The economic, social community–based and productive model of Bolivia and its results

ESTADO PLURINACIONAL DE BOLIVIA

September 10, 2013MINISTERIO DE ECONOMÍA Y FINANZAS PÚBLICAS

THE ECONOMIC, THE ECONOMIC, SOCIAL COMMUNITY-SOCIAL COMMUNITY-

BASED AND BASED AND PRODUCTIVE MODEL PRODUCTIVE MODEL OF BOLIVIA AND ITS OF BOLIVIA AND ITS

RESULTSRESULTSSANTA CRUZ - BOLIVIASANTA CRUZ - BOLIVIA

2

I. THE CRISIS OF CAPITALISM

3

• The world is currently living the following crisis:

1) A financial crisis 2) An environmental crisis3) An energy crisis4) A food crisis5) A water crisis 6) A macroeconomic policies crisis7) An institutional crisis

• In this context it is possible to talk about a structural crisis of capitalism.

• We spotted and identified this crisis since 2006.

THE SEVEN CRISIS OF CAPITALISM

ENVIRONMENT CRISIS

ENERGY CRISIS

FOOD CRISIS

4

II. THE NEW ECONOMIC MODEL IN BOLIVIA

5

THE BASIS OF THE NEW MODEL

3. MODEL FOR THE REDISTRIBUTION OF INCOME: The economic surplus must be redistributed especially among people with very low income. Cash conditional transfers (Juancito Pinto, Bono Juana Azurduy and Renta Dignidad bonds), public investment, inversely proportional increases in salaries, cross subsidization and others.

2. APPROPRIATION OF ECONOMIC SURPLUS: With the recuperation of natural resources, now economic surplus remains in the country and it is redistributed towards other sectors that generate income and employment.

1. GROWTH AND DEVELOPMENT BASED ON MAKING THE MOST OF NATURAL RESOURCES FOR THE BENEFIT OF BOLIVIAN PEOPLE: Larger economic surplus.

4. REDUCTION OF SOCIAL INEQUALITIES AND POVERTY: The model also has a social vision.

6

Neo-liberal Economic ModelSocial, Community-Based,

Productive Economic Model

Free market. The market is the mechanism that allocates

resources and corrects unbalances. Hypothesis of the

efficient market.

The State intervenes to correct failures in the market (non existent

redistributing of wealth and transnational monopoly of strategic

companies)

1. 1.

Guardian State. Watch over State. The market is the mechanism that

auto regulates the economic process.

2. Active participation of the State in the economy. The State must

intervene in the economy in seven ways: Planning, business,

investment, regulating, benefactor, promoting, banking.

2.

Privatizing State, that transfers surplus outside the country and

doesn’t take care of natural resources.

Nationalization and control of strategic natural resources.

3. 3.

Pattern of Exporting Primary Development

4. Pattern of Industrialization and Productive Development

4.

7

Neo-liberal Economic Model Social Community-Based


Concentration of income, larger sectors excluded in society. Inverted

sense of redistribution that favors increasing earnings for

entrepreneurs thus cutting back salaries.

5. State that redistributes income. De-colonizing, that incorporates the demands of social sectors in

decision making processes.

5.

7. 7.Growth exclusively related to external demand.

Growth related to both external and internal demands.

Economy focused in private endeavors, reducing to the minimum intervention in the public sector and

increasing private earnings.

6. State that promotes plural economy (State, private sector, cooperative social economy and

community-based economy)

6.

8. 8. Dependence of external savings for investment, increasing national

debt and fiscal deficit.

Generation of internal resources for investment, less national debt and

fiscal surplus.

8



To preserve macroeconomic stability as a social legacy and

promote economic development and social as well as economic growth

with balanced redistribution of income.

9. 9.Blockage, poverty, inequalities in wealth and opportunities.

Larger development, redistribution and generation of employment.

Macroeconomic stability as a goal in itself. The fight against

inflation is the center of the economic policy putting aside both growth and employment.

10. 10.

11. Recuperation of sovereignty and independence in the making of

economic policy (fiscal, monetary and rate policies). Both fiscal

surplus and the “bolivianization” of the economy have been achieved

since 2006.

Dependency on economic formulas of the Washington Consensus (IMG and WB)

11.

9



Fiscal and monetary policies non-existent (continuous fiscal deficits and high level of dollarization of

the economy).

Recuperation of sovereignty and independence in the elaboration of economic policy (fiscal, monetary and rate policies) thanks to the

fiscal surplus, the “bolivianization” of the economy and the dynamics of

internal demand respectively.

12. 12.

