2003News

Silverio: governance and economy

Pedro Silverio, columnist and chief economist at the Cenantillas research facility at the PUCMM in Santo Domingo, comments on the three elements that seriously threaten the ability of the authorities to govern. The first is the internal crisis of the PRD party, which could erode political backing for the current government and install a President who lacks his own party’s support. A second factor could be derived from the relentless discourse on re-election, while talking about tax policy and public spending, which fly in the face of the recommendations made by the head of the Central Bank concerning stricter fiscal discipline. Silverio says that to repeat the same mistakes that have landed us in the current situation is, in itself, a menace to good governance. The third element, says Silverio, is the improper dissertations that have placed the full blame for the failure of the government’s social policies squarely on the shoulders of the business community. This could stimulate friction between the business contingent and the workers, as well as between rich and poor. The economist finishes by saying that by fueling a conflict between the haves and the have-nots, the government is also abetting a clash between itself and the business community. He warns that the situation in Bolivia should serve as an example for the local authorities.