Hidden poverty and structural crisis | Pobreza oculta y crisis estructural

By Ernesto Estremadoiro, El Deber:

Jubileo Foundation warns of hidden poverty and structural crisis: “Bs 100 is no longer enough to buy food”

Foto referencial

The Bolivian peso continues to lose value

Economist Carla Cordero warns that Bolivia is facing a multidimensional crisis that erodes families’ purchasing power, with food inflation surpassing 20% and state measures proving insufficient

The Bs 100 bill has lost its purchasing power in the marketplace. Low-income families can no longer cover their basic food needs, and according to the Jubileo Foundation, the situation could worsen unless urgent structural measures are taken.

Carla Cordero, economist and researcher at the Jubileo Foundation, states that Bolivia is going through a multidimensional crisis — economic, social, political, energy-related, and institutional — that directly impacts people’s well-being. “We are seeing accumulated food inflation exceeding 20% through June, while incomes remain stagnant,” she explained in an interview with the program Wara.

The face of poverty

Cordero questions the official statistics from the INE, which claim that 36 out of every 100 Bolivians live in moderate poverty and 12 in extreme poverty. According to Jubileo, when these figures are adjusted to reflect real inflation, poverty would reach 44% and extreme poverty 18%, revealing the existence of “hidden poor.”

It’s estimated that a person needs Bs 468 per month to cover a basic food basket. That means living on Bs 15 per day, or five bolivianos per meal. Today, that is unsustainable,” she stressed.

For the Jubileo Foundation, government actions — such as price controls or combating smuggling — are insufficient and short-term. The root of the problem is structural: dollar shortages, falling international reserves, fuel shortages, and the abandonment of agriculture.

Rural producers can’t plant, harvest, or transport due to a lack of gasoline. This drives up food prices and reduces domestic supply, while many prefer to sell abroad because the parallel exchange rate is more favorable,” Cordero denounced.

60% of food comes from rural areas

Jubileo reminds us that 60% of the food reaching the cities comes from small rural producers, who still work with ecological methods, without GMOs or agrotoxins. “These farmers are the true backbone of Bolivia’s food supply, and today they are facing serious neglect,” the economist warned.

That’s why she proposes support through flexible credit, rural infrastructure, and guaranteed access to diesel and agrochemicals, especially in high-production areas such as the highlands and valleys.

Elections and promises: the need for concrete responses

In the electoral context, the Foundation criticizes the fact that most candidates’ proposals focus on large agribusiness, leaving behind the sectors that truly feed the country. “There’s a lot of generic discourse and few concrete proposals for small producers,” she argued.

She also expressed concern about ideas to unrestrictedly liberalize exports or introduce GMOs, as they could disadvantage the most vulnerable segments of Bolivia’s agricultural sector.

“We cannot sacrifice health, the environment, or our competitive advantage in organic products just for a short-term profitability vision,” she warned.

The FAO’s warning

Cordero clarified that while the FAO does not speak of famine in Bolivia, it does warn of the risk of acute food insecurity: families eating less, lowering the quality of their diets, or even skipping meals due to lack of resources.

This is not just a perception of hunger; it’s already a daily reality. And if no measures are taken, it could get worse,” she insisted.

With only weeks left before a change in government, Cordero was emphatic: “The least that can be expected from the current government is honesty. To acknowledge the crisis, to make the data transparent, and to leave the way clear so that the next government can act effectively.”

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