December 30, 2010

Gasolinazo y Tarifazo!

MABB © ®

What seemed to be the beginning of the end for the Mesa presidency, the removal of fuel subsidies in December 31, 2004, could turn into the beginning of the end of the Morales era?

This FB album shows what is going on in the ground.

3 comments:

Gringo said...

Good comparison w Mesa, where decisions based on good economics do not always translate into good politics. What I have read about Morales over the years indicates to me that in contrast to his mentor Thugo of Thugoslavia, there is a certain amount of fiscal prudence in Evo's decisions on policy. I am therefore not surprised as some might be at Evo's attempt to raise gasoline prices.

I believe the change [proposed?] in Bolivian prices would place gasoline at ~ $3.50-$4.00 US/gallon - world prices- compared to ~ 15¢ US /gallon in Thugoslavia, a.k.a. Venezuela.

As I am not in Facebook, I cannot access the photos, but I can imagine. There is some poetic justice in Evo making a decision which indicates good governance, only to be subjected to riots/road blockages etc. Heist, meet petard.[Apologies to Shakespeare]

A good reply for Evo would be that the proposed increased in gasoline prices would affect the well-off who own autos more than it would the poor. It may be difficult to convey that message during a riot.

I wonder if part of the reason for the response is that Evo didn't prepare the public for the decision by previously stating such things like gasoline subsidies benefit the better off more than they do the poor. From what I have read, Evo has a somewhat authoritarian matter: you do what I say [or I kick you where it will hurt]. He would therefore not have much inclination or practice for preparing the public for an unpopular decision by attempting persuasion.

Anonymous said...

Nice MABB is back!

mabb said...

Yes, sorry about that. Blogging had to make some room for work! But, thanks for checking back.