To: EricE who wrote (14534 ) 11/3/1998 5:13:00 PM From: Probart Read Replies (1) | Respond to
From these figures it is very clear that the per capita income of Bolivia is very low if you had to compare it to the USA. It is also significant that about 50% of the Bolivian population live below the poverty line (data is nine years old). New data shows that people in poverty in 1996 are: rural 86% and urban 30%. The per capita income is about $700 in 1993 compared to USA of $16 555 in 1997. From these figures I must presume that the GE workers must be somewhere close to the poverty line i.e. $720 and I presume even lower. Therefore the deal for the coop worker would equal at least 14 - 20 years payment @ $700. Also do not forget that the life expectancy in Bolivia is 50-54 years similar to countries like Iran, Indonesia, Zimbabwe as compared to 70 –74 in USA, Netherlands and most other countries in Western Europe. If this all comes together you can imagine what the impact will be on the area and on these people, they might be getting three to four live time incomes and their standard of living could increase dramatically. Taking away the 18% royaly will also put GE in a better position to negotiate a deal with a buyout or JV. Now this gets me thinking............why would they be doing this.......
