05/04/2026
The Growth Lab has released a new series of reports that assess ’s deep economic challenges and provide a detailed recovery plan.
These reports are the result of a 15-month applied research project that involved intensive consultations with government officials, international organizations, business and community leaders, and academic experts in Bolivia.
🔍 Bolivia’s macroeconomic collapse is the most visible symptom of a much deeper crisis. The country’s challenges stem from a broader institutional breakdown that weakened private investment, export capacity, and productivity growth across the economy.
📉 As a result, natural gas production collapsed, no new large-scale mines have opened since 2014, agricultural yields remain among the region’s lowest, and tourism destinations lack basic infrastructure.
We suggest a strategy in 5 pillars:
1. A growth-supporting fiscal consolidation primarily based on finalizing the reform of energy subsidies.
2. An improved social protection net shielding the most vulnerable.
3. Monetary and external stability with IMF support, allowing the country to rebuild foreign currency reserves and restore monetary credibility.
4. Sectoral Reforms allowing strategic industries to thrive, including hydrocarbons, mining, lithium, agriculture, and tourism.
5. Institutions enabling the development of new productive capabilities, developing over time the hard and soft infrastructure needed to diversify Bolivia's economy over time.
In addition to a summary report, there are six papers covering various policy sectors. All of this research is available in English and Spanish:
EN: https://growthlab.hks.harvard.edu/project/bolivias-economic-pivot/
ES: https://growthlab.hks.harvard.edu/project/un-giro-economico-para-bolivia/
Research team: Ricardo Hausmann, Clement Brenot, Lucila Venturi, Lucas Lamby, Taimur Shah, Fernando José García, Ana Isabel Abad, Guillermo Arcay, Tim Freeman, Ricardo Benzecry Mancin, Martina Cometti, Lili Vessereau, Eric Protzer, Jose Ignacio Hernandez Gonzalez, Juan Jimenez, and Alejandro Werner. Marcelo Claure