Bolivia-Country Risk Analysis

1176 Words5 Pages
Bolivia is one of the least developed and poorest countries in Latin America and one of the most isolated countries in South America. Bolivia’s socialist leader, Evo Morales, was elected because of his involvement with the anti-globalization movement. He has reduced poverty within the country, redistributed wealth, and has nationalized a significant amount of the energy sector. He has promised to favor domestic consumption of natural gas over export. He is supported mainly by the poor majority who mostly reside in the western highlands. The population residing in the eastern areas and voter’s from the middles class who have most of the wealth, are concerned about his policies. Those in higher social classes are concerned with the neo-liberal global economy while many in the mestizo class support the opportunities that come from participating in the global economy. When it comes to the country’s globalization, Bolivians have a deep love for the natural richness of their country and are fighting to protect it. Bolivia is rich in nature and has many natural resources to offer. The nature’s conservation of the country is under pressure because of global interests, but it’s an opportunity for Bolivia that can be beneficial to them and help create more stability and less inequality among the country. Bolivia has the second largest reserves after Venezuela and looks like the perfect supplier for natural gas. But in 2005, a hydrocarbons law was passed by the government that imposed higher royalties and required foreign firms who were operating under risk-sharing contracts at the time, to surrender all production to the state energy company in exchange for a predetermined fee. The hydrocarbons sector has raised question as to whether Bolivia has the sector’s capacity or not to grow. Bolivia will continue to supply Brazil and Argentina with their natural gas but their

More about Bolivia-Country Risk Analysis

Open Document