solve the economic crisis

Analysts indicated that the same proposals to liberalize exports and imports are being recycled, but so far, they have not yielded results.

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Luis Arce. Photo: BVT

Gonzalo Chávez and José Gabriel Espinoza, a former executive of the Central Bank of Bolivia (BCB), separately agreed that the measures announced by President Luis Arce will not solve the economic crisis the country is facing; on the contrary, they considered that some proposals seek political solutions.

On the occasion of Bolivia’s 199th anniversary, Arce announced a series of measures to overcome the economic crisis caused by the shortage of dollars and the fuel supply shortage. Among the announced actions are: a national dialogue with entrepreneurs to analyze the fixed exchange rate; the formation of a social cabinet with social organizations for crisis proposals; measures to facilitate the flow of the U.S. dollar; an employment and production plan with loans for young people; incentives for investment in biodiesel; reduction of the repatriation tax rate on profits abroad; liberalization of exports; price increase for two types of gasoline; and a call for a national referendum on three issues.

“A group of announcements are recycled: export liberalization, tax incentives for biofuel plants, cryptocurrencies (which he failed to explain), etc. None of the measures will bring in dollars nor solve any problem in the short term,” Espinoza said in reference to the measures announced by Arce.

Both analysts warned of a “hidden gasolinazo” or a partial subsidy elimination if the government forces the population to buy the two fuels it will sell at high prices and stops supplying subsidized fuel. However, this measure will not solve the crisis, it will only slightly ease the spending on hydrocarbon purchases.

Regarding the summits or dialogues with entrepreneurs and social sectors, the analysts indicated that the same proposals to liberalize exports and imports are being recycled, but so far, they have not yielded results.

“In the field of novelties, he said he would call a national meeting to get out of the crisis with entrepreneurs and the social cabinet that includes his social movements. This is an attempt to seek political solutions. Subsequently, he announced some new measures and repeated others, but they are not essential to reverse the economic crisis we are experiencing,” Chávez emphasized.

For the former BCB executive, the referendum to discuss the total removal of the subsidy could be used by the government to avoid taking responsibility for the crisis and avoid taking structural measures to boost the economy.

During the presidential speech, Arce did not take responsibility for the crisis; on the contrary, he blamed external and internal factors for the current situation, even blaming previous Movimiento Al Socialismo governments, in which he was Minister of Economy, for the waste of resources and the lack of investment in the hydrocarbon sector.

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