Pressure and protests over the economic crisis grow, highlighting the urgency for a change in the model | Crece la presión y protestas por la crisis económica, ven que urge un cambio de modelo

By Yolanda Mamani Cayo, El Deber:

Productive sectors and citizens in Santa Cruz, La Paz, and Oruro ended November with protests against the Government of Luis Arce, with cabildos returning and deadlines being set for the Executive to address the economic crisis.

El anillazo tomó cuerpo por la confirmación de varias instituciones. Foto: Jorge Gutiérrez
The “anillazo” gained momentum with confirmation from various institutions. Photo: Jorge Gutiérrez

The economic crisis in Bolivia, stemming from fuel shortages and the absence of dollars, has sparked protests against the Government from all productive sectors. Cabildos and demonstrations have returned in three departments of the country: Santa Cruz, Oruro, and La Paz, where in addition to demanding solutions from Luis Arce’s administration, they are calling for a change in the economic model.

However, the central government defends the economic model inherited from the Evo Morales era. Economy and Finance Minister Marcelo Montenegro argued that there has not been proper implementation, while President Luis Arce assured that he would do whatever is necessary to preserve the country’s economic stability.

In this context, the Executive Branch is not open to changes or adjustments in its social, community, and productive model.

Protests and discontent grow

Last week, two major cities in the country’s core axis, Santa Cruz and La Paz, held massive protests over the economic crisis, marked by the lack of dollars and the exchange rate on the black market nearing double the official rate, as well as fuel shortages—issues that have become chronic and lack apparent solutions.

Another region protesting against the Government was Oruro, where days ago all productive sectors and civil society organizations held a cabildo, giving Arce’s government a 30-day deadline to effectively resolve the crisis.

If this deadline is not met, sectors such as unions, transport, and Oruro’s citizens will begin an indefinite strike. Jorge Gutiérrez, president of the Oruro Heavy Transportation Chamber, told El Deber that “all sectors” agreed on the measure.

In La Paz, the city hosting the seat of government, protests over the economic crisis affecting society also occurred. Toño Siñani, a leader of one of El Alto’s unions, informed El Deber that in the cabildo of La Paz’s productive sectors, it was decided to give Arce’s government a 15-day deadline to resolve the crisis.

“We unionists are on nationwide alert because the Government is lying to us when it says the dollar is at Bs 6.96 when in the black market it exceeds Bs 12.50. The same goes for the fuel issue, as transportation colleagues who sleep two or three days waiting for fuel immediately want to charge more for transporting our products. That’s why we are in an emergency and have given the Government a 15-day deadline,” said Siñani to El Deber.

In Santa Cruz, various productive sectors held “the anillazo against the crisis,” a mobilization that gathered thousands of Santa Cruz residents at all the city’s roundabouts to protest fuel shortages, lack of dollars, rising prices of basic goods, increased urban transport fares, among others.

Santa Cruz’s productive sectors once again advocated for implementing the Santa Cruz economic model to replace Arce and Evo Morales’s social, community, and productive model.

This position is shared in La Paz. Union leader Siñani stated that the economic model no longer works in the country. He mentioned that even before Evo Morales’s era (2006–2019), there was more economic stability and no dollar shortages.

“We have to tell this MAS government that Bolivia is not socialist or communist, and they are trying to turn us into Venezuela or Cuba by force with this failed economic model,” Siñani told El Deber.

Siñani also announced that on Wednesday, December 4, a cabildo would take place in Santa Cruz, involving unions from across the country, where joint actions would also be determined.

The Government defends itself

In response to criticism, Economy Minister Marcelo Montenegro defended the economic model Arce inherited from Morales. He said that the crisis caused by fuel shortages, the lack of dollars, and the rising cost of basic goods is not directly attributable to the model but rather to its poor implementation.

“The model is solid, but it was not strictly implemented in the past, especially in the hydrocarbons sector. This caused a decline in gas and oil production, which we are now trying to address with a plan that will yield results in the medium term,” Montenegro said.

Meanwhile, President Luis Arce stated yesterday at an event in Beni that the national government “will do everything to preserve economic stability” and ensure that the country is on a path to sustained development for the benefit of Bolivians.

“The Bolivian and Benian people must be absolutely sure that we, from the National Government, will do everything necessary to preserve this patrimony of the Bolivian people, economic stability,” the president assured.

Analysis

Economic analyst Jaime Dunn argued that the MAS governments’ social, community, and productive model “was born with an expiration date,” and that date is when Bolivia stops producing gas. He added that for the model to work, the government needs to find surpluses for distribution.

“Once gas production begins to decline, those surpluses start dwindling,” Dunn said, emphasizing the need to change the economic model.

“The economic model must be changed because it is the root of all problems. The issue lies with the model, a model that never really worked. It’s not even an economic model; it’s just an adjustment of variables with high spending and consumption. Should the model be changed? Absolutely,” Dunn told El Deber.

The expert proposed implementing an economic model not focused on distributing surpluses but on generating them, as “the current model is a wealth distributor, not a wealth generator.”

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