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 forests and agricultural 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.

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After the end of the commodity boom in 2014, Bolivia sustained high economic growth through increased public spending and domestic credit, but this led to rising public debt and a reduction in international reserves and fiscal savings. The COVID-19 pandemic further aggravated these vulnerabilities. In the aftermath, Bolivia experienced a notable economic recovery and poverty reduction, supported by relaxed isolation measures and higher international prices for its main exports. However, persistent high public debt, declining natural gas production, and falling reserves have constrained government efforts to stimulate growth and have pressured the foreign exchange market, resulting in a parallel exchange rate.

Bolivia faces significant external risks, including commodity price volatility, global economic slowdown, and international market shocks. The country is also vulnerable to climate-related disasters such as droughts, floods, and large-scale forest fires. Achieving a sustainable recovery requires addressing structural challenges: correcting macroeconomic imbalances, fostering a more active private sector—including foreign investors—and strengthening resilience to global and climate shocks. Improving the efficiency and progressiveness of fiscal policy is essential to continue enhancing service delivery and protecting the most vulnerable.

With limited gas reserves, high fuel subsidies, and global decarbonization efforts, Bolivia must seek alternatives to gas exports. Promoting private investment is crucial to accelerate growth, improve job quality, and diversify the economy toward reduced dependence on fossil fuels.

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One World Bank Group in Bolivia

Since July 2024, Bolivia has hosted a unified World Bank Group  office that brings together the full institutional presence under one roof. This joint office serves as a single point of contact for accessing all World Bank Group 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 projects totaling $993 million, focused on transport, rural development and agriculture, urban development, energy, and water—sectors that are central to Bolivia’s development priorities.

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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.

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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.

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