Financial Crime World

Bolivia’s Agricultural Sector: Growth, Challenges, and Opportunities

Key Points: Understanding the Current State of Agriculture in Bolivia

Agricultural Growth Amidst the COVID-19 Pandemic

  • The agricultural sector has shown resilience by growing at a pace of 2 percent during the pandemic.
  • Most exports have remained relatively stable throughout the crisis.

Challenges Facing Agricultural Firms

  • Low productivity hinders the sector’s growth and competitiveness.
  • Export concentration is high, with 95 percent of agricultural exports coming from only six crops (soybeans and soybean derivatives account for 77 percent).
  • Vulnerability to climate change affects the sector due to rapid agricultural expansion.

Informal Jobs and Limited Farm Size

  • 97 percent of agricultural sector workers hold informal jobs, indicating a lack of formal employment benefits.
  • 80 percent of farms have at most three employees and a surface area of less than 15 hectares.

Opportunities for Development in the Agricultural Sector

Increasing Productivity and Diversification

  • Strategic priorities should focus on improving productivity through sustainable practices.
  • Diversifying crops can help reduce dependence on a few main exports.

Access to Inputs and Reducing Import Costs

  • Better access to fertilizers, herbicides, irrigation, and improved seeds could increase yields and improve productivity.
  • Lowering import costs for pesticides and machinery can address some of the barriers faced by farmers.

Government Vision: Promoting Food Security and Sovereignty

Food Security and Sovereignty Goals

  • The Bolivian government aims to promote food security and sovereignty through a sustained increase in the productivity of agriculture, livestock, manufacturing, agro-industry, and tourism.
  • This vision emphasizes the importance of achieving sustainable growth.

National Plan for Economic and Social Development

  • The Economic and Social Development National Plan (2016-20) included food sovereignty as one of its pillars.
  • Key goals include increasing investments in research and development, improving connectivity and logistics, building climate resilience, and strengthening capacity for evidence-based policy making.