Contents -- Preface -- Acknowledgments -- Editor Biographies -- Acronyms -- Overview -- I. Context -- II. Reflections on the Past -- III. Opportunities and Suggestions for the Future -- IV. Some Suggestions on Areas of Priority and Schedule -- Table 1. If Bolivia Had Matched the Pace of Economic Growth in Latin America, 1950-2000 ... -- Table. 2. How Sustained Growth of 4.5 to 5% Could Increase Income and Reduce Poverty -- Table 3. Suggested Areas of Priority and Schedule -- Part I Growing More and Better -- 1. Socially Responsible Macroeconomic Management -- I. Introduction -- II. Background and Diagnosis of Economic Risks -- III. Macroeconomic Management Since 1998 -- IV. Conclusions and Recommendations -- Bibliography -- Figure 1. Trends in the Macroeconomic Situation -- Figure 2. The Business Climate-Regional and Global Context -- Figure 3. The Business Climate-International Comparison -- Figure 4. Social Instability and Interest Rates -- Figure 5. Public and Private International Capital Flows -- Table 1. Destination of Trade, 2003 -- Table 2. Public Spending by Level of Education in Total Expenditures on Education, by Quintiles (Percentages) -- Box 1. Macroeconomic Fragility and Growth in the 1990s -- Box 2. How Have the Shocks Affected the Economy? -- 2. Taxes, Collection Capabilities, and Distribution -- I. Background -- II. Evaluation of National Taxes and Policy Options -- III. Tax Administration and Customs -- IV. Tax System on Upstream Hydrocarbons -- V. Distribution of Tax revenue -- VI. Conclusions -- Bibliography -- Annex 1. Principal National Taxes -- Annex 2. Tax Regime on the Upstream Hydrocarbon Activities -- Annex 3. System for the Allocation of Tax Revenue -- Figure 1. Trends and Structure of Tax Revenue in Bolivia, 1990-2004 -- Figure 2. VAT Tax Evasion, 2000-2004.

Figure 3. Investment in Gas Exploration, Exploitation, and Reserves, 1990-2004 -- Figure 4. Reserves of Gas in Latin American Countries (TCF of Gas) -- Figure 5. Royalties on Natural Gas Production Worldwide -- Figure 6. Distribution of Taxes among Departments, 2000-2004 -- Figure 7. Participation of the Municipalities in Departmental Allocations, 2004 -- Figure 8. Effect of the IDH on the Vertical Distribution of Taxes, 2004 -- Figure 9. Effect of the IDH on the Distribution of Taxes to the Departments, 2004 -- Table 1. Tax Burden as a Percentage, by Household Income Quintiles -- Table 2. Structure of National Tax Revenue, 1990-2004 -- Table 3. The VAT in Latin America, 2001 -- Table 4. Taxes on Corporate Income in Latin America -- Table 5. Comparisons between Tax Systems, Positions of Selected Countries, 2004 -- Table 6. Imports Processed Annually by Customs Employees -- Table 7. Principal Policy Options -- 3. Transaction Costs and Aid Effectiveness -- I. Background -- II. Pending Challanges -- III. Policy Recommendations-An Opportunity -- Annex I. Paris Agenda: Goals Agreed Upon in Relation to the 12 Progress Indicators -- Annex II. Examples of Activities at the Country Level -- Annex III. The New Relationship Framework between the Government and the International Cooperation Community in the 21st Cent -- Annex IV. Executive Summary: National Harmonization and Alignment Plan -- Box 1. Incidence of International Aid in Bolivia -- Box 2. Fiscal Roundtable And Sector Wide Approaches In The Education Sector: Two Concrete Examples Of Coordination And Harmon -- Box 3. Harmonization of Policies and Procedures for Procurements and Financial Management -- Box 4. Inter-Institutional Follow-Up and Evaluation Council -- Resource Guide -- 4. Management and Sustainability of the Public Debt -- I. Background -- II. Sustainability of the Debt.

III. Public Debt Management -- IV. Efficient Control of Subnational Debt -- Bibliography -- Annex I. Analytical Framework for Debt Sustainability -- Annex II. Contingent Liabilities -- Figure 1. Public Debt Trends -- Figure 2. Public Debt in Latin America -- Figure 3. Composition of the External Debt, 2004 -- Figure 4. Composition of the Domestic Debt, 2004 -- Figure 5. Debt Trends if the Primary Deficit Remains at Historic Levels -- Figure 6. Primary Deficit Needed to Maintain Debt Levels following the Debt Cancellation -- Figure 7. Composition of Treasury Instruments on the Open Market -- Figure 8. Average Maturation of Placements of Treasury Instruments -- Table 1. Sensitivity of the Required Primary Deficit, Depending Upon Different Economic Growth Assumptions (Percent of GDP) -- Table 2. Principal Debt Indicators of the Institutions in the Financial Restructuring Plan -- Box 1. External Debt Restructuring and Relief -- Box 2. Assumptions of the Base Scenario -- Box 3. Institutions Involved in Public Debt Management -- Box 4. Budget Administration Act and Control of the Subnational Debt -- 5. Challenges and Opportunities for the Financial System -- I. Background -- II. Recent Policy Measures Relevant to the Financial Sector -- III. Selected Issues and Policy Recommendations -- Bibliography -- Annex: Banking Trends -- Figure 1. Financial System Trends in Public Obligations -- Figure A1. Trends in the Variables of the Bank and Non-Bank System (1998-September 2005) -- Figure A2. Trends in Bank Deposits Denominated in Local Currency and Dollars, by Term (March 2004-September 2005) -- Figure A3a. Annual Trends in Default Rates by Group of Entities (2002-September 2005) -- Figure A3b. Annual Trends in the Coverage of the Default Portfolio, by Group of Entities (2002-September 2005).

