CIPR | Center For Inter-American Policy & Research

Tulane University

CEQ Working Paper No 6: Explaining Low Redistributive Impact in Bolivia


Explaining Low Redistributive Impact in Bolivia
Working Paper No. 6

A working document by:
Verónica Paz Arauco
George Gray Molina
Wilson Jiménez Pozo
Ernesto Yáñez Aguilar

Abstract
This paper analyzes the fiscal incidence of cash and in-kind transfers, taxes and subsidies in Bolivia. Between 2007 and 2009, social spending as a share of GDP rose by about 3 percentage points. In spite of this, fiscal policy in Bolivia has shown a low redistributive impact. The weak impact is mainly due to the presence of significant leakages in transfers to the non-poor and to the small size of per beneficiary transfers. The impact of fiscal policy on poverty and income inequality could increase with better targeting to the poor, larger per capita benefits, and an increase in coverage and progressivity of the tax system.

Access the working document here:
Updated April 2013
CEQ Working Paper No 6: Explaining Low Redistributive Impact in Bolivia

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