STRATEGIC SECTORS THAT

GENERATE SURPLUS

SECTORS THAT GENERATE

INCOME AND EMPLOYEMENT

• Hydrocarbons

• Mining

• Electricity

• Environmental resources

• Industry, manufacturing and craftsmanship

• Tourism

• Agricultural development

• Housing

• Commerce, transportation and other services

Surplus

SOCIAL COMMUNITY-BASED PRODUCTIVE ECONOMIC MODEL

10

• Bono Juancito Pinto

• Renta Dignidad

• Bono Juana Azurduy

• Poverty reduction

REDISTRIBUTION OF INCOME:SOCIAL PROGRAMS

REDISTRIBUTING STATE

INDUSTRIALIZATION

PLURAL ECONOMY

11

Promover la integración de las diferentes formas

económicas de producción, con el objeto de lograr el desarrollo económico y social

Función del Estado PRIVADA

COMUNITARIA

SOCIAL COOPERATIVA

ESTATAL

CRECIMIENTO ECONÓMICO CON REDISTRIBUCIÓN

DEL INGRESO

12

III. RESULTS

-1,7-2,6

2,43,0

3,84,6

5,3

1,6

4,34,74,74,4

5,05,0

0,4

2,51,7

2,52,7

4,24,44,84,6

6,1

3,44,1

5,25,2

6,3

-4

-3

-2

-1

0

1

2

3

4

5

6

7

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

(p)

2009

(p)

2010

(p)

2011

(p)

2012

(p)

may

-13

Bolivia: Growth of real Gross Domestic ProductGDP 1985 - May 2013

(in percentage)

(p) PreliminarySource: National Statistics Institute (INE)Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

13

From 1985 - 2005

3,0%

From 2006 - 2012

4,8%

IGA

E

2,6

-2,0

3,0 3,3

-1,6-0,3

-3,4

2,3

-2,2

0,5

-1,8

4,5

-0,3

0,9

4,9

8,4

3,7 4,4

8,62,9

2,0 3,5 2,2

-0,3

-2,3

-0,3

6,02,6

5,2

0,4

2,51,7

2,5 2,7

4,2 4,4 4,8 4,6

6,1

3,44,1

5,2

-4

-2

0

2

4

6

8

1019

99

2000

2001

2002

2003

2004

2005

2006

2007

2008

(p)

2009

(p)

2010

(p)

2011

(p)

2012

(p)

Exportaciones netas Demanda interna Crecimiento PIB

Bolivia: Influence of internal demand and net exportations in the GDP 1999 – 2012 (p)

(in percentage)


14

Bolivia: Gross Domestic Product per Capita 1986 – 2012 (p)

(in USD)

15


755

785

712

714

720 772

796

790

806 88

5 953

1.00

01.

050

1.00

199

594

289

589

4 950

1.01

0 1.18

2 1.32

8

1.68

3

2.23

8 2.48

0

1.87

1

1.65

1

0

500

1.000

1.500

2.000

2.50019

8619

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

98

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

(p)

2009

(p)

2010

(p)

2011

(p)

2012

(p)

815

1.40

0

2.01

1

2.24

0 3.48

3

2.10

7

2.98

4

4.11

2 5.87

1

0

3.10

8

3.75

61.

158

1.15

9

2.07

4

2.42

7

1.86

1

1.49

8

1.52

1

1.06

2

794

1.62

8

1.67

2

3.32

4

2.26

2

1.84

0

1.50

5

1.65

4

1.33

1

1.12

4

945

950

525

923 741 1.090 1.215 1.108 1.246 1.320

6.933

5.400

6.902

11.794

6.966

9.146

4.8224.088

2.8672.195

6.162

0

1.000

2.0003.000

4.000

5.0006.000

7.000

8.0009.000

10.000

11.000

12.000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2012

2013

Mill

ones

de

US

$

AgropecuariaIndustria ManufactureraExtracción de MineralesExtracción de hidrocarburos

78%78% of all importations

are intermediate products and capital goods

Bolivia: Exportations and Importations 1990 – 2012(p)January - July 2012 – 2013(p)

(in millions of USD)

16

(p) PreliminaryNote: Doesn’t include personal effects or re-exportations. Source: National Statistics Institute (INE)Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)Fuente: Instituto Nacional de Estadística (INE)

Jan - Jul

29%

12%

Exportations

Importations

Jan - Jul

4%

10%

In 2012 exportations in the agricultural

sector and the manufacturing

industry increased in 53%53% and 47%47%

respectively in comparison with

2011

524

490 837

1.11

9

928

1.20

1

1.81

7

1.75

2

926

862

997

1.28

1

1.46

7 1.77

0 2.59

9

2.30

5 2.80

3

3.84

4

4.12

7

2.05

3

611 94

6 952

1.31

5

1.27

4 1.54

5

2.24

5

910

779

374

359

403

1.95

3

1.24

5

2.33

0

524

458 504

1082

7031.130 1.196

1.6572.451

2.020 1.832

3.588

5.100

4.2353.847

4.577

5.604

1.920

2.9262.440

8.2817.936

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2012

2013

Mill

ones

de

US

$

Bienes de CapitalMaterias Primas y Productos IntermediosBienes de ConsumoOtros

253

-357-72

-654-1.126

-457-16

345508

1.306

1.958

909

1.9821.704

-361 -545

1.4481.280

3.687

-2.000

-1.000

0

1.000

2.000

3.000

4.000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2012

2013

Mill

ones

de

US

$

Bolivia: Commercial Balance 1990 - 2012 (p) January - July 2012 - 2013 (p)

(in millions of US)

