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The ‘political poverty trap’: Bolivia 1999-2007

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  • Paul Mosley

    (University of Sheffield)

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    Abstract

    We analyse the recent wave of political instability in Bolivia in the context of a ‘poverty trap’ model which suggests that elements in a country’s political system, as well as its economic structure, may be instrumental in perpetuating a state of poverty. In Bolivia the costs of adjustment in the recent phase have been very severe, with well over a hundred killed between 1999 and 2007 as a direct consequence of demonstrations against aspects of the globalisation and adjustment process, and an appearance of a return to a state of chronic political instability; other countries affected by the global crisis have suffered less severely. Is this because they used the available instruments of adjustment more effectively, or for other reasons? In particular, how does poverty impact fit into the story: would a ‘more effective’ pattern of adjustment have been more pro-poor?

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    Bibliographic Info

    Paper provided by ESRC World Economy and Finance Research Programme, Birkbeck, University of London in its series WEF Working Papers with number 0020.

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    Date of creation: Jan 2007
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    Handle: RePEc:wef:wpaper:0020

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    1. Stefan Koeberle & Zoran Stavreski & Jan Walliser, 2006. "Budget Support as More Effective Aid? Recent Experiences and Emerging Lessons," World Bank Publications, The World Bank, number 6958, August.
    2. Michael Carter & Christopher Barrett, 2006. "The economics of poverty traps and persistent poverty: An asset-based approach," Journal of Development Studies, Taylor & Francis Journals, vol. 42(2), pages 178-199.
    3. Collier, Paul & Hoeffler, Anke, 1998. "On Economic Causes of Civil War," Oxford Economic Papers, Oxford University Press, vol. 50(4), pages 563-73, October.
    4. P. Mosley, 2001. "Microfinance and Poverty in Bolivia," Journal of Development Studies, Taylor & Francis Journals, vol. 37(4), pages 101-132.
    5. Newman, J. & Jorgensen, S. & Pradhan, M., 1991. "Workers'benefits from Bolivia's emergency social fund," Papers 77, World Bank - Living Standards Measurement.
    6. Paul Mosley, 2004. "Institutions And Politics In A Lewis-Type Growth Model," Manchester School, University of Manchester, vol. 72(6), pages 751-773, December.
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    Cited by:
    1. Claudia Gutierrez, 2008. "Analysis of Poverty and Inequality in Bolivia,1999-2005: A Microsimulation Approach," Development Research Working Paper Series 01/2008, Institute for Advanced Development Studies.

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