When Bolivian President Evo Morales nationalized some of the country's very large mines, he abandoned foreign operators who invested in all infrastructure and invested all the money to mine them. These foreign investment companies and the companies that do business have lost everything, and they pay royalties and taxes to the Bolivian government under the contract.
In a speech, Evo Morales claimed that these resources belonged to the Bolivian people, especially the Bolivian people, and the native Indians on the land. Similarly, he said that the funds generated from the minerals collected from these mines belonged to the Bolivian people and that the funds generated should be used to help them lead a better life than the profiteers of foreign companies.
This has brought shock waves to the entire foreign investment community, and Bolivia was soon included in the short list of foreign investment. It turns out that when Bolivia took over the mines and drove them out, they didn't know about it. The mining industry has made mining efficient enough to turn a profit.
At the same time, Evo Morales promised to the Bolivian people that by taking over the landmines, they were able to pay for the services the government provided to the people. Now, the Bolivian president is running for re-election, and many farmers have taken over other small coal mines, claiming that they own these coal mines.
This caused a series of new shock waves, however, nothing was done. It seems that the Bolivian president has begun what he can't do now, and so close to the election, he did not say a word.
According to Reuters; "analysis - Bolivia's Morales to turn a blind eye to my seizures," October 2009 Thursday 15th, author: Diego Ore; "the peasants seized dozens of mines is increasing the dilapidated mining industry in Bolivia The dilemma, but the left-wing government is unlikely to crack down on squatters before the presidential election."
It seems that socialist tactics have caused Bolivian thugs, which seems to herald the future. Bolivia is definitely a crossroads. Although this country used to be a rising star in South America, these days don't look too good. Even rogue communists and socialist countries have entered the current government. Please consider all of this.
Orignal From: International Business Issues - Bolivia and Evo Morales
No comments:
Post a Comment