17

(p) PreliminaryNote: The estimation includes personal effects or re-exportations. Source: National Statistics Institute (INE)Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

16%188%

Jan - July

Latin America: Commercial balanceFirst semester 2013(in percentage of GDP)

-1,4%-0,3%-0,4%-0,1%

0,5%0,9%1,0%

2,4%6,0%

-2,4%

-4,0% -2,0% 0,0% 2,0% 4,0% 6,0%

Paraguay

Uruguay

Peru

Ecuador

Brasil

Colombia

Chile

Argentina

Venezuela (1)

Bolivia

14.36813.927

12.019

9.730

8.580

1.123

7.722

1.714

3.178

5.319

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

9.000

10.000

11.000

12.000

13.000

14.000

15.00019

7619

7719

7819

7919

8019

8119

8219

8319

8419

8519

8619

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

13

Bolivia: Net International Reserves of the Bolivian Central Bank (BCB) 1976 - 28 August 2013


Source: Bolivian Central Bank (BCB) and other countries central banks. Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF) 18

LATIN AMERICA: INTERNATIONAL RESERVES JULY 201

(in percentage of the GDP)

477

11131415

192931

51

0 20 40 60

Ecuador

Venezuela

Argentina

Colombia

México

Chile

Brasil

Paraguay

Uruguay

Perú

Bolivia

*

28.5

3523

.918

37.5

6332

.392

24.1

3424

.097

22.9

9518

.353

15.7

8613

.546

8.81

46.

475

12.1

118.

996

6.74

46.

465

6.64

45.

954

5.49

7

37.349

30.392

49.674

41.388

30.87930.562

29.639

24.30821.283

15.874

11.2438.2307.8906.916

4.8673.5152.3491.2770

6.000

12.000

18.000

24.000

30.000

36.000

42.000

48.000

54.00019

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

12

2012

2013

IDHImpuestos sin IDH

Jan-Jul 19

34%34%

22%22%

3%3%

14%14%

34%34%

20%20%

Source: National Taxes Service (SIN), National Customs of Bolivia (ANB) Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

Bolivia: Taxes collection, 1990 – 2012January – July, 2012 - 2013 (p)

(in millions of Bolivianos)

23%23% 1%1%

-6,4

-1,8

4,5

-22,3

-30,6

1,7 1,7

-8,8

-6,1-8,3

0,8

4,8

0,1

-4,7

3,21,8

-36,0

-30,0

-24,0

-18,0

-12,0

-6,0

0,0

6,019

8019

8119

8219

8319

8419

8519

8619

8719

8819

8919

9019

9119

9219

9319

9419

9519

9619

9719

9819

9920

0020

0120

0220

0320

0420

0520

0620

0720

0820

0920

1020

1120

1220

13

(p) PreliminarySource: Ministry of Economy and Public Finances and Central Bank of Bolivia (BCB)Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

Bolivia: Surplus (deficit) of Non-Financial Public Sector (SPNF) 1980 – July 2013(p) (in percentage of the GDP)

20

Ene-

Jul

Superávit (déficit) del TGN 2000–Julio 2013 (En porcentaje del PIB)

Ene-

Jul

-2,9

-5,0-6,0

-4,8

-2,6

-0,9

0,31,5 1,2

-0,5

3,1

0,03

-0,2

1,0

-8,0

-6,0

-4,0

-2,0

0,0

2,0

4,0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

7.67

1 9.85

0

11.9

49

6.95

9

8.57

8

6.19

3

7.86

93.

200

2.44

3

3.96

4

4.63

6 6.75

8

6.92

4

4.64

0 4.57

3

4.20

8

3.07

5

4.80

0

5.35

9 4.74

5

4.04

8

2.13

5

1.77

32.22

8

2.00

7

1.15

2

1.56

7 1.76

7 2.07

2

2.69

8

2.212

14.539

12.97811.762

15.285

12.940

10.330

23.019

18.741

3.7303.6183.006

13.575

6.669

4.711

2.696

0

4.000

8.000

12.000

16.000

20.000

24.000

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2012

2013

Universidades

Gobernaciones

Municipios

(p) Preliminary (*) Data to July 2012 and 2013 it doesn’t include earnings of forest resources.Source: Ministry of Economy and Public Finances. General Directorate of Fiscal Accounting (DGCF)Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF) 21

18%

23%

Bolivia: Departmental royalties and transfer (departmental governments, municipalities and universities)

1994 – 2012To July, 2012 – 2013* (p)

(in million of Bolivianos)

Until July

22

Updated to August 22, 2013Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

Bolivia: Transfers, departmental royalties (departmental governments, municipalities and universities) and balance in

cash and banks 2005 – 2013 (in million of Bolivianos)

