Antelo: ‘We have half an economic reckoning and complete shortages’

Bolivia has “half an economic reckoning and complete shortages,” according to Jean Pierre Antelo, president of the Santa Cruz Chamber of Industry, Commerce, Services and Tourism, known as Cainco. His phrase captures the business sector’s frustration with an adjustment that changes some conditions while leaving major distortions and fuel shortages in place.

Antelo said Cainco agrees with the president that the economy needs to be brought into line with reality. But he rejected the idea that this can be presented mainly as a demand on society. “We agree with the President: the economy needs to be brought into line with reality. But bringing it into line is not a decision that can be asked of society; it is a government decision,” he said.

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We agree with the President: the economy needs to be brought into line with reality. But bringing it into line is not a decision that can be asked of society; it is a government decision.

He focused particularly on diesel, which continues to have different prices depending on the type of consumer. In Antelo’s view, a genuine reform would eliminate that gap and establish one price for everyone. “Bringing prices into line means one price for everyone, social protection for those who will feel the adjustment, and clear rules so the private sector can enter and supply the market. That is the only way a reform can last,” he said.

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Bringing prices into line means one price for everyone, social protection for those who will feel the adjustment, and clear rules so the private sector can enter and supply the market. That is the only way a reform can last.

Cainco’s position comes as Bolivia deals with several pressures at once: a shortage of dollars, difficulties financing imports, strain on international reserves, a fiscal deficit and unreliable fuel supplies. The lack of foreign currency has increased costs for importers and companies that need dollars to buy goods, machinery and inputs abroad. Fuel problems are also raising costs for transport, farming, construction, commerce and logistics.

The diesel dispute also has a fiscal dimension. Domestic fuel prices have been supported by subsidies for years, while national hydrocarbon production has declined and Bolivia has become more dependent on imports. The government is considering changes to fuel pricing and distribution, but the private sector says any reform will fall short unless supplies become regular and different prices for consumer groups are removed.

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Today we have half an economic reckoning and complete shortages.