Street protests against the decree of rising fuel prices continued yesterday in Bolivia, despite government efforts to neutralize them with the announcement of a substantial wage increase for next year. Moreover, the demonstrations were mainly in Cochabamba, El Alto and La Paz, considered strongholds of support for Evo Morales and his party, the Movement Toward Socialism (MAS).In a speech to the nation on Wednesday night, Morales announced a 20% increase in the minimum wage to offset the impact of the increase (of between 57% and 82%) of gasoline and diesel, which has unleashed a spiral in commodity prices. Morales defended the need to remove fuel subsidies to stabilize the economy and combat smuggling.
The president's arguments failed to convince the citizens, who yesterday continued on the warpath against gasolinazo. In Cochabamba, a demonstration organized to support the government against turning over, after the angry residents rejected their leader, Joel Flores, and clashed with riot police.
The coca leaf producers Ivirgarzama in Chapare, closed a stretch of road from Cochabamba to Santa Cruz early Thursday. Transport strike remained retired from public service and many of the vehicles. In La Paz and El Alto, a dormitory town 14 kilometers from the capital, residents fed demonstrations held to demand the repeal of the rise in fuel or at least its replacement by gradual increments.
Achacachi Aymara leaders announced they will march to La Paz to demand that if Morales "levels of fuel" to prices in neighboring countries, "he minimum wage level also," said Jesus Villca leader. The government, meanwhile, tries to explain the contents of Wednesday's presidential message, which, as expected, has frustrated even some of his followers.
The amount of the fuel subsidy, which in 2010 accounted for $ 380 million (287 million euros) will be dedicated to investments in the oil sector, programs to stimulate agricultural production, the supply of irrigation water rural municipalities and 20% increase in national minimum wage.
The operator shall have facilities for changing the energy matrix to vehicular natural gas, whose prices remain. Analysts believe that Morales will shift its economic policy after admitting failure in investments, especially oil. "If we want investment in oil, it must be that investors have profits," the president said in his message.
The state oil company YPFB, failed to achieve the objectives of the nationalization decreed in 2006, despite having a financial cushion initial 1,000 million. Bolivia now imports the equivalent of $ 600 million for fuel to declining levels of local production.
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