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World Bank announces that Bolivia is a “middle income” country

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The Economy of Bolivia upgraded.  The World Bank group announced that Bolivia moved from being a low income country to an middle income one what will allow the country to access to credit lines and treatment that receive countries such as Argentina, Brazil, Colombia and Peru, among others.

This change is due to per-capita income is now above $ 1.100 per year. When Bolivia had less than $1000 per year the county belonged to the group of countries like Nicaragua, Honduras or Haiti.

The World Bank Director for the Andean Region arrived in La Paz to meet President Evo Morales and officially announce this decision and which who we would elaborate a four-year joint strategy for Bolivia to access to more credit lines due to its new category.

For the next two years and a half the World Bank may lend Bolivia $500 million for the social, productive and environment sectors; informed Jaramillo who highlighted the country’s economic performance.

In the short term, which means, within the next six months, Bolivia will borrow $150 million destined to support the general and agriculture census as well as support to other agriculture projects.

A good economic performance

“We have noticed an evident progress in the country, a remarkable economic progress, in poverty and social sector figures, a stable and fair macroeconomic management and, that is why, in this new stage, within this new World Bank support strategy, we will be able to supply the country financial services which are commonly offered to countries with middle level incomes said Jaramillo after meeting with Evo Morales.

According to the United Nations Development Programme UNPD data the extreme poverty index in  Bolivia decreased from 41,2 % in 1996 to 32,7 in 2008. However, this figures reveal that such index under the LatinAmerican  mean and income-redistribution disparities still remain.

Economic analyst Armando Mendez  explained BBC mundo that it means that Bolivia has a “reasonable management” about  exchange, fiscal and monetary policies and that was what have been remarked by the World Bank. “For instance, -said the analyst- the inflation rate is almost zero”.

However, Mendez explained that the per-capita income is a result of a national mean and that does not mean that the country is improving its fights against poverty” He considers that the country still keeps “big discrepancies” in the income re-distribution and reiterates that the poorest families still live in the rural areas.

Minister of Planning Viviana Caro highlighted the “international acknowledgement” not only to the  economic management but to all the economic model that supported by President Morales.


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