Despite good economic reforms, macroeconomic stability, and a major expansion of the hydrocarbon sector, Bolivia still achieved only modest gains in poverty reduction. Executive Directors stressed the importance of fiscal prudence, domestic taxation, and strengthening of public expenditure...

This paper presents key findings of the Ex Post Assessment of Longer-Term Program Engagement for Bolivia. Bolivia is a country that is perceived as having one of the best structural reform records in Latin America but experienced sluggish per capita growth, and made virtually no progress in...

This paper discusses Bolivia’s Fifth Review Under the Stand-By Arrangement (SBA), Request for Waiver of Nonobservance of Performance Criteria (PC), and Rephasing, Augmentation, and Extension of the SBA. The 2004 program was on track. All quantitative PCs were met, with the exception of the...

Preliminary estimates show that pension costs will continue to grow for several years, and controlling and curbing pension costs will be a challenge for Bolivia. Market-friendly reforms could limit the scope for dollarization and its risks. A gradual shift toward a more flexible exchange rate...

This paper discusses Bolivia’s Fourth Review Under the Stand-By Arrangement (SBA) and Request for Waiver of Nonobservance of Performance Criteria (PC). Economic activity in Bolivia is picking up, led by exports. Real GDP growth is projected to reach 3.8 percent in 2004. Inflation has increased...

Macroeconomic and financial vulnerabilities have intensified in recent years. Bolivia has adopted a program to stabilize the situation, and the program is broadly on track. Monetary policy is appropriately geared to support a gradual build-up of international reserves while ensuring needed...

The staff report for Bolivia’s 2009 Article IV Consultation describes economic developments and policies. The impact of the global recession on Bolivia has been milder than in other countries in the region. Lower commodity exports and remittances have resulted in a sharp narrowing of the...

The staff report for the Sixth Review under the Stand-By Arrangement and Requests for Waiver of Performance Criteria on Bolivia highlights economic developments and preliminary macroeconomic framework. The economy is characterized by a number of vulnerabilities that require policy vigilance....

This paper examines Bolivia’s Request for a Stand-By Arrangement (SBA). The Bolivian authorities have focused their efforts on restoring economic and social stability, strengthening the banking and corporate sectors, and establishing the basis for sustained growth. In support of their economic...

This paper derives estimates of optimal levels of reserves for Bolivia, focusing on current account shocks as the key balance of payments risk. Bolivia’s foreign reserves are adequate, with an optimal level between 29 percent of GDP and 37 percent of GDP. The accumulation of foreign assets...