Bolivia: Needs a Wartime Economy | Necesita una economía de guerra

Editorial, El Dia:

Germany was in ruins in 1945, destroyed by war and suffocated by the price controls imposed by the Nazi regime. Bolivia is going through a similar situation: devastated after 53 days of criminal road blockades that wiped out more than $1 billion, destroyed foreign markets, and cost lives.

Bolivia needs its own wartime economy, allowing for the historical differences but following the same relentless logic. This cannot be fixed with patches; it can only be fixed with a firm hand and economic freedom.

The first step is to treat the blockades for what they are: crimes against the nation. The Prosecutor’s Office already has 120 open cases, 323 individuals under prosecution, and terrorism charges.

Just as the Nuremberg Trials punished and outlawed the Nazis who destroyed Germany, Bolivia must apply the same rigor against those who promote and carry out the blockades. They are not protesters; they are Bolivia’s “Taliban”: criminals who besiege cities and starve the country. There can be no mercy and no negotiation with them. If the State does not imprison them for terrorism and permanently outlaw these methods, they will return to block the highways and destroy the economy again next month.

But punishment is meaningless if we maintain the economic model that suffocates those who produce. The German miracle did not happen because of the Marshall Plan or foreign loans; it happened because Konrad Adenauer and Ludwig Erhard liberalized the economy. Overnight, they eliminated price controls, reduced taxes, and opened the free market. In less than a decade, Germany became Europe’s economic locomotive.

Bolivia is dying from excessive regulations, export quotas, and state-imposed obstacles. The government does not need to invent anything new, but it must demonstrate a different kind of political courage. President Rodrigo Paz does not need to do much; what he needs to do is stop getting in the way. The State must shrink immediately. Asking for trust funds is simply continuing to beg for money that does not exist and increasing dependence on the State. What business owners, exporters, and producers need are not handouts, but the removal of the chains placed upon them.

Exports must be completely liberalized, price controls that create shortages must be eliminated, and taxes must be reduced so that people can work and invest with legal certainty. We lost the confidence of international markets to countries such as Paraguay and Ecuador because we allowed a group of vandals to destroy the country’s logistics system. Credibility can only be restored by guaranteeing freedom of movement and respect for private property.

Bolivia has land, resources, human capital, and a productive sector that, despite everything, continues to propose solutions. What it has in excess are regulations; what it lacks is economic freedom.

The choice is brutally clear: either we implement a free-market economy and imprison those who destroy the country through blockades, or we allow them to finish destroying Bolivia. Economic freedom cannot wait. Either we react now, or we sink forever.

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