Promoting private investment is critical for Bolivia as it emerges from the pandemic. New investment can complement and support public efforts, helping to cushion the impacts of tighter macroeconomic and fiscal conditions. Building a stronger, more productive, and resilient private sector can create more higher-quality jobs, and help Bolivia resume its path toward poverty reduction and lower inequality.
The Bolivia Country Private Sector Diagnostic (CPSD) identifies barriers to developing a more dynamic private sector and opportunities to overcome these challenges. It identifies the main cross-cutting constraints that the private sector faces and examines two sectors that exemplify opportunities for private sector investment, with potential for achieving growth and poverty and inequality reduction targets. The first sector is the logistics sector, where Bolivia faces challenges as a land-locked country that relies on its neighbors to help grow its export base. This sector has economywide impacts as an enabling sector for agribusiness and manufacturing and for its potential as an export-oriented services sector in neighboring countries. The second sector, agribusiness, can boost rural prosperity, generate export revenues through diversification, and create jobs across the country by building linkages across the value chain and boosting much-needed innovation and research to raise competitiveness. Within the agricultural sector the CPSD focuses on the agricultural inputs and forestry subsectors, given the strong need for modernization, technology adoption, and sustainable practices.