World Bank and Bolivia strike £2bn partnership

9 Dec 15

The World Bank has announced a $2bn five-year partnership with Bolivia, which it says will benefit 4.5 million people in the country.

 

The partnership framework runs from 2016 to 2020 and emphasises the promotion of inclusive growth and support for environmental and fiscal sustainability, with resilience to climate change and economic shocks.

Between 2002 and 2014 extreme poverty in Bolivia fell from 39.5% to 15%, and moderate poverty from 63% to 39%, accompanied by declines in income inequality.

However the country’s biggest priority remains the eradication of “material, social and spiritual poverty” said Rene Orellena, the Bolivian minister of development planning.

Alberto Rodriguez, World Bank director for Bolivia, added that, in order to support the partnership and its objectives, the bank will provide up to $2bn in financing for new operations.

Planned measures to promote inclusive growth include a reduction in transport costs and increase in connectivity for remote communities, increase access to basic services such as water and sanitation in the poorest communities and improved work and productivity opportunities

These programmes will benefit a total of 4.5 million people.

Environmental sustainability will be supported firstly by increasing the country’s capacity to mitigate and adapt to climate change, particularly by decreasing its vulnerability to natural disasters.

The programme will also work to strengthen the institutional capacity for public resource management.

It was crafted to be in accordance with the plan of Bolivia’s government, and to extend the bank’s current portfolio in the country which spans 12 projects totalling $977m.

The arm of the World Bank dedicated exclusively to private finance – the International Finance Corporation – has also established a local team in Bolivia which will focus on financial, agricultural and service sector investments over the next five years.

This meant that for the first time in 10 years, long-term credit lines for Bolivia’s financial sector have been approved.  

  • Emma Rumney

    Emma is a reporter at Cooking Recipes International. She also writes for in the UK.

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