Enero 28, 2006
Salary Cuts
Austerity measures are not always well-received. Sometimes it means a cut in social spending for health and education. But this recent austerity measure in Bolivia allows for additional positions for teachers and health workers.
Friday, President Evo Morales cut his salary by 57% to about $1,875/mo., from an amount of $4,362/mo. The ministers, vice-minister and directors will also be asked to take a pay cut, since according to Bolivian law no public servant in the executive branch can make more than the President. The money saved, roughly $27 million Bolivianos (roughly 3.4 million USD), will be used to create more items (positions) in education and health fields.
Naturally on the street, many are pleased by this first gesture by the government, where it appeared that the relative salaries earned by government officials were too high. The President of Bolivia used to earn almost $4,500 USD per month, while the minimum wage in Bolivia is about $56 USD per month. Big difference. The government hopes the Executive and Judicial Branches follow suit.
Not everyone is applauding this move. New Santa Cruz Prefect was quick to denounce the act.
Ruben Costas, governor of Santa Cruz in the country's eastern business hub, called the cuts "demagoguery," saying good leadership and social programs matter more than the president's paycheck.
Question the move by saying that it is easier for the President because he has a free house, free transportation and other daily necessities, while others in Congress have to split their time between La Paz and their home regions. Some have said that lower salaries may cause more temptation to skim some public funds. But don't criticize it as some kind of populist move for creating more jobs for the benefit of the poor.
Posted by eduardo at Enero 28, 2006 07:59 PM
Comments
Minucio explains very well why this "austerity measure" is a propagandistic joke:
"En torno a esa reducción surgieron dos posiciones en la Cámara de Diputados. Una de la oposición que planteaba la rebaja de la dieta y beneficios colaterales a una suma fija de Bs 14.000 (antes bordeaba los 24 mil) suprimiendo totalmente el pago de dietas a los diputados suplentes; otra del oficialismo masista que proponía una dieta básica de Bs 10.500 más los beneficios económicos colaterales arriba mencionados con los cuales un diputado uninominal percibirá más de 20 mil y un plurinominal cerca de 19 mil, además esta propuesta contempla el pago de media dieta a los diputados suplentes.
Esta visto que del dicho al hecho hay mucho trecho. La mayoría parlamentaria del MAS, que tanta alharaca hizo en el tema de la austeridad, aparentemente reduce el monto de la dieta a Bs 10.500 (suma básica dizque) y mantiene todos los privilegios económicos que los diputados tenían en el pasado, con lo cual esa suma se infla hasta duplicarse."
more on
http://boliviscopio.blogspot.com/2006/02/rebaja-de-dietas-con-trampita.html
Posted by: Jonathan Olguin at Febrero 3, 2006 06:07 PM