According to economist Horst Grebe, the Bolivian government must admit that there is a crisis and that, therefore, a comprehensive strategy with measures and management over time must be proposed.
In the midst of a deep economic crisis in Bolivia, economists Alberto Bonadona and Horst Grebe have proposed a route to find solutions and prevent the highland country from suffering from a shortage of dollars and fuel that is suffocating the population and productive sectors.
In an interview with local media La Razón , Grebe insisted that, initially, the Bolivian government must admit that there is a crisis and that, therefore, a comprehensive strategy with measures and management over time must be proposed.
"A comprehensive strategy must be designed for the next 18 months," he said.
He lamented that the country has “an economy that is completely disorganized, deinstitutionalized and poorly understood by experts, who are clinging to the fiscal deficit.”
For his part, Bonadona regretted that all the measures taken by Luis Arce's government are temporary and palliative. "There will be gasoline, but it will be temporary, like a month ago. It will be temporary because the problem is more serious than the government claims."
He said the government should close down loss-making state-owned companies to avoid spending.
ROUTE OF SOLUTIONS
Grebe suggested that the government should create a pool of friendly countries, international organizations, friendly governments and a series of organizations to complete the short-term deficit that is immediately required.
"Management can be done through politics and diplomacy with friendly governments that do not want Bolivia to collapse," he added.
In his explanation, once the pool of friendly countries has been formed, the International Monetary Fund (IMF) can be approached. “Professionalism is needed in economic, monetary and fiscal policy”
In this way, Bonadona indicated that the Government can begin the process and turn to the IMF to provide Bolivia with some US$ 5 billion. “We can turn to friendly countries, but I, personally, would begin the process with the Fund.”
Grebe said that before turning to the Fund, a series of economic tasks must be completed, such as the honest presentation of the diagnosis, rationalizing the hydrocarbon circuit and implementing subsidy measures.
“You can go to the IMF, but later,” he added.
Both economists rejected the proposals of neoliberal economists, which are based on cutting public spending due to the high fiscal deficit.
"Neoliberals are dealing with a fiscal deficit and want to solve it by throwing people out on the streets," said Horst.
Bolivia is going through an economic crisis characterized by a shortage of fuel and dollars, as well as the rising cost of basic goods.
According to data from the National Institute of Statistics (INE), inflation in October was 7.26%.
