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Published on: October 20th2015Link: https://clas.uchicago.edu/blog/refecting-clas-events-ne-bolivian-econo!"Prepared b": #ong $. %hang &urandal

The New Bolivian Economy

'his "ear( the )olivian *inister o+ ,cono!" and inance Luis rce

atacora ca!e to the niversit" o+ hicago to present a ne econo!ic

!odel that )olivia has developed and put in practice since 200. #e

eplained the ,cono!ic 3ocial o!!unitarian Productive *odel and h" it is

e4ective in )olivia. n this s"ste!( the state beco!es the largest investor in

the econo!" and it +ocuses on developing a strong do!estic de!and hile

strengthening the )olivian currenc".

3ince the i!ple!entation o+ this econo!ic s"ste!( the )olivian

econo!" has been groing constantl" and it has reduced etre!e povert"

b" !ore than 106. rce said( 7)olivia reduced etre!e povert" +ro! 826 to

196( e ould like to loer it to a si!ilar rate as ,cuador hich is onl"

126. t the sa!e ti!e he also !entioned that the une!plo"!ent rate

declined +ro! 9.56 to ;6 and that this as one o+ the loest in the region.

'here is no doubt that the )olivian econo!" has strengthened since the

i!ple!entation o+ this ne econo!ic s"ste! but it is unclear i+ this boo!

as solel" due to the rise in price o+ ra !aterials or other +actors. 'he

s"ste! is still "oung co!pared to other !ore robust and ell tested s"ste!s

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around the orld. 'he eportation o+ natural resources still is the backbone

o+ the )olivian econo!" but ith an e!phasis on reinvesting in other

industries( industrialields( i!prove!ent o+ public transportation( and the launching o+ the >rst

)olivian satellite to bring +ree internet to the !ost re!ote areas in the

countr". 'hese high capital invest!ents ere possible due to the high priceso+ oil during the >rst 5 "ears o+ presidenc" o+ ,vo *orales. ?asi!ientos

Petroli+eros )olivianos @?P)A the national oil etraction and producing

agenc" has been tr"ing to increase its etraction o+ oil and epand into

re>ning so!e t"pes o+ oils to later eport to neighboring countries like

Paragua"( )ra

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'he *orales ad!inistration has used etensivel" policies o+ cash

trans+ers +ro! pro>ts +ro! the tele+erico( ?P)( and other govern!ent

inco!e to +und pensions +or the elderl"( children school +unds( break+ast

+unds( and the 7&oble guinaldo. 'hrough this egalitarian approach the

)olivian govern!ent orks etensivel" to close the ineDualit" gap beteen

the ealth" and the poor and achieve the !ost eDual ellbeing and

econo!ic el+are a!ong its citi

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'o conclude *inister rce atacora pointed out that )olivia can

develop to beco!e one o+ the !aBor energ" pla"ers in Latin !erica through

the industriali