Bolivia: Economic Toll Mounts | Crece el Costo Económico

By ANF, Eju.tv:

Businesses Warn of Company Closures and Job Losses After 32 Days of Protests and Road Blockades

The manager of the Bolivian Institute of Foreign Trade (IBCE), Gary Rodríguez, warned that Bolivia’s image has been damaged internationally, which could lead to a decline in investment.

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Supporters of former President Evo Morales at a blockade point in Villa Tunari, Cochabamba. Photo: RKC

After 32 days of protests and road blockades, private business leaders, industrialists, and micro and small business owners warned of an accelerating economic deterioration that could result in company closures, job losses, and reduced foreign investment in the country.

“The Bolivian business sector is reaching its sustainability limit. After years of facing structural difficulties, current events are placing thousands of companies, especially small and medium-sized enterprises, on the verge of collapse,” the Confederation of Private Entrepreneurs of Bolivia (CEPB) warned in a statement.

For the past four weeks, groups aligned with Evo Morales, peasant organizations from La Paz, and the Bolivian Workers’ Central (COB) have been carrying out demonstrations and road blockades. Initially, they demanded attention to sector-specific grievances; later, they unified their demands and are now calling for the resignation of President Rodrigo Paz.

The demonstrations began on May 1, coinciding with Labor Day, while the road blockades have been in place since May 6, led by the Tupac Katari Federation of Peasants of La Paz.

Meanwhile, Gonzalo Morales, president of the National Chamber of Industries (CNI), warned that several industries based in La Paz are considering relocating their operations to other regions of the country and even abroad, which would generate unemployment and negatively affect the regional economy.

“There are many industries in the department of La Paz that are already thinking about moving to a city where it is easier to do business. They are looking at Cochabamba, Santa Cruz, and, worst of all, they are looking at Peru, Paraguay, and Chile,” Morales said.

He also noted that the economic losses caused by the road blockades have reached $2 billion.

In that regard, business leaders expressed frustration over the lack of willingness to engage in dialogue among the protesting groups and the government’s inability to resolve the conflict.

“The seriousness of the situation requires immediate decisions. Every day of paralysis and blockades increases the damage and brings the country closer to a catastrophic situation,” they stated.

They also warned that the consequences of this crisis will not end once the pressure measures are lifted, but could continue for months or years, affecting employment, household incomes, and investment.

Damaged Image

IBCE manager Gary Rodríguez warned that Bolivia’s international image has been harmed, which could lead to a reduction in investment.

He also cautioned that some sectors of the population are threatening to clear the roads on their own or promote local actions, as occurred in the municipality of Rurrenabaque, where an anti-blockade law was approved.

“Be careful that this does not get out of hand and that the conflict ends up overwhelming the government,” he warned.

Microbusinesses

Edwin Fernández, president of the National Confederation of Micro and Small Entrepreneurs (Conamype), stated that a large portion of productive units are laying off workers because they cannot obtain supplies or transport their products to other regions due to the road blockades.

He said that economic losses for the sector have already exceeded $700 million and warned that the recovery of microenterprises will not be quick.

/EUA/JA

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