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Bolivia Economy 1996
With its long history of semifeudal social controls, dependence on volatile
prices for its mineral exports, and bouts of hyperinflation, Bolivia has
remained one of the poorest and least developed Latin American countries.
However, Bolivia has experienced generally improving economic conditions
since the PAZ Estenssoro administration (1985-89) introduced market-oriented
policies which reduced inflation from 11,700% in 1985 to about 20% in 1988.
PAZ Estenssoro was followed as President by Jaime PAZ Zamora (1989-93) who
continued the free-market policies of his predecessor, despite opposition
from his own party and from Bolivia's once powerful labor movement. By
maintaining fiscal discipline, PAZ Zamora helped reduce inflation to 9.3% in
1993, while GDP grew by an annual average of 3.25% during his tenure.
Inaugurated in August 1993, President SANCHEZ DE LOZADA has vowed to advance
the market-oriented economic reforms he helped launch as PAZ Estenssoro's
planning minister. His successes so far have included an inflation rate that
continues to decrease - the 1994 rate of 8.5% was the lowest in ten years -
the signing of a free trade agreement with Mexico, and progress on his
unique privatization plan. The main privatization bill was passed by the
Bolivian legislature in late March 1994. Related laws - one that establishes
SIRESE, the regulatory agency that will oversee the privatizations, and
another that outlines the rules for privatization in the electricity sector
- were approved later in the year.
GDP - purchasing power parity - $18.3 billion (1994 est.)
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National product real growth rate:
-
National product per capita:
-
Inflation rate (consumer prices):
$3.75 billion, including capital expenditures of $556.2 million (1995 est.)
$1.1 billion (f.o.b., 1994 est.)
metals 39%, natural gas 9%, soybeans 11%, jewelry 11%, wood 8%
US 26%, Argentina 15% (1993 est.)
$1.21 billion (c.i.f., 1994 est.)
capital goods 48%, chemicals 11%, petroleum 5%, food 5% (1993 est.)
US 24%, Argentina 13%, Brazil 11%, Japan 11% (1993 est.)
$4.2 billion (January 1995)
growth rate 5% (1994 est.)
mining, smelting, petroleum, food and beverage, tobacco, handicrafts,
clothing; illicit drug industry reportedly produces 15% of its revenues
accounts for about 21% of GDP (including forestry and fisheries); principal
commodities - coffee, coca, cotton, corn, sugarcane, rice, potatoes, timber;
self-sufficient in food
world's second-largest producer of coca (after Peru) with an estimated
48,100 hectares under cultivation in 1994; voluntary and forced eradication
programs unable to prevent production from rising to 89,800 metric tons in
1994 from 84,400 tons in 1993; government considers all but 12,000 hectares
illicit; intermediate coca products and cocaine exported to or through
Colombia and Brazil to the US and other international drug markets;
alternative crop program aims to reduce illicit coca cultivation
US commitments, including Ex-Im (FY70-89), $990 million; Western (non-US)
countries, ODA and OOF bilateral commitments (1970-89), $2.025 billion;
Communist countries (1970-89), $340 million
1 boliviano ($B) = 100 centavos
bolivianos ($B) per US$1 - 4.72 (January 1995), 4.6205 (1994), 4.2651
(1993), 3.9005 (1992), 3.5806 (1991), 3.1727 (1990)
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