Minister of the Economy of Evo Morales: Brazil and Argentina are two time bombs

Argentina is the antithesis and, in fact, the Bolivian government uses Macri's management crisis as a warning of the risks of a change of pattern. Next to the deceased Carlos Villegas, the Bolivian minister of the economy Luis Arce Catacora he is the great architect of the "Bolivian miracle". In this interview on the 21st floor of the ministry building in downtown La Paz, Arce received Field of application with a flawless costume and a pin of Che Guevara.

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Photo: scope

JOURNALIST: Are you a socialist?

Luis Arce: Yes sir.

Q: Could Bolivia be defined as "state capitalism"?

THE. For nothing. This is different: a productive community socio-economic model with many elements. He recognizes that in our country, several modes of production coexist, to use Marxist terminology. And the first thing we did was recognize this hybrid relationship between modes of production and start interacting with something forbidden to neoliberalism: the presence of the state. Today, the state is in the vanguard of the Bolivian economy, it is the most important player in the economy.

Q: During these 13 years, the management of Morales has presented remarkable economic indicators. What threats do you see in the future?

THE.: The trade war between the United States and China concerns everyone and will affect us indirectly. It could also open up market opportunities, we are negotiating with Russia, with China. Today, the powers are fighting for the struggle for the hegemony of the world economy and in this struggle, foreign trade is experiencing an ebb. You have to try to insert.

P: The opposition claims that the early years were the product of an external dummy and that the model is being depleted. What will I say to them?

THE.: International commodity prices have been high since 2003 (Morales presumed in 2006). In 2003, 2004 and 2005, no development took place in Bolivia today. If prices had been high and oil and gas had been in the hands of transnational corporations, the money would have come out. We nationalized, so the money stayed in Bolivia and we enjoyed it. Our model begins with the appropriation of the surplus generated by the natural resources we have. Bolivia is a very rich country: how to explain that a country as rich in resources is so poor? This is the story of looting. And this new story begins with the nationalization of hydrocarbons.

Q: And to those who say that the model is sold, what would you say?

THE.: Neoliberals say prices have determined the president. In 2008, the price of a barrel dropped because of the crisis in the United States and in 2009, Bolivia is the fastest growing country in the region. Is it lucky? In 2014, prices also dropped from $ 110 to $ 26 a barrel. Look what coincidence, Bolivia that year recovers the first place in the growth of the region. We did it in 2014, 2015, 2016, 2017 and 2018. And this year we will also be the first economy, with relatively low prices. Is this true what they say? All they want, is to justify the inefficiency of the neoliberal model that they administered and imported from the United States universities and that they would not have managed for 20 years.

Q: Are there plans for industrialization?

THE.: Bolivia is industrializing. The most important sector contributing to Bolivia's gross domestic product are not hydrocarbons, which account for 6% of GDP. Neither the mining sector contributes 5%. The most important sector is manufacturing and industry, which contributes 18%.

Q: Is it produced for the domestic market?

THE: We export urea (fertilizer) and produce lithium carbonate and potassium chloride. We have a partnership with a German company to produce a lithium battery here in Bolivia.

Q: There are sectors that say that lithium is the future and others, that it is overvalued.

THE.: It will go little by little. It will begin with 1 or 2, but on the horizon, it can occupy 3 or 4%. The prospects are good. In the world, there is an energy crisis. The energy from the hydrocarbons is exhausted. There is a change in the energy matrix towards renewable energies. And there is lithium, since we are the first lithium reserve in the world. So we have the huge opportunity to become for the first time price fixers, but to actively participate in its industrialization.

Q: Is there a dialogue in the region on the possible exploitation and joint industrialization of lithium?

THE.: Not that I know. Everyone does what he can.

Q: Why? Is it reasonable?

THE.: There is no OPEC that determines lithium prices. Something similar must happen, and the bigger players must be. We will be there.

Q: And regionally?

THE.: Brazil and Argentina are two time bombs. They influence the area a lot because there is a lot of trade with them. Argentina took from our point of view measures totally fundamentalists, neoliberal measures that aggravated the problems. This will have consequences for the economy and social problems. Brazil is not very far, the domestic debt is very high. Poverty worsened after the departure of Dilma, and people out of poverty again fell. When you walk the streets of Brazil, you see poverty, you do not have to consult the statistics.

Q: This month, there are elections in Argentina and Uruguay, what are your expectations?

THE.: We have to wait, but the primary elections showed a very clear horizon. The one who lost was not Mr. Mauricio Macri in Argentina, but the neoliberal model in South America. The oligarchies of our countries who are trying to regain power by reinstating the old neoliberal model, I think that has failed. We will see this, from our point of view, in other countries of the region.

Q: Do you have contacts with related sectors of the potential government of Fernández?

THE.: There is no dialogue, but we have good relations with the people of Axel Kicillof.