Bolivia
Analysis

Bolivia’s Arce under pressure to avoid new road blockades

Bnamericas
Bolivia’s Arce under pressure to avoid new road blockades

Bolivian President Luis Arce is being pressured to intervene directly in transport matters to avoid road blockades that could hurt the slow-growing economy. 

Earlier this year, backers of former president Evo Morales blocked several highways for two weeks due to a dispute over judicial elections and the term extension of several magistrates. These blockades generated around US$1bn in economic losses, according to government estimates.

The country’s transport chamber (CBT) has been staging protests in recent weeks over lack of access to foreign currency, fuel shortages and a decree passed last month that regulates contracts between transport companies and drivers. The chamber argues that the regulation is harmful for the sector because it removes the requirement for drivers to join CBT before looking for work.

The chamber’s leadership has threatened to stage road blockades across the country on Monday and Tuesday, while demanding a direct dialogue with Arce.

“We don’t want a blockade, but unfortunately if [Arce] doesn’t listen to us, the transport [sector] will stage a blockade,” said CBT president Héctor Mercado at a Friday press conference, as reported by local daily La Razón.

“A lot of things can happen, such as more sectors joining,” Marcelo Cruz, president of Bolivia’s heavy transport association (Asociatrin), told BNamericas when asked about the potential blockades.

Mercado also rejected a meeting with public works minister Édgar Montaño, saying that previous encounters failed to address the sector's demands and that only Arce will suffice. 

Montaño said his office was working on a response to CBT’s demands, while accusing Mercado of being part of a “new right wing” that is planning a coup against Arce.

The ongoing economic and political instability was recently cited by Moody's as one of the causes behind the country's credit rating downgrade.

The IMF forecasts that the Bolivian economy will grow 1.6% this year, while expecting the year-end inflation rate to be 4.5%.

Subscribe to the leading business intelligence platform in Latin America with different tools for Providers, Contractors, Operators, Government, Legal, Financial and Insurance industries.

Subscribe to Latin America’s most trusted business intelligence platform.

Other projects

Get key information on thousands of projects in Latin America, from current stage, to capex, related companies, key contacts and more.

  • Project: Block Z-67
  • Current stage: Blurred
  • Updated: 2 days ago
  • Project: Block 58
  • Current stage: Blurred
  • Updated: 2 days ago

Other companies

Get key information on thousands of companies in Latin America, from projects, to contacts, shareholders, related news and more.

  • Company: Goldbeck Solar Gmbh  (Goldbeck Solar)
  • The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
  • Company: UIPPL Libertad
  • UIPPL Libertad, made up of Teyma Uruguay S.A., Ciemsa S.A., Saceem S.A., Etarey S.A. and Mefren S.A. for the execution of the Penitentiary Units project in Penal de Libertad (Sa...
  • Company: Evolución en Cómputo S. A.  (Evocom)
  • The description contained in this profile was taken directly from an official source and has not been edited or modified by BNamericas researchers, but may have been automatical...
  • Company: 1832 Asset Management L.P.  (1832 AM)
  • The description included in this profile was taken directly from an official source and has not been modified or edited by the BNamericas’ researchers. However, it may have been...