Why Bolivia’s Economy Is Collapsing: The Global Balance of Payment Crisis | Bolivia Economy | Econ
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In recent years, Bolivia has experienced political instability, particularly in the aftermath of the 2019 presidential election, which was marred by allegations of electoral fraud. Prior to 2019, the country was thriving. It was experiencing rapid growth and improving living standards for its people. According to the World Bank, the proportion of individuals living on the equivalent of less than $2.15 a day decreased from 15% in 2005 to 2% by 2019, leading many to label it as "Bolivia's economic miracle."
However, the situation has taken a drastic turn. Bolivia now confronts a pressing issue: a shortage of foreign currency reserves. Concerns are mounting regarding the country's ability to support its financial system and meet its debt obligations. Experts warn that Bolivia stands at the precipice of an impending economic crisis. This video analyzes the factors that have contributed to this situation, and explores the sustainability of Bolivia's economic miracle.
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You are awesome :)
At 3:19, you said "by 2019" but the graph shows 2009
@@malvarezv97 LOVE THIS correction. Oh the whole video is so ignorantly misguided. Absolutely one of the most unintentionally blind uploads of ‘maybe educational? - Intention’ uploads I have ever observed. There are many aspects of academia and moments in recent Bolivian history that are mentioned. Mentioned is where it ends. He misses the heart of it all. Try learning outside sometime big guy. (Narrator, not you) I found it absolutely adorable that you were kind enough to point this out to him.
As a Bolivian myself! I can approve this message 💯 %. Thank you for informing the outsiders.
Diversification is important for an economy...When an economy relies heavily on a single industry or a narrow range of products or services, it becomes vulnerable to various external factors that can negatively impact its stability and growth.
And when most of the public funding is tied to one industry then that can cause many issues.
@@christiantripepi9909In Bolivia it usually happens that the government is directly the industry and there are no private companies, that worked for them in some sectors where there was no capital, but now their administration is being terrible, they invested billions of dollars in lithium but its production is negligible, Its gas production is at historical lows, the same with oil, it is not only a problem of lack of diversification, but also of corruption and negligence, Taking the primary sector as the main source of income, Bolivia should have enormous foreign currency reserves, but that money has been squandered, billions have been spent to artificially raise the Bolivian currency, other billions on projects with no future How to try to produce lithium in a technologically very backward country without foreign investment
Petrobras, the Brazilian oil company, made large investments in Bolivia, which unlocked the sector and made it a major source of international reserves for the country. However, the progressive populist government nationalized these companies (stole) which led to a decline in natural gas production due to the low investment rate and lack of technical knowledge and consequent reduction in the acquisition of international reserves.
Just wondered why most of South American countries have an ongoing economic crisis since before. Compared to the Southeast Asian countries, their economies are robust & well diversified with increasing middle class populations. Inflation is low with an average high at around 5.0% & the rest are below 5.0% compared to the U.S. inflation is 4.93% as of 6/2023. The U.S. inflation from last year was 8.9% according to the data of 2022.
@@alaindelon611 corruption, negligence, mismanagement, a lot of crime and the worst part, legal certainty almost does not exist
that in addition to bureaucracy, poor infrastructure (transportation costs in Colombia are 4 times higher than in the US) and many restrictions on trade, there are Latin countries that literally want to restrict EXPORTS and they do, in addition to bureaucratic restrictions on trade, For example The country that has the most obstacles for Argentina to trade is Brazil, despite the fact that Brazil is Argentina's largest trading partner, Latin America is a region super allergic to foreign investment and trade, most Latin countries have territorial disputes with their neighbors and a hatred among their citizens.
Argentina received a commitment for investment in hydrogen energy for 8.5 billion dollars, but after 2 days they put a 30% tax on the production of green hydrogen and bureaucratic restrictions that would delay the investment for several years, now not a single dollar of those 8.5 billion will come to Argentina.
the colombian president promised to eliminate oil and gas production in the next 4 years, but oil and gas is colombia's biggest source of income and when the price of oil drops the colombian economy goes into crisis
Argentina is diversified but 70% of the income in foreign currency thanks to exports comes from a single sector, the agro-industry, the same thing happens in Chile, its economy is varied but the vast majority of its income comes from mining.
Mexico is the only one that is truly diversified, but it is allergic to investment and not many invest in a country where dozens of journalists are killed every year and millionaires are oligarchs. There is an investigation that estimates that the corpses buried in Mexican deserts increased by 100,000 people in the last decade, no one invests in a place like this
I would hardly describe Bolivia as having "excessive free market capitalism." Even when compared to the rest of the countries in the region Bolivia is below average.
Lmao Bolivia's problem is left-wing economic populism, exactly the opposite
Ironically, Bolivia, in agricultural terms, has not a geographical advantage to its neighbor countries Peru and Argentina, so setting the fixed price is the only way to protect local farmers. That's a reason why contraband is common in the frontiers. Capitalism tells you to specialize in what you are good at, but doesn't considerate how much can you do of it
@@barmybarmecide5390 said "Bolivia's problem is left-wing economic populism"
"Bolivia has grown much faster over the last 8 years under President Evo Morales than in any period over the past three-and-a-half decades."
And YOUR problem is RIGHT WING DISHONEST IDIOCY
He said that regarding to a period in the past when they were receiving loans from the imf.
He was talking about pre-Morales during the late 20th century neoliberal era that happened in Bolivia and across Latin America
This is generally a problem with virtually all Latin American countries since independence. There comes a period of relative economic and political stability only to be hampered by the complete opposite.
Or with the intervention of the US by the radicals during that moment
You could say that Latin American countries are politically independent, but not economically independent.
*hampered by right-wing CIA backed coups
The general problem of generally generalized stupid comments with absolutely no concrete information... Nice one!
That’s what happens when you are entirely dependent on commodities boom and bust cycles.
Yeah blame the US for everything. That's the way to get ahead in life.
