Bolivia's Investment Law Faces Hurdles in Deputies

Bolivia's Chamber of Deputies is set to begin debating a new investment law, but the path forward appears fraught with challenges. Legislators from both the ruling party and the opposition have raised significant concerns, warning of potential clashes with the constitution and anticipating a protracted discussion.

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It is going to be a long road.

The Commission on Planning, Economic Policy, and Finance will initiate the review of the first of 11 proposed laws from the executive branch. However, members of the commission anticipate a lengthy process, estimating it could take up to a month before the bill reaches the full chamber for a vote. The complexity stems from the bill's engagement with legal, economic, and social issues.

Concerns have been voiced regarding the transparency of the legislative process. Deputy José Luis Porcel of the Libre party noted a lack of information about consultations with social movements and regional groups whose natural resources could be affected by the law. He stated that while private businesses may have been consulted, social groups have not, predicting significant hurdles if this outreach is absent.

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I understand they have socialized with private businessmen, but with social movements, with regions that could affect their natural resources, there is no information.

Even members of the ruling party are signaling potential difficulties. Deputy Sandra Rivero of the PDC cautioned that the law could spark considerable debate if it aims to alter the fundamental economic model. She used the analogy, "You can't put on your shoes and then your socks," to illustrate her point that structural changes require foundational constitutional adjustments first.

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If it touches structure (...) if someone wants to touch structure, first we have to touch the Constitution.

Beyond constitutional questions, critics doubt the law's efficacy in attracting investment. Porcel questioned whether Bolivia can guarantee essential resources like gasoline and gas, alongside legal certainty and manageable tax burdens, to potential investors. He suggested that these persistent structural problems, rather than a new law, are the primary deterrents to capital inflow.

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You can't put on your shoes and then your socks.