Well, finally we are getting a little publicity. Bloomberg posted a short story on the ongoing strikes & disruptions. They state that the inflation rate has gone up 1.76% since December. Should say something like 20-25% on a number of things. A lot of the clamor for the last few days has been the protest against the 33% increase in public transportation fares enacted last Saturday in Cochabamba, PotosÃ, Santa Cruz and Oruro. No approval by any government agency, just put the money in the hat, ladies and gentlemen and nobody gets hurt, okay? For some pictures of the blockades & disruption today, click here.
Folks, this has been coming for some time. And as we have mentioned in previous posts, it ain't just Bolivia. There is some serious inflation coming having to do with basic food stocks on a global scale. The reaction here is via spikes in cost on some things (sugar up over 60% for awhile in just January/February) that are staples. The sugar story is a combination of basic price increase, speculation, hoarding, and lack of production in Bolivia. But as the cost of grains ripples through poultry, dairy and meat production, it is only going to get worse.
The workers' union that called the strike today is like an umbrella organization of the order of the AFL-CIO. They are asking for something like 20% increase in wages. Nothing compared to some groups asking for over 50%. But even this understates what is going on. Something like over 50% of the economy is informal. What farmers belong to a union? Street vendors? And what about the region where our non-profit operates: still a lot of non-cash bartering goes on out-back. If a person is lucky enough to have a paying job, the union will help. But over 50% of the working population is not protected or represented. This is only going to get worse before it gets better is what a number of us think....
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