IDEAS home Printed from https://ideas.repec.org/p/adv/wpaper/200919.html
   My bibliography  Save this paper

The Global Financial Crisis: An Update on the Effects on Bolivia

Author

Listed:
  • Luis Carlos Jemio

    () (Institute for Advanced Development Studies)

  • Osvaldo Nina

    () (Institute for Advanced Development Studies)

Abstract

The global financial crisis (GFC) has had a negative effect on the Bolivian economy. The outbreak of the GFC has caused a drop in export commodity prices such as mining and hydrocarbons, and a reduction in remittances. Bolivia however, was in a relatively good position to deal with the negative effects of the GFC. The country has experienced in recent years an important commodity price boom, which significantly increased external revenues, public and private incomes and consumption levels. Although the GFC has had a mild effect on the Bolivian economy so far, there are important structural factors that could put at risk the long term sustainability of policies and of the macroeconomic equilibriums. Among these factors are: i) a low investment rates, which could risk growth prospects and employment creation; ii) a large dependency of Bolivia fiscal sector on the hydrocarbon rent, which makes the long term sustainability of macroeconomic policies and of the current economic situation questionable; iii) the lack of a favourable investment climate required to increase growth and employment, which depends among other factors of the rule of law, property rights, judicial security, clearer and more stable rules of the game, macroeconomic stability, etc. iv) lack of a clearer strategy in relation to the country external insertion is also necessary. Access to larger markets, with higher incomes and purchasing power, is necessary to promote sustainable growth and employment creation, and to reduce the vulnerability of the Bolivian economy to shocks. Trade agreements with the USA, European Union and other regions of the world are necessary to promote investment, growth and employment creation.

Suggested Citation

  • Luis Carlos Jemio & Osvaldo Nina, 2009. "The Global Financial Crisis: An Update on the Effects on Bolivia," Development Research Working Paper Series 19/2009, Institute for Advanced Development Studies.
  • Handle: RePEc:adv:wpaper:200919
    as

    Download full text from publisher

    File URL: http://www.inesad.edu.bo/pdf/wp19_2009.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Financial crisis; Bolivia;

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adv:wpaper:200919. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lykke Andersen). General contact details of provider: https://edirc.repec.org/data/inesabo.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.