The plans they offer to pull the country out of crisis | Los planes que ofrecen sacar al país de la crisis

By ANF, El Potosi:

PAZ AND QUIROGA, HEADING TO THE SECOND ROUND ON OCTOBER 19

Quiroga promises liberal-style plans with shock policies. Paz, a financial truth-telling and recovery of funds

Los planes que ofrecen sacar al país de la crisis

The plans that offer to get the country out of the crisis

Elías Mendoza drives a heavy cargo truck and has been waiting in line for four days to get diesel. He still hasn’t decided whether in the second round he will vote for Rodrigo Paz Pereira, from the Christian Democratic Party (PDC), or Jorge Quiroga Ramírez, from the Libre Alliance. The only certainty he is looking for is an end to the economic crisis, though for now, he knows little about their government plans.

The ticket that wins by just one vote on October 19, the date of the runoff election, will take office for five years and face major challenges. The immediate task: dictating economic stabilization measures.

The candidates are less than 40 days from the runoff, campaigning to win over voters who annulled their ballots, chose blank votes, or remain undecided, as in the first round when Rodrigo Paz obtained 32% with more than 1.7 million votes, followed by Jorge Quiroga with 26.7% and just over 1.4 million votes. The electorate numbered 6,900,418. A notable fact is that more than 1.3 million Bolivians annulled their votes, largely following the call of former president Evo Morales, who was not allowed to run.

This will be the first time Bolivia holds a runoff election. Both candidates are focusing on addressing urgent issues stemming from fuel subsidies, soaring inflation, the high fiscal deficit, and the shortage of U.S. dollars in the Bolivian market.

But as economic analysts Joshua Bellot and Fernando Romero point out, the electoral platforms lack the technical detail needed to ensure sustainability and effectiveness in generating certainty.

On economic plans, the differences lie in “how” they will be implemented. Jorge Quiroga champions a proposal to reduce the fiscal deficit, including closing state-owned companies and gradually lifting fuel subsidies by sector. Rodrigo Paz emphasizes a model of decentralization, aiming to multiply revenues for municipalities, departments, universities, and Indigenous communities.

“Our first mission is to end the crisis,” confirms Libre’s presidential candidate Jorge Quiroga. Meanwhile, Rodrigo Paz of the PDC promises that “there will be a process of economic stabilization.”

THE URGENT ISSUES ON THE AGENDA

FISCAL DEFICIT: Reducing it is a priority for both candidates. The PDC speaks of rationalizing, organizing, and making public spending transparent. Libre proposes cutting ministries, shutting down unprofitable state companies, and trimming superfluous expenses.

Tuto Quiroga sets a goal of a “3% fiscal deficit, which is manageable,” while Rodrigo Paz calls for a “zero fiscal deficit.” “Neither shows clarity on how, on the specifics,” notes economist Joshua Bellot.

STATE-OWNED COMPANIES: They are under scrutiny. A study, based on Economy Ministry data, shows that 80% of the 44 companies created between 2007 and 2023 run deficits. The PDC suggests freezing operations; Libre proposes reviewing them to decide whether to make them profitable, sell them, transfer them to workers, or close them.

FUEL SUBSIDIES: The fiscal deficit has exceeded 10% of the General State Budget (PGE), with just over half due to fuel subsidies. Libre says it would phase them out gradually; the PDC would cut them abruptly as a shock policy. Bellot says this measure will necessarily require a package of actions to cushion the impact, but that “it is not clear at this moment.”

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