Political Geography: Bolivia / Topic: Public Investment

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

Author:: Carlos Gustavo Machicado, Paul Estrada, and Ximena Flores
Publication Date:: 05-2010
Content Type:: Working Paper
Institution:: Institute for Advanced Development Studies (INESAD)
Abstract:: It has been widely documented that fiscal policy can promote economic growth, when it is based on an efficient provision of pubic capital. But little work has been done, in Bolivia, in relation to the macroeconomic and sectoral impacts of increasing public investment in infrastructure. This paper develops a Dynamic Stochastic General Equilibrium (DSGE) model for a small open economy with five sectors: Non-tradable or services, importable or manufacturing, hydrocarbons, mining and agriculture. The model is parameterized and solved for the Bolivian economy and several interesting scenarios are simulated by changing government expenditures, taxes, country risk, Total Factor Productivity, effectiveness of public capital and terms of trade. This analysis is relevant for the Bolivian economy, because the government is using fiscal policy as one of its main tool to attack poverty and aims to put public investment as the foremost instruments to promote growth and welfare.
Topic:: Infrastructure, Economic Growth, Fiscal Policy, and Public Investment
Political Geography:: South America and Bolivia

Author:: Carlos Gustavo Machicado
Publication Date:: 12-2007
Content Type:: Working Paper
Institution:: Institute for Advanced Development Studies (INESAD)
Abstract:: It has been widely documented that investment in infrastructure is important for economic growth, but little work has been done in relation to the impact of infrastructure investment among other macroeconomic variables. This paper develops a Dynamic Stochastic General Equilibrium (DSGE) model of a small open economy to study the effects of public investment in infrastructure on output, consumption, private investment, trade balance and welfare. The model is parameterized and solved for five representative countries from The Initiative for the Integration of Regional Infrastructure in South America (IIRSA), which include: Bolivia, Chile, Brazil, Venezuela and Argentina. I also analyze the growth effects on GDP by increasing or decreasing the effectiveness index of infrastructure in each of these countries. Naturally output will grow at a larger rate, if infrastructure is handled with greater efficiency.
Topic:: Infrastructure, Economic Growth, Macroeconomics, Welfare, and Public Investment
Political Geography:: Brazil, Argentina, Latin America, Venezuela, Chile, and Bolivia

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