Bolivia’s Economy in Crisis as Ruling Party Factions Clash

Bolivia’s Economy in Crisis as Ruling Party Factions Clash

Bolivia’s economy is sliding further into turmoil as internal strife within the ruling party exacerbates an already critical situation marked by fuel and U.S. dollar shortages.

Long lines of citizens scramble for petrol and diesel, while those less fortunate queue at government stores, hoping to secure basic food supplies, according to local media reports.

Jean Pierre Antelo, the president of the Santa Cruz Chamber of Commerce, expressed dire concerns in a recent YouTube video, warning that Bolivia’s economy is on the brink of collapse.

The central bank’s announcement last year that it had run out of U.S. dollars underscored this crisis, leaving the nation unable to finance fuel imports crucial for sustaining economic stability.

The shortage of dollars has crippled businesses, with many unable to procure essential imports and forced to shut down operations.

Decades ago, Bolivia gained notoriety as one of the world’s top cocaine producers, a status that made it an international pariah.

Although the country shifted its focus by exploiting its mineral wealth and cracking down on drug production, subsequent socialist governments unsettled foreign investors by asserting state control over mining resources.

Large-scale investment in social welfare programs lifted many families out of poverty, but this spending drained dollar reserves, edging the economy closer to collapse. Shortages of imported goods have triggered a sharp rise in prices for most manufactured products.

Complicating the situation are reports of power struggles within the ruling party, with factions reportedly clashing over military influence.

Concerns have emerged that one faction is seeking control of military bases, deepening President Luis Arce’s fears of a potential military power grab.

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Publish date : 2024-11-06 05:12:00

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