Wednesday, April 26, 2006

Government Wants to Take Over Foreign Investment

Brazilian steel factory EBX is announcing its departure from Bolivian soil, unless the government changes its ways. The current administration is accusing EBX of operating illegaly (so far it has not presented any proofs), while EBX says that this is not the case, that they are a far too big enterprise to be operating illegaly. Obviously, the case didn't go to the courts, for the Judiciary to decide who is right and who is not.

Evo just bullied EBX, apparently, to gain control of it. In an interview with Brazilian newspaper O Globo, EBX President Batista said that the Bolivian government is sending signals that they would be allowed to stay if and only if they were to accept the government taking over 51% of the project. EBX is not interested in caving to Evo's wishes, though. They'd rather leave the country.

Is there any surprise as to why FDI is virtually disappearing from Bolivia?

Lost Opportunity: EBX was going to invest $330 million in total, and already invested $148 million. According to them, this project would have generated 6000 jobs, although a letter to the government reduces this figure to 3500.

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