Saturday, July 12, 2008

Why the Bad Press?

Why all the establishment hate for that non-offensive teddy bear, Evo? Inca Kola News cuts right to the heart of the matter: it's got something to do with the above graph, and billions of dollars. Billions of dollars in revenue assets Evo's government, unlike all previous administrations, is actually being fiscally responsible with, broken down again by Inca Kola News in the one of most sensible discussion of the Bolivian economy you're likely to read anywhere. So explain to me why an uneducated Indian like Evo is able to handle Bolivia's economy better than all the previously highly distinguished 'Chicago Boys' who occupied the Presidential Palace? And why anyone still listen to those guys?

...and don't forget that Evo is also gradually clearing up the entirety of Bolivia's debt to the IMF and World Bank, to finally get these third rate economists off his countrymen's backs.

4 comments:

Anonymous said...

can you read spanish? may be you should read this article....

http://www.la-razon.com/versiones/20080713_006332/nota_246_631346.htm

and in the end (i foresee 3 to 5 years), bolivia will be begging the chicago boys to come back, or whoever is brave enough to try to fix such a mess,

Otto Rock said...

anonymous,
This Razon article is exactly the kind of anecdotal attack used by people who can't criticize the facts. That's the difference here; those that can't stand facts are reduced to rumour, heresay and all the others.

By the way, this same poor argument has been used at PdVSA by the Chavez haters. i.e. how the brain drain was ruining Petroleos, and how production was dropping and how this and how that. Here we are in 2008, and the naysayers are still playing the exact same tune an PdVSA is making record profits and expanding production. Read here:

http://incakolanews.blogspot.com/2008/07/whats-going-on-over-at-pdvsa.html

Facts about oil+gas and state revenues really don't help people criticize Evo, because they say the exact opposite of what they want to believe. The FACT is that Evo Morales is running the state accounts responsibly.

Duderino,
Thanks for picking up on this and giving that chart come more airtime. I think it's one of the most impressive statistical tables I've seen in my 12 years of covering Latin America. The other chart showing Bolivian currency reserves on the original post may not be as eye-catching, but it's every bit as important as the gas revenues information (in my wonky finance way of thinking, anyway).

Again, the fact (word repetition is not coincidental) is that Bolivia has put over U$3Bn in the Central Bank reserves in less than one year; it's a stunning amount for a country like Bolivia...practically unheard of in world finance annals, and certainly the best result in Bolivia's financial history...and by a long way, too. The long term benefits of this policy cannot be underestimated. Bravo Evo....a Socialist with fiscal responsibility....it had to happen to the world eventually.

Bina said...

La Razon = Right wing crapaganda rag.

Not an original thinker on staff; they just transcribe press releases from the IMF and World Bank, who are notorious for wreaking ruin everywhere one of their boys sets foot (the better to sell more wrack and ruin to that same country later). The only country in Africa the IMF didn't ruin was Botswana, and that's because Botswana's government told them to take a hike and chose to do things its own way. So Anonymous, your prediction will fall flat on its face, as flat as the bad Bretton Woods economic policies of the last 30 years. If anything, there will be a huge clamor for Evo's re-election.

And no, one doesn't need to read Spanish to understand that--only the actual numbers.

El Duderino said...

Anon,
Unfortunately, La Razon, Bolivia's paper of record- if it has one- is not a reliable source for news. I still read it, because its the best corporate paper in Bolivia- a non-golpista voice. However, over the last few months, La Razon has begun publishing increasingly vicious and unsubstantiated attack pieces on Morales. The kind of stuff (like this Yacuiba bombing bull) that used to only make it in the yellow rags El Deber and El Correo del Sur next to the pictures of pretty white girls.

You are more than welcome Otto, don't know why I forgot to link to your original econ analysis in the first place.