Why you think so? Don't you think US is the real B who interferes in the world issues and take advantage of poor countries. Of course people will blame the one who tries to inferfere
Some curious facts about Bolivia are:
- In the Pacific war, Bolivia lost its sea access to Chile, so importing goods is more expensive due to the high transportation costs from sea freight and land transportation (Bolivia is in the Andes region). Bolivia's main sea port that uses for its exports / imports is in Arica, Chile.
- In the early 1900s, Bolivia's main trading partner was Germany. In fact, Germany had the largest investments in the Latin American region in Bolivia. However, due to WWI, Both the US and UK forced Latin American to stop negotiating with Germany, causing a severe economic blow to the country.
- In the 90s, Bolivia was so poor that its main economic revenue were economic donations. During the time, its president was Sanchez de Lozada, who owned Bolivia like a landlord. Morales as a Coca farmer was already a figure in the local politics
- When Morales first came into power, he did improved the quality of life of many Bolivians due to his protectionist policies. While the constitution didn't allow a president to be reelected many times, he sent multiple referendums to ask people if they were OK to be reelected, which were not and Morales didn't pay attention to that and applied again. This was the main cause of the protest, but Morales's political party the MAS (Movement Towards Socialism) controls EVERY political institution in Bolivia.
- Geographically, Bolivia is so small compared to Peru and Argentina, so it has a short field for agriculture and the local products are more expensive compared to imports. Morales had to apply protectionist policies by setting fixed prices. That's another reason why contraband is so common in the frontiers, particularly for agricultural products. One could say that applying left-wing policies eventually damage the economy, but with no geographical advantage, what could anyone do?
- Bolivia, Chile and Argentina are located in the "Lithium triangle zone", the place were the highest amount of lithium is present. While Chile and Argentina have been producing and exporting. The Bolivian government expelled some German companies of extracting to apply a nationalist approach, which, as of 2022, had spent over $1 billion and haven't produced not even half of their neighbor countries.
Overall, Bolivia's economic situation can be described as a mix of both local and foreign intervention.
Thank you for your insight!
At the end of the day, the main point is over-subsidized services (like Argentina) and the refusal to privatize state-driven companies that are bleeding money (like Brazil and Petrobras).
They're trying to get the Aimara of Peru to give them Arequipa and tacna... Puno already belongs to Bolivia
@@jwaxmcgeeg9706 Puno will never belong to bolivia
@@InfamousKing-bq5gf it's already Bolivia. Been there? Ask em.. Arequipa ya es más aimara que puno.. Tacna sigue por allí.. Bolivia va a tener su mar en 10 años
Every country needs to ramp up its own local industry to balance trade
Yea I agree with u but,u have to be realistic…advanced countries created AI and,smart manufacturing that destroyed other countries from starting manufacturing economies because,AI and,smart technology is cheaper to produce than the old labor force…it’s sad & this is one of the reasons Africa won’t have a chance like Asia and,west to have industrial era …it’s surpass us without really experiencing it …now majority of us r importing rather than exporting
Politics can make a country climb to prosperity or descend into chaos. External factors only exacerbate things so Bolivians can only blame their politicians for creating instability within which weaken institutions and in turn, shun away economic growth.
The opposition constantly keep harassing the government with violent and lengthy strikes creating caos and economic crisis with loss of millions of revenues to the state, business and workers, the extreme right wing has mercenaries which by the use on violent methods prevent workers to go work or sell their products . Santa Cruz had become the most f4scist city in Bolivia.
@@javierrocabado8503 Santa Cruz literally produces 75% of the national economy, you are basically crying when workers are owning the means of production and using it to stop a corrupt government. If you hate Santa Cruz then let them become an independent nation of let them join Brazil.
Why would any investor invest in a country where the socialist government may just seize your investment at anytime and since the Socialist Party MAS there controls everything other than the Army good luck winning a court case to get your assets back.
Excellent video!! Living in Bolivia I can attest to the veracity and unbiased approach of all the information . 👏👏👏👏👏
And BRAVO! To the pronunciation od Spanish words!!
Undoubtedly the US has mismanaged some of its responsibilities in relation to Bolivian policy but the people of Bolivia must work out how best to move in to a better world. Dictatorship and corruption are never the way.
That is why Bolivians had elected Evo Morales and his party sine 2005.
they staged a coup along with the british to oust evo morales and in the time the de facto government was in power they backtracked a lot of the policies evo and his supporters had pushed, severely hindering development
they could legalize slavery and he would still blame the US
@@AL-lh2ht que os EUA caia em chamas 🔥 😊
Dictatorship is the best way to describe the Monroe Doctrine, try to dig a little deeper into the cause and effect of these issues
Corruption of state officials is huge issue as well.
Only they have used their oil money like Norway instead of spending it all like Venezuela.....
Because Norway hasnt nationalized it's oil industry, it just taxed it. Venezuela on the other hand has a left wing government that spent it's oil money creating a welfare state. When countries spend now and deal with the consequencs later (as is the case with most left wing regimes) Veneuelas happen over and over again
@@worldconquestsucks8765 Norwegian government literally owns the company that drills oil for them
@@worldconquestsucks8765 although yes, Norwegian government don't spend its profits on welfare instead they spend it all on buying stocks and other things
@@redstream1237 your first mistake is thinking that Norway is a socialist state, your second mistake is comparing Bolivia to Norway.
@@intihumala9087 I never said that Norway is Socialist
Your are mistaken I'm Bolivian and we use our local currency for almost everything, but we use dollars for renting contracts as well as buying and selling property
Don't worry the video is just created for attention and views
I am also Bolivian, and the dollar is also used for buying tech and cars
@@batpoolzilla3200 Carros si pero para comprarte una televisión o un celular es en Bolivianos
El dólar es usado para el mercado exterior. Entre bolitas lo hacemos con nuestra moneda. La mayoría de importanciones son de moneda gringa.