Figure A4. Trends in the Default Rate for the Rescheduled, Non-Rescheduled, and Total Portfolio of the Banking System (Decemb -- Table 1. Number of Branches in Rural and Urban Areas, by Type of Entity -- Table A1. Concentration of Bank Deposits, November 2005 and December 2002 -- Box 1. Credit Technologies of the MFEs -- Box 2. Weaknesses of Law 2495 -- Box 3. NAFIBO Contribution and the Value of Holding Shares of the BUN -- 6. The Gas Era -- I. Background -- II. Industry Features -- Bibliography -- Figure 1. Bolivia: Foreign Direct Investment -- Figure 2. Investments in Exploration and Exploitation (1992-2005) -- Figure 3. Comparison of Government Revenue on Exploration and Exploitation Contracts -- Figure 4. Gas Exports to Brazil - Mutún (in millions of m3/d) -- Figure 5. Distribution of Revenue from the Direct Tax on Hydrocarbons (IDH), 2006 -- Figure 6. Costs and Prices of LPG -- Figure 7. Incidence of Subsidies on the Population -- Figure 8. Supply and Demand for Oil -- Figure 9. Supply and Demand for LPG -- Table 1. Bolivia-Certified Natural Gas and Oil/Condensate Reserves -- Table 2. Oil Exports -- Table 3. Taxes under Law 1689 (Exploration and Exploitation) -- Table 4. Royalties and Income Taxes -- Table 5. Results of the June 2004 Referendum -- Table 6. Taxes under Law 3058 (Exploration and Exploitation) -- Table 7. Gasoline and Diesel Oil Prices (December 2004-January 2005) -- 7. Economic Growth through Productivity and Competitiveness -- I. Background: The Problem is Slow Growth -- II. Issues of Competitiveness and the Investment Environment -- III. Policy Options and Choices -- Bibliography -- Annex -- Figure 1. Informality -- Figure A1. Property Rights and Judicial Performance Indicators -- Figure A2. Public Regulation Indicators -- Table 1. Contribution of Companies to the GDP and to Jobs, by Size, 1999.

Table 2. Global Competitiveness Index, 2004 -- Table 3. Ranking in the Public Institutions Index, Selected Countries, 2004 -- Table 4. Starting a Company, Selected Countries, 2005 -- Table 5. Suggested Policy Measures, in Chronological Order -- Table A1. Annual Growth of Per Capita GDP for Selected Countries, 1950-2000 -- Table A2. Contractual Performance, Selected Countries, 2005 -- Table A3. Trade Across International Borders, Selected Countries, 2005 -- Box 1. Lessons from International Experience with EPZs. -- 8. Rural Development -- I. Introduction -- II. The Principal Challenges -- III. Policy Options -- Bibliography -- Annex: Some Characteristics of the Coca Leaf Sector -- Figure 1. Trends in the Cultivated Surface Area of Major Crops (1985-2004) -- Figure 2. Trends in GDP of the Manufacturing Sector, by Sub-sector (1989-2004) -- Figure 3. Basic Unsatisfied Needs: Population by Poverty Strata, 1992-2001 -- Figure 4. Comparative Yields -- Table 1. National Population, by Geographic Area, Censuses of 1950, 1976, 1992, and 2001 -- Table 2. Distribution of Shared Tax Revenue and HIPC II, by Geographic Area -- Table 3. Poverty Indicators for 2002, by Geographic Area and Recent Migration -- Table 4. Average Annual Variation in the Incidence of Poverty and Extreme Poverty, by Unsatisfied Basic Needs -- Table 5. Incidence of Poverty, by Unsatisfied Basic Needs 1976, 1992, 2001 -- Table A.1. Coca Leaf Production in the Andes, Hectares, 1994-2004 -- 9. Trade and Integration Policies -- I. Background-Characteristics of the External Sector -- II. Diagnosis-Principal Restrictions in the Foreign Trade Sector -- III. Policy Recommendations -- Bibliography -- Figure 1. Composition of Non-Traditional Exports, 2004 -- Figure 2. Concentration of Exports, 1962-2003 -- Figure 3. Labor Content of Manufacturing Exports by Region, 2003.

Figure 4. Non-Traditional Exports by Principal Market and Competitors, 2003.