Bolivia - Economic memorandum

Report No. 1546-BO Economic Memorandum FILE Y on Bolivia March 23, 1,977 Latin America and the Caribbean Regional Office FOR OFFICIAL USE ONLY Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit = Bolivian Peso ($b) US$1.00 = $b20.00 $bl.00 = US$0.05 $bl million US$50,000 The exchange rate of $b20 = US$1 was used through- out this report, except where indicated otherwise.  FOR OFFICIAL USE ONLY This report is based on the findings of a mission to Bolivia in February 1976, composed of: Mario Cortes (Chief of Mission) Ms. Dolores Velasco (Statistical Assistant) This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.   TABLE OF CONTENTS Page No. MAP COUNTRY DATA SUMMARY AND CONCLUSIONS ...... ..................... i viii I. RECENT ECONOMIC DEVELOPMENTS ...................... Evolution of Domestic Product ................... 1 Public Finances ....... ......................... 3 Balance of Payments ...... ...................... 6 Capital Flows and External Public Debt .... ..... 11 II. SECTOR ISSUES AND PROSPECTS ....................... Agriculture ......... ........................... 13 Mining . ........................................ 15 Industry ........... ............................ 20 Hydrocarbons ......... .......................... 22 III. GROWTH PROSPECTS .................................. The Near Term Development Prospects .... ........ 24 Medium-Term Prospects ...... .................... 25 Sectoral Strategy ................ 25 Growth Prospects ...... ....................... 30 Public Investment ....... ....................... 33 Balance of Payments Prospects and External Capital Requirements ...... .................... 35 Export Prospects ....... ........................ 36 Import Requirements ...... ...................... 40 External Capital Requirements ..... ............. 41 Creditworthiness ....... ........................ 42 STATISTICAL APPENDIX  TEXT TABLES Table 1: Evolution of Domestic Product, 1973-75 2: Public Sector Finances, 1970-76 3: Central Government Current Revenue and Expenditures, 1970-76 4: Summary Balance of Payments, 1971-76 5: Value, Composition and Growth of Merchandise Exports and Imports, 1971-73, 1974, 1975, and 1976 6: Terms of External Public Debt Contracted during 1969-76 7: Growth of Macroeconomic Parameters 8: Public Finance Sector Saving and Investment Requirements, 1976-80 9: Projected Public Sector Foreign Exchange Component, 1977-80 10: Merchandise Exports, 1976-85 11: Merchandise Imports, 1976-85 12: External Capital Requirements and Financing  T-I tx~~~~~~~~~~~~~~~~~~~~~~~~ - - - - - - o - d - u - - - T - o S~~ ~ ~~~~~~~~~ ! I I/~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I I ~~~~~~~~~~~~~I