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1. Decentralization and Poverty Reduction in Bolivia: Challenges and Opportunities

Author:
Lykke E. Andersen and Luis Carlos Jemio
Publication Date:
01-2016
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper presents an analysis of the decentralization process that has been taking place in Bolivia over the last couple of decades. It starts with a review of the legal framework that determines the distribution of responsibilities and financial resources to the sub-national governments (9 departments and 339 municipalities), and continues with an analysis of the evolution and distribution of financing to these entities between 2001 and 2013. It then proceeds to describe the resulting progress in social indicators between 2001 and 2012 at the municipal level, and identifies the main remaining gaps in basic services by 2012. Finally, the paper offers an analysis of the factors that are most closely associated with progress in the main social indicator used by the Bolivian government – the Unsatisfied Basic Needs index. This provides the basis for a final section on recommendations for public investment in Bolivia.
Topic:
Poverty, Economy, Decentralization, and Public Investment
Political Geography:
South America and Bolivia

2. Regional development, income distribution and gender in Bolivia Insights from a 2012 Social Accounting Matrix (SAM) and Multiplier Analysis

Author:
Luis Carlos Jemio, Lykke E. Andersen, Clemens Breisinger, and Manfred Wiebelt
Publication Date:
01-2015
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper describes the construction of the most detailed, openly accessible Social Accounting Matrix (SAM) for Bolivia to date. In addition to allowing for “standard” socio-economic analysis common for SAMs - like assessing the linkages between production, factor income distribution and households’ incomes and expenditures – the SAM presented in this paper makes detailed economic assessments at the subnational level, by gender and at detailed agricultural subsector levels, possible. Sections 1-4 present the methodology and data sources used, explain assumptions and criteria adopted for SAM disaggregation, and discuss key findings with a focus on distributional features. Section 5 presents results from a simple SAM multiplier model and section 6 concludes. It is the authors’ hope that this SAM database can make a contribution to evidence-based policy making that helps to further reduce poverty and food insecurity in Bolivia.
Topic:
Development, Gender, and Income
Political Geography:
South America and Bolivia

3. Building Resilience against Adverse Shocks: What are the determinants of vulnerability and resilience?

Author:
Lykke E. Andersen and Marcelo Cardona
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper proposes a simple way to measure livelihood diversification, and uses this measure together with income levels to classify Bolivian households by level of vulnerability. Regression analysis is then carried out to determine the factors and strategies associated with high resilience or high vulnerability. The results show that the single most important strategy for resilience is to have a working and income earning spouse in the household. This is still much too uncommon in Bolivia. A second important factor is the age of the head of household. Young families are considerably more vulnerable than more mature families, as the former have not had time to build up assets (physical, human and social capital) that can provide alternative sources of livelihood. One of the most surprising results of the study is that urban households are considerably more vulnerable to adverse shocks than rural households, whereas gender and ethnicity are irrelevant. The paper finishes with a comprehensive list of policy recommendations.
Topic:
Diversification, Resilience, Livelihoods, Vulnerability, and External Shocks
Political Geography:
South America and Bolivia

4. A Measurement of the Carbon Sequestration Potential of Guadua Angustifolia in the Carrasco National Park, Bolivia

Author:
Ricardo A. Rojas Quiroga, Tracey Li, Gonzalo Lora, and Lykke E. Andersen
Publication Date:
07-2013
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
The carbon sequestration potential of an unmanaged and previously unstudied Guadua angustifolia bamboo forest in the Carrasco National Park of Bolivia has been studied, by estimating the total aboveground biomass contained in the forest. It was found that the aboveground biomass consisting of stems, branches, and foliage, contains a total of 200 tons per hectare, leading to an estimated 100 tons of carbon being stored per hectare aboveground, which is comparable to some species of tree such as the Chinese Fir; this bamboo species therefore has the potential to play a significant role in the mitigation of climate change. The relation between the biomass, M, of each component (stems, branches, and foliage) and the diameter, d, of the plant was also studied, by fitting allometric equations of the form M = αd β . It was found that all components fit this power law relation very well (R2 > 0.7), particularly the stems (R2 > 0.8) and branches (R2 > 0.9) for which the relation is found to be almost linear.
Topic:
Climate Change, Decarbonization, Carbon Sequestration, and Bamboo
Political Geography:
South America and Bolivia

5. Social Impacts of Climate Change in Brazil: A municipal level analysis of the effects of recent and future climate change on income, health and inequality

