Industries News.Net

Economic crisis in Bolivia disrupts life and livelihoods


Robert Besser
1 Dec 2024

EL ALTO, Bolivia: Fuel shortages have left Bolivians waiting in kilometer-long lines at gas stations, disrupting daily life and intensifying the country's economic crisis.

For drivers like 66-year-old Victor Garcia, hours or even days spent in line have become routine.

"We don't know what is going to happen, but we are going to be worse off," Garcia said while waiting in El Alto, a sprawling city near Bolivia's capital.

The crisis is part of a broader economic downturn marked by plummeting foreign currency reserves and a soaring black market exchange rate. Once readily available imported goods are now scarce. Food prices have surged as farmers face difficulty transporting produce to markets due to fuel shortages, further straining a population already grappling with an 8 percent inflation rate.

Public frustration has spilled into the streets. In Santa Cruz, Bolivia's economic hub, hundreds of truckers and residents protested against rising costs and fuel shortages, demanding solutions. "We want effective solutions to the shortage of fuel, dollars, and the increase in food prices," said Reinerio Vargas, vice-rector of a local university.

In La Paz, protesters marched through the streets shouting, "Everything is expensive!" The discontent underscores growing tensions ahead of Bolivia's 2025 elections.

Despite the turmoil, President Luis Arce's administration maintains that the situation is under control. "Diesel sales are in the process of returning to normal," Economy Minister Marcelo Montenegro said. Arce has repeatedly set deadlines to resolve the fuel crisis and reduce prices, but none have been met, deepening public mistrust.

This crisis marks a stark reversal for Bolivia, once hailed as a regional economic success during the commodity boom of the 2000s. The end of that boom, coupled with dwindling gas production, has left the government spending $56 million weekly on fuel imports from Argentina, Paraguay, and Russia. Critics warn that such expenditures are unsustainable.

Farmers have been hit particularly hard. The diesel shortage has disrupted the use of tractors and other machinery, jeopardizing the planting season. "Without diesel, there is no food for 2025," warned Klaus Frerking, vice president of the Eastern Agricultural Chamber of Bolivia.

As economic hardship mounts, the political rivalry between Arce and former President Evo Morales looms large. Both are using the crisis to bolster their positions ahead of the elections, further polarizing the nation.

"People don't live off politics; they live day to day," said 31-year-old architect Geanina Garca, reflecting the frustrations of many Bolivians struggling to afford basic necessities amid a deepening crisis.

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