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The Effectiveness of Foreign Aid in Bolivia

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  • Lykke E. Andersen

    (Institute for Advanced Development Studies)

  • José Luis Evia

Abstract

This document investigates the effectiveness of foreign aid in Bolivia. When comparing accumulated aid in each sector during the period 1998-2002 with the progress in each sector during the same period, it becomes clear that the four sectors receiving by far the most aid (Institutional strengthening, Rural Development, Roads, and Budget support) have shown disappointingly little progress. When the impact of aid is analyzed in a computable general equilibrium model, it becomes clear that aid tends to have a positive effect on growth, but only in the short run, and it tends to have an adverse effect on the income distribution

Suggested Citation

  • Lykke E. Andersen & José Luis Evia, 2003. "The Effectiveness of Foreign Aid in Bolivia," Development Research Working Paper Series 01/2003, Institute for Advanced Development Studies.
    • Handle: RePEc:adv:wpaper:200301
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    References listed on IDEAS

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    1. Antelo Callisperis, Eduardo, 2000. "Políticas de estabilización y de reformas estructurales en Bolivia a partir de 1985," Series Históricas 7607, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    2. Howard White, 1992. "What do we know about aid's macroeconomic impact? An overview of the aid effectiveness debate," Journal of International Development, John Wiley & Sons, Ltd., vol. 4(2), pages 121-137, March.
    3. Andersen, Lykke Eg & Faris, Robert, 2002. "Natural Gas and Income Distribution in Bolivia," Documentos de trabajo 1/2002, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    4. Willem te Velde, Dirk, 2003. "Foreign Direct Investment and Income Inequality in Latin America," Documentos de trabajo 4/2003, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    5. Gemio, Luis Carlos & Wiebelt, Manfred, 2003. "¿Existe espacio para políticas anti-shock en Bolivia?," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 1, pages 37-68, Septiembr.
    6. Andersen, Lykke Eg & Wiebelt, Manfred, 2003. "La Mala Calidad de la Educación en Bolivia y sus Consecuencias para el Desarrollo," Documentos de trabajo 2/2003, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    7. Boone, Peter, 1996. "Politics and the effectiveness of foreign aid," European Economic Review, Elsevier, vol. 40(2), pages 289-329, February.
    8. Jemio, Luis Carlos & Wiebelt, Manfred, 2003. "¿Existe Espacio para Políticas Anti-Shocks en Bolivia? Lecciones de un Análisis basado en un Modelo de Equilibrio General Computable," Documentos de trabajo 1/2003, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
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    Cited by:

    1. Lykke E. Andersen & Osvaldo Nina & Dirk Willem te Velde, 2004. "Trade, FDI, Growth and Poverty in Bolivia," Development Research Working Paper Series 03/2004, Institute for Advanced Development Studies.
    2. Heylen, Fanny Heylen, 2010. "Analyzing the Poverty Impact of the Enhanced Heavily Indebted Poor Countries (HIPC) Initiative in Bolivia," Revista Latinoamericana de Desarrollo Economico, Carrera de Economía de la Universidad Católica Boliviana (UCB) "San Pablo", issue 14, pages 71-106.
    3. Lykke E. Andersen & Bent Jesper Christensen, 2006. "Labor Mobility in Bolivia: On-the-job Search Behavior of Private and Public Sector Employees," Development Research Working Paper Series 01/2006, Institute for Advanced Development Studies.
    4. Lykke E. Andersen & Osvaldo Nina, 2007. "Geographical Constraints to Growth in Bolivia," Development Research Working Paper Series 05/2007, Institute for Advanced Development Studies.
    5. Lykke E. Andersen & Alice Brooks & Alejandro F. Mercado, 2004. "Macroeconomic Policies to Increase Social Mobility and Growth in Bolivia," Development Research Working Paper Series 02/2004, Institute for Advanced Development Studies.
    6. Heylen, Fanny, 2010. "Analyzing the poverty impact of the enhanced Heavily Indebted Poor Countries (HIPC) initiative in Bolivia," Documentos de trabajo 1/2010, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    7. Stephan Klasen & Melanie Grosse & Rainer Thiele & Jann Lay & Julius Spatz & Manfred Wiebelt, 2004. "Operationalizing Pro-Poor Growth - Country Case Study: Bolivia," Ibero America Institute for Econ. Research (IAI) Discussion Papers 101, Ibero-America Institute for Economic Research.

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    More about this item

    Keywords

    Aid effectiveness; Bolivia;

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid

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