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Economists note that bonds are not enough to reactivate the economy

Bolivian President Jeanine Áñez focused her speech on the bonds, demanded that the Legislative Assembly release the resources to make the delivery of aid effectiveness, and even asked her political opponents for a “pact” that would make it viable. However, economists consider that the bonds are not enough to reactivate the Bolivian economy, affected by COVID-19.

The economist Alberto Bonadona said that a call for economic support cannot be from the granting of bonds, and would give the impression that the Government considers them as a great contribution to the national economy. “She (the president) made an exaggerated emphasis when a more comprehensive solution of the economy and its future is required in a country that has great wealth and potential,” he said.

Bonadona believes that the country’s leading authority is thinking about immediate benefits, and not about a comprehensive solution. “A more solid plan and guidelines are required to summon political, economic, business and worker forces, social forces to see the future of Bolivia, in a development that does not step on each other’s calluses and avoid strikes and blockades in the middle of the pandemic, “he said.

Along the same lines, the economic analyst Gonzalo Chávez specified that President Áñez’s message confused means with ends. “The center of his speech was let’s make a pact for the bonds when in reality the bond is the instrument; that is, it has public policy objectives such as reducing poverty, improving health and education, lowering inflation, and you have many instruments, “he said.

He argued that it is contradictory to seek an agreement through an instrument and not an objective. “Knowing that the bonds worked for her, in her speech she offered more bonuses and has proposed that they be the center of a pact, which is curious to start with the instrument and not with the objectives,” he reflected.

Chávez questioned that the bonds are not medium and long-term government programs, and it is necessary to think about infrastructure, quality jobs, education, and health, think about promoting the private sector; because the bond partially solves a problem that is one of demand, because people do not have money to buy, but on the other side the supply is in serious trouble.

The analyst recalled that when the quarantine was applied, an economic coma was induced, “we said that 70% of the productive apparatus stops, restaurants, companies, and services, then a bonus is useless if the productive apparatus is not recovered,” he said.

Continuing with the analogy, Chávez mentioned that if a person recovers from a coma, they still need physical therapy to regain mobility, and the same happens with the economy. “So, you put money in, but you have a slow productive apparatus that is not being able to react due to lack of liquidity,” he added.

For the former president of the College of Economists of Santa Cruz, José Antonio Alberti, in particular, the economic reactivation depends in part on that flow that the Legislative Assembly makes viable, it is more than $ 1,700 million and therefore considers that Áñez insists on its I claim to the parliamentarians.

It is necessary – he points out – that this money is destined to have a better health system, purchase of supplies, and also to channel resources to companies via the financial system. “They are not the only ones, but they are vital and the later, the reactivation will also take longer,” he revealed.

It also highlights that the first president gave certainty on the issue of continuing with deferral policies, postponement of tax payments, social charges, and that she gave certainty to make viable direct credits and employment plans.

LACK OF CELERITY IN THE PROGRAMS

The economist José Antonio Alberti considers that the commitment to economic reactivation should be required to be more agile, because more management is lacking in these policies. He even said that within the framework of the Employment Plan, he has requested three workers to hire 15 days ago, but has not received a response. “So, enforcement mechanisms must be speeded up, more speed is needed to continue taking care of jobs and generating income,” he said.

Chávez also agrees with Alberti that the supply is very slow; that is, reactivation via employment programs, and relief credits to the productive sector.

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