Bolivia - Current economic position and prospects

RESTRICTED Report No. WH-209b Tlis report is for official use only by the Bank Group and qaecificaRy authorized organizations or persons. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibiity for the accurcy or cwmpleteness of the report. INTERNATIONAL BANK FOR RECONSTRUCflON AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION CURRENT ECONOMIC POSITION AND PROSPECTS OF BOLIVIA October 29, 1971 South America Department  CURRENCY EQUIVALENTS US$1 = 11. 88 Bolivian Pesos 1 Bolivian peso = US$0. 084 1 million Bolivian pesos = US$84, 175. 00  PREFACE The present report was completed before the latest change in Government took place in August, 1971. Its formu- lation of the economic prospects of Bolivia reflects the pol- icies and intentions of the previous Government and does not reflect the impact which recent political changes may have on future economic outlook. The Report may be useful, however, in providing an evaluation of recent developments and of in- dicating the principal economic issues confronting the Bol- ivian authorities.   TABLE OF CONTENTS Page No. MAP BASIC DATA SUMMARY AND CONCLUSIONS ....... ....... ........... i - iv Is INTRODUCTION ................................... 1ooso&9o II. RECENT ECONOMIC TRENDS ........ ...... h A. Income .................................. 4 B. Investment ............... 0..........."........... so C. Savings ... .............*....**.. .*.**.. 11 D. Balance of Payments .... 0................. 19 III. DEVELOPMENT OUTLOOK ..........................*. 22 A. Growth Prospects ........... 00- ."*-- ...- 22 B* Investment ....S.................... 26 C. Financing Pablic Investment ............. 34 D. Balance of Payments ... .................. 45 STATISTICAL APPENDIX ANNEXz M4arket Prospects for Tin This report is based on the findings of an economic mission to Bolivia in January 1971 and subsequent missions. The report was prepared by Mr. Jorge Hay and Miss Elke Meldau (of the Bank) under the supervision of Mr. Murray Ross (of the Bank). Mrs. Marjorie Huang (of the Bank) revised the statistical material.   - - --wO <PgUg)R