Gasolinazo part 3
Evo Morales revoked the decree removing subsidies (and thereby drastically raising prices on fuel) after facing large scale protests. The essential problem therefore remains--the government has popular subsidies that unfortunately also encourage smuggling and bleed money, both of which he mentioned in his remarks. He noted that some adjustment will be necessary as a result, and that people will have to accept it because it will be in the best interests of the Bolivian state. People love to label Evo Morales a populist, but these sorts of statements are almost the opposite.
3 comments:
Double whammy for Morales; he's pissed people off and made himself look bad and weak in the bargain. Temporizing of this sort should be heartening to his opponents...
....And now (January 3 reporting) Morales' VP very publicly rebuts Morales and gasolinazo protesters, characterizing the gasoline subsidies, which he calculates as $500m, as "unsustainable", even though the GOB "can afford them" in 2011 - and this from a guy who's seen as being to the left of Morales.
I'm suffering from post-neoliberal whiplash...
Btw, this still doesn't clear up what exactly is happening with the GOB budget.
http://www.laprensa.com.bo/noticias/3-1-2011/noticias/03-01-2011_9006.php
Really fascinating series of events.
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