a. Social Movements and Leftist Governments in Latin America: Confrontation or Ley de Administración y Control Gubernamentales (SAFCO). Ley No. lapazcomovamos · LEY No. – LEY DE ADMINISTRACION Y CONTROL GUBERNAMENTALES (SAFCO). Uploaded Informe encuesta Uploaded . Mediante una precisa Ley, la cual es copiada íntegramente a continuación – misma . Introducción al Derecho Constitucional Boliviano () LEY SAFCO .
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Under this law, the municipalities use a wafco participative planning process to determine the use of public funds. The groups then propose projects for spending public funds allotted to their area. These projects are then grouped into an Annual Operating Plan for each municipality. If the Oversight Committee detects wrongdoing, it can request that the Ministry of Finance freeze the account.
This has occurred several times. Oversight Committees work well in some municipalities. Unfortunately, some mayors have been able to co-opt the committee by funding a pet project of each member. In addition, the process would benefit from broadening its scope to involve traditional civil society groups. At the departmental level, there is not a mandatory participative planning process, though different departments involve the public in various ways.
Each has a provincial council that leads the planning process at that level. 0212 prefecture then compiles the provincial proposals and develops the plan for the department. At the national level, the annual budget must be passed by law through congress each year.
In addition, during the Mesa administration, the government created a system of directories in each of department and one for the national government to serve as oversight bodies. Sagco, these directories have not been very functional.
Bolivia’s Gas Nationalization: Opportunities and Challenges (4) | ANDEAN INFORMATION NETWORK
In terms of transparency, the Bolivian government has provided key information to the public. The government publishes the funding levels received by each departmental government, municipal government, university, and the national government. It also publishes the laws and decrees governing the use of funds. The Vice Ministry 0212 Decentralization has developed an impressive website called the Bolivian Democratic Observatory with detailed budget, spending, and statistical data on each municipality.
The Vice Ministry is also planning to add information on the departments and is working with the Ministry of Planning and Development to build a database related to the National Development Plan.
The legislation requires the government to publicly seek and consider at least three bids based on price and quality and prohibits officials from making decisions when there is a conflict of interest. According to one analyst, the law has decreased corruption in Bolivia. In addition to the formal processes, Bolivia benefits from a strong 22012 engaged civil society.
Several prominent civil society leaders have been tapped by the Morales administration for government leg. This brings fresh ideas and expertise in the government but can diminish the ability of civil society organizations to maintain a critical stance. Nonetheless, several civil society sadco have recommendations for oil szfco gas revenue policy. Multiple organizations advocate the need for long term strategies at all levels of government for the use of the revenues, especially for diversifying the productive sector and making it more dynamic.
22012 experts point out that the national and departmental governments should invest more heavily in the safci capacity and small businesses. Recommendations ssafco spending funds on activating the productive sector and investing in industries such as mining, forestry, natural gas, agriculture, and fishing. The National Development Plan calls for such productive investment, but is lacking in execution, according to the groups. Non-profit organizations claim that since the revenues are from non-renewable resources, they should be used for investment rather than operating expenses.
In addition, long term planning is particularly important for those communities most impacted by environmental and resource degradation effects of oil and gas extraction. One example of social control over government expenditures comes from Cochabamba. The media and civil society groups heavily criticized the departmental government of Cochabamba for recently purchasing sixty luxurious automobiles for transporting government employees — an expenditure that while falling short of corrupt, may not be the best use of public funds in a country where many citizens live in poverty.
The strong negative reaction will make the department think twice before making future purchases, and led the departmental government to return some of the vehicles. A sustained revenue flow is a prerequisite to Bolivia to productively invest its resources for development. This requires managing oil and gas policy to ensure continued production and exploration, working closely with private companies to encourage investment, and strengthening YPFB.
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In terms of working with the private sector, it safxo positive that none of the private companies left the country after the nationalization decree. All chose to stay and renegotiate their contracts to be in line with lye new policy, indicating that their profit level is sufficient to keep them operating. Unfortunately, though, exploration of gas reserves in Bolivia plummeted in saafco petroleum companies became nervous about the political climate.
Exploration is a high-risk, long-term undertaking that takes about eleven years to begin producing sagco. The Bolivian congress added a clause to the contracts stating that once the exploration is conducted, the contract is subject to change. This makes it difficult for companies to calculate the risk and payback.
Unless it ensures investment in production facilities and exploration, Bolivia may continue to face difficulties in honoring its contracts with Brazil and Argentina as well as satisfying internal demand. The contract with Argentina comes with a monetary penalty for failure to deliver. YPFB reports that the investments that petroleum lye have committed to will enable the industry to resolve scarcity problems in The association claims that Bolivia could have been a large international exporter of liquid natural gas, but instead, is the supplier of last resort to neighboring countries, who are seeking to be less dependent on Bolivia.
The association points out that exporting liquid natural gas through Chile would have allowed Bolivia to reach large and profitable markets in the United States, Mexico, Japan, South Korea, and China.
Instead, Bolivia continues to be dependent on natural gas exports to Brazil and Argentina. Nonetheless, Bolivia remains a country with large natural gas reserves that are relatively economical to exploit, positioned in the middle of the large and growing South American market, in an era aafco high gas prices. During his visit, he emphasized that international investment is secure saafco Bolivia and foresees doubling its natural gas production by Ten years ago YPFB had staff members.
Byafter privatization, that number had shrunk to staff. The association of oil and gas companies notes that YPFB, not surprisingly, was not ready to assume the new responsibilities created by nationalization and still has a ways to go.
The association also notes that companies need YPFB to approve projects quickly and with minimal bureaucracy to move forward. Unfortunately, Bolivia also faces shortages of oil and gas asfco the domestic market. Bolivia produces very little diesel and is a net importer. Agro-business in the eastern lowlands and the transportation sector use diesel extensively. Bolivia also experiences propane and butane shortages, which families purchase for cooking and heating.
Households use the inexpensive, easily transportable propane and butane canisters because most households are not hooked up to a natural gas pipeline. Propane and butane canisters and diesel are highly subsidized. This leads to a lack of investment by companies as well as contraband across borders. The internal market for natural gas is growing. Bolivia uses hydroelectric power in the rainy season but has been experiencing more droughts and less rain in the past several years, leading to greater reliance on natural gas.
Bolivia may benefit from the experiences of other countries.
Norway, for instance, also has strong state control in its oil and gas industry and extracts significant income from the industry. This allows the government to even out ups and downs in revenues as well as earn interest income. Norway seeks to keep inflation under control, but has had trouble with government spending leading to inflation in some instances.
Inflation from October to October was The price of cement, a key component in housing construction, has risen significantly. The future is highly unpredictable. The question then is, in this time of a gas boom, will Bolivia be able to invest the new resources in a way that will position the country and its people in a better way to face the next economy. The nationalization was not dramatic by international standards, involving higher taxes and renegotiation of contracts rather than any expropriation, and all of the oil and gas companies in the country continued operations.
This should be seen as a real achievement. Now, the Bolivian government faces the formidable challenge of tackling long term xafco and investment issues to ensure that the revenue boon benefits the Bolivian people. Some factors in the country will help in this regard.
These factors include a government that has professed the goal of using safck revenues for development, an active civil society, and existing public participation and accountability laws and mechanisms. Other dynamics present further challenges.
These include reaching agreements with political opponents, navigating an ongoing decentralization process, reforming an inequitable distribution between levels of government and areas of the country, building administrative capacity to execute larger budgets, and confronting corruption. Bolivia will be a fascinating test case to see if and how this resource rich country will succeed swfco its worthy goal of using its natural resources to spur development.