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Decentralization and poverty reduction in Bolivia: Challenges and opportunities

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  • Lykke E. Andersen

    (Institute for Advanced Development Studies)

  • Luis Carlos Jemio

    (Institute for Advanced Development Studies)

Abstract

This paper presents an analysis of the decentralization process that has been taking place in Bolivia over the last couple of decades. It starts with a review of the legal framework that determines the distribution of responsibilities and financial resources to the sub-national governments (9 departments and 339 municipalities), and continues with an analysis of the evolution and distribution of financing to these entities between 2001 and 2013. It then proceeds to describe the resulting progress in social indicators between 2001 and 2012 at the municipal level, and identifies the main remaining gaps in basic services by 2012. Finally, the paper offers an analysis of the factors that are most closely associated with progress in the main social indicator used by the Bolivian government – the Unsatisfied Basic Needs index. This provides the basis for a final section on recommendations for public investment in Bolivia.

Suggested Citation

  • Lykke E. Andersen & Luis Carlos Jemio, 2016. "Decentralization and poverty reduction in Bolivia: Challenges and opportunities," Development Research Working Paper Series 01/2016, Institute for Advanced Development Studies.
    • Handle: RePEc:adv:wpaper:201601
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    File URL: http://www.inesad.edu.bo/pdf/wp2016/wp01_2016.pdf
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    References listed on IDEAS

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    1. Mart�n Mendoza-Botelho, 2013. "Social Capital and Institutional Trust: Evidence from Bolivia's Popular Participation Decentralisation Reforms," Journal of Development Studies, Taylor & Francis Journals, vol. 49(9), pages 1219-1237, September.
    2. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9781107005198, November.
    3. Global Energy Assessment Writing Team,, 2012. "Global Energy Assessment," Cambridge Books, Cambridge University Press, number 9780521182935, November.
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    Keywords

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    JEL classification:

    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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