World Bank Group2016-04-252016-04-252015-06https://hdl.handle.net/10986/24132The objective of this Systematic Country Diagnostic (SCD) is to identify the priority constraints Bolivia faces in sustaining its gains on reducing poverty and enhancing shared prosperity over the next years. It will analyze the dynamics behind the progress achieved in the past decade on inclusive growth, and identify a number of key constraints for sustaining and consolidating this progress. The SCD begins, in Chapter two, with a presentation of four characteristics that make Bolivia special, including its State‐led development strategy, large natural resource wealth, difficult geography and landlocked condition, and rich ethnic diversity. In chapter three, this SCD presents an in‐depth evaluation of the generally positive evolution in growth and in the reduction of poverty and inequality over the past decade. An assessment of the recent past and current context concludes that there is a need for enabling new inclusive growth engines, particularly through increased private investment and higher productivity. Chapter four makes a case for rebalancing the path of inclusive growth, and presents three main challenges in this sense: sustaining macroeconomic and fiscal stability, developing non‐extractive sectors with higher productivity and a lower environmental footprint, and reducing gaps and disparities in access to opportunities. The discussion of these challenges reveals a number of priority constraints, a key input for the prioritization exercise. Finally, in chapter five the SCD presents the findings of a prioritization exercise aimed at producing a restricted list of prioritized constraints, as well as a list of knowledge gaps identified in the different parts of the analysis.en-USCC BY 3.0 IGOTARIFFSCAPITAL MARKETSUNEMPLOYMENT RATESECONOMIC GROWTHMARKET COMPETITIONTAX RATESFINANCIAL RESOURCESLIVING CONDITIONSPROVEN RESERVESOIL PRICESCARBONENVIRONMENTAL PROBLEMSAGRICULTURAL PRODUCTIONEXPECTATIONSAGRICULTURAL PRODUCTIONPRODUCERSWELFARE GAINSRESOURCE MANAGEMENTPROPERTY RIGHTSFINANCIAL RESOURCESRESOURCE ALLOCATIONLABOR FORCESOIL DEGRADATIONRIVER BASINSEFFECTIVE STRATEGYREVENUESENVIRONMENTAL ISSUESINCENTIVESENVIRONMENTAL RESOURCESEQUILIBRIUMPRODUCTIVE RESOURCESMODELSLAND USEDEVELOPED COUNTRIESACCESS TO INFORMATIONPRICE FIXINGECONOMIC ACTIVITYECONOMIES OF SCALEFISCAL POLICIESOIL PRICESEXPLOITATIONARABLE LANDLABOR COSTSOILAIR POLLUTIONAIR POLLUTIONINPUT USEDECISION‐MAKINGTERMS OF TRADENATURAL CAPITALPOPULATION GROWTHIRREVERSIBILITYNATURAL CAPITALNATURAL RESOURCESOPTIONSLABOR PRODUCTIVITYEXTERNALITIESQUOTASMARKET LIBERALIZATIONBARRIERS TO ENTRYDEBTUNEMPLOYMENT RATESLAND DEGRADATIONPOLLUTIONFORESTRYCLIMATE CHANGEWELFARE GAINSFOOD PRODUCTIONECONOMIC POLICIESECONOMIES OF SCALEENVIRONMENTAL ISSUESLABOR PRODUCTIVITYDIVIDENDSPRICE SUBSIDIESNATURAL RESOURCESMETALSEFFECTIVE STRATEGYSUBSIDIESENVIRONMENTAL RESOURCESEFFICIENCYFOOD PRODUCTIONTAXESCANCERACCESS TO INFORMATIONLAND USERESOURCESUNEMPLOYMENTARABLE LANDDRINKING WATEREQUITYPRODUCTIVITY GROWTHCONSUMPTIONRURAL COMMUNITIESMARKET PRICESWAGESCLIMATE CHANGEENVIRONMENTAL MANAGEMENTVALUESMARKET PRICESFISCAL POLICIESCREDITENVIRONMENTAL IMPACTSPURCHASING POWERDEFORESTATIONPATENTSDEMANDSUSTAINABLE USEMINESCOMPARATIVE ADVANTAGESUSTAINABLE GROWTHPUBLIC EXPENDITURESELECTRICITY GENERATIONPOPULATION GROWTHEXPENDITURESPROPERTYDECISION MAKINGTAX RATESRIVER BASINSLABOR MARKETSENVIRONMENTSOIL DEGRADATIONLABOR FORCERESOURCE ALLOCATIONPOPULATION PRESSURESECONOMICSTERMS OF TRADEMARKET COMPETITIONTAX REVENUEPRODUCTIVE RESOURCESBUSINESS CYCLESECONOMIC DEVELOPMENTPROVEN RESERVESTRADELANDLAND PRODUCTIVITYECONOMIES OF SCALEDRINKING WATERPRICE SUBSIDIESCOMMERCIAL BANKSCOMPARATIVE ADVANTAGECOALFARMSECONOMIC DEVELOPMENTPOPULATION PRESSURESREVENUEEMPIRICAL EVIDENCEPRIVATE CONSUMPTIONRISK MANAGEMENTLIVING CONDITIONSRESOURCE OWNERSHIPPRODUCTIVITY GROWTHRISK MANAGEMENTPROFITSENVIRONMENTALLABOR MARKETSLAND DEGRADATIONECONOMIC GROWTHPROPERTY RIGHTSPRICESPRODUCTION COSTSECONOMIC CONDITIONSECONOMIESPUBLIC GOODSCOMPETITIONReportWorld Bank10.1596/24132