Who is more honest about South America besides Ben Norton
As a Bolivian that lived in La Paz, Santa Cruz and Tarija, I am afraid some parts are not true and misrepresent our reality. Some improvements could be made, but the editing is really good. As with anything, there are good and bad things in the video. The research aspect could have been better. We are on the midst if not at a crisis, but we are still using bolivianos for most things except a minority that buys sells imported goods like tech or cars, or real estate. Also we have to consider the impact of Bank Fassil bankruptcy to our financial system and the institutional trust in the banking system. I hope we can get out of this one (without even mentioning the centralization of pension fund management).
¿Que observaciones tienes, estimado? Yo veo que hicieron un buen trabajo plasmando la triste realidad.
@@arturomorales966 Ve tu a la caserita de la esquina y págale en dolares pues viejo, si tan normal es para ti.
As a Bolivian that lives in Cochabamba, this is totally on target, real and representa reality exactly as it is
As long as we BLAME EVERYTHING on the USA, it's fine. Don't you know the new rules of the left?
Note: The main (but not sole) cause Gas Wars were that the gas was to be exported by sea and the shortest route was through Chile which is held responsible by Bolivians as the source of basicslly all of their issues as Chile annexed the Bolivian coast rendering Bolivia a landlocked nation to this date. The protesters demanded that the gas be exported through the much longer and much more expensive route of Peru. The second main cause was the privatization of gas reserves.
The sale of gas to foreign nations wasn't relevant because Bolivians wanted their gas to be used to increase revenue, they just objected to the conditions of the sale.
When you say "populism" I'd point out a couple of things. Subsidizing some services is not a bad idea, specially if you consider that salaries in Latin America are way below the developed world, so you cannot expect gasoline or electricity to cost the same in Germany or Japan than in Bolivia, a country that used to be South America's poorest and with the lowest salary.
For me the populism is when the government bans foreign investment in the extraction of raw materials without realizing their whole economy is depending on such activity. It would make more sense to allow foreign investors to invest and use the money of exports to subsidize services or build necessary infrastructure to help the people to raise their life standards. Bolivia had to produce and export more to sustain it's economic model and they had the resources, but failed to attract the foreign know-how needed to extract the gas, lithium and other minerals.
The problem in places like Bolivia and Venezuela is that populist governments essentially kicked foreign investment out because they wanted to have more political control of the economy and the societies. And essentially what they ended up doing was milking the cow dry.
Gasoline is a global product first of all, its price is constant. There's no such thing as cheaper gas for some countries and expensive for others. Either you subsidise gasoline to make it cheaper (usually if you are a producer) or you tax gasoline to earn revenue, most countries do this.
the thing is, foreign investment in the extraction of raw resources, most of the time, aims to extract as much as possible with as little pay to the workers as possible, so in the end, the people don't even get that much better off, and in the meantime, they get stripped of resouces. even worse when these foreign companies cut as many corners as possible for profits, causing awful working conditions and contamination. just look at Shell in Nigeria, for an example.
Petrobras, the Brazilian oil company, made large investments in Bolivia, which unlocked the sector and made it a major source of international reserves for the country. However, the progressive populist government nationalized these companies (stole) which led to a decline in natural gas production due to the low investment rate and lack of technical knowledge and consequent reduction in the acquisition of international reserves. Populism is a cancer
No one will invest in Bolivia with the populist left stealing the investments that foreigners make in the country
@@alevegaliolios yeah, I wouldnt blame the companies as much as the government itself. It all comes down to solid institutions. If you have solid institutions with laws and a continuation of policies foreign extractors leave behind a lot of wealth, techonology and resources: Chile for example in the same region, or middle eastern countries like saudi arabia. If you don't have these institutions corruption makes the deals every term and everyone, even the foreign companies lose (nationalization out of nowhere, loss of assets, no security). Move away from the failed marxist views of oppressors and oppressed and look at reality.
When bolivia nationalize fossil fuel production and spend the revanue poorly, people say socialism bad.
But everybody ignores Norway takes a gaint cut off the oil revanues, and Norway is now one of the most wealthy and happiest place on the world.
The problem is not nationalize natural resources, its how you spend this money.
Norway got smart and used their oil & gas riches to kickstart their sovereign wealth fund which invested in the world's top companies, and made other smart diversified investments.
Norway was already educated and corruption was low there. Problem is poor countries implementing populist measures which always fail
Thats because Norway's oil industry isn't "nationalized" its just taxed, theres a big difference. What countries need is domestic investment look at the example of South Korea.
Thats called a social democracy, which has been proven multiple times that works, socialism often involves reckless state spending (like in bolivia), nationalizations (like in bolivia), price controls (like in bolivia), etc. social democracies (in my opinion) are inmoral, but they work, socialism doesnt
Norway was wealthy well before the oil. The government shouldn’t be taking oil profits or anyone’s profits.
I'm in Argentina now, after having been in Ecuador and Bolivia before that, doing a month-long global health studies program in each. Bolivia and Argentina have a lot in common but Ecuador is moving forward fast b/c they use the oil money to improve the country in many ways and their ministry of public health has improved the lives of its citizens. I have a feeling the only way to improve the economies of Latin America is to convert them all to the US dollar. If Bolivia and Argentina would use tourism money to improve infrastructure and clean their environment, it would go a long way to change life drastically in the positive sense.
There is no need to do that. Mnaging the finances of the country with people who actually knows economics, is a better medicine. As a peruvian, we know that our politics suck big time, but our national bank is auntonomous and no president will dare to even suggest otherwise. We still have a long way to go, but our reserves are one of the highest in the region. We need to fix lots of things but good management is a must. Now bolivians are not only looking for dollars, but for the peruvian currency el Sol. Ecuador is a small country, countries like Argentina or Peru cannot become so dependant on the dollar.
@@thejanitor8512 Corruption is destroying Latin America and people are working harder for less and less money and opportunities. They keep voting the same and expecting different results. Argentina defaulted to the IMF after corruption led to inflation. The next election won't improve things, it will hurt the country more. The dollar would hold politicians accountable.
