The Political Economy of Development Effectiveness in Bolivia

Abstract

This study explores the shifting relations between the government and domestic and international actors, such as international cooperation agencies, development financial institutions and social movements in Bolivia. It discerns the implications for development effectiveness, as devised by the Paris Declaration. In this context, the paper looks at various factors. It analyses how the Bolivian government determines development objectives and which government actors define those. It also explores how accountability is established and how the achievement of the objectives is ensured.

Evo Morales’s rise to power in 2006 is seen as a point of ‘before’ and ‘after’ in Bolivian politics. This research identified a visible shift in the behaviour of development actors within international cooperation agencies towards government institutions after 2006. The change was evidenced through a variety of policies that fractured the relations between the government and key bilateral donors, as well as international NGOs. The relations with Development Financial Institutions, however, continue to prosper. On the other hand, there was gained ownership in discourse. But it was not accompanied by stronger capabilities in the public sector. For example, the government still has limited data and poor or undeveloped indicators on its development objectives. And although the Bolivian authorities developed a structure to strengthen its control of international cooperation, a lack of capacity to achieve true accountability remains.