Government Missteps Increase Poverty | Políticas gubernamentales erróneas aumentan pobreza

By El Diario:

Two Decades of MAS Rule

  • Given the high level of unemployment in the country, economist Ernesto Bernal recommends that the new authorities focus on the demographic bonus by creating youth-oriented policies to generate jobs and boost the national economy.
Economists argue that a young workforce is vital for driving Bolivia’s progress.

Poverty and unmet basic needs are rising in Bolivia as a result of erroneous policies implemented by the Movement for Socialism (MAS), which claims to have improved quality of life. However, 2024 Census data show a setback, according to economists.

Despite economic growth, Bolivia has not managed to diversify its products nor successfully launch its lithium industry, and now it awaits new technology to advance industrialization.

Ernesto Bernal, economist and professor at the Technical University of Oruro (UTO), spoke about the demographic bonus, noting that a larger working-age population can contribute to national development and is a boost for the economy, unlike European countries where the population is already aging.

He lamented the absence of household survey data for this indicator in 2022 and 2023, which were initially published by the National Institute of Statistics (INE) but later removed.

Regarding the demographic bonus, he also stated that there are no clear, effective policies to fully leverage this potential and generate employment given the country’s high unemployment rate. He urged the new authorities to use these data to create youth-focused policies.

Fernando Romero, president of the Tarija Departmental Association of Economists, said that although the INE report was somewhat delayed, the new government can use all this information to better restructure and plan its economic and social policies.

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