The World Bank In Bolivia

After the commodity boom ended in 2014, Bolivia resorted to high public spending and growing domestic credit to maintain rapid economic growth. In a less favorable context, these measures increased public debt and reduced the international reserves and fiscal savings accumulated during the boom. The COVID-19 pandemic exacerbated this situation, plunging the economy into a recession that led to a rebound in poverty.

Following the pandemic, Bolivia achieved a significant economic recovery and poverty reduction due to easing confinement measures and improvements in the international context, includingrising prices of the main export products. However, high public debt and modest international reserves limit efforts to boost the economy, especially if the private sector does not play a more active and sustained role.

In addition to its high vulnerability to climate-related disasters, Bolivia is exposed to different risks associated with the international context, such as the volatility of commodity prices, the global economic slowdown, and rising international interest rates.

In this context, sustainable recovery requires addressing some structural challenges. Bolivia could benefit from a medium-term strategy to address macroeconomic imbalances, underpin competitiveness, and increase resilience to changes in the international environment or adverse climate events. Achieving these objectives while continuing to improve service delivery and protecting the most vulnerable population requires improving public sector efficiency.

Limited gas reserves, high fuel subsidies, an increasingly challenging regional market, and global efforts to decarbonize the energy sector make it necessary to seek alternatives to gas exports. Boosting private investment would help drive growth and promote quality employment.

Last Updated: Apr 11, 2023

The current portfolio of World Bank financing operations focuses on transport, health, rural development and agriculture, and urban resilience sectors, including seven investment projects for near US$1.4 billion. 

Currently, the World Bank Group (WBG) is finalizing the preparation of the Country Partnership Framework (CPF) that will provide the foundations to support Bolivia's development goals during the fiscal period 2023-2026.

Last Updated: Apr 11, 2023

The Rural Alliances Project II (PARII) supports producers’ organizations in rural areas, benefiting more than 70,000 families thru 1,814 alliances aimed at improving the production capacity and access to producer’s markets, including the construction of bridges and secondary roads, as well as investment in equipment, among others. The additional financing (AF PARII), approved in 2017, focuses on a more resilient agriculture and aims to reach producers nationwide, promoting productivity improvements, mainly by means of investments in automated irrigation, thus contributing to food security and to the production of food for the domestic market.

The Innovation for Resilient Food Systems (Rural Alliances – PAR III) Project will benefit at least 1,000 rural community associations seeking to reduce vulnerability to acute and chronic food insecurity through small-scale investments in infrastructure and services and nutrition enhancement by inserting technology in agricultural activities and training to manage it. Additionally, some 1,270 rural producer organizations will form productive alliances to facilitate their participation in value chains with commercial partners and access to technical assistance providers to achieve improved, more equitable access to markets, technologies, and organizational skills. PAR III will also implement some 290 complementary productive infrastructure subprojects. The financing will contribute to increase food security, market access and the adoption of climate-smart agricultural practices in the country, fostering greater women participation.

The Health Services Network Project’s goal is to improve access to and quality of healthcare services for 3.8 million Bolivians, prioritizing women, children, and indigenous populations. It consists of the implementation of a comprehensive hospital management system through the strengthening of health networks, complemented by the application of clinical care standards, strengthening the capacities of professionals in the sector, information systems, and the rehabilitation and equipping of sanitary infrastructure. During the most critical stage of the COVID-19 crisis, the Project financed the purchase of supplies, equipment and materials for prevention, detection, and treatment of patients, and the hiring of medical professionals and support personnel to strengthen health services nationwide, and the adaptation of hospitals to face the pandemia.

The Urban Resilience Project supports the cities of La Paz and Santa Cruz de la Sierra in reducing vulnerabilities to climate risks and improving the living conditions of more than 167,000 residents of the lower-income areas in these municipalities. The project contemplates the construction of infrastructure resistant to hydrometeorological phenomena such as landslides and floods, including improved drainage channels and river channeling works. Likewise, work will be done to improve neighborhoods and public spaces and to promote sustainable urban mobility.

To increase connectivity and access to services, the Santa Cruz Road Corridor Connection Project, San Ignacio de Velasco – San José de Chiquitos section, of 208 Km., will complete a highway of the fundamental road network that connects Bolivia and Brazil, closes the Chiquitanía tourist circuit and is part of the East-West Bioceanic Corridor.

The Road Sector Capacity Development Project will contribute to road infrastructure while strengthening capacities for its sustainability. It supports the rehabilitation and maintenance of the 546-Km. Santa Cruz–Trinidad road, which will benefit some three million inhabitants of Santa Cruz and Beni departments, as well as users from other regions, most of whom are farmers who need to transport their produce to other markets. Moreover, it supports the institutional strengthening of the Bolivian Roads Administration (ABC) to develop its capacities to plan, prioritize and implement infrastructure investments in a holistic manner with a new contracting approach for the country that includes the periodic and routine rehabilitation and maintenance of roads in a single operation.

The National Roads and Airport Infrastructure Project contributes to regional and international integration in the north of La Paz, supporting the economic development of the neighboring towns. The project finances improvements to the Rurrenabaque airport, which will contribute to the flow of tourism in the region and the construction of 22 bridges along the San Buenaventura – Ixiamas route that will facilitate its transit throughout the year.

Last Updated: Apr 11, 2023