{
  "title": "Public Investment in Bolivia: Prospects and Implications",
  "publication": "IMF Working Papers, July 12, 2019",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2019/07/12/public-investment-in-bolivia-prospects-and-implications-46987",
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  "summary": "Bolivia’s “Patriotic Agenda 2025” sets targets for social and economic development propelled by state-led industrialization under a five-year development plan (2016–2020).",
  "sections": [
    {
      "heading": "Summary and Context",
      "content": "- Authors: Yehenew Endegnanew, Dawit Tessema\n- Publication date: July 12, 2019\n- Context: Bolivia’s “Patriotic Agenda 2025” and a five-year development plan (2016–2020) emphasize state-led industrialization supported by large-scale public investment to fill infrastructure gaps and raise productivity for sustained medium-term growth."
    },
    {
      "heading": "Main findings",
      "content": "- Large-scale public investment has aimed to fill infrastructure gaps and raise productivity to ensure sustained medium-term growth.\n- Pursuit of these public investment goals in a period of lower hydrocarbon revenues has contributed to widening fiscal and external current account deficits.\n- The paper uses a structural model to outline different scenarios for the level of public investment in the face of declining hydrocarbon revenues.\n- Key result: If public investment is sustained at current levels as a share of GDP while hydrocarbon revenues continue to decline, the sustainability of the public debt could be called into question."
    },
    {
      "heading": "Scenarios and analytical approach",
      "content": "- Methodology: Structural model scenarios comparing alternative public investment paths under declining hydrocarbon revenues.\n- Scenario implication highlighted: Sustaining public investment at current shares of GDP amid continued declines in hydrocarbon revenues risks public debt sustainability."
    },
    {
      "heading": "Policy implications and considerations",
      "content": "- Balancing public investment objectives with fiscal and external sustainability is central given declining hydrocarbon revenues.\n- Implicit policy trade-off: Maintaining high public investment to meet development targets versus the risk of deteriorating public debt metrics and widening deficits."
    },
    {
      "heading": "Key topics and keywords",
      "content": "- Subject areas: Economic sectors, Expenditure, National accounts, Natural gas sector, Private consumption, Private investment, Public debt, Public investment spending\n- Keywords: consolidation path, deficit, Fiscal Consolidation, GDP, Global, hydrocarbon revenue projection, investment, investment path, investment-growth nexus, Natural gas sector, Private consumption, Private investment, Public Investment, Public investment spending, WP\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2019/07/12/public-investment-in-bolivia-prospects-and-implications-46987"
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    "Authors: Yehenew Endegnanew, Dawit Tessema",
    "Published: July 12, 2019",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781498319317.001",
    "Authors: Yehenew Endegnanew, Dawit Tessema",
    "Publication date: July 12, 2019",
    "Context: Bolivia’s “Patriotic Agenda 2025” and a five-year development plan (2016–2020) emphasize state-led industrialization supported by large-scale public investment to fill infrastructure gaps and raise productivity for sustained medium-term growth.",
    "Large-scale public investment has aimed to fill infrastructure gaps and raise productivity to ensure sustained medium-term growth.",
    "Pursuit of these public investment goals in a period of lower hydrocarbon revenues has contributed to widening fiscal and external current account deficits.",
    "The paper uses a structural model to outline different scenarios for the level of public investment in the face of declining hydrocarbon revenues.",
    "Key result: If public investment is sustained at current levels as a share of GDP while hydrocarbon revenues continue to decline, the sustainability of the public debt could be called into question.",
    "Methodology: Structural model scenarios comparing alternative public investment paths under declining hydrocarbon revenues.",
    "Scenario implication highlighted: Sustaining public investment at current shares of GDP amid continued declines in hydrocarbon revenues risks public debt sustainability.",
    "Balancing public investment objectives with fiscal and external sustainability is central given declining hydrocarbon revenues.",
    "Implicit policy trade-off: Maintaining high public investment to meet development targets versus the risk of deteriorating public debt metrics and widening deficits.",
    "Subject areas: Economic sectors, Expenditure, National accounts, Natural gas sector, Private consumption, Private investment, Public debt, Public investment spending",
    "Keywords: consolidation path, deficit, Fiscal Consolidation, GDP, Global, hydrocarbon revenue projection, investment, investment path, investment-growth nexus, Natural gas sector, Private consumption, Private investment, Public Investment, Public investment spending, WP",
    "**Working Paper**"
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