World Country Guide

Business Profile

Economy
Bolivia has the second-lowest per capita income in Latin America. Agriculture employs nearly half the working population, although it suffers from relatively low productivity. The main cash crops are soya, sugar and coffee, while beef and hides from the extensive livestock-rearing industry are valuable export earners. The other key primary product is timber. Bolivia has developed a unique system of sustainable development, which allows for commercial exploitation of high-quality tropical hardwoods without over-depleting the forests. There is also a substantial unregistered and illegal trade in coca, the plant source for cocaine, which provides a livelihood for many peasants – its economic value is thought to be approximately US$1 billion annually. This is a major political issue in the country.
Bolivia has large mineral deposits, especially of tin – of which it is one of the world’s leading producers – and also natural gas, petroleum, lead, antimony, tungsten, gold and silver. Oil and gas deposits serve to meet much of the country’s energy needs and are increasingly valuable export commodities. Reliance on primary products has made Bolivia vulnerable to fluctuations in world commodity prices. Having accepted international demands during the 1990s to liberalise its economy and open it up to foreign competition, the Bolivians have been frustrated by a perceived lack of ‘reciprocity’ – in other words, access to foreign markets for Bolivian products. Bolivia is a member of the Latin American Integration Association, the River Plate Basin Alliance and, most importantly, of the Andean Pact. The country’s largest trading partners are neighbouring Brazil, Argentina and Chile, along with the USA, followed by Japan and the EU countries.

Business
Suit or a shirt and tie should be worn. Appointments should be made in advance. Office hours: Mon-Fri 0830-1200 and 1430-1830; Sat 0900-1200 (some offices).

Commercial Information
The following organisations can offer advice: Cmara Nacional de Industrias, Edificio Cmara Nacional de Comercio, Piso 14, Avenida Mariscal, Santa Cruz 1392, La Paz (tel: (2) 237 4477; fax: (2) 236 2766; e-mail: cni@caoba.entelnet.bo; website: www.bolivia-industry.com) or Cmara Nacional de Comercio de La Paz, Avenida Mariscal, Santa Cruz 1392, Edificio Cmara Nacional de Comercio, Piso 1, La Paz (tel: (2) 237 8606; fax: (2) 239 1004; e-mail: cnc@boliviacomercio.org.bo; website: www.boliviacomercio.org.bo).