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August 4, 2024
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There is an opportunity to hear the voice of the people

Bolivia, facing the urgency of a fiscal adjustment

August 4, 2024, 4:00 AM

August 4, 2024, 4:00 AM

In the run-up to the 199th anniversary of Bolivia’s independence, the country is immersed in a spiral of conflict and the Government is going through one of its worst moments, which has had repercussions on the hopes of Bolivians and their perception of the economic, social and political future. Last week was marked by the strike of heavy and urban transport. The measure froze the roads and affected the normality of activities in the main capitals.

The protests at this time are undoubtedly damaging. But at the same time they are a strong call to attention regarding the shortcomings affecting various sectors of the economy.

The main problem at the moment is the rise in the value of foreign currencies, especially the dollar, because this affects the consumption of all inhabitants and, above all, the growing uncertainty among citizens.

The arrival of diesel in the country has brought a pause to the protests of transporters; with this, a parenthesis is opened until after August 6. But this does not leave definitive solutions to the existing needs. Nevertheless, it is a window of opportunity for the Government to take fundamental measures to listen to the voice of the street and act accordingly.

Just as the president monitored the unloading and transportation of fuel to the different capitals, now he must rigorously monitor the direct import of diesel for the transportation and production sector, since the decision to allow it is not enough; it is necessary to ensure that the commitments with private companies are fulfilled.

On the other hand, only exports will allow more dollars to be available in the national market and that means completely freeing up the sale of Bolivian products to the different international markets. Now the ministers say that there is freedom to export, but in reality the quotas and restrictions remain.

At this time, the blockade in San Julián is still in place to demand biotechnology. A few months ago, the president said that it was possible to develop events, as long as they were done in Bolivia, but this has taken a long time and that postpones relief for the agricultural sector, which is affected by climatic factors, which marks another problem without a solution.

In the agricultural sector there is also a problem with legal security, because the encroachments continue and cannot be stopped.

The consequence is that capital capable of generating resources and employment is leaving the country due to the lack of foreign currency. Experts believe that the economy is paralyzed. Therefore, fundamental measures are urgently needed.

Both from the private sector and from those close to the president, there is a question about whether the economy is more defined by dogmatism than by an update of policies that are in line with the times. This requires a deep reflection on what Bolivia needs now and the assumption that the way out of the crisis implies a joint alliance between all social, political and economic sectors.

It would be wrong to think that the current problem is only a political-electoral one, because it is clear that the scope of the crisis is much greater than a partisan fight.

Hopefully, the presidential message on August 6 will have a statesmanlike outlook and will provide a roadmap to follow. It will not help his image and that of the government to only look for external culprits, instead of redirecting economic policy and the election. This second option could further sink the economy and people’s hopes, as well as his own political aspirations for the future.

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