South American government officials are concerned about the effects Bolivia's internal crisis will have on regional trade and the development of integration projects, an official from Chile's foreign relations ministry (Minrel) told BNamericas.
Authorities have already expressed their apprehensions about the social impact of the violent protests that are taking place in Bolivia, and have offered their support to the country's democratically elected authorities.
Other neighboring countries such as Argentina and Brazil have also publically supported President Evo Morales' government, arguing democracy must be respected, the official added.
In addition, aside from the risks associated with the violence, the revolts are causing a strong financial and social impact, which is negatively affecting the country's trade and cargo vehicle drivers who have to cross areas where protesters have taken their complaints to the streets.
The events are also affecting regional trade, such as soy exports sent from Brazil to ports on the Pacific ocean for transport to Asia, the official said.
Bolivia's internal crisis is also likely to have a negative impact on development projects such as connectivity initiatives, as political risk has an almost immediate impact on investments and raises interest rates, reducing Bolivia's chances of obtaining loans, an official from Chile's public works ministry told BNamericas.
According to an analyst from an international organization, Bolivia's internal scenario tends to be unpredictable and a number of institutions are monitoring the situation closely, hoping it doesn't affect the country's democracy and state institutions.
While these factors may only seem like political ones, they have a huge impact on a country's development, as these matters are considered when designing local and regional transport, energy and sanitation infrastructure projects, among others.
The political turmoil has already affected natural gas sales to Brazil. This means the country's internal troubles could also affect Brazil's economy to a certain extent, the analyst added.
The government officials declined to comment on Venezuelan President Hugo Chávez's claim he would take military action against the Bolivian opposition if Morales were overthrown.
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