@@MatchaCocoaDog Maybe in Argentina in their current situaion it could help, for a while, but its not a medicine they can take in the long run. It also doesnt work with every country.
@@thejanitor8512 I hope Argentinians will vote the corruption out of their government. It's really decimating the economy here and makes the poverty in the US look mild in comparison.
@@MatchaCocoaDog the failure of rightwing politicians have made a fertile land for leftwing latin communism. It is not only corrupt (as the rightwing) but takes control of all important institution. Thankfully in Peru we managed to kick out these communists but the rest of the region is filled with the Foro de Sao Paulo agenda.
Latin American culture has always had a short term focus. There is no long term thinking and execution with Latin Americans. As a result, economic crisis is a reoccuring feature of their families, countries, and culture.
Blaming others for your problems is exactly the kind of thinking that got Bolivia into the problems it has now.
Except that corporations exacerbated things considerably.
@@stevenhenry5267 lmao , what corporations?!
Everything has become state owned or state subsidized, there are reports that the employees aren’t even capable enough to handle their jobs.
Yup. And here in Bolivia, people have been threatened with jail time by the Treasury Secretary if they say the economy’s not doing well. They’ve already arrested people who’ve traded dollars at exchange rates that aren’t the one fixed by the government.
@@arturomorales966 darn so all the “latifundios” that the right wing owns in SCZ has been nationalized? Excellent!
@@arturomorales966 I’m sure they have threatened you! Poor kid you must be hiding in a cave and using Entel to connect to TH-cam. 😢😢😢😢😢😢😢
I was in Bolivia the people there are the the most dishonest of all the countries I have been .
They come back on their word , try to short change you with every deal , ect.
I was glad to leave !
It does not surprise me they have no foreign investment .
-توبوا الى الله لأن بالصلاح والاسلام تحيا النفوس والقلوب Repent to Allah in Islam because by Islam live the hearts and the souls
When Evo Morales became president, he inherited a struggling economy characterized by chronic fiscal deficits, no national reserves, and international debts. We were in such dire circumstances that USAID used to provide us with humanitarian aid. Bolivia faced significant challenges as a country associated with drug trafficking, with the DEA exercising control over air traffic. Bolivia was also known as the third-largest supplier of cocaine. Furthermore, many of our natural resources were privatized, including even rainwater, which belonged to Bechtel. Government enterprises were sold to foreign investors in the hope of improving efficiency and generating tax revenue for the state. Additionally, wealthy Bolivians were exempted from taxation in the expectation that they would invest their fortunes and create industries. Despite 25 years having passed since privatization, the promises of neoliberalism to uplift Bolivia from poverty remained unfulfilled. Bolivians continued to rely on USAID food programs, and neoliberal presidents had to seek loans from the IMF to sustain their high salaries.
However, when Evo Morales assumed power and nationalized the oil industry, capturing 82% of the revenue, the economy stabilized. The government invested in infrastructure, such as paving roads across most of the territory, constructing bridges, hospitals, schools, water reservoirs, and implementing cable cars as a means of mass transportation. Additionally, there were initiatives for rural electrification, access to drinkable water, and providing gas to every home. The government introduced bonuses for the elderly and disabled individuals, offered breakfast programs for school children, and implemented measures to improve maternal and infant healthcare, aiming to prevent mortality.
Previously, 7 out of 10 Bolivians lived below the poverty line, with 4 of them in extreme poverty. However, by 2019, extreme poverty had decreased from 35% in 2004 to 15%. More than 2 million people transitioned into the middle class."
Please note that this revised version attempts to address your concerns and provide a more balanced perspective based on the information you provided
You're definitely not a Bolivian
1. Evo Morales kicked out every multinational corporation then brought all of them back into Bolivia the same year due to the fact that Bolivia does not have a functioning and organized proletariat so we depend on multinational corporations to handle our commodities.
2. During the entire Presidency of Evo Morales both public teachers and the entire public medical industry protested against Evo and instead of paying them fair wages he just imported Cubans.
3. Evo Morales was fully backed by cocaleros who produced cocaine in Chapare which is outside of Cochabamba and the IMF refused to loan Bolivia money because he would not put a stop to drug trafficking instead kicked the DEA out and invited every drug lord across Latin America to live in Bolivia
4. the "bonuses for the elderly and disabled individuals, offered breakfast programs for school children, and implemented measures to improve maternal and infant healthcare, aiming to prevent mortality."
absolutely never happened once in Bolivia, not even sure where you even got that from but thats 100% a lie plus food is the most overly abundant resource in Bolivia and costs next to nothing so the whole "breakfast programs for school children" is a giant red flag
Bottom line ALL of Latin America got rich and shrunk poverty by 11% because of the 2000's commodities boom soon as that ended Bolivia went back to shit
Evo Morales just turned a blind eye to drug trafficking and built a highway that went from El Alto to the border of Brazil specifically for transporting cocaine while Media Luna ( the private sector of Bolivia) thrived producing 75% of the national economy as they always have while western Bolivia produces very little.
Today Evo was kicked out of MAS and he's wanted by the Peruvian government for trying to aid Castillo in overthrowing the government.
The Media Luna is a separatist, fascist, racist organization that failed in its first attempted coup, and its agents were neutralized at the Hotel Las Americas. This same far-right separatist group carried out a coup d'état against the elected president Evo Morales in 2019, taking power and revealing themselves as true fascists who massacred 40 people, looted the state treasury, and terrorized the civilian population for 11 months. We have learned that fascism is not to be debated but eliminated.
Se are still poor dude, and it’s only going to get worse my man
Estas contando la mitad de la historia, esas inversiones fueron a costa de un fuerte deficit fiscal, de la ayuda venezolana y de fulminarse las reservas internacionales para mantener la tasa de cambio estable, Así que al final terminaron peor, es el problema de medidas populistas, excelentes a corto plazo, te da votos y luego un desastre en el mediano y largo plazo.
