Bolivia’s Economic Pivot: Main Findings and Reform Priorities

Ricardo Hausmann, Lucila Venturi, Clement Brenot, Ana Abad, Guillermo Arcay, Fernando Garcia, Timothy Freeman, Lucas Lamby and Taimur Shah
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Clement Brenot: Center for International Development at Harvard University
Ana Abad: Harvard's Growth Lab
Guillermo Arcay: Harvard's Growth Lab
Lucas Lamby: Center for International Development at Harvard University
Taimur Shah: Harvard's Growth Lab

No 260, Growth Lab Working Papers from Harvard's Growth Lab

Abstract: This publication synthesizes the main findings and recommendations from a series of reports on Bolivia’s Economic Pivot. We examine the origins of the current crisis and propose a strategy to restore macroeconomic stability while supporting long-term growth. Bolivia’s macroeconomic collapse is the most visible symptom of a much deeper crisis. While the contraction of natural gas production was a key trigger, the country’s crisis stems from a broader institutional breakdown that weakened private investment, export capacity, and productivity growth across the economy. In response, we outline a comprehensive reform plan based on 5 pillars: 1) a growth-enhancing and credible fiscal consolidation; 2) an effective and targeted social compensation network; 3) a restoration of external balance and monetary credibility; 4) renewed investment attractiveness and restored export potential in strategic sectors; and 5) a new institutional foundation for developing new productive capabilities.

Keywords: Bolivia (search for similar items in EconPapers)
Date: 2026-04
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