The Letter Bolivians are Waiting for from the IMF

News Item: The Bolivian research organization, CEDLA, reports that the newly announced reduction in Bolivia's budget deficit (down to 3.5% of GDP) is a direct result of the country's new steeper oil and gas taxes, a product of social movement mobilizations earlier this year. Los Tiempos, October 16, 2005

[Perhaps then, we should expect the issuing of the following any day now.]


Memorandum

TO: Bolivian Social Movement Leaders

FROM: Rodrigo de Rato, IMF Managing Director

RE: Congratulations

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Ladies and Gentlemen,

I want to congratulate you on the fine work that you have done in reducing Bolivia's budget deficit. Really, kudos to you all.

As you know, the IMF has been greatly concerned with Bolivia's rising budget deficit in recent years. You may recall that in 2003 we told your government that it had to reduce its deficit by $240 million dollars in order to stay in our good graces. Yes, the medicine was drastic but global economics is serious business (and, well, let's just forget that whole IMF-sparked Asian meltdown thing). Your government told us such a deep cut couldn't be done so quickly, that the result would be social chaos. Okay, 34 people were killed and the army and police had a shooting war with each other on the steps of the national palace. Win some, lose some, no?

But look at what you have done! A budget deficit of 3.5%! Well, that beats my good neighbor around the corner at the White House. I'll mention it to him at the big barbeque next weekend. He doesn't listen to our deficit warnings either, but the guy gives a great barbeque!

Raising taxes on foreign oil companies? Ingenious! Who'd have thought? You know, there are a lot of economists who say you can’t do that kind of thing. Shell, Enron, British Petroleum and those others will just take their marbles and walk away. Lucky for you I guess, your marbles (all 53 trillion cubic feet of them) are stuck in the ground. Actually, I'd like to apologize. Maybe we should have thought of suggesting raising taxes on the oil companies back in 2003. Taxing Bolivians just made so much more sense to us.

Anyway, just because you were right this time, don’t go all silly on us and demand that Bolivia actually control the gas and oil. You got lucky on the idea of boosting taxes, okay. But, please, from here on out leave the driving to us.