Sunday, January 02, 2011

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.


Tambopaxi 7:38 PM  

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...

Tambopaxi 2:37 PM  

....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.

Greg Weeks 4:36 PM  

Really fascinating series of events.

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