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Bolivia’s Economic Pivot: Main Findings and Reform Priorities

Author

Listed:
  • Ricardo Hausmann

    (Harvard's Growth Lab)

  • Lucila Venturi
  • Clement Brenot

    (Center for International Development at Harvard University)

  • Ana Abad

    (Harvard's Growth Lab)

  • Guillermo Arcay

    (Harvard's Growth Lab)

  • Fernando Garcia
  • Timothy Freeman
  • Lucas Lamby

    (Center for International Development at Harvard University)

  • Taimur Shah

    (Harvard's Growth Lab)

Abstract

This publication synthesizes the main findings and recommendations from a series of reports on Bolivia’s Economic Pivot. We examine the origins of the current crisis and propose a strategy to restore macroeconomic stability while supporting long-term growth. Bolivia’s macroeconomic collapse is the most visible symptom of a much deeper crisis. While the contraction of natural gas production was a key trigger, the country’s crisis stems from a broader institutional breakdown that weakened private investment, export capacity, and productivity growth across the economy. In response, we outline a comprehensive reform plan based on 5 pillars: 1) a growth-enhancing and credible fiscal consolidation; 2) an effective and targeted social compensation network; 3) a restoration of external balance and monetary credibility; 4) renewed investment attractiveness and restored export potential in strategic sectors; and 5) a new institutional foundation for developing new productive capabilities.

Suggested Citation

  • Ricardo Hausmann & Lucila Venturi & Clement Brenot & Ana Abad & Guillermo Arcay & Fernando Garcia & Timothy Freeman & Lucas Lamby & Taimur Shah, 2026. "Bolivia’s Economic Pivot: Main Findings and Reform Priorities," Growth Lab Working Papers 260, Harvard's Growth Lab.
    • Handle: RePEc:glh:wpfacu:260
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