Goni reappears and calls to learn from 21060 | Goni reaparece y pide aprender del 21060

By Erbol:

TO FACE THE CRISIS

Goni reappears and calls to learn from 21060: firm and conciliatory leadership, economic freedom, and protection for the most vulnerable

Sánchez de Lozada published an article about the country’s situation.

Gonzalo Sánchez de Lozada reemerged on a symbolic date, the 40th anniversary of Decree 21060, the liberal economic reform of the 1980s. In 2025, Goni evoked its achievements and suggested drawing lessons from that experience to confront the current national crisis, through a formula combining strong yet conciliatory leadership, greater economic freedom, protection of the vulnerable, and unity in the face of division.

In a text released this Friday, Goni recalled the famous phrase with which Víctor Paz Estenssoro described Bolivia’s condition in 1985: “Bolivia is dying on us.” According to Sánchez de Lozada, the same could be said today.

He explained that the premise of 21060 was to combine all measures in a single decree, since “bad news must be delivered all at once.” He praised Víctor Paz’s courage in assuming the political costs.

Goni highlighted the accomplishments of 21060: the creation of the “Bolsín” for daily dollar auctions at the Central Bank; cutting tax credits, reducing spending and the deficit; liberalizing price controls to eliminate shortages and long lines; removing barriers and taxes; raising fuel prices but with compensatory measures to counter inflation.

He stressed the difficulty of shutting down mining operations that cost more than they sold, as well as the need to “curb the excessive influence of unions, which were blocking investments that could create jobs in the public and private sectors.”

He emphasized compensation mechanisms for laid-off workers to find new opportunities and noted the Emergency Social Fund, which distributed income and created jobs.

He also recalled that its implementation required parliamentary agreements, especially with Hugo Banzer’s bloc, and that “despite differences, a strong and lasting agreement was reached.”

Sánchez de Lozada pointed out a difference between 1985 and today: the source of the income collapse. Forty years ago, tin prices plummeted due to external factors, but in 2025 hydrocarbon revenues fell because of what he called “one of the greatest economic crimes in the country’s history: they squandered gas revenues without making new investments.”

He underlined that Decree 21060 met its goals, but unresolved problems later “awakened the forces of mistrust, demagogy, and authoritarianism.” In his view, those authoritarian forces “have led the country to the grave crisis it faces now.”

As a conclusion, drawing from the 21060 experience, Sánchez de Lozada proposed guidelines for Bolivia’s current challenges: political leadership must be both firm and conciliatory, trust its team, and be ready to take necessary political risks.

He argued for granting “greater freedom to economic agents and protecting the most vulnerable, avoiding the demagogic temptations that harm us so much.”

Amid social, regional, and ethnic divisions, he deemed it “necessary to seek unity factors that allow rebuilding Bolivia without excluding or privileging anyone.”

At 95 years old, Goni signed the text on August 29, 2025, in Washington, DC, United States. He was president from 1993 to 1997 and again from 2002 to 2003, when he resigned amid social unrest and clashes that left several dead. Since then, he has not returned to Bolivia.

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