IDB and Bolivia at a glance

The IDB and Bolivia have been working together to improve the lives of all Bolivians for over 50 years. A fifth of the public investment has been funded by the IDB.

The IDB has financed several projects aimed at improving human capital. In the fight against extreme poverty, the IDB has funded improvements in maternal and child health and nutrition, as well as the expansion of the country’s conditional cash transfer program. Another project expands training and other employment services throughout the country, potentially benefitting 20,000 jobseekers. In an effort to showcase Bolivia’s natural and cultural heritage, the National Community Tourism Program will boost  community-based tourism with environmental sustainability in mind.

Over the next five years, priority sectors are transportation, water and sanitation, energy, early childhood development, health, education, and strengthening of the fiscal management and fiscal sustainability. Issues related to climate change and indigenous participation will be considered across all priority sectors.

In transportation, the IDB is working with Bolivia to upgrade the country’s rail and road networks. Bolivia’s road network is one of the least developed in Latin America, with only 0.06 kilometers of roads per square kilometer.

The IDB is helping Bolivia improve sections of the country’s roadway system and boost economic and social integration. Once completed, these improvements will reduce transportation costs and travel times across the East-West Corridor—an important link between the areas which produce goods and the domestic and international markets that consume them.

“Geographically, Bolivia is situated at a key cross-road point for South America, putting it in a unique position to benefit from regional trade as well as promote it,” said IDB representative in Bolivia, Baudouin Duquesne.

Water access is adequate in the cities but lacking in the outer suburbs and rural areas. Overall, a quarter of the population lacks access to drinking water. In November 2010 the IDB approved a drainage program for the cities of La Paz and El Alto.

For energy, the idea is to help develop generation and transmission infrastructure, as well as develop renewable energy sources. The Misicuni Hydroelectric Project that is currently underway will provide a renewable source of electricity as well as increase the availability of drinking water and irrigation to the Cochabamba Valley. More recently, the IDB approved funding for a rural electrification program.

The IDB will help Bolivia expand access to early childhood development programs. Today, only six percent of the Bolivian population between zero and six years of age have access to early childhood development initiatives. Similarly, the IDB will help Bolivia improve the coverage of the population with access to a proper education. On health, the IDB will work with Bolivia to lower infant mortality, especially in rural areas.