Poverty in Bolivia continues to be among the highest in Latin America despite decades of concerted national and international efforts to reduce it. Bolivia has meticulously followed the recommendations of the Washington consensus at the same time as external aid has been generous and foreign...

This paper seeks to test to which extent geographical constraints can be blamed for Bolivia’s poor growth performance during the last three decades. Although geographical characteristics are too stable to explain the dramatic fluctuations in growth rates over time in Bolivia, there are at...

We present an analysis of the effects of foreign aid on economic development when the quality of governance may be compromised by corruption. The analysis is based on a dynamic general equilibrium model in which growth is driven by capital accumulation and public policy is administered by...