Until July

18%18%

20%20%

3.041

4.9926.297

6.9945.955

15.827

19.429

6.669

10.33011.762

13.575 12.978

23.019

15.28516.194

8.109

12.36512.940

18.741

14.539

0

3.500

7.000

10.500

14.000

17.500

21.000

24.500

2005 2006 2007 2008 2009 2010 2011 2012 2012 2013

Saldo en caja y bancos

Transferencias y regalías departamentales

202 255 247 238 246 296 301 281 327 461 511690

1.1571.530

2.169

113 106 112 123 159 97 96 202 266

493 423409

504

669

797

120 143 186 121 92 118 142326

357

324 398271

344

484

709

96 78 94 102 3 90 90

7155

73 107 100

125

128

62

531 583 639 585 500 602 629879

1.005

1.351 1.439 1.521

2.182

2.874

3.807

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Administración Central Administración local Administración departamental Cofinanciamiento Regional Universidades

23

Bolivia: Public Investment executed by economic sector 1999 - 2013(in millions of USD)

(p) PreliminarySource: Vice-Ministry of Public Investment and External Financing (VIPFE)Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

Ppto

496744

121

178106

183792

1.191

0

200

400

600

800

1.000

1.200

2012 2013

Executed Public Investment Jan – Jun 2012 - 2013

(in millions of USD)50%

34%

22%26%107%31%

24

(p) PreliminarySource: Bolivian Central Bank (BCB) Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

Bolivia: Public External Debt of medium and long terms1980 – July 2013 (p)

-11%

In millions of USD In percentage of the GDP

2.31

22.

653

2.80

3 3.17

63.

208

3.29

43.

643 4.

289

4.07

03.

492

3.77

93.

628

3.78

54.

003 4.47

94.

791

4.64

34.

532

4.65

94.

573

4.46

04.

497

4.40

0 5.14

25.

045

4.94

23.

248

2.20

92.

444

2.60

22.

892 3.

492 4.

196

4.40

5

0

1.000

2.000

3.000

4.000

5.000

6.000

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

8789

78

6770 71

575555 555664

5852

29

1715 15 16161515

53

63

7568

7478

0

10

20

30

40

50

60

70

80

90

100

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

25

(p) PreliminarySource: Bolivian Central Bank (BCB) Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

-11%In millions of USD In percentage of the GDP

Bolivia: Internal Public Debt of the National General Treasure (TGN), 2000 – July 2013 (p)

1.588

2.0572.1692.429

2.7322.9683.0433.239

3.9274.247

4.5874.5964.294

4.074

0

500

1.000

1.500

2.000

2.500

3.000

3.500

4.000

4.500

5.000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

14 15 14 14 14 1417

20

2629

31 32 31

2624 23

24 23

19

1516

0

5

10

15

20

25

30

35

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

740 873 1.085 1.413 1.900 2.126 2.434 2.951 2.7911.012 1.3051.886

2.6833.095 3.213

3.9284.385 4.589

1.798 1.8802.143

2.5413.122 3.334

3.957

5.043 5.479

3.7114.268

5.344

6.972

8.4989.087

10.805

12.97113.545

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

2005 2006 2007 2008 2009 2010 2011 2012 2013

OtrosDPF'sCaja de AhorroVista

26Source: Supervision Authority of he Financial System (ASFI) Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

20%27%48%4%

21%

34%

40%

5%

Bolivia: Deposits of the public in the Financial System2005 – July 2013(in millions of USD)

2005

US$ 3.711 millones

Jun

Julio 2013

US$ 13.545 millones


Bolivia: Number of deposits in the Financial System, by amount category 2005 – July 2013

(in thousands of deposits)

169 210 266 307 346 348 396 428 421129 131 148 162 185 195 219 239 2331.511 1.782

2.1592.833

3.5284.209

4.7855.423 5.927

1.911 2.2402.719

3.4794.259

6.8266.330

5.6234.952

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

2005 2006 2007 2008 2009 2010 2011 2012 Jul-13

Mile

s de

cue

ntas

Mayores a US$ 2.000.001 Entre US$ 1.000.001 y US$ 2.000.000 Entre US$ 500.001 y US$ 1.000.000Entre US$ 200.001 y US$ 500.000 Entre US$ 100.001 y US$ 200.000 Entre US$ 50.001 y US$ 100.000Entre US$ 30.001 y US$ 50.000 Entre US$ 20.001 y US$ 30.000 Entre US$ 15.001 y US$ 20.000Entre US$ 10.001 y US$ 15.000 Entre US$ 5.001 y US$ 10.000 Entre US$ 1.001 y US$ 5.000Entre US$ 501 y US$ 1.000 Menores a US$ 500

28

Bolivia: Gross Portfolio of the Financial System by objective of credits, 2005 – July 2013


Source: Supervision Authority of he Financial System (ASFI) Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

1.423 1.427 1.607 1.819 2.020 2.370 2.983 3.507623 666 8931.167 1.381

1.864

2.4433.117

3.481

1.313 1.5241.711

1.9952.199

2.533

3.072

3.609

4.012

3.907

3.360 3.6174.211

4.9815.600

6.767

8.499

10.232

11.399

10,1

7,7

5,1

3,12,1

1,6

1,61,5

3,7

0

2.000

4.000

6.000

8.000

10.000

12.000

2005 2006 2007 2008 2009 2010 2011 2012 Jul-13

Mill

ones

de

US$

0,0

2,0

4,0

6,0

8,0

10,0

12,0

Porcentaje

Crédito Productivo Venta al por Mayor y menorServicios Porcentaje de Mora (Eje Der.)


