“There is not as much money as before”

There is not as much money in the country as there was before, was the forceful statement of President Luis Arce on Sunday in a rural area. It was the first time that he admitted this reality, although he may have regretted it since his Minister of Economy, Marcelo Montenegro, gave a press conference yesterday to consolidate an interpretation of the president’s words. “The president said that there is not as much money as before, he did not say that there is no money,” he assured.

Despite the obvious contradiction between the minister and the president, the truth is that there are no economic resources to squander and that, what there is, must be used strategically to address the most important needs of the population.

At the press conference, the Minister of Economy stressed that, even with little money, there is the largest public investment since the last century, that the country has honored the service of the external debt in a timely manner, that growth has been greater than that predicted by international organizations.

President Luis Arce said that gas has been exhausted. And the minister affirms that the supports of the economy will be: greater efficiency in the collection of existing taxes, mining and industrialization, where – according to his statements – public investment is going at this moment. Previously, the Government also expressed its commitment to internal demand to mobilize the economy, although businessmen feel a paralysis of business.

In summary, the expression: “There is not as much money as before”, sincerely reflects the reality of the country. In the private sector, the shortage of dollars and the social cost of employment after the salary increase are leading to less investment, sources of formal work being restricted and prices becoming more expensive in the market.

The Government and the Bolivian Workers’ Union (COB) recently approved an increase in the national minimum wage of 5.85% and the basic salary of 3%. This measure implies a cost of millions of bolivianos for the private sector and the same for the public sector, at a time when “there is not as much money as before.” On the other hand, there have been no reports of austerity measures in the powers of centralism and many think that they continue to use and waste as when “there was so much money.”

The reality expressed by the president requires comprehensive measures, because it is already known that the problem exists. It is not right to stop looking for culprits and point fingers precisely at political adversaries. It is true that the Legislative Assembly has hijacked the laws that will give the green light to the credits, but even if these were approved, it would be of no use if there is no comprehensive austerity policy that demonstrates responsibility towards the country.

While investment continues in several companies that are loss-making, there are subnational governments almost bankrupt due to the budget cuts ordered by centralism. While there are still “gifts” to unions related to the MAS, there are deficiencies in all spaces that should be prioritized.

In short, there is not as much money as before and this presidential confession marks a turning point. It is necessary that the signs of savings and responsibility with the moment come from the national Executive Branch itself. This is what is expected of a statesman president.