- Joined
- Dec 3, 2009
- Messages
- 52,009
- Reaction score
- 33,944
- Location
- The Golden State
- Gender
- Male
- Political Leaning
- Independent
[h=2]What’s Driving Bolivia’s Booming Economy[/h]
Political stability in a nation that once averaged more than one armed revolution per year has to be a large part. Under the guidance of wildly popular Aymara president Evo Morales, the country has finally begun to progress.
It works for the Nordic countries. Seems to be working in Latin America as well.
To the surprise of many, Bolivia is now Latin America’s fastest growing economy. At a 5 percent growth rate it now outstrips once dominant but now stagnating regional competitors like Brazil and Peru. Furthermore Bolivia boasts some very impressive macrofundametals: its level of international reserves are the highest in all of Latin America, it has slashed its government debt, and its inflation rate stands at a respectable 5 percent. This accompanies a 307 percent increase in average income and a 25 percent reduction in the poverty rate since 2001.
Political stability in a nation that once averaged more than one armed revolution per year has to be a large part. Under the guidance of wildly popular Aymara president Evo Morales, the country has finally begun to progress.
In fact, Evo’s tenure has undoubtedly been one of pragmatism. It is true that since 2005 he has expropriated just over twenty companies, but the level of expropriations in no way compares to that taking place in the culture of government impunity rife in Venezuela where 1,168 foreign and domestic companies were expropriated between 2002 and 2012. The infamous nationalization of foreign oil and gas fields is not one of complete state control, but is rather about gaining a controlling share of the profits made by foreign companies which can then be diverted into various social programs.
All this would suggest, as the mainstream business press gleefully point out, that Evo is no old-style Latin American socialist. Instead, they claim, what he’s doing in Bolivia is really run-of-the-mill Nordic-style social democracy in a Latin American setting.
It works for the Nordic countries. Seems to be working in Latin America as well.