Bolivia is facing a tough election season as voters prepare to cast their ballots for a new president. The country’s deepening economic woes are at the forefront of the campaign, with soaring inflation rates and shortages of basic goods such as petrol and food.
According to economist Gary Rodriguez, falling natural gas production has led to a decline in overseas revenues, resulting in a shortage of US dollars that makes it harder and more costly for the country to import essential goods. This has led to price hikes and shortages across the country, with some petrol stations reporting lorry drivers waiting over 24 hours to fill up.
Taxi driver Gonzalo Rios described his struggles, saying that prices are so expensive that they no longer cover their costs, but he cannot raise fares because it would deter customers. The government’s decision to keep fuel prices artificially low through subsidies has been a major factor in the current economic crisis.
Outgoing left-wing President Luis Arce blames the parliament for the fall in natural gas production, while his opponents attribute the turmoil to his policies. The official exchange rate of Bolivia’s currency is fixed at 6.96 bolivianos to one US dollar, but unofficial rates have been rising, leading to a thriving black market.
Many business owners, such as food entrepreneur Alessandra Guglielmi, are concerned about their ability to pay staff and maintain prices due to the economic crisis. Analysts believe that no single candidate is likely to win the election without securing more than half of the votes, which would lead to a second round of voting.
Economist Gary Rodriguez emphasizes the need for significant structural changes in Bolivia’s economy, citing too much emphasis on state-led development. He advocates for good laws, regulations, and institutions that promote private sector growth and citizen-driven development.
Source: https://www.bbc.com/news/articles/c62nn665g32o