Authored by Felicity Bradstock via OilPrice,
- Bolivia's dwindling natural gas reserves and declining exports have undermined its economy and intensified fuel shortages.
- Rising global energy prices and subsidy cuts have increased living costs and fueled widespread protests.
- A $1.9 billion IMF rescue package and energy-sector reforms aim to stabilize the economy, but long-term recovery requires diversification.
Years of underinvestment in Bolivia's gas industry have left the South American country facing a severe fuel shortage, as energy prices rise ever higher owing to the ongoing war in Iran. The energy shortages and economic crisis follow years of poor decision-making by the government.
In 2006, then-president Evo Morales took control of Bolivia's fossil fuel industry, renegotiating contracts with international oil and gas companies and benefiting from the revenue. Much of the country's newfound wealth was invested in public spending programs, expensive fuel subsidies, and the maintenance of a fixed currency exchange rate pegged to the U.S. dollar. Fossil fuel revenues contributed heavily to Bolivia's economy for several years, supporting GDP expansion and the development of social programs that helped READ MORE AT SOURCE »
« Back to The Culture War
