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%.

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