Bolivia

Bolivia, a landlocked South American nation of 11.3 million people, borders Argentina, Brazil, Chile, Paraguay, and Peru. Classified as a lower-middle-income country, it is renowned for its rich cultural heritage. Bolivia has one of the highest proportions of Indigenous peoples in Latin America, with 38 percent of its population self-identifying as Indigenous.

The country is endowed with abundant natural resources —including significant deposits of natural gas and vast reserves of minerals such as tin, silver, zinc, and lithium— and extensive tropical rain and dry forests, rich biodiversity and extensive arable lands. Its main exports include natural gas and minerals (notably zinc, silver, and tin), alongside agricultural products such as soybeans, Brazil nuts, and meat, shipped to markets across the Americas, Europe, and Asia.

Read More

Read Less

Following the end of the commodity boom in 2014, Bolivia relied heavily on public spending and domestic demand to sustain economic growth. This led to a significant increase in public debt and the near-total depletion of international reserves, which had previously reached record highs.

This situation was aggravated by declining natural gas production, persistently weak mineral exports, stagnant agricultural productivity, and limited export diversification. The result was a marked slowdown in growth and, since 2024, an economic contraction. At the same time, the country has a demographic dividend: a growing number of working-age young people are entering the labor market and demanding more and better jobs.

Against this backdrop, a sustainable recovery in economic growth and employment requires addressing structural challenges. Bolivia is implementing a strategy that combines macroeconomic stabilization measures, aimed at correcting fiscal and external imbalances, with structural reforms that seek to create more space for the private sector to drive growth and job creation.  A business environment more conducive to private investment is fundamental to this strategy.

This agenda includes efforts to improve the business climate by simplifying procedures and regulations, strengthening legal certainty, and facilitating domestic and foreign private investment. To consolidate these gains and protect vulnerable populations, it will be essential to make fiscal policy more efficient and progressive, adjust relative prices to strengthen incentives for exports and diversification, and deepen financial inclusion and innovation, so that small entrepreneurs and medium-sized and large producers alike can benefit.

Implementing this agenda is not without risks. Bolivia remains exposed to external risks, such as commodity price volatility and international market shocks, and to climate risks, such as droughts, floods, and wildfires, which makes strengthening its resilience essential. It also faces sociopolitical risks as it moves away from an income redistribution model based on natural resources, downsizes its large state sector, and seeks to raise the productivity of its human capital.

Read More

Read Less

One World Bank Group in Bolivia

Bolivia has a World Bank Group office that unifies the institution's presence in the country and provides a single point of contact for accessing all of its products and services, including those from the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA).

This integrated presence allows the World Bank Group to work more effectively and cohesively in Bolivia. Our current portfolio includes six investment operations totaling nearly US$1 billion in areas such as social protection, transport, agriculture, urban development, energy, and water resources —sectors that are central to Bolivia’s development priorities. This is complemented by US$14 million in grant funding directed at initiatives in gender, environment, and employment, as well as the preparation of new operations in sectors including decentralization,transport corridors and logistics, natural gas, renewable energy, and value-chain agriculture. In parallel, the World Bank Group's advisory and analytical services address macroeconomic issues, poverty and equity, governance, and private sector support, with initiatives from the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).

Read More

Read Less

The Country Partnership Framework (CPF) 2023–2026 outlines the World Bank Group’s strategy in Bolivia, focusing on three priorities: strengthening climate and economic resilience, improving incomes for vulnerable households, and expanding access to quality public services. It aligns with Bolivia’s national development plan and areas where the World Bank Group offers high value through financing and technical assistance.

The CPF supports key sectors such as agriculture, urban development, disaster risk management, and renewable energy. To enhance resilience, it aims to improve climate risk management and macro-fiscal sustainability. To raise incomes, it promotes agricultural productivity, better market connectivity, and stronger employment skills.

To improve public services, the CPF focuses on enhancing service delivery and expanding access to electricity, especially in rural areas, to help Bolivia reach universal coverage by 2030.

Read More

Read Less

The World Bank supports Bolivia through a diverse portfolio of projects that aim to strengthen resilience, improve livelihoods, and expand access to essential services. The Innovation for Resilient Food Systems (PAR III) benefits 800 rural associations and 1,900 producer groups by promoting climate-smart agriculture, productive infrastructure, and better market access. In urban areas, the Urban Resilience Project enhances infrastructure and mobility for 167,000 residents in La Paz and Santa Cruz, helping cities adapt to climate risks. Road infrastructure is also a key focus, with projects like the Santa Cruz–Brazil corridor (208 km), the Santa Cruz–Trinidad road (546 km), and climate-resilient bridges in four municipalities, collectively benefiting over 3 million people.

Efforts to expand access to energy and water are equally significant. The IDTR III project brings electricity to over 141,000 people through grid extensions, solar systems, and mini grids, supporting homes, schools, health centers, and small businesses. Meanwhile, water management initiatives reach 30,000 families in 256 municipalities, improving irrigation systems, protecting water sources, and building climate-resilient infrastructure. Across all sectors, these projects promote inclusion, gender equity, and institutional capacity, contributing to Bolivia’s sustainable and inclusive development.

Read More

Read Less