Bolivia is among the fastest growing economies in Latin America, according to various international organisations. The International Monetary Fund (IMF) and the Economic Commission for Latin America (ECLA) increased Bolivia’s growth projections from 4 to 4.3% and the World Bank from 3.9 to 4.5%. These organisations place Bolivia in first or second place in regional growth. However, international experts such as CAF president Enrique Garcia, the country needs significant structural adjustments to diversify the economy that is highly dependent on hydrocarbons and minerals.
Although Argentina and Brazil expressed their intention of buying less volume of gas, the Bolivian government believes that there are opportunities. In the case of Brazil, the Hydrocarbon Minister, Luis Alberto Sanchez, said that the new conditions of the Brazilian market offer the chance to negotiate with private companies with the prospect of better prices. Gas exports to Brazil and Argentina reduce 16.7% since 2014. The government recognises that the development of new camp fields in these countries means strong competition, but it is confident in Bolivia’s competitiveness. However, Bolivia’s local governments and economic experts warned that the decrease in shipments would impact revenues, and they urged more investment in the sector.
Lynching, drug-trafficking and contraband are the main reasons why local inhabitants decided to take control of their towns surpassing the police.
The pay of a second Christmas bonus proposed by the Government is still contested by the private sector and also by the main trade union in Bolivia. The Morales Administration confirmed that the Christmas bonus should go ahead because the economy will grow 4.61%. However, the private sector represented by the Confederación de Empresarios Privados de Bolivia (CEPB), rejected the initiative arguing that it will put the economy and jobs at risk. Meanwhile, the main trade union (COB) rejected all the government proposals to comply with the payment of the bonus and demanded its cancellation before 20 December.
The Andean Development Corporation (CAF) praised Bolivia’s public investment program, which has helped to build basic infrastructure in the last ten years. The CAF’s representative in Bolivia, Gladis Genua, said that the Bolivian state had prioritised the construction of highways, water and electric projects that helped to the development of the country. CAF has invested in the last decade $US 2.5 billion in public investment projects.
Spain will deliver next week its economic proposal to participate in the construction of a bi-oceanic railway, informed the Minister of Public Works, Milton Claros. Initial estimations of the project suggest an investment cost of at least $US10 billion and a construction period of 5-7 years.
President Evo Morales said that he would try to contact Brazilian President-elect, Jair Bolsonaro, to ratify the trade and integration agreements both countries signed. The president said that regional integration is above any ideological difference.
El presidente de Chile, Sebastián Piñera, y el electo mandatario de Brasil, Jair Bolsonaro, mantuvieron ayer una conversación telefónica, en la que hablaron, entre otros temas, sobre la construcción de un corredor bioceánico que una los océanos Atlántico y Pacífico, sin la participación de Bolivia.
The Government has not yet approved the regulation regarding ” the Social Enterprises Act”. Factory workers are demanding that the Administration pay the debts of social enterprises.
Chile will be the first country to be visited by Jair Bolsonaro, after officially becoming President, said Chilean President Sebastián Piñera. He added that Bolsonaro will then travel to the United States. His statement follows a conversation Piñera had with his Brazilian colleague in which they discussed a possible strategic alliance around the building of a Bi-oceanic Corridor and a Free Trade Agreement.