Bolivia: Bolivianization of deposits and credits in the Financial System 1995 – July 2013

(in percentage)

Jul

14 137 6 5 5 6 6 7

1016

46 47

8

40

56

64

72

23

36

74

3 3 3 4 4 3 3 3 2 4

35

58

71

81

15

20

86

0

10

20

30

40

50

60

70

80

90

100

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Porc

enta

je

DepósitosCréditos

Bolivia: Urban open unenloyement rate 2001 – 2012 (p)

(in percentage)

30

(p) PreliminarySource: Unit for the Analysis of Economic and Social Policies (UDAPE) based on the Homes Survey of the National Statistics Institute (INE)Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

8,5 8,7 8,78,2 8,0 7,7

4,44,9

3,83,2

11,112,0 12,3 12,1

11,3

9,510,2

11,0

7,9

2,0

4,0

6,0

8,0

10,0

12,0

14,0

2001 2002 2003 2005 2006 2007 2008 2009 2011 2012

INE-UDAPECEDLA

Bolivia: Active and creation of new companies 2002 - 2012

To July 2012 - 2013 (p)(in number of companies)

Note: During the first months of each year the amount of companies tends to increase considerably, the depuration process is carried out in December of each year which makes date vary from January to December of a particular year. Source: Fund for Entrepreneurial Development (FUNDEMPRESA)Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF) 31

38.740

Julio

9.94013.060

19.77823.082

27.870

37.32542.921

51.708

65.793

104.533

30.277

13.941

68.232

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

100.000

110.000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2012 2013

Núm

ero

de E

mpr

esas

Bolivia: Extreme poverty levels 1999 – 2012 (p)(in percentage)


32

2005 2012(p) VariaciónNacional 38,2 21,6 -16,6

Urbana 24,3 12,2 -12,1Rural 62,9 40,9 -22,0

21,6

38,2

18

24

30

36

42

48

1999 2000 2001 2002 2003-2004

2005 2006 2007 2008(p) 2009(p) 2011(p) 2012

33

(a): Urban AreasSource: Economic Commission for Lain America and the Caribbean (CEPAL)Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

Latin America: Extreme Poverty Level, 2005 and 2011(in percentage)

2005 2011

3,1

6,1

6,3

10,1

10,7

11,7

12,4

20,9

1,9

28,0

1,1

0,0 5,0 10,0 15,0 20,0 25,0 30,0

Uruguay (a)

Argentina (a)

Chile

Brasil

Perú

Ecuador (a)

Colombia

Venezuela

México

Bolivia

Paraguay-17,3 pp

2005 2011

4,1

9,1

10,6

11,7

15,9

17,1

17,4

20,2

32,1

38,2

3,2

0,0 10,0 20,0 30,0 40,0

Chile

Uruguay (a)

Argentina (a)

Brasil

México

Venezuela

Ecuador (a)

Perú

Colombia

Paraguay

Bolivia

From 2011, From 2011, Bolivia is no Bolivia is no longer the longer the poorest country poorest country in South in South AmericaAmerica

34

Income comparison between the richest 10% and the poorest 10% at a national level, 1996 - 2012

(number of times)

113

28

79

128

35

157

46

18

89

0

20

40

60

80

100

120

140

160

180

Nacional Urbana Rural

199620052012(p)

(p) PreliminarySource: Unit for the Analysis of Economic and Social Policies (UDAPE) based on the Homes Survey of the National Statistics Institute (INE)Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

35

Bolivia: Population that benefits with direct conditional cash transfers until July 2013(p)

(in number of beneficiaries and percentage)

(p) PreliminarySource: Ministry of Education, Fiscal Authority and Rent and Insurnce Control and Ministry of Health and SportsElaboración: Ministerio de Economía y Finanzas Públicas, Red de Análisis Fiscal (RAF)

1.761.057 beneficiariesBono Juancito Pinto (2012)

3.588.257 beneficiaries

33,0% of the total Bolivian

population

Rest of the population

67,0 %

16,3%

992.450 beneficiaries

Renta Dignidad (July 2013)

Bono Juana Azurduy (2012)

834.750 beneficiaries

7,7%

9,0%

36

IV. GENDER EQUALITY

37

Respect to our basic rights as human beings and tolerance towards our differences as women and men.

Equal opportunities in all important sectors and in every field (social, cultural, political).

In terms of the economy, it is also very important to achieve gender equality. Restrictions in the access to the productive field or limited employment opportunities for women generate increasing poverty.

Gender Equality in the State General Budget (PGE)

38

In the context of the implementation of public policies to prevent discrimination, the Ministry of Economy and Public Finances (MEFP) contributed to the following achievements:

Inclusion of specific guidelines regarding “Promotion and Gender Policies” and Defense and Protection of Children and Families” in the structure of the programs of Autonomous Territorial Entities..

Inclusion of the Expense Qualifier by Goal and Function and the 10.9 Code “Gender Equality and Other Services to Eliminate Inequalities and Achieve Social Protection”.

