Institutional support for economic and social development in Bolivia

The Andean Development Corporation signed five cooperation agreements with the Bolivian government and El Alto municipality for over US $250,000 which will have an impact on the country's economic and social development. The agreements signed by the executive (Ministries of Finance, Foreign Trade, Economic Development, and Sustainable Development and Planning) are aimed at institutional strengthening to guarantee implementation of the Plan Bolivia.

The agreement with the El Alto municipal government will be channeled into the execution of a program to develop the local economy and reduce poverty. The CAF president, Enrique García, stressed the importance of these agreements. The objectives of the Plan Bolivia to reactivate the economy, improve the country’s competitiveness, generate employment and strengthen human capital can only be fully achieved through strong and efficient institutions, he added.

The CAF head said the agreements come under the framework of the financing commitment for US$1.8 billion agreed with the Bolivian government for the 2002-2007 period, based on submission of specific programs and projects.

The agreement with the Finance Ministry offers assistance for the multi-sectoral rural infrastructure program, conceived to generate jobs, develop rural areas, protect the poorest sectors and promote participation of the population in rural development processes. This technical assistance covers the execution of the US$200 million loan approved by the CAF board last October for this program.

The second agreement, signed with the Foreign Trade Ministry, provides the appropriate institutional structure for the department, and coordinates the actions, rules and regulations necessary to strengthen Bolivian foreign trade. Another agreement was signed with that Economic Development Ministry to strengthen the Productivity and Competitiveness Unit and help with the design of operating mechanisms to improve productivity and competitiveness in Bolivia.

The fourth agreement is aimed at the institutional strengthening of the Ministry of Sustainable Development and Planning which, as the link between the economic and social areas of the government, should have the capability to plan strategies that move Bolivia toward conditions for sustainable and equitable development in the medium and long term.

The last agreement on technical cooperation was signed with the El Alto local government to support the Program to Improve Local Economic Development and Reduce Poverty, conceived to promote and stimulate sustainable, equitable and participative human development in the city.