Reforms and Counter-Reforms in Bolivia

Luis Carlos Jemio (), Fernando Candia and Jose Luis Evia

No 4646, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: This paper analyzes reforms and counter-reforms in Bolivia in recent decades and their effects on the policymaking process (PMP) and productivity. Bolivia’s PMP has shifted from a formal representative democracy to a “participative and direct type of democracy” where street protest and other non-conventional forms of political participation have become dominant. While reforms have increased productivity, they have failed to secure the political support necessary to assure long-term sustainability. In contrast, counter-reforms have so far enjoyed extensive political support, but productivity has stagnated since this process started, with declining economic growth and job creation—developments likely to undermine support for the counter-reform process. The document stresses the need to rebuild a consensus around a PMP capable of increasing productivity and employment creation while restoring social cohesion.

Keywords: Bolivia; Productivity; Policy Making Process; Reform; Counter-Reform (search for similar items in EconPapers)
JEL-codes: A10 E61 E65 O21 O47 O54 (search for similar items in EconPapers)
Date: 2009-11
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Working Paper: Reforms and Counter-Reforms in Bolivia (2009)
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