Abstract
The main purpose of this chapter is to examine the difficulties involved in the democratic transition in Bolivia and to point out the circumstances that led to the implementation of the liberal economic policy that forms part of the so-called New Economic Policy (NEP). The development and prospects of this policy are also discussed. The return to democracy and its institutions took place in October 1982, whereas the NEP began to be applied almost three years later, after the enactment of Supreme Decree 21060 in August 1985. The chapter covers the administrations of Hernan Siles Zuazo, President of the democratic transition, and Víctor Paz Estenssoro and Jaime Paz Zamora, who carried the NEP forward.
This study received the support of the International Development Research Centre in Ottawa, Canada. The author is grateful for the valuable com?ments made by Gary McMahon.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Bhagwati, Jagdish N. (1982) ‘Directly Unproductive Profit-Seeking (DUP) Activities’, Journal of Political Economy, vol. 90 (October), pp. 988–1002.
Buchanan, J. M. and G. Tullock (1962) The Calculus of Consent (Ann Arbor: University of Michigan Press).
Capie, Forest (1986) ‘Conditions in which Very Rapid Inflation has Appeared’, Carnegie-Rochester Series on Public Policy, vol. 24, pp. 115–68.
Conaghan, Catherine M., James M. Malloy and Luis A. Abugattas (1990) ‘Business and the “Boys”: The Politics of Neo-liberalism in the Central Andes’, Latin American Research Review, vol. 25 (Spring), pp. 3–30.
Confederación de Empresarios Privados de Bolivia (CEPB) (1991) ‘Porqué no hay más inversión en Bolivia?’, mimeo (La Paz: CEPB, July).
Instituto Latinoamericano de Investigaciones Sociales (ILDIS) (1985) ‘La Nueva Política Económica (Ira. Parte)’, Foro Económico, no. 5 (La Paz: ILDIS).
Jetté, Cristian (1989) De la Toma del Cielo por Asalto a la Relocalización (La Paz: HISBOL).
Krueger, Anne O. (1974) ‘The Political Economy of the Rent-Seeking Society’, American Economic Review, vol. 64, pp. 291–303.
Morales, Juan Antonio (1988) ‘Inflation Stabilization in Bolivia’, in M. Bruno et al. (eds) Inflation Stabilization: The Experience of Israel, Argentina, Brazil, Bolivia and Mexico (Cambridge, MA: MIT Press), pp. 307–60.
Morales, Juan Antonio (1991) ‘Structural Adjustment and Peasant Agriculture in Bolivia’, Food Policy, vol. 16, no. 1 (February), pp. 58–66.
Olson, M. (1982) The Rise and Decline of Nations (New Haven: Yale University Press).
Sachs, Jeffrey (1987) ‘The Bolivian Hyperinflation and Stabilization’, American Economic Review, vol. 77, no. 2 (May), pp. 279–83.
Starr, Paul (1990) ‘The New Life of the Liberal State: Privatization and Restructuring of State-Society Relations’, in Ezra N. Suleiman and John Waterbury (eds), The Political Economy of Public Sector Reform and Privatization (Boulder: Westview Press), pp. 22–54.
Unidad de Análisis de Política Económica (UDAPE) (1991) Estadísticas Económicas de Bolivia (June).
Vickers, John and George Yarrow (1991) ‘Economic Perspectives on Privatization’, The Journal of Economic Perspectives, vol. 5 (Spring), pp. 111–32.
World Bank (1989) ‘Bolivia. Public Sector Expenditure Review with Special Emphasis on the Social Sectors’, mimeo (Washington DC: World Bank).
World Bank (1991) ‘Bolivia. From Stabilization to Sustained Growth’, mimeo (Washington DC: World Bank).
Editor information
Editors and Affiliations
Copyright information
© 1996 Palgrave Macmillan, a division of Macmillan Publishers Limited
About this chapter
Cite this chapter
Morales, J.A. (1996). Economic Policy in Bolivia after the Transition to Democracy. In: Morales, J.A., McMahon, G. (eds) Economic Policy and the Transition to Democracy. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-24642-7_2
Download citation
DOI: https://doi.org/10.1007/978-1-349-24642-7_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-0-333-64272-6
Online ISBN: 978-1-349-24642-7
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)