Country Private Sector Diagnostic - The Plurinational State of Bolivia - Unlocking Private Sector Potential to Achieve a Sustainable and Inclusive Recovery

Jul 19, 2026

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Country Private Sector Diagnostic for the Plurinational State of Bolivia focused on unlocking private sector potential to support a sustainable and inclusive recovery. The report reviews Bolivia’s context, the structure of the private sector dominated by micro and small informal firms, productivity and competitiveness constraints, and barriers across productive inputs, regulations, and implementation. It includes sector assessments for agribusiness and logistics, highlighting challenges and opportunities to expand jobs and improve inclusion.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages174

Reading Time7 h 18 min

AccessFree to download

Acknowledgments

Abbreviations and Acronyms

Executive Summary

1. Introduction

2. Country Context

Bolivia’s Years of Rapid Growth and Gains in Social and Economic Indicators Did Not Translate into a Private Investment Boom

The COVID-19 Crisis Has Heightened the Existing Macro and Development Challenges

3. A Look at the Private Sector in Bolivia

A Highly Informal Private Sector Mostly Comprising Micro and Small Firms

Low Productivity and Competitiveness

Bolivia Has Ample Room to Increase Its Diversity and Its Integration into Global Value Chains

Private Investment in Bolivia Could Lead to More Jobs That Are Better and More Inclusive

4. Main Cross-Cutting Constraints to Private Sector Development

What Are the Main Productive Input Constraints?

What are the Main Undue Regulatory Barriers to Private Sector Development?

What Are the Main Implementation Barriers?

5. Sector Assessments, Agribusiness and Logistics

Why These Sectors?

Agribusiness: Assessing the Potential of Agricultural Inputs and the Forestry Subsectors

Logistics Sector: A Key Transversal Sector for Bolivia

Appendixes

Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public COUNTRY PRIVATE SECTOR DIAGNOSTIC THE PLURINATIONAL STATE OF BOLIVIA Unlocking Private Sector Potential to Achieve a Sustainable and Inclusive Recovery December 2021 About IFC IFC—a member of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create marketsand opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, [visit www.ifc.org](visit www.ifc.org). © International Finance Corporation 2021. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 [www.ifc.org](www.ifc.org) The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC does not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. The findings, interpretations, views, and conclusions expressed herein are those of the authors and do not necessarily reflect the views of the Executive Directors of the International Finance Corporation or of the International Bank for Reconstruction and Development (the World Bank) or the governments they represent. Cover Photos: Marka Registrada / World Bank, and Puerto Jennefer CONTENTS ACKNOWLEDGMENTS V ABBREVIATIONS AND ACRONYMS VI EXECUTIVE SUMMARY IX 1. INTRODUCTION 1 2. COUNTRY CONTEXT 3 Bolivia’s Years of Rapid Growth and Gains in Social and Economic Indicators Did Not Translate into a Private Investment Boom 3 The COVID-19 Crisis Has Heightened the Existing Macro and Development Challenges 5 3. A LOOK ATTHE PRIVATE SECTOR IN BOLIVIA 9 A Highly Informal Private Sector Mostly Comprising Micro and Small Firms 9 Low Productivity and Competitiveness 12 Bolivia Has Ample Room to Increase Its Diversity and Its Integration into Global Value Chains 14 Private Investment in Bolivia Could Lead to More Jobs That Are Better and More Inclusive 18 4. MAIN CROSS-CUTTING CONSTRAINTS TO PRIVATE SECTOR DEVELOPMENT 21 What Are the Main Productive Input Constraints? 24 Limited connectivity due to underdeveloped transport infrastructure 24 Misallocation of credit to the private sector 27 What are the Main Undue Regulatory Barriers to Private Sector Development? 31 Leveling the playing field: Competition regulation reform and reassessing the role of SOEs 31 Labor regulations meant to protect workers have led to high costs and uncertainty 36 Bolivian firms face many time-consuming tax and regulatory burdens 38 What Are the Main Implementation Barriers? 40 Investors need stronger institutions, policy predictability, and secure property rights 40 Limited public-private dialogue platforms to inform and support policy implementation 43 5. SECTOR ASSESSMENTS, AGRIBUSINESS AND LOGISTICS 45 Why These Sectors? 45 Agribusiness: Assessing the Potential of Agricultural Inputs and the Forestry Subsectors 48 Sector Overview 48 The agricultural inputs subsector 57 The forestry subsector 65 Opportunities for the development of the agribusiness sector through the inputs and forestry subsectors 71 Recommendations 74 Logistics Sector: A Key Transversal Sector for Bolivia 81 Sector overview 83 Challenges related to logisti

FAQs

What is the primary objective of the Bolivia Country Private Sector Diagnostic?

Unlocking private sector potential to achieve a sustainable and inclusive recovery. It targets constraints limiting private investment, productivity, and job creation.

Why does the report emphasize informal micro and small firms in Bolivia’s private sector?

It describes the private sector as highly informal and mostly composed of micro and small enterprises, shaping its competitiveness, productivity, and integration with global value chains.

Which cross-cutting constraints are identified as most important for private sector development?

The report highlights constraints in productive inputs, undue regulatory barriers, and implementation barriers, including issues such as connectivity and credit misallocation, as well as limited policy predictability and property rights concerns.

Jul 19, 2026

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