Bolivia government announces adjustments to economic plan

People walk down a street blocked by members of the Bolivian Workers’ Union in La Paz, Bolivia, on Thursday. Centrist Rodrigo Paz marks two months in office in Bolivia amid a simmering conflict over the decree that withdrew fuel subsidies in the country. Photo by Luis Gandarillas/EPA
Jan. 9 (UPI) — The government of Bolivia confirmed it will introduce changes to 35 articles of a decree that established a package of economic adjustments, including the end of fuel subsidies, as groups affiliated with the Central Obrera Boliviana continue blocking highways at 29 points across the country.
Deputy Minister of Autonomies Andrea Barrientos said the changes are procedural rather than substantive and are aimed at adding clarifications, such as respect for the Constitution and mechanisms for social oversight, according to local daily El Deber.
No date has been announced for the changes.
The government said the amendments will not affect eliminating fuel subsidies. The decree set new reference prices that imply increases ranging from 86% to more than 160% compared with subsidized levels.
Authorities argue the measure is necessary to restore public finances and correct fiscal distortions.
The labor confederation, which has led protests and road blockades for the past two weeks in La Paz, Cochabamba, Potosí, Oruro and Santa Cruz, is demanding the repeal of the decree and denied the existence of any pre-agreement with the government.
Government officials estimated Thursday that economic losses from the labor confederation’s road blockades could reach $100 million a day, when considering the overall impact on industry, commerce and transportation.
“Industrial groups are talking about $20 million to $40 million a day. In commerce, transportation …. Without a doubt, we are easily talking about around $100 million a day,” the official said.
In a new phase of the political confrontation with President Rodrigo Paz, Vice President Edmand Lara on Thursday introduced a bill seeking to nullify articles of the decree that ended fuel subsidies.
Since the elections, relations between Lara and Paz have deteriorated. The vice president says he was excluded from executive decision-making and has declared himself in “constructive opposition.”
Lara’s initiative targets provisions of the decree enacted in December that dismantled a subsidy system in place for more than two decades and sharply raised gasoline and diesel prices.
The vice president, who also presides over the Legislative Assembly, said several articles are “unconstitutional” because they encroach on congressional powers and alter key rules governing investments in natural resources.
Criticism has focused on a fast-track mechanism included in the decree to approve investment contracts involving natural resources.
Analysts, lawmakers and unions warn that the expedited process could weaken legislative oversight and bypass constitutional requirements, such as environmental licenses and prior consultations with affected communities.
Political tensions escalated further with a new decree allowing the president to perform his duties digitally during temporary absences from the country. Paz is expected to travel to the World Economic Forum in Switzerland later this month, a trip that would normally require transferring power to the vice president.
At the same time, constitutional challenges were filed with the Tribunal Constitucional Plurinacional, whose ruling could be delayed due to a lack of quorum.
Opposition lawmakers, including members of the Libre alliance linked to former President Jorge Quiroga, also have objected to several articles of the decree.



























