Inserción Internacional en Bolivia: Estrategias, Resultados y Perspectivas

International Insertion in Bolivia: Strategies, Results and Prospects

Beatriz Muriel H. and Gover Barja Daza

MPRA Paper from University Library of Munich, Germany

Abstract: This document analyzes the effects of Bolivia’s international integration strategy from 1985 to 2005, focusing on its impact on foreign trade and foreign direct investment (FDI). Following the economic crisis of the 1980s, Bolivia adopted a market-oriented liberal model, reducing tariff and non-tariff barriers and promoting FDI through privatization and new legal frameworks. These policies increased non-traditional exports and attracted FDI in sectors such as hydrocarbons and telecommunications, but had limited effects on industrial development, job creation, and poverty reduction. The analysis shows that trade liberalization was unilateral and not supported by structural policies to address key bottlenecks such as weak productive integration, limited access to credit, poor institutional capacity, underdeveloped infrastructure, and legal uncertainty. Furthermore, the concentration of FDI in capital-intensive sectors restricted its multiplier effects. The study also examines the strategy under President Evo Morales, which emphasizes a stronger state role, internal market strengthening, and the use of hydrocarbon revenues to support productive activities and reduce poverty. However, the absence of concrete policies and ongoing institutional and fiscal challenges may hinder its success. Finally, the document offers policy recommendations to improve the effectiveness of Bolivia’s trade and investment strategies, including strengthening institutions linked to foreign trade, redesigning fiscal incentives, promoting productive inclusion, and revisiting trade policy in line with existing international agreements.

Keywords: International integration; Trade policy; Foreign direct investment; Economic development; Regional inequality; Infrastructure and competitiveness (search for similar items in EconPapers)
JEL-codes: F13 F21 H54 O24 O54 (search for similar items in EconPapers)
Date: 2006-12
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Published in Inter-American Development Bank Publications (2011): pp. 1-75

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