Support for Bolivian competitive development

The Andean Development Corporation and the Bolivian government signed six agreements for the execution of a series of projects aimed at strengthening the competitive environment of Bolivia, its integration into the international economy, promotion of trade, investment and tourism, and addressing the needs of social sectors with development proposals to improve the quality of life.

The signing ceremony took place with the presence of Economic Development Minister Horst Grebe; CAF Executive President Enrique García, along with the vice ministers of International Economic Relations; Public Investment and External Financing; Industry and Commerce; Tourism; the prefect of Santa Cruz department; the directors of the FTT and the Productivity and Competitiveness Unit; the FTT coordinator; and representatives from British and Swedish Cooperation.

García said that with these agreements, the CAF reaffirmed the financial support that it had provided to Bolivia in recent years for a series of projects to improve conditions in the Andean country in the framework of sustainable development that ensures quality, sustainable and more equitable growth.

He added that Bolivia should not neglect its integration into an increasingly competitive international context that demands agile and timely decisions on active participation in integration and trade schemes, as well as on attracting investments and economic promotion. Although the amounts of this set of operations are modest compared with other projects, their impact will be important for improving Bolivian competitiveness.

The first agreement signed provides US$138,200 for Technical Cooperation for the Competitive Strengthening Program of the Productive and Financial Sectors "System of Competitive Indicators." The program constructs a System of Departmental and Municipal Competitiveness Indicators that will become a useful tool for national, regional and local authorities in the planning and management of Bolivian productive and competitive development; and for private economic agents in their investment and business decisions. The project is to be executed with supplementary financing from British and Swedish Cooperation.

The second agreement for US$100,000 supports Bolivian participation in the FTT negotiation process. Until now, Bolivia has only participated in the negotiations as observer, but the country needs to integrate fully into the process in order to guarantee the access to the US market that has strengthened its export manufacturing sector. The marginalization of Bolivia from the FTT could lead to the loss of markets for manufactures and even the market for soy in the Andean countries.

The third agreement promotes Salar de Uyuni as an emblematic Bolivian tourist destination under the slogan "White deserts and colored lagoons." This initiative was officially launched in late October with a festival of aerostatic balloons, cultural and folkloric presentations and sports, with the participation over 2,000 people including several international television channels. The objective of the project is to position Bolivia on the international tourism scene as a quality destination and contribute to reactivating the economy. This "non-smokestack industry" generates income, direct and indirect jobs and stimulates new investments in local tourist services. The CAF contribution will be US$40,000.

The fourth agreement covers the "Coordination and Follow-Up of Programmatic Credit for Social Sectors." The project supports and follows up the policies adopted to improve the social services that benefit the most vulnerable sectors of the country. In a situation of fiscal crisis, the Bolivian government has given priority to social expenditure in public investment. These actions are designed meet the Millennium Development Goals of improving the quality of life in the world. The CAF granted US$21,600 for this project.

The fifth agreement relates to a non-reimbursable technical cooperation for US$39,900 for the holding of the "Argentine-Bolivian Political Business Meeting for Economic, Trade, Investment and Tourism Promotion." This effort is intended to deepen bilateral integration and relations between the Andean Community and Mercosur, and contribute to building a South American integration space. It is expected that business alliances will materialize during the meeting as a means of generating investments and increasing tourist flows.

The last agreement provides US$50,000 for the "Electrification System for the Northern Belt of Yapacani Municipality." This project upgrades the electricity service infrastructure in the municipality, which will improve the quality of life of the inhabitants of one of the most impoverished areas of the Cruz rural sector and reinforce the production units located in the municipality.