Plurinational State in Terminal Crisis | Estado Plurinacional en crisis terminal

Editorial, El Diario:

The Plurinational State—which the MAS (Movement for Socialism) attempted to establish in 2009 with the first Constitution approved by referendum—led by the “country’s first indigenous president,” has completed its historical cycle by destroying the very creation it set out to build.

Officially born on January 22, 2010, the Plurinational State will soon mark 15 years of wasteful and precarious existence amid the most severe economic and political crisis in Bolivia’s history. It was intended as a “second founding” of Bolivia, under the name “Plurinational State of Bolivia.” However, our homeland was legitimately and legally founded on August 6, 1825, 200 years ago, after bloody wars to free us from Spanish colonial rule.

This change in denomination began when Evo Morales assumed leadership of the country, while the economic crisis worsened. Providentially, Morales experienced an incredible stroke of luck without which his government might have collapsed within months: a sudden rise in commodity prices. Two centuries later, the Plurinational State is now in a general crisis, stemming from internal economic and political factors, adrift in stormy seas without a rudder or captain.

Morales Ayma began governing in 2006 and enacted measures to steer the country “toward socialism.” The economy stagnated until a sharp rise in export commodity prices brought a significant influx of foreign currency. Morales essentially hit the jackpot and began spending extravagantly on massive projects, fueled primarily by gas sales to Brazil and Argentina and the export of oilseeds.

According to economists, the country received over $40 billion from hydrocarbons alone. Extravagance became routine, with purchases like a $40 million presidential plane, among others. The government enjoyed unprecedented prosperity, “nationalizing” hydrocarbons and other industries. It announced GDP growth from 4% to 6%, poverty reduction from 60% to 30%, and introduced a new Constitution through a Constituent Assembly, described as not only conservative but reactionary.

However, these welfare projects were exclusively funded by export revenues from gas and other commodities, not by domestic production as portrayed abroad. For example, oil prices rose from $20 to $250 per barrel, and tin prices jumped from $6 to $15 per pound. Meanwhile, foreign currency was squandered, the domestic economy collapsed, and industries such as mining declined.

The prosperity was short-lived, and by 2018, commodity prices fell by half or more, leaving the government in a far worse position than in 2006: without raw materials, food, or dollars, essentially bankrupt. A popular uprising occurred in 2019, and the revolutionary situation remains latent, seeking to recover the path lost during Jeanine Áñez’s administration.

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