On Dec. 26, Bolivian President Evo Morales issued a decree canceling heavy subsidies on gasoline and diesel fuel, citing the heavy preponderance of fuel smuggling across the border, and thus triggered a rise in fuel prices by more than 70 percent. The change was met with widespread protests, riots and a national transport strike. Morales reversed his decision on Dec. 31. Should Morales have ended fuel subsidies in Bolivia? What are the political ramifications for the move and its subsequent reversal? What else can the government do about widespread fuel smuggling? Is the government likely to cut subsidies in the future? Experts discuss what they think about this topic.
Copyright © 2011, Inter-American Dialogue, used with permission from the publishers
Inter-American Dialogue's Latin American Energy Advisor. "Should the Bolivian Government Have Ended Fuel Subsidies?." (2011). http://digitalrepository.unm.edu/la_energy_dialog/109