Corporations are mankind's greatest threat.
South America in a nutshell.
Great video! Instant subscribe and shared. Could you let me know what service you are using for the voice?
I used to blame the US for the world's problems until I started traveling. After being to nearly 80 countries, the US isn't as much the problem as people think.
the US is just a scapegoat when shit governments destroy economies. Thats Evo Morales in a nutshell. Anytime he got caught doing something he should not be doing it was '"oh well uhhh its because the empire is secretly trying to stop us"
Ofc not
😂😂😂😂😂 Please educate yourself more on that subject..... USA 🇺🇸 CONTROLS all America, most of Europe, some parts in Africa, Middle East...etc
Bro the only reason humanity has made it this far is because the Americans have taken care of the security situation
@@USandGlobalI think you mean the Russians. They saved the world.
Sounds insane? Well yea its just as stupid as saying Yank imperialists made the world better. It's genocidal insanity only spoken by fools.
Bolivia's economy is not collapsing. You should know that in that country there is a strong opposition that does not accept that a new Constitution governs Bolivia (there was a coup that lasted a year). They try to spread a catastrophic image of the country. You should not listen to them.
Do the next episode on the United States of America economy.
when i was there this year the rate for my euros was very generous
but it was crazy hard to sell my leftover Bolivianos
It doesn’t matter what new natural resource you discover, if your country doesn’t have good economic policies, the country will go under.
It doesn't even have good leaders. I am from there and I cannot think of any at all. I actaully met with the "people of money" in La Paz, the capital. They live to destroy the good people and the people who want to help their country
I know the video is for illustration purposes, but there's a scene of a port and containers... In Bolivia?
I'm Bolivian and I have noticed since last year that my country's economy wasn't as great as my government said it was. I have noticed inflation because of how prices were increasing between 2021-2022 but my government kept on insisting that "The country's economy was amazing" but I doubted that. I have seen videos were Bolivians would complain that things are now more expensive to buy on 2021.
So I was suspecting that something was happening, but my government kept on making this propaganda that we were okay.
I was very sure this 2023 my country's economy wouldn't be that great and I wasn't wrong.
No to deliberate disinformation. No to cheap sensationalism. No to third-rate yellow journalism.
Since the US broke Bolivia, it’s Us responsibility to build it back up
socialism destroyed them
I don't think Neoliberalism is the sole problem. As you reach the end of the video, it seems to me government and its intervention has become the problem.
It is. No one wants to invest in bolivia
@@batpoolzilla3200 no one wants to because? Instability? Higher costs? Inaccesibility?
Neoliberalism has been the problem for developing countries since Neoliberalism's inception. It is a system designed to exploit poorer nations for their natural resources while keeping the nations themselves poor, and if a country were to disagree with being a Slave to "The West" the nations will suffer political instability agitated by Western nations, mainly the United States, Canada, and Europe.
itys just an anti west propaganda piece.
@@mniserranoinstability is a big factor. Not long ago America said that the elections in Bolivia weren’t free and that led to a sort of coup by the right wing, then they said it was actually okay and the people voted for the left wing party and then they said that the election might’ve actually been bad after all and people worried about another coup.
Difficult to invest in a country when there could be a coup any day now just because someone in Washington said something. It’s a similar issue in Somalia, Ethiopia and a ton of other countries.
The Boliviano is losing value? I just check the exchage rate against dollar and it seems pretty stable.
You're on crack the banks are not giving people money
US adopted West Germany economic model? Am i hearing this correctly? 4:33
i miss bolivia!
I don't
Why are there so many countries in South America that have focused on one branch of the economy
Great video pals 🙌🏼
Very interesting
The Bolivian MAS left wing government has been closing private industries one after the other like if they were the enemy, now nearly everything is imported. The state is the highest source of jobs, but they won’t hire you unless you are a MAS party militant, even if you aren’t really well suited for the job, in most cases being a MAS militant will do.
Also, they allow MAS supporting towns and villages to rule themselves freely, allowing things like drug production, contraband and the free trade and traffic of vehicles stolen from the neighboring countries. That causing another problem since the fuel in Bolivia is subsidized, causing an ever increasing cost and consumption of fuel imports.
And what about the coca problem and the influx of dollars from Brasil?
Are you serious? 4:40- "free market", which you call "extreme", was what led to a severe economic crisis? This is one of the stupidest, low-resolution connections between two major and complex subjects, I've ever heard. This "connection" you think you identified deserves a whole video of its own, not a conjunction word. This is not a fact and borders disinformation.
I'm Lebanese and yeah life sucks here. So Bolivians be prepared!!
Bolivia is better of today than it was 20 yrs ago when USAID used to sent humanitarian aid for their survival and their presidents used to beg the FMI for money to pay salaries. You are being misinformed by this video.
@@gehnoaviance6611 interesting
I thought that Bolivia might on the Same path as Lebanon. Like we failed to pay back our national debt and all hell broke loose. Hopefully you won't experience something similar to that
@@gehnoaviance6611 man we are as rich as an average African country.
Man where are u from???
Latin America has never really implemented free market policies..
0:38: Bolivia's net foreign reserves have fallen from over $14 billion in 2014 to less than $400 million now.
1:29: Bolivians prefer to use US dollars due to the fragile state of the Bolivian economy and the devaluation of the boliviano.
2:03: The government is using its reserves to support the value of the boliviano and stabilize or increase its value.
3:59: In the aftermath of World War II, West Germany implemented neoliberal economic policies that led to sustained economic growth.
4:36: Latin America transitioned to neoliberalism in the 1980s, resulting in economic crises and protests.
5:18: The Bolivian government faced pressure from the World Bank to privatize industries and implement austerity policies, leading to protests and clashes with protesters.
7:49: Foreign reserves rose from 10% of GDP in 2003 to 45% by 2015.
