The final phase of a populist economy | La fase terminal de una economía populista

By Yola Layme H, Eju.tv:

Jaime Dunn: “We Are in the Final Phase of a Populist Economy”

“One thing is clear: none of these measures will improve the country’s economy or the lives of Bolivians,” warned Dunn.

Santa Cruz – Amid the severe economic crisis gripping the country—marked by a shortage of dollars, fuel scarcity, an export ban on beef and soy, and rising prices for food and nearly all imported products—financial analyst Jaime Dunn stressed that Bolivia is experiencing the terminal phase of the government’s social, community, and productive economic model.

“We are clearly in what would be the final phase of a populist economy that has focused all its efforts on misguidedly stimulating consumption and public spending as if they were the only mechanisms for growth. This has led to a shortage of dollars and fuel, impacting the entire productive chain of the country. We are entering a complex situation where actions are being taken that harm private property and civil liberties—such as export bans, export quotas, and price controls—resulting in significant losses for the private sector in the name of meeting domestic demand,” Dunn said in an interview on the radio program La Hora Pico on eju.tv, hosted by Belén Mendivil, Natali Justiniano, Jorge Robles, and Ernesto Justiniano.

According to the financial analyst, the export ban on soy alone could result in losses exceeding $250 million, while, as cattle ranchers have stated, the restriction on beef exports could cost over $500,000.

“These prohibitions might temporarily lower prices. That can certainly happen, but in the short, medium, and long term, they will cause major economic losses. When the government intervenes with such control measures, it creates an atmosphere of uncertainty that discourages investment. Producers and exporters cannot plan for the long term because they don’t know whether they will be able to export or not,” explained the financial expert.

When asked about the government’s objective in banning the export of beef, soy, and other products, Dunn responded that the MAS government is deliberately creating poverty.

“One thing is clear: none of these measures will improve the country’s economy or the lives of Bolivians. We are already heading into the 2025 general elections with a president who may seek re-election. Do you think this is a good economic policy? Or do you understand the rationale behind these restrictions? These economic policies align with the current social, community, and productive economic model, which focuses on public spending and not just consumption, but also redistributing the little wealth that exists. That is not a mechanism for creating wealth,” Dunn concluded.

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