Accountability of the Maximum Instances (MAEs) of public services for the allocation of resources and inclusion of actions in AOPs to contribute to fight against racism and all forms of discrimination.

Allocation of Resources in the PGE for Gender Equality

Supreme Decree 24864, the State guarantees equality in the rights of men and women in the political, economic, social and cultural spheres, as well as the inclusion of gender mainstreaming contents in public policies to achieve real gender equality.

Departmental Governments and Municipalities must be accountable for this in terms of their specific competencies.

Law Nº 348, protection programs and services for the attention and recuperation of women victims of violence will be organized, coordinated and strengthened in each municipality with the corresponding allocation of resources in their annual budgets as permanent support instances trough Integrated Municipal Legal Services, Home Shelters and Temporary Shelters.

Allocation of Resources for Gender Equality in the PGE in Autonomous Territorial Entities

Resources Allocated for Gender Issues at the Central Level of the Government, 2009 - 2013

(in Millions of Bolivianos)

The chart includes the ministries of Labor, Justice, Autonomies and, the Ministry Health and Sports.

99% belongs to the Ministry of Health and Sports for the allocations assigned trough the Bono Juana Azurduy bond.

In 2013, 84% is financed with resources of the National General Treasure (TGN).

The average execution is 64%.

Source: SIGMAElaborated by: MEFP-VPCF-DGPGP

+233%

Budget Assigned to Gender Issues, 2013Municipal Autonomous Governments (GAM)

(in Millions of Bolivianos and percentages)

66% corresponds to municipalities in the main departments of Bolivia.

The resources allocated for these policies account for 2,5% of the Total Budget of GAM.

72% correspond to resources for the SUMI. The average execution is 33%.


Budget Allocated to Gender Issues, 2013Departmental Autonomous Governments (GAD)

(in Millions of Bolivianos)


63% is concentrated in the GADs of Tarija, Beni, La Paz and Santa Cruz.

The resources allocated for these type of policies represent 0,09% of the Total Budget of the GADs.

The average execution to date is 14,3%.

Thank you…

43

44Elaborated by: Ministry of Economy and Public Finances, Fiscal Analysis Network (RAF)

FINANCIAL CRISIS

In 2001 to reduce the effect of the crisis the FED lowered the type of interests to stimulate the economy.

In the euphoria of a continuous increase of home prices, credits were granted to American poor workers.

HIGH RISK CREDITS

BANKSFEDERAL RESERVE

2002 and 2006: Mortgage credit boom 2007: Banks declare bankruptcy, the estimated losses are between 50 and 100 million USD 2007-2009: The FED grants a financial rescue worth close to 7,8 billon USD 2010 - 2011: Financial rescue to Ireland worth 85.000 million Euros and Portugal for 78.000

million Euros 2010-2012: Financial rescue to Greece worth 110.000 million Euros 2012: Financial rescue to Spain worth 100.000 million Euros April 2013: Financial rescue to Cyprus worth 10.000 million Euros August 2013: Germany acknowledges that Greece needs a new financial rescue

VolverVolver

45

ENVIRONMENTAL CRISIS

Fuente: Agencias de Noticias InternacionalesElaboración: Ministerio de Economía y Finanzas Públicas, Red de Análisis Fiscal (RAF) VolverVolver

Floods in China (19 August 2013) It severely damaged 50.000 homes, caused the death of 130 people and the disappearance of 102. The number of people displaced from their homes was over 300.000 and about 3,7 millions were directly affected by this phenomenon.

Floods in Russia (21 August 2013) 23 thousand people has been evacuated and there is an extended threat of eventual epidemics of diseases. 500 kilometers of roads have been destroyed as well as bridges and the access to 38 towns. Over 43% of carbon reserves for winter have been spoiled.

Tornado in Japan (1 September 2013)There are at least 63 people injured, including 7 girls from a primary school which roof top was completely destroyed. The tornado also affected the electric services leaving 33 thousand homes without electricity.

46

ENERGY CRISIS

• India, August 2012, in one of the worst black-outs of history, more than 600 million people have lost electric supply due to the increasing demand of energy in the country (about 9% annually).

• Contrary to the elevated consumption of energy in developed countries, Latin American countries have implemented programs for the efficient use of electricity and to save this type of energy.

WORLD CONSUMPTION OF ENERGY

Back Back

884

871 867 868 869 868

905 908900 896

885

870

857852 852 852 852

898

922

923915

91014 14 14

1516 16

1717

1615 14

820

840

860

880

900

920

940

2000

-02

2001

-03

2002

-04

2003

-05

2004

-06

2005

-07

2006

-08

2007

-09

2008

-10

2009

-11

2010

-12 6

8

10

12

14

16

18

MundoPaíses en desarrolloPaíses desarrollados

47

FOOD CRISISINCREASING PRICES OF FOOD

AROUND THE WORLD

Fuente: Fondo Monetario Internacional (FMI) y Organización de las Naciones Unidas para la Alimentación y la Agricultura (FAO)Elaboración: Ministerio de Economía y Finanzas Públicas, Red de Análisis Fiscal (RAF)

Jun-

13

Índice de precio de alimentos

MALNUTRITION IN THE WORLD (in millions of people)

820

840

860

880

900

920

940

2000

-02

2001

-03

2002

-04

2003

-05

2004

-06

2005

-07

2006

-08

2007

-09

2008

-10

2009

-11

2010

-12

6

8

10

12

14

16

18

MundoPaíses en desarrolloPaíses desarrollados

FAO Report (2009): “How to feed the World in 2050”

The world population in 2050 will be 9,100 million. To feed this population, food production (excluding food used for the production of bio-fuels) must increase by 70%.

