MAS needs to leave, serious and tough adjustment is needed | El MAS debe irse, se necesita un ajuste serio y duro

By Let’s Make Democracy, Erbol:

THE KEY IS TO GO TO THE IMF

Economist: If the MAS returns to government, we will continue in crisis; a serious and tough adjustment is needed

Economist Alberto Bonadona warned that if the MAS wins this year’s elections, Bolivia will continue to be mired in an economic crisis. To reverse this situation, according to Bonadona, a serious and harsh adjustment is needed, which implies resorting to the International Monetary Fund (IMF) to obtain loans that help stabilize the economy and “save the pockets and living conditions of Bolivians.”

During his speech on the program Let’s Make Democracy on the Erbol network, Bonadona pointed out that the government “is determined that what it does is wonderful and that industrialization is underway,” while the internal market is increasingly impoverished.

Faced with growing economic instability, the shortage of dollars and the need to normalize the exchange rate, the economist stressed that the country needs a large amount of dollars, something that only the IMF can provide.

However, Bonadona expressed doubts about the MAS’s willingness to go to the IMF, since he sees it as a “representative of imperialism.” Instead, the economist stressed the urgency of saving the purchasing power of Bolivians and the internal economy and avoiding the weakening of the banking sector.

The economist explained that, with a significant loan, Bolivia could finance its external debt, which, although not overwhelming, presents critical deadlines. He specified that when a relationship is established with the IMF, the possibilities of obtaining other resources from the World Bank, Inter-American Development Bank, CAF, open up, but as long as there is no more or less stabilized economy, “we will go from stumble to stumble.”

Bonadona also considered that, given the proximity of the elections, it is essential that the candidates clearly explain the measures necessary to face the crisis. Otherwise, he warned, the country could fall into an even more serious situation like in the times of the UDP inflation.

He assured that the only viable way out is a serious and gradual economic adjustment, although he also anticipated that this type of measures will probably face strong opposition.

Taking recent polls, he said that around 80% of the population would support a change of government, but this change must be accompanied by structural reforms. However, Bonadona expressed doubts about the ability of the MAS or a similar government to implement the necessary reforms.

Finally, he called on the candidates to be transparent in their economic proposals. “It is necessary to get out of this hole in which we find ourselves,” he concluded, pointing out that the crisis is eroding the purchasing power of wages, decreasing food quality and increasing poverty levels.

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