8:08: Social spending on education, health, and poverty reduction increased by 45% from 2005 to 2012.
9:20: Bolivia's finances deteriorated due to a fall in gas production, excessive debt, and high public debt.
Recap by Tammy AI
The IMF and World Bank do more harm than good. Telling debtor countries how to manage their economies only creates resentment, and never works.
The MF and World Bank shoud: 1 forgive all outstanding debts immediately, and 2. Close up shop and cease to exist. In the overall scheme of things, this would help nations in trouble more than dribbling out, unrepayable loans year after year and seeing no financial improvements.
Or they could just still exist but the only strings attached to the loans should be that the debtor has to repay the debt since forced neoliberalism always makes things worse.
Similar shit happened in Yugoslavia where forced neoliberalism literally led to a war and now all the former states are just now reaching the economic strength of when they were in Yugoslavia. If there were no strings attached then the debt would’ve been repaid and there wouldn’t have been a war
@@AT-AT26 "that the debtor has to repay the debt" Nope; the debtor countries never pay back the loans - and why should they since there's no consequence for non-payment? You can't make the IMF into the world's boundless soup kitchen. That doesn't help. It's like giving an addict a fix; he's good for a few hours until the monkey climbs on his back again. The world would be better off if the IM and World Bank went out of business; then debtor nations could find their own solutions.
Viz: Pakistan. It's had, what?, 26 IMF loans over the years and still it's in dire straits. It keeps coming back, hat in hat, because it won't solve its own problems. Without the IMF teat to suck on, it would have to.
You say Bolivia adopted a free market capitalism. But in the same breath say that World Bank asked them to privatize rail, air, oil, telecom. If everything is state run how can it be an 'extreme' free captilasm?
2019 is labeled 2009 on the graph at 3:21.
Propping up currency always ends in tears. Yet politicians in non developed countries cannot help interfering with the central bank to artificially hold up the value of the currency for short term political gain.
So what's the plan. The country's population will become economically literate and vote in the right party with the right policies?
TH-cam channels like this with click-bait titles, promoting disinformation to a ignorant audience is what is ruining this platform.
This is why nations need to build economic federations similar to the European Union
Create a balance of imports and exports with improvements on providing local energy
@@Dan_Caro Left Wing Dictatorship
Interesting I guess them military dictatorships in Chile 🇨🇱 Brazil 🇧🇷 Argentina 🇦🇷 wouldn't fascist and support by America
Honduras 🇭🇳 and Guatemala 🇬🇹 didn't have Civil wars
@@jamesmurphy9426Ireland is very rich and it is a centralist Republic.
That is not the problem.
Geography defines the Style of Government. Centralist Republics, Federations, Kingdoms, etc.
Latin America is very Leftist, especially in the last 70 years.
Governments that reject trade and economic freedom.
@@geopoliticayespiritu8438 Perhaps the current government however history tells a different story it can change at any second
Bolivia has experienced more than 190 coups d'état and revolutions since its independence in 1825
@@jamesmurphy9426 The same problem with other Latin American countries.
But the statism, totalitarianism no change, high taxes, big bureaucracy,
a lot of repression on citizens who want to buy or sell freely. For example, in Bolivia they have put people in prison for selling and buying dollars.They accuse them of being agents of the empire, speculators.
"“Everything in the State, nothing outside the State, nothing against the State.” Benito Mussolini's formulation remains one of the most enduring definitions of modern totalitarianism
@@geopoliticayespiritu8438 Don't blame them every nation needs its own currency
That's how this dollar pyramid continues with nations replacing their currency
Didn't Argentina suggest replacing their currency with the dollar to afford having to sell exports for dollars
It is true that some socialist experiments or systems have faced challenges in effectively managing their economies and financial resources. Historically, centrally planned economies, where the state controls major industries and resources, have struggled with issues such as inefficiency, lack of innovation, and difficulties in allocating resources effectively. These challenges can lead to economic problems, including mismanagement of money.
However, it is important to recognize that not all socialist systems have failed to manage money. Some countries with mixed economies that incorporate elements of socialism, such as many Scandinavian countries, have achieved a balance between state intervention and market mechanisms, successfully managing their economies and maintaining high standards of living..
Scandinavian nations are actually, in some terms, more "free-market" than the US. You people need to understand that the only way a country can truly "get rich" is when they have major Domestic Investment, just look at Taiwan.
No, thats called a social democracy, their not the same thing
Foreign investment is great, and nationalizing industries is stupid because with foreign experienced companies comes ways to maximize profits, by working with proffesionals you do half of the work, what bolivia and manimy countries facing the same problems need to do is balance things, the government under no surcomstances should start spending more than it makes. Tip N.1. Never rush things before you have built a base, financial systems are scary and dangerous and you should be careful when experiencing high economic growth.
@@worldconquestsucks8765 They love using Scandinavians countries as examples of socialism, even when Scandinavian government flat out tell them they are wrong but still use them as example of "socialism"
Scandinavian countries are 100% liberal economies.
There is a reason for the underground economy. The leaders are fools. The people need to elect better leaders. It is very complicated.
Nigeria 🇳🇬 is facing similar challenges.
Because it’s also a shithole
Why Bolivia’s Economy Is Collapsing?
It's when you've got someone growing pubic hair on head as president 😂
The problem also is the U S dollar,
It's funny how economics explained just barely highlighted Bolivia as a success story.
-توبوا الى الله لأن بالصلاح والاسلام تحيا النفوس والقلوب Repent to Allah in Islam because by Islam live the hearts and the souls
@@ahmedzuq4273 yes bolivia needs islam urgently inshallah will be muslim president
You cant have high ambitions if the voters ambitions are low.
you forgot argentina
May God bless his beautiful country of Bolivia!
