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1. Decentralization and Poverty Reduction in Bolivia: Challenges and Opportunities

Author:
Lykke E. Andersen and Luis Carlos Jemio
Publication Date:
01-2016
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
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.
Topic:
Poverty, Economy, Decentralization, and Public Investment
Political Geography:
South America and Bolivia

2. Non-agricultural labor from rural farmers in Bolivia: An analysis of determinants and effects

Author:
Lykke E. Andersen, Beatriz Muriel, and Horacio Valencia
Publication Date:
04-2009
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper analyses non-agricultural work supplied by rural households in Bolivia. It is shown that roughly 50% of all rural households complement their incomes through non-agricultural work, but that households in the lowlands are more likely to do so than households in the highlands. Since non-agricultural work pays several times better than agricultural work, access to this source of complementary income constitutes an important opportunity to escape rural poverty.
Topic:
Agriculture, Development, Poverty, Rural, and Labor Market
Political Geography:
South America and Bolivia

3. Macroeconomic Policies to Increase Social Mobility and Growth in Bolivia

Author:
Lykke E. Andersen, Alice J. Brooks, and Alejandro F. Mercado
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
Poverty in Bolivia continues to be among the highest in Latin America despite decades of concerted national and international efforts to reduce it. Bolivia has meticulously followed the recommendations of the Washington consensus at the same time as external aid has been generous and foreign direct investment has boomed. Nevertheless, average productivity and incomes remain at the same low level as they were 50 years ago. This paper suggests that the failure of previous development policies is due to a lack of social mobility in the country. Without social mobility, there is little incentive for people to invest in human and physical capital, and without investment there cannot be productivity growth. In addition, the lack of social mobility implies an inefficient use of human capital, and it hinders the construction of efficient social mechanisms for redistribution and consumption smoothing over the life-cycle.
Topic:
Development, Poverty, Public Policy, Macroeconomics, and Social Mobility
Political Geography:
South America and Bolivia

4. Trade, FDI, Growth and Poverty in Bolivia

Author:
Lykke E. Andersen, Osvaldo Nina, and Dirk Willem te Velde
Publication Date:
07-2004
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
After several decades of “state-capitalism” characterized by import substitution policies, Bolivia implemented in 1985 a New Economic Policy (NEP) following neo-liberal ideas of free trade, privatization, and liberalization of capital flows. It was hoped that the opening up of the economy would attract foreign direct investment (FDI) which in turn would help modernize Bolivian industry, improve productivity, increase exports, stimulate growth, and reduce poverty. This paper investigates to what extent this actually happened.
Topic:
Development, Poverty, Foreign Direct Investment, Inequality, and Trade
Political Geography:
South America and Bolivia

5. Regional Integration and Poverty: A Case-Study of Bolivia

Author:
Osvaldo Nina and Lykke E. Andersen
Publication Date:
10-2004
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper investigates the impacts of regional integration processes on poverty in Bolivia. It first demonstrates that regional integration has stimulated a diversion of trade away from traditional US and EU markets towards countries of MERCOSUR and the Andean Community. At the same time, the composition of exports has changed from predominantly minerals towards slightly more elaborated goods, such as vegetable fats, food and beverages. The paper presents econometric analyses of the impact of imports, exports and FDI (by sector, and trade block) on individual labor incomes and household poverty status. The results show that higher exports generally tend to benefit the workers who work in the exporting sectors. However, this result only holds for export sectors that exploit some natural resource rents (mining, hydrocarbons, modern agriculture), and not for those which rely purely on low wages in order to be competitive (most manufacturing sectors). Imports typically have a negative effect on worker salaries, except the imports of capital goods, which do not compete with local production. This implies that the change towards more regional trade of goods with a smaller natural resource rent component is unlikely to contribute to a reduction in poverty. For exports and FDI to be helpful for reducing poverty, they would have to focus on sectors, which are labor intensive and at the same time exploit some natural resource rents. Sectors that might fulfill these criteria are modern agriculture and tourism.
Topic:
Development, Poverty, Economy, and Regional Integration
Political Geography:
South America and Bolivia

6. Population and Poverty Projections for Nicaragua 1995 - 2015

Author:
Lykke E. Andersen
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
The overall purpose of this project is to make detailed population and poverty projections that take into account expected demographic changes (in terms of fertility, mortality, migration, and education) as well as differentials in social mobility by household type. Such projections could be useful for a variety of purposes ranging from assessment of necessary social investments (education facilities, health facilities, pension systems, etc), projections of the size of the working age population who will demand jobs, targeting of poverty alleviation policies, projections of migration flows, to negotiations with external donors and creditors.
Topic:
Demographics, Development, Migration, Poverty, Population, and Social Mobility
Political Geography:
Central America and Nicaragua