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Reforms and Counter-Reforms in Bolivia

  • Luis Carlos Jemio
  • Fernando Candia
  • Jose Luis Evia

This paper analyzes reforms and counter-reforms in Bolivia in recent decades and their effects on the policymaking process (PMP) and productivity. Bolivia’s PMP has shifted from a formal representative democracy to a “participative and direct type of democracy” where street protest and other non-conventional forms of political participation have become dominant. While reforms have increased productivity, they have failed to secure the political support necessary to assure long-term sustainability. In contrast, counter-reforms have so far enjoyed extensive political support, but productivity has stagnated since this process started, with declining economic growth and job creation—developments likely to undermine support for the counter-reform process. The document stresses the need to rebuild a consensus around a PMP capable of increasing productivity and employment creation while restoring social cohesion.

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Paper provided by Inter-American Development Bank, Research Department in its series Research Department Publications with number 4646.

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Date of creation: Nov 2009
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Handle: RePEc:idb:wpaper:4646
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