Bad news

12.17.2003

Bolivians have finally come to understand that the country must export its sizeable gas reserves. The country can neither afford to industrialize the gas, nor does the domestic market (currently) justify the expense. Unfortunately, the October guerra del gas scared many investors away.

Today's papers report that Sempra Energy, the company that was considering purchasing Bolivian gas, has just signed a contract w/ another provider. Other potential buyers are much more reluctant, in the face of economic & political uncertainty. So. Whether Bolivians want it or not, the slogan might become reality: el gas no se vende.

Add to that the fact that many La Paz-based businesses are relocating to Santa Cruz or Arica (across the border), you have a bleak picture for Bolivia's economic recovery. Specifically the western provinces and La Paz, where the guerra del gas was localized. Santa Cruz & Tarija, which have the gas reserves and didn't protest, will continue to grow economically, at the expense of La Paz and other kolla regions. No wonder the recent Iberoamerican Summit was held in Santa Cruz, w/ dramatic economic benefit to the city (and a net loss to La Paz, the nation's capital). This type of lopsided socioeconomic development will continue to increase the rift between cambas & chapacos (in the east) and kollas (in the west).

Meanwhile, police found yet more ELN material, including 35 mortar grenades (81mm). This time in a car just outside Viacha (on the outskirts of La Paz). Police suspect the munitions were destined to the Chapare.

Finally, one of Goni's ex-ministers was recently caught in a tremendous scandal. Yerko Kokoc (ex Minister of Government) was found in possession of considerable sums of government cash (by "considerable" I mean several million Bs). He claims the funds came from the government's gastos reservados ("special reserve funds") and were meant to finance the last few days of Goni's presidency in times of uncertainty. But the question becomes: Why didn't he submit a financial report about these funds after Goni's resignation?

Posted by Miguel at 04:21 PM