Multiculture, Our People

Bolivia, the best economy in South America

The country’s economy takes first place in the region in terms of growth. This expansion is indebted to their dynamic financial endeavours and their social security programmes.

 

 bolivia ciudad pixabayClaudia Dupeirón

 

The Andean-Amazonian country reported a growth of 4.3% in GDP in 2016, additionally, the Central Bank of Bolivia (BCB) projects an increase of around 4.7% in 2017 and an inflation rate of less than 5%.

According to the Finance Minister, Luis Acre, productive sectors like mining and construction have contributed significantly to the country’s development, in areas unaffected by the international crisis.

In the financial policy report shown here, the principal advisor for the BCB, Raúl Mendoza, highlights the input from industries like oil refinery and cement production, driven by an increasing demand in construction.

Other fields that are significant are energy, savings, property and those serving public enterprise.

Mendoza points out the good performance of transport and communication industries, as well as public investment in increasing and improving functionality of the country’s motorways and airports.

bolivia youtubeThe plan for motorway construction is a priority of the Bolivian government, with an end to join the different districts and regions.

The president of the Bolivian Administration of Motorways (ABC), Noemí Villegas, announced that in the first part of 2017 they will start the two-way section, El Sillar, located in the motorway adjoining Cochabamba and Santa Cruz.

Figures from the ABC signal that the plan is to reach 2020 having invested 11 million dollars in new routes to connect communities.

In the last 10 years they have tarmacked more than 50 % of pavements and constructed more than 7000 metres of bridges and tunnels, they say.

The state has also made large investments to increase their ability to generate electricity through a range of projects, like combined cycle energy plants from company Guaracachi and wind energy from company Qollpana.

With the aim to expand their electricity services, the National Corporation of Bolivian Electricity (ENDE Corporación) will provide a budget of more than 1.4 billion dollars for the year, confirmed the service’s president, Eduardo Paz.

Evo Morales
Evo Morales

From those funds, 1 billion is set aside for production, 222 million for emission and more than 83 million for distribution.

Paz reported that aside from these main projects, there is hydroelectricity from Misicuni, solar energy from Uyuni, Yunchará, Sena and an addition to the factory in San Matías, in Santa Cruz.

The Economic and Social Development Plan from the Bolivian Government has an estimated investment of a little more than 800 million dollars in the next 4 years (2016-20), producing thermoelectricity, hydroelectricity, biomass and harnessing solar and wind energy. With this there will be an increase in useable power of 11,384 megawatts, with an aim to transform the nation into the energy centre of South America.

Meanwhile, Bolivia’s Energy Minister, Rafael Alarcón, referred to the possibilities of exporting energy to neighbouring countries like Argentina, Brazil, Peru and Paraguay: they have progressed in finalising the contract with Argentinian business Cammesa, who anticipate a supply of 80-120 megawatts. The work will finish in 2018, as they must purchase infrastructural elements, electrical conductors, cables and also complete construction.

In addition to this are the plans to send 120 megawatts to Paraguay if they unite to share electricity with Bolivia, it states.

bolivia rio mujeres indi pixabayThe financial input in community projects has been another fundamental part of the Bolivian economy.

In collaboration with the Executive Branch, the BCB funds various National Strategic Public Enterprise (EPNE) and taxes trusts with the National Fund of Regional Development (FNDR).

Furthermore, the country continues to transfer payments to the Juana Azurduy bond, which is distributed to Bolivian mothers from early pregnancy until the child is two years old, with a total sum of 266 dollars. Equally, it contributes to Teleférico, the longest and tallest cable car system in the world, which rises to more than 4000m above sea level and is a tourist attraction for the city of La Paz.

Photos: Pixabay, Wikimedia & Youtube  –  (Translated by Francine Morgan – Email: f_s_morgan@yahoo.co.uk)

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