Bolivia

Bolivia-Crisis brings Opportunity

Bolivia-Crisis brings Opportunity

The IBCE sees that with the economic crisis in Argentina, ‘opportunities’ open up for Bolivia. The country purchases more than 700 products from Argentina, and the rise in their prices will result in “imported inflation,” says Gary Rodríguez.

The economic measures implemented by the new president of Argentina, Javier Milei, will have an impact on Bolivia, which buys more than 700 products from that country, warned the Bolivian Institute of Foreign Trade (IBCE) on Friday.

One of the consequences will be “imported inflation” due to the devaluation of the Argentine currency and the rise in prices.

However, there are also opportunities for the country. Gary Rodríguez, the manager of IBCE, also emphasized that the economic problems in Argentina will lead to a decrease in smuggling into Bolivia, reports La Razon.

He urged the government to take the problems of the neighboring country as an opportunity to implement measures in favor of producers.

For example, providing them with greater security, “not like now, where there are more than 100 encroached properties;” also, ensuring a guaranteed price for the producer to encourage investment in a risky crop like wheat.

Another measure suggested by IBCE is to approve biotechnology in agriculture so that the country can produce more, and the surplus can be exported.

“We say it for the umpteenth time, we need biotechnology in agriculture. This means, for example, in the case of wheat, approving drought-tolerant HB4 wheat used in Argentina.”

Prices

It was also warned that the rise in prices in various products will also affect Bolivia, with “imported inflation.

“The rise in prices is an objective fact. Prices have increased after the devaluation of the Argentine peso by 100%. The Argentine peso went from 400 to 800 pesos for the official dollar, causing inflation and a rise in the parallel dollar. And this translates into a higher price level in Argentina, which will mean imported inflation for our country because we buy more than 700 products from that country for over $1.5 billion annually.”

However, it was stated that every crisis also brings an opportunity. In the case of Bolivia, it was mentioned that it can be an opportunity for the government to take measures in favor of producers.

Rodríguez emphasized that one should not fall into the fatalism of talking only about the crisis but should adopt other measures and coordinate a synergistic public-private effort.

“We should not fall into the triumphalism of saying that we are the best country in the world because it is not so. We can become that, of course, but for that, we need a synergistic public-private effort with shared visions and responsibilities moving forward.”

 


Soledad Quartucci | CEO/Founder, Latina Republic

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