FAO – OECD Report (2012): “Agricultural perspectives 2012 - 2021”

The agricultural production must increase by 60% over the next 40 years to meet the growing demand for food. However, the potential for expansion of global agricultural land is limited. Is expected to increase arable land only 5% by 2050. The additional production will come from increased productivity.

BackBack

708090

100110120130140150160170180190200

ene-

80ju

l-81

ene-

83ju

l-84

ene-

86ju

l-87

ene-

89ju

l-90

ene-

92ju

l-93

ene-

95ju

l-96

ene-

98ju

l-99

ene-

01ju

l-02

ene-

04ju

l-05

ene-

07ju

l-08

ene-

10ju

l-11

ene-

13

48(e) EstimadoFuente: Fondo Monetario Internacional (FMI)Elaboración: Ministerio de Economía y Finanzas Públicas, Red de Análisis Fiscal (RAF)

GermanyFrance

ChinaIndia

SpainItaly

Economic growth in selected countries, 2005 – 2013 (e) First trimester 2013

(in percentage)

EEUU

Grecia

-0,30,6

-0,4-0,1

-4,2

5,7

7,78,0

-2,3-1,5 -2,0-1,6

1,81,9

-10,0

-5,0

0,0

5,0

10,0

15,0

2005 2006 2007 2008 2009 2010 2011 2012 2013e I Trim2013

Alemania Francia Grecia IndiaChina Italia España Estados Unidos

MACROECONOMIC POLICIES CRISIS

49Fuente: EurostatElaboración: Ministerio de Economía y Finanzas Públicas, Red de Análisis Fiscal (RAF)

France

Portugal

Spain

Euro Zone

Unemployment rates in selected countriesJanuary 2005 – June 2013

(in percentage)

EEUU

Greece


7,6

12,111,0

27,626,3

17,4

0

5

10

15

20

25

30

ene-

07m

ar-0

7m

ay-0

7ju

l-07

sep-

07no

v-07

ene-

08m

ar-0

8m

ay-0

8ju

l-08

sep-

08no

v-08

ene-

09m

ar-0

9m

ay-0

9ju

l-09

sep-

09no

v-09

ene-

10m

ar-1

0m

ay-1

0ju

l-10

sep-

10no

v-10

ene-

11m

ar-1

1m

ay-1

1ju

l-11

sep-

11no

v-11

ene-

12m

ar-1

2m

ay-1

2ju

l-12

sep-

12no

v-12

ene-

13m

ar-1

3m

ay-1

3

50Fuente: EurostatElaboración: Ministerio de Economía y Finanzas Públicas, Red de Análisis Fiscal (RAF)

France

Italy

Japan

GermanySpain

Selected countries: Public debt in percentage of GDP2000 – 2012(p)(in percentage)

EEUU

Greece


BackBack

57,2

84,1

155,4

134,3

103,2

71,9

87,9

0,0

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

180,0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Alemania Francia Grecia JapónItalia España Estados Unidos

51

WATER CRISIS

Fuente: Departamento de Asuntos Económicos y Sociales Naciones Unidas (ONU – DAES)Elaboración: Ministerio de Economía y Finanzas Públicas, Red de Análisis Fiscal (RAF) BackBack

• Throughout the last century, water use and consumption grew at twice the rate of population growth.

• As the world's population has surpassed 6,000 million people, some countries have exceeded the limits of their water resources.

• About 1,200 million people, nearly a fifth of the world's population, live in areas of physical water scarcity.

• With the current climate change scenario by 2030 almost half of the world's population will live in areas with high water problems.

• Water scarcity is caused mainly by human action

RESOURCES ALLOCATED TO PROGRAM 25 “PROMOTION AND GENDER POLICIES” IN AUTONOMIC MUNCIPAL

GOVERNMENTS (in Bolivianos)

Year 2013

52

Departament25- Promotion and Gender Policies

Current Budget Executed % Exec. CHUQUISACA 4.428.129 2.026.438 45,76%

LA PAZ 13.925.949 4.783.150 34,35%

COCHABAMBA 18.523.459 4.139.631 22,35%

ORURO 1.715.279 160.162 9,34%

POTOSÍ 3.996.519 555.035 13,89%

TARIJA 4.568.234 1.938.276 42,43%

SANTA CRUZ 31.353.244 11.563.486 36,88%

BENI 4.087.641 1.476.839 36,13%

PANDO 1.324.019 517.776 39,11%

Total 83.922.473 27.160.793 32,36%

Source: General Directorate of Fiscal AccountingElaborated by: DGPGP – UET

RESOURCES ALLOCATED TO PROGRAM 26 “DEFENSE AND PROTECTION OF CHILDREN AND FAMILIES” IN

AUTONOMIC MUNCIPAL GOVERNMENTS (in Bolivianos)

Year 2013

53

Departamento26 - Defensa y Protección de la Niñes y Familia

Ppto. Vigente Ejecutado % Ejec.

