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Macroeconomic Policies to Increase Social Mobility and Growth in Bolivia

Author

Listed:
  • Mercado, Alejandro F.

    (IISEC, Universidad Católica Boliviana)

  • Andersen, Likke Eg

    (IISEC, Universidad Católica Boliviana)

  • Brooks, Alice J.

    (IISEC, Universidad Católica Boliviana)

Abstract

Poverty in Bolivia continues to be among the highest in Latin America despite decades of concerted national and international efforts to reduce it. Bolivia has meticulously followed the recommendations of the Washington consensus at the same time as external aid has been generous and foreign direct investment has boomed. Nevertheless, average productivity and incomes remain at the same low level as they were 50 years ago. This paper suggests that the failure of previous development policies is due to a lack of social mobility in the country. Without social mobility, there is little incentive for people to invest in human and physical capital, and without investment there cannot be productivity growth. In addition, the lack of social mobility implies an inefficient use of human capital, and it hinders the construction of efficient social mechanisms for redistribution and consumption smoothing over the life-cycle. Instituto de Investigaciones Socio - Económicas; IISEC

Suggested Citation

  • Mercado, Alejandro F. & Andersen, Likke Eg & Brooks, Alice J., 2005. "Macroeconomic Policies to Increase Social Mobility and Growth in Bolivia," Documentos de trabajo 3/2005, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana.
    • Handle: RePEc:ris:iisecd:2005_003
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    References listed on IDEAS

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    Cited by:

    1. World Bank, 2005. "Bolivia : Poverty Assessment, Establishing the Basis for More Pro-Poor Growth," World Bank Publications - Reports 8412, The World Bank Group.

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    More about this item

    Keywords

    Social Mobility; Development; Public Policy; Bolivia; Instituto de Investigaciones Socio - Económicas; IISEC;
    All these keywords.

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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