Category: Geopolitics

Information about international affairs that can impact the Bolivian economy.

Since January, there have been 2,676 more hot spots than in 2019

The Forest Monitoring and Information System (SIMB) recorded 2,676 more heatwaves from January to August 4 than in a similar period last year. Sixty-five thousand three hundred eighty-six hot spots reported, while in 2019 the number of hot spots reached 62,710, an increase of 4.27%. Fires in protected areas increased by 27%, while in forest reserves heat sources rose by 17.2%. Activists and volunteer firefighters called for the repeal of Law 741 and Supreme Decree 3973, which authorize clearing for agricultural activity in the departments of Santa Cruz and Beni.

Russia and Sigma to supply Avifavir to 7 Latin American countries

The Russian Direct Investment Fund announced on Monday that an exclusive agreement has been signed with the Cochabamba company Sigma, to supply the Covid-19 drug called Avifavir, to Argentina, Bolivia, Ecuador, El Salvador, Honduras, Paraguay and Uruguay. At least 150,000 packs of Avifavir will be exported. In addition, Russia transferred the technology for producing the final dose to its partner in Bolivia.

Recovery plan for areas affected by fires has a fund of $172.41 mn

Recovering ecosystems affected by fires, caring for the livelihoods and productive approach of local populations, promoting culture and tourism, risk prevention and management and governance are the five axes that the Government of Santa Cruz has included in the Plan for the Recovery of Areas Affected by Fires in the Department. The central government plans to invest a fund of Bs 1.2 billion, which will mainly benefit 83 development projects linked to the above axes.

Illegal production of coca leaves increased by 27%

According to the latest report presented by the United Nations Office on Drugs and Crime (UNODC), total coca leaf production increased from 41,600 tons in 2018 to 46,100 tons in 2019, an increase of 11%. In 2018, some 17,422 tons of coca leaf did not pass through any of the authorized markets. In 2019, the amount that did not pass through these legal trading points rose to 22,223 tons, representing an increase of 27%.

Pandemic will accentuate inequality in Latin America, where the fortunes of the rich have grown by nearly $50 billion

The coronavirus pandemic will increase the number of poor and unemployed people in Latin America, but it is also expanding the region’s most enormous fortunes, according to a report released Monday by the humanitarian organization Oxfam. 73 Latin America’s billionaires increased their wealth by $48.2 billion when COVID-19 took hold in the region. The other side of that coin also shows that since last March, there are 52 million people who will return to poverty in the area, along with another 40 million who will join the ranks of the unemployed.

The World Bank announced that Latin America would lose 25 million jobs by 2020

The crisis caused by the coronavirus pandemic will leave 25 million people out of work in Latin America and the Caribbean in 2020, according to the Bank, which forecasts a loss of at least 25 million jobs by 2020, a figure that could be worse depending on how the situation evolves over the next five or six months. Also, it predicted that 50 million Latin Americans would fall below the poverty line.

ECLAC forecasts a contraction of Bolivian GDP to -5.2%.

The Economic Commission for Latin America and the Caribbean (ECLAC) lowered on Wednesday its forecast for the contraction of the Bolivian Gross Domestic Product (GDP) to 5.2% for the current administration. In April, the organization predicted a reduction of 3%. The coronavirus pandemic is not entirely under control in Latin America and the Caribbean, so ECLAC warned that it would lead the regional GDP to contract a historic 9.1% in 2020, a situation that will raise the unemployment rate to 13.5%.

ECLAC warns of the closure of 2.7 million companies in Latin America by Covid-19

The stoppage of productive activities due to the coronavirus pandemic will cause the closure of 2.7 million formal businesses in Latin America, most of them micro-businesses, which will imply the destruction of 8.5 million jobs, ECLAC said Thursday. COVID-19 will cause the worst recession in history in Latin America. The contraction of regional GDP expects to reach 5.3% in 2020, and the poverty rate will grow up from 30.3% to 34.7% of the population.