The following analysis reviews foreign aid received by Bolivia from 1960 to 2017. The financial aid is as a result of the Official Development Assistance (ODA) policy whose aim is to promote the rapid growth of developing countries through alleviation of poverty. Through economic, political and social development the organization aims to alleviate poverty in these states which promotes growth.
Source of Aid
Bolivia has over the years had a volatile and difficult economic context over the years which has seen it fall to become the poorest country in South America. The nation’s GNI per capita declined from $999 to $890 between the years 1999 and 2003 forcing the country into abject poverty.
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According to data from the OECD database the country has received financial aid from various international factions to aid in its financial recovery. The records reflect financial data from 1960 to 2017. The records show that financial aid was primarily from OECD countries although not exclusive. For instance, in recent years, that is from 2008-2017, the country received over 7.3 % of its financial aid from OECD countries.
Bolivia did not receive financial aid from OECD countries solely, other key financial players have played a key role in contribution to the nation’s economy. For instance, through private direct investments by private capital sector. The period from1960 to 1999 saw relatively high input from these sectors. The increase continues to recent years whereby between 2010-2017 values have gone up to 761.27 as witnessed in 2016 as seen in OECD date sheets. The currency measure is quantified against the US dollar to the tune of a million. The flow considered is the disbursement funds channeled to all sectors of growth by the private donors.
Amount by Private Donors and Trend analysis
As a result of the Bolivian Poverty-reduction Strategy (PRS) the input of private donors has become necessary to help supplement the country’s economic growth. Through this initiative 80% of the donors have come up in support of the government’s development agenda. The following are some of the private donors in support of Bolivia’s economic growth; Canada, Netherlands, Sweden, U. S Agency for International Development, World Bank and the United Nations Population Fund.
Private donors have made a significant amount of contribution over the years starting from 1968 although the contribution is variant depending on certain conditions both economic and social. For instance, 1968-1975 Witnessed the lowest amount of contribution ranging from 0.09, 0.14, -.39, 0.01. Recent years have seen private donors take up a more active role towards economic growth contribution. The period from 2003-2017 has experienced this sudden spike in donor contributions in Bolivia. Starting out at 32.88 from a previous -279.28 the spike extends with a steady increase all the way to 2011. The total contribution by private donors amounts to about 25% of all the financial aid received by Bolivia.
Accounts for major Trends
Critical trends in Donor activity in Bolivia is influenced by its political, social and economic scene. For instance the volatile changes that occurred from 200 to 2004. The decline started from a peak of 197.06 in 2000, 243.65 in 2001, -279.28 in 2002, 32.88 in 2003, and -136.19 in 2004. The overly difficult and dynamic period influenced significant changes to be made within the Bolivian government which spurred social unrest, declining economic growth, increased poverty and a precarious fiscal situation. Five Major features influenced the above noted spike and decline in financial assistance from donors. The following are some of the crucial factors.
Increased Poverty
Deteriorating financial conditions in Bolivia in 2003 led to a spike in financial aid. The nation’s GNI per capita at the time was $890 US Dollars. This translated to a lower middle income tier of society averaging about 14% which translated to about 1.2 million people. The other tier consisted of the lowest class who lived on less than a $1 US dollar. This population made up 34% of the population which was about 2.8 million people.
Inequality
Social and political unrest was spurred by loss of confidence by the people in the government’s traditional policies, and parties. High levels of corruption led to patronage and ethnic discrimination which discontented many. The concentration of poverty in rural areas especially among the indigenous people who make up more than half of the entire population put the country’s economy in a bad place which required bailout from donors.
