Assistance for the macro- and microeconomy

The Andean Development Corporation and the Ministries of Finance and Economic Development signed two agreements to improve public finance management and provide assistance and training for sectors of craft workers and micro-entrepreneurs. The signing ceremony took place in the presence of Finance Minister Javier Cuevas; Economic Development Minister Horst Grebe; Vice Minister of Treasury and Public Credit Patricia Alborta; Vice Minister of Micro and Small Producers Carlos Tadic; and CAF Executive President Enrique García.

The Ministry of Finance will receive financial support from the CAF to form a Public Spending Review Committee whose mission will be to make recommendations about the structure of state expenditure, its priorities, services for the most vulnerable sectors of the economy, and the increase in permanent income. This set of elements is designed to improve the management of public finances through greater efficiency and equity in the assignment and use of state resources.

The Ministry of Economic Development will receive support from the CAF for the second expanded phase of the "Recovery of Cultural Designs" project (REDIC) destined to back the commercialization of the craft "type models" already prepared in the first phase of this project. This operation will increase the exportable supply of crafts through the organization of the regional productive centers which will benefit craft workers and small producers, and consequently the Bolivian economy.

This purpose of this effort is to raise the productivity and competitiveness of Bolivian crafts and small industry with a view to integrating independent producers in Regional Productive Centers, which are able to satisfy volumes of demand that cannot be individually served.

The multi-ethnic component is an important part of this project which can project a new image of the country through the inspiration of craft designs with their own personality. The project will have an impact on the generation of jobs, particularly favoring the poorer sectors of the population.

CAF Executive President Enrique García said that both projects are complementary because they respond to the country’s macro and microeconomic needs. First, the Bolivian economy needs to preserve its stability with instruments that reduce its deficit, improve its revenue, and define priorities of public expenditure. Second, the economy needs specific programs to improve and diversify production, achieve higher levels of competitiveness, enter new markets and generate employment.

The Recovery of Cultural Designs project is providing backing for Bolivian culture as expressed in its rich craftwork, and for the craft and small producer sectors that generate the largest number of jobs. The project will have a direct impact on improving the quality of life of Bolivia’s citizens, García added.