Corruption: The Invisible Face of Economic and Judicial Crisis | Corrupción: la cara invisible de crisis económica y crisis judicial

By Gonzalo Colque, Brujula Digital:

In Bolivia, the ties between corruption and the economy are so numerous that they often go unnoticed due to their normalization: bribes, kickbacks, clientelism, embezzlement, rigged bidding processes, among others. Every day, millions of dollars move in cash and in the form of favors convertible into money. It is not common goods or services that are traded, but privileges, advantages, and influence that are trafficked.

Because of all this, we must ask: what role does corruption play in the current economic crisis? Is it a root cause? Are economic policies with a clear and explicit anti-corruption focus necessary?

Let’s start by refreshing our memory. Corruption means the abuse of public power. This implies that the corrupt are vested with authority. In our country, the main players are political power and judicial power. Although the lack of independence between these public bodies is nothing new, today they are more intertwined and colluded than ever.

From an economic theory perspective, it is recognized that corruption generates inefficiency, discourages investment, and weakens institutions. It negatively affects development and economic growth. It is not always the main cause of a crisis. In fact, what is currently happening in the country is a direct consequence of inefficiencies in the management of hydrocarbons. It is not entirely attributable to corruption, but it is also not a secondary factor. The most costly decisions for the national economy did not follow economic logic but political calculations disguised as economic policies. The insistence on lavishly spending dollars on “white elephants” and fuel imports was not an economic decision but one motivated by shady deals, inflated prices, and political alliances. Fixed prices and the frozen exchange rate were also clientelist and prebendal measures shaped by political and electoral calculations. The result: corruption everywhere you look.

The justice system has handled hundreds of corruption cases, but the outcomes are disappointing. In 2024, the Vice Ministry of Transparency reported 958 criminal cases, but only 67 ended in convictions. Barely seven convictions for every 100 corruption crimes. But there is something worse: the emblematic sentences do not affect current authorities; they target previous governments. In other words, the justice system does not fight corruption—it is used as a tool to criminally pursue the current government’s political enemies.

In terms of drug trafficking, the picture is bleak. Of the 3,356 people arrested under Law 1008 last year, only a small fraction ended up in court. The La Paz Prosecutor’s Office reported 105 convictions, while Beni reported 60. For other departments, the data is scarce and scattered, but statistical trends suggest that only 10% of those arrested are prosecuted.

Most of those punished are not big fish or cartel leaders, but young people from poor neighborhoods and students caught with a few grams of marijuana. They serve sentences of ten years or more, while the real operators remain unpunished, protected by political, judicial, and economic power. These unfortunate individuals, besides being stigmatized by society, are not even considered for humanitarian pardons. They are the perfect scapegoats used to simulate justice and cover up organized crime.

These injustices force us into urgent reflection: harsher sentences alone are not an effective anti-corruption strategy. In such a corrupted judicial system, more prison time could actually worsen political persecution and fill prisons with innocent people. What is needed is not a heavier hand, but real justice: impartial, restorative, and depoliticized.

With these considerations in mind, let’s return to the initial questions. Corruption does not fully explain the economic crisis, but it does exacerbate and perpetuate it. It consolidates the power of those who make decisions without accountability, strengthens networks of impunity, and undermines any attempt at reform. That is why economic policies must include an anti-corruption focus. But not just any approach—it must be one that tackles the root of the problem: the concentration of power and the use of the justice system as both a political weapon and a shield for drug trafficking.

Fighting corruption is an economic necessity. If we want to emerge from the crisis without reproducing its causes, we must begin by restoring the rights of the unjustly imprisoned, rebuilding the justice system, and rescuing politics from the mire in which it is sinking.

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