CHUQUISACA 8.750.557 3.038.375 34,72%

LA PAZ 31.524.256 12.848.576 40,76%

COCHABAMBA 19.632.856 4.858.562 24,75%

ORURO 3.151.424 594.464 18,86%

POTOSÍ 7.939.271 2.299.580 28,96%

TARIJA 7.327.275 3.523.997 48,09%

SANTA CRUZ 9.957.797 3.952.932 39,70%

BENI 4.850.415 2.129.693 43,91%

PANDO 2.947.995 1.337.260 45,36%

Total 96.081.846 34.583.439 35,99%


RESOURCES ALLOCATED TO UNIVERSAL MOTHER AND CHILD INSURANCE (SUMI) IN AUTONOMIC MUNCIPAL

GOVERNMENTS (In Bolivianos)Year 2013

54

DepartamentUNIVERSAL MOTHER AND CHILD INSURANCE (SUMI)

Current Budget Executed % Exec.

CHUQUISACA 39.697.824 20.020.111 50,43%

LA PAZ 63.700.709 10.059.836 15,79%

COCHABAMBA 113.546.128 28.118.383 24,76%

ORURO 35.397.036 4.483.116 12,67%

POTOSÍ 34.951.656 3.413.744 9,77%

TARIJA 27.427.371 12.083.952 44,06%

SANTA CRUZ 123.979.709 50.844.344 41,01%

BENI 20.089.606 7.259.810 36,14%

PANDO 3.005.933 1.975.639 65,72%

Total 461.795.972 138.258.935 29,94%


TOTAL EXECUTION OF GENDER RESPONSIVE BUDGETS IN MUNICIPAL AUTONOMIC GOVERNMENTS

(in Bolivianos)Until September 2013

55

Department25- Promotion and Gender Policies 26 – Defense and Protection of Children and

Families Universal Mother and Child Insurance (SUMI)

Current Budget Executed % Exec. Current Budget Executed % Exec. Current Budget Executed % Exec.

CHUQUISACA 4.428.129 2.026.438 45,76% 8.750.557 3.038.375 34,72% 39.697.824 20.020.111 50,43%

LA PAZ 13.925.949 4.783.150 34,35% 31.524.256 12.848.576 40,76% 63.700.709 10.059.836 15,79%

COCHABAMBA 18.523.459 4.139.631 22,35% 19.632.856 4.858.562 24,75% 113.546.128 28.118.383 24,76%

ORURO 1.715.279 160.162 9,34% 3.151.424 594.464 18,86% 35.397.036 4.483.116 12,67%

POTOSÍ 3.996.519 555.035 13,89% 7.939.271 2.299.580 28,96% 34.951.656 3.413.744 9,77%

TARIJA 4.568.234 1.938.276 42,43% 7.327.275 3.523.997 48,09% 27.427.371 12.083.952 44,06%

SANTA CRUZ 31.353.244 11.563.486 36,88% 9.957.797 3.952.932 39,70% 123.979.709 50.844.344 41,01%

BENI 4.087.641 1.476.839 36,13% 4.850.415 2.129.693 43,91% 20.089.606 7.259.810 36,14%

PANDO 1.324.019 517.776 39,11% 2.947.995 1.337.260 45,36% 3.005.933 1.975.639 65,72%Total 83.922.473 27.160.793 32,36% 96.081.846 34.583.439 35,99% 461.795.972 138.258.935 29,94%


GENDER RESPONSIVE RESOURCES VS. TOTAL BUDGET

(in Bolivianos) Year 2013

56


Description Current Budget % of Representation

25- Promotion and Gender Policies 83.922.473 0,33%26 – Defense and Protection of Children and Family 96.081.846 0,37%Universal mother and Child Insurance (SUMI) 461.795.972 1,80%Gender Sub-Total 641.800.291 2,50%Other programs 25.074.787.926 97,50%General Total 25.716.588.217 100%

RESOURCES ALLOCATION TO GENDER ISSUES IN AUTONOMIC DEPARTMENTAL

GOVERNMENTS (in Bolivianos)

Year 2013

57

ENT. DESCRIPTION ENT. Current Budget Executed % Exec.

901 CHUQUISACA 195.607 0 0,00%

902 LA PAZ 1.560.817 694.229 44,48%

903 COCHABAMBA 933.129 151.588 16,25%

904 ORURO 413.863 0 0,00%

905 POTOSÍ 0 0 0,00%

906 TARIJA 2.933.668 891.090 30,37%

907 SANTA CRUZ 1.500.000 0 0,00%

908 BENI 1.797.924 565.697 31,46%

909 PANDO 85.471 5.471 6,40%Total 9.420.479 2.308.075 24,50%


Technology

The economic, social community–based and productive model of Bolivia and its results