The Society for Threatened Peoples (STP) fears that the Bolivian government’s decision to abolish fuel subsidies overnight will primarily affect indigenous communities and other marginalized population groups. Despite the announcement of social compensation measures, the human rights organization sees a considerable risk of social unrest and new protests.
The decision is part of a comprehensive package of economic policy measures that is also being implemented under considerable international political pressure. The Bolivian government declared an economic, financial, and social emergency, relaxed import and foreign exchange rules, lifted state controls, and focused on the rapid liberalization of key economic sectors, as is often demanded in connection with loan agreements with international financial institutions, particularly the International Monetary Fund (IMF).
“Experience from countries such as Panama and Ecuador shows that such price increases can trigger massive protests. There is also a real danger of social unrest in Bolivia,” warns Jan Königshausen, STP’s Advisor on Indigenous Peoples.
Although the government has announced compensatory measures such as raising the minimum wage and bonus payments, the STP believes these fall short. “A one-time bonus of 200 bolivianos – about 25 euros – and a moderate increase in state social benefits are out of proportion to the permanently rising costs of transport, food, and energy,” explains Königshausen. “A large part of the population works in the informal sector and benefits neither from minimum wage increases nor from wage-dependent compensation payments.”
The effects are particularly dramatic for indigenous communities in the Amazon region and in remote areas, which are frequently only accessible by river. “If transport costs explode, access to food, medicine, and other essential goods will be severely restricted for these communities,” warns Königshausen. At the same time, the increase in transport costs will make it more difficult to sell their own products, economically isolating entire communities.
The STP warns of a chain reaction of rising prices, growing poverty, and social tensions. “Without targeted, inclusive compensatory measures, the reforms threaten to further exacerbate existing inequalities and push the indigenous, peasant, and impoverished populations even further to the margins of society,” says Königshausen. The potential for conflict is considerable and could quickly erupt on the streets, as has been the case in other countries in the region.
This press release was translated from German to English using AI. If you come across errors or ambiguities, please contact us at 65]G378o6DD6CA.
Contact: Jan Königshausen, Advisor on Indigenous Peoples – 65]G378o?6DF29D8:?6@<];