ASSESSMENTS

Bolivia's Thriving Economy Risks Falling Behind

Oct 12, 2014 | 13:03 GMT

Bolivian President Evo Morales (R) offers gifts to Chilean social movements spokesperson Pilar Herrera at the government house in La Paz on Oct. 3, 2014.

(JORGE BERNAL/AFP/Getty Images)

Summary

Barring an unexpected twist, incumbent Bolivian President Evo Morales will be re-elected Oct. 12 for a third term. Since Morales came to power in 2006, Bolivia's economic growth and foreign reserves are up while poverty and government debt are down. Geographic and demographic issues that had long threatened to divide the country have been put aside, at least temporarily.

But Chinese commodity demand will not be high much longer, and Bolivia is having economic and political troubles with its neighbors. Morales will need to reconsider certain policies and emphasize infrastructure development in his next term to keep Bolivia from becoming more and more isolated.

The conditions for President Evo Morales' economic policies are optimal right now but they will not last forever....

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