Liberalism in Bolivia | Liberalismo en Bolivia

By Editorial, El Dia:

Can liberalism work in Bolivia? If it works in Argentina, a country that endured over 80 years of staunch statism, it can work anywhere. But it requires speaking clearly, not fearing criticism of capitalism, and telling the truth—an approach that resonated with the electorate in the neighboring country.

Bolivia has already experienced a highly successful liberal period, arguably more effective than Javier Milei’s. The “gonismo” era defeated one of the most severe hyperinflations in human history, comparable only to those in wartime nations. Sánchez de Lozada dismantled the Comibol monster, relocated thousands of miners, made extreme public spending cuts, and triggered an unprecedented wave of migration—all without causing significant social unrest.

The Bolivian liberal process could have mirrored Chile’s, where poverty was reduced from 32% to 10% in less than 20 years, if Gonzalo Sánchez de Lozada and his team had been more transparent and bold. They never used the word “liberalism” nor “privatization” (disguising it as “capitalization”). They avoided confronting socialism directly, unlike Margaret Thatcher or Reagan, and refrained from mentioning terms like “capitalism,” “right-wing,” or “free market” for fear of offending parasitic leaders, leftist intellectuals, and political mafias deserving of frank critique, as seen with Argentina’s president.

Another flaw of Goni’s approach was centralism, a mortal enemy of liberalism. Liberalism promotes state subsidiarity, leaving the economy to individuals and the spontaneity of the market.

The greatest achievement in decentralization (another forbidden term) was Popular Participation, which merely distributed crumbs while the central government retained over 80% of national resources. As long as Bolivia maintains the monopoly of the economy and power, the liberalism promoted today will remain mere rhetoric, a poor imitation of global trends.

If Bolivia’s current liberal leaders fail to denounce public spending, state-owned enterprises, and suffocating centralism; if they don’t criticize nationalization as they should or emphasize the necessity of privatization to avoid national collapse; if they don’t advocate for laws promoting foreign investment, cite examples like South Korea or Singapore, or explain that creating wealth is good, and that leftism and socialism are fatal; if they don’t align themselves with leaders like Bukele, Trump, or Meloni and abandon praise for false idols, steering away from politically correct discourse—there will be no space for liberalism in Bolivia.

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