Macroeconomic Constraints on Economic Development and Poverty Reduction

Bolivia’s macroeconomic performance in the period 1994 to 1998 is analyzed and compared with the performance in former periods and the performance of other developing countries (grouped according to income, region, and debt status). This allows to assess what has been achieved in Bolivia since the deep crisis of the early 1980s. A special focus is whether the constraints to investment, economic development, and redistribution, i.e. on domestic savings, export performance, and fiscal revenues have been relaxed. Findings suggest an overperformance with respect to stabilization and an underperformance with respect to the growth constraints.