Remember folks, God hates Bolivia
Can a Bolivian explain more please. Is it very difficult to let China enter as a big player? I may think that there are US restrictions for that to happen but maybe a local person can share the true insights. I personally feel that China cooperation may help a lot. Please share whatever link you are aware of about China in Bolivia? Thanks
China can’t help take Argentina for example they took the yuan but now are thinking of dollarization
China is already a major player in our Economy and there wasn’t a big respond from the US, actually since 2005 we barely have retaliations with the Americans
It's funny how he put so much effort into pronouncing YMFP but seconds before he misprounces Evo's 3-letter name.
Basically this video suggest if a nations economic policy is focusing on providing assistance to the under class the
Global Financial Institutions wouldn't invest
Evo Morales built a museum of his life and times in Orinoca, Oruro. What are you talking about?
@@MrAlegeniale I am not talking about a Cult of personality more how global financial institutions get a nation in debt with corrupt politicians
Did you watch the video
@@MrAlegeniale What are talking or did you forget that right christian government that Elon Musk suggests
We coup you for the lithium
@@jamesmurphy9426 The Bolivian Elite is very corrupt. They have stolen their money from retirees, from those who saved in dollars in Bolivian banks, and they are also putting those who buy or sell dollars in prison. That is why you cannot find dollars in Bolivia, they are using the Peruvian Sol currency as a replacement since the Peruvian Sol is a strong currency, and it is not controlled by politicians, but by independent technicians.
@@MrAlegeniale The Bolivian Government also sponsors terrorism in other Latin American countries. I am from peru. And here the Bolivian and Mexican governments were sponsoring left-wing terrorism.
In Peru, as in any country, there is political polarization, but it is not lawful for other governments to want to support the most extremist, radical and violent groups, with weapons, Molotv grenades and other easily prepared weapons.
That is why in Peru the vast majority rejects the Government of Bolivia, Mexico, and the left of Latin America.
Typo at 3:21 2009 instead of 2019
Why many countries in the world suffer inflation, rising prices and worsening economy?
Answer: BECAUSE US DOLLAR!
If every country sell their commodities with their own currency, none of this BS happen!
I’m from Ethiopia and,my country is poor …do u think China or other countries will accept Ethiopian currency? Ur a fool boy …u lack knowledge hw the world functions…the dollar is just a paper but, people trust the US gov and,their systems (even china hold $1T ) …it’s all about Trust …this is one of the reasons china struggling to promote her currency because,the gov devaluing it …that makes it unreliable currency…low iq fools keep bringing up GOLd back currency bu,that’s unreliable and,unrealistic because, there’s no enough gold and,that system is just outdated…
Latin American countries have a tendency to disregard economic growth, raise taxes, protectionism, state interventionism in the economy, etc. The richest countries all are liberal economies. They do not go witch hunting the richest people. And we do not learn that. A pity.
Damn
Why is Argentina's economy collapsing?
i’ve had a friend who’s lived in Cochabamba Bolivia for the past 12 years. We talk a few times a month. I lived there myself for about a month. The first five seconds of this video at least if not much more, you are making shit up. She has never gone to the bank for US dollars. She doesn’t think she could get US dollars at any bank in the city, nor in La Paz. Not from the shortage of supply, as if they were to supply it normally. But rather because they never supplied it in the first place. There is no demand for US dollars by the ordinary citizens of Bolivia. Zero demand. Your chances of buying some thing with US dollars in Bolivia are about the same as if you came with a pocket full of silver coins. They have value, and so some people might recognize that and feel prepared to undergo the process of translating a dollar into a useful money. But in general, it’s not work that people are prepared to take on.
Well technically the Latin American debt crisis that you used was caused by The American Central Bank raising interest rates to 20% to combat the great inflation and the Chilean debt crisis can be traced to the overvalued currency that the country had to the time and which have been helped to do so by being pegged to the US dollar along the whole bunch of other things and correction hybrid inflation in Argentina is nothing new at the time. It's been that way since Juan perrone and doesn't matter who came to power. The result was the same more inflation and price controls because the administrations are addicted to printing money Don't know if the president will ever break the cycle. Very doubtful sure his supporters might think he might do what Brazil did in the early '90s but that's very unlikely and the Brazil's crisis was caused by them building that city Brazilia that costed more than it needed and because the government didn't want to be near poor people in Rio and be reminded that they exist as well as the fact that the military junta well was not very good with money. Which big shocker yeah they didn't want to be overthrown by building a New capital of the country couldn't afford
now to third most gas/petrol reserves if Guyana can hold onto it also Bolivia was always poor now it just slightly more poor they were little Venezuela minus the money
4:56 this is wrong
Argentina never had a free market economy in the 80s, that's the reason we had hiperinflation due to huge printing currency and deficits. It only briefly had "neoliberal" policies during the first term of Menem presidency, who later returned to huge deficits to increase votes. "Neoliberalism" was never the cause of crisis in south america, every single crisis always started with huge interventionism, deficit, fixed currency value or simply by the shock of being uncapable of sustaining the economy after decades of promoting inefficient sectors that can't compete in the international market.
I wish nothing but prosperity and health for bolivia may they rise from poverty to become world richest country. But i know it will be too long for that.
I just have to point out the complete stupidity of this talking point that comes up a lot. The IMF requiring austerity measures when they bail countries out is not an abuse of power. The idea that it is unreasonable for the party giving a loan to another party to require certain measures are taken to make them actually solvent enough to pay the loan back and not end up in the same spot 5 years later is so incredibly stupid. So presumably countries should be able to spend infinite amounts of money and the US should just hand them more with no conditions when they run out. Is that the implication here? Would giving a loan to a bankrupt institution without any conditions attached make sense in literally any other circumstance? The very existence of the IMF is charitable. Created an organization to help failing contries turn their fortunes around is certainly kinder than any other world power has ever been.
What changed in 2019 was the US intervention simple😂
Nah, I remember how in the news police captured many of Colombia's FARC soldiers fighting in Morales' side.
Cuba and Venezuela intervened
Hopefully El Sueno is not going to take advantage of this situation in Bolivia
This is one of the most confusing videos about a nation's economic crisis that I have ever seen. It appears that they have tried everything over the last few decades, and they all end in failure. What in the hell are they supposed to do? There must be some common denominator that is preventing a rise to stabilization of the economy. There was no mention of corruption, or political interference by government players, and it sounds like they attempted to follow outside advice more than once. Could it be that there is a lack of knowledge or native intelligence to understand what to do? I noticed that there are other countries in South America also struggling at this time. Is there a cultural problem? Anyone?
Ever head about economic peripheries?
Econ guys after a democratic goverment survives CA coup:
The last coup in Bolivia was literally in 1980
love the video but the part about economic reform is kinda wrong, you talk about free market and privatizations and not quote Pinochet dictatorship, Friedman and the experiment that lead to implement those same policies under Reagan and Tatcher after the experiment in Chile. Instead quotes ordoliberalism reform without naming the corporativist wellfare state that makes it completely different in comparison with the models of latinamerica and EEUU. We are talking about CDU and SPD governments.
Do German miracle
bolivia had so many oportunities:
in the 1800s had plenty of silver, but they still was very poor.
in the 1870s Chile give bolivia coast land in a treaty when the only point is that bolivia dont rise the tax to chileans nitrate companies in 25 years, chileans companies in Bolivian coast (inhabitants by 98% chileans) made great business and give good tax money to the bolivian state. but only 4 years later, bolivian dictator arise the tax to chileans companies. Chile protested, so bolivia take and sell the companies. that broke the treaty so Chile send troops. bolivia declare war and call Peru to help...
bolivia left the war in just 11 months, and let peru fighting alone.
Chile win the war (every single battle in fact), conquer all peru, take all the nitrate region and become rich. bolivia lost the money, the coast and everything (dignity M.I.A)
in the 1890s argentina trick bolivians and take more land. same with Brasil and the Acre region.
in the 1930s have plenty of oil, and use this money to build a army with tanks and airplanes, but not enough to challange Chile or peru, so they attack paraguay, an even small and poorest country...
The paraguayans beat the bolivians so hard, that they take bolivian land and make money for decades selling the captured bolivians tanks and planes.
Yes, Bolivia never win a war (just part of a war agains peru), and lost badly with every neighbour.
in the 1990s have plenty of gas, but they refuse to sell to Chile. Chile eventually just build liquified natural gas plants and import gas from indonesia and US. now Chile wiithout any gas in soil, sell imported gas to the neighbours. argentina buy gas to bolivia, now Bolivia gas is depleted.
but bolivians always cry (in latam is called "lamento boliviano")
they are always victims, and never understand that the real enemy are the bolivians politicians, not the others latam countries.
so...
bolivia have the biggest reserves of lithium in the world, but dont sell anything, they still look for "partners". Chile is the 2nd exported of lithium (probably 1st soon) and Argentina the number 6 now (and increasing fast).
bolivia dont have the money, the science, the workers, etc.
and maybe never even start exporting lithium, if lithium was replaced by other mineral.
the ods are very bad for Bolivia, again.
How much money would Bolivia need give to Chile to be willing to cede come northern territories to give them access to the sea?
80 percent GDP in debt? US has surpassed 100.
The evils of fixed exchange rates, redux.
You should really do a video on the Peruvian Economy 🇵🇪
The perfect American Coup... Now get that lithium!! 😂
-توبوا الى الله لأن بالصلاح والاسلام تحيا النفوس والقلوب Repent to Allah in Islam because by Islam live the hearts and the souls
SAD STORY
I guess they’ll want to join BRICs soon….
glad my country (Indonesia) never do this stupid pegging thing
Populist policies mean making an economy for the people and not the international financial elite? Well in that case go Populist Policies!
I know this channel's name is "Econ", but this video is less about the economics of Bolivia, and more about how the mean ol' US of A bullied Bolivia into poverty. I'm hardly a USA apologist, but jesus christ, the US-hate was was so over the top that I couldn't hear the rest of the message.
Usa hate? This is how americans feel when facts r presented. And run to conserative aka usa apologists
Bolivia 🇧🇴 needs to invest in its vast lithium resources ASAP.
This may be the only salvation to its fragile economy.
Smart investment in lithium
could make Bolivia a rich nation in the near future.
Interesting report.
Greetings from Germany...🍺👋
Of course. The problem is that our incompetent government thinks we can do it all by ourselves, but in reality we need foreign investment as well as foreign technology to kickstart and create a big industry out of it. Countries like Argentina and Chile are doing it quite successfully, but our government refuses to make big agreements with foreign countries, all in the name of "sovereignty".
you never heard of scum yanky sanctions, bro..?
@@bolivianbillionaire1349yeah it’s the ones that don’t exist and you keep blaming us for 😂. Take accountability and build yourself up bro. Weak ass nation 😂
@@portiboliviaArgentina has already come out and said they will dollarize sooner rather than later
yeah its over
Argentine here: it is important not to forget the Late Cold War effects on South American 80's economic transition. The US Monroe Doctrine has a loooooot to do.
Yeah blame everyone else but yourself.
@@alesh2275 bruh the US literally carried out coups and put military men who completely mismanaged the economy, go read a book
@@salvador3102 Oh f**k off. The US also quite literally occupied Japan and Korea why aren't they in the same disaster state as Latin America? Read a book.
@@salvador3102 The US installed Pinochet, who was a bad person, but made Chile prosperous.
It is somewhat the fault of the US, though. Fear of US imperialism drove countries to communism, not just in Latam but also in Africa. But that is about to end, the US is getting weaker. I believe Latam will leave socialism behind, like eastern Europe did too.
@@DF-ss5ep it supported the Argentine and Peruvian dictatorships which was disastrous
The point of this video seems to be, Bolivia is doomed.
It always surprises me when people look to the government to solve money problems. It’s like hiring a plumber to fix your airplane.