Author:
Lykke E. Andersen, Soraya Román, and Dorte Verner
Publication Date:
07-2010
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
The paper uses data from 5,507 municipalities in Brazil to estimate the relationships between climate and income as well as climate and health, and then uses the estimated relationships to gauge the effects of past and future climate change on income levels and life expectancy in each of these municipalities. The simulations indicate that climate change over the past 50 years has tended to cause an overall drop in incomes in Brazil of about four percent, with the initially poorer and hotter municipalities in the north and northeast Brazil suffering bigger losses than the initially richer and cooler municipalities in the south. The simulations thus suggest that climate change has contributed to an increase in inequality between Brazilian municipalities, as well as to an increase in poverty. The climate change projected for the next 50 years is estimated to have similar, but more pronounced effects, causing an overall reduction in incomes of about 12 percent, holding all other things constant. Again, the initially poorer municipalities in the already hot northern regions are likely to suffer more from additional warming than the initially richer and cooler municipalities in the south, indicating that projected future climate change would tend to contribute to increased poverty and income inequality in Brazil.
Topic:
Climate Change, Health, Income Inequality, and Social Impacts
Political Geography:
Brazil and South America

6. Insights from Bolivia’s Green National Accounts

Author:
Luis Carlos Jemio and Lykke E. Andersen
Publication Date:
12-2010
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
The purpose of the present paper is to demonstrate the usefulness of Green National Accounting by drawing out some interesting insights from the Integrated Environmental and Economic Accounts recently elaborated by the Institute for Advanced Development Studies for the case of Bolivia. The paper uses the Green National Accounts to show the importance of environmental inputs in 7 different productive sectors and compares the corresponding natural resource rents to the level of producer taxes in each sector. The paper also analyses the evolution of total productive capital, in order to judge whether Bolivia’s current development model can be considered sustainable. The paper finished with recommendations about interesting extensions that can be made to the Green National Accounts.
Topic:
Development, Environment, Natural Resources, and Economy
Political Geography:
South America and Bolivia

7. Social Mobility in Bolivia is Finally Improving!

Author:
Lykke E. Andersen
Publication Date:
12-2009
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper evaluates the degree of social mobility in Bolivia, both by comparing to other Latin American countries, and by comparing social mobility at different points in time. While Bolivia had one of the lowest levels of social mobility in the region in 1997, the last 10 years have seen spectacular improvements, especially for rural and female teenagers. This is very good news, as it suggests that Bolivia has finally escaped the low mobility – low growth equilibrium where it has been stuck for so long.
Topic:
Women, Economic Growth, Rural, and Social Mobility
Political Geography:
South America and Bolivia

8. Non-agricultural labor from rural farmers in Bolivia: An analysis of determinants and effects

Author:
Lykke E. Andersen, Beatriz Muriel, and Horacio Valencia
Publication Date:
04-2009
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This paper analyses non-agricultural work supplied by rural households in Bolivia. It is shown that roughly 50% of all rural households complement their incomes through non-agricultural work, but that households in the lowlands are more likely to do so than households in the highlands. Since non-agricultural work pays several times better than agricultural work, access to this source of complementary income constitutes an important opportunity to escape rural poverty.
Topic:
Agriculture, Development, Poverty, Rural, and Labor Market
Political Geography:
South America and Bolivia

9. Informality and Productivity in Bolivia: A Gender Differentiated Empirical Analysis

Author:
Lykke E. Andersen and Beatriz Muriel
Publication Date:
07-2007
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
This report analyzes gender differences in informality and productivity in urban Bolivia. Rural Bolivia is excluded from the analysis for three reasons: 1) informality in rural areas is close to 100% for both men and women2 , 2) farming is a family business and it is impossible to tell if one family member is more productive than another, and 3) data on productivity and profitability is too unreliable in rural areas. The urban labor market in Bolivia can be divided into 4 main sectors: 1) the public sector, 2) the formal private sector, 3) self-employed informals, and 4) informal workers. Although incomes are generally higher in the public sector and in the formal private sector, there is a strong preference in Bolivia for being informally self-employed. Two thirds of both men and women in urban areas respond that they would prefer to be self-employed rather than a salaried employee,3 and few see any advantage of becoming formal under the current institutional set-up.4 Currently, half of all economically active women in urban areas are informally selfemployed, while this is the case for only one third of men. This implies that women are actually closer to the desired state than men, according to their own preferences. The real problem for women is not that they are informally self-employed, but rather that the profitability of their informal enterprises is low. On average, monthly profits of female micro-entrepreneurs is about 40% lower than those of male micro-entrepreneurs.5 This report uses quantitative information from about 600 micro and small enterprises to break down and understand this gender gap in profitability, and the results show that almost the whole gap is due to the fact that women operate their businesses on a much smaller scale (with less productive capital and fewer employees) than men. Why do female entrepreneurs operate on a smaller scale? One partial explanation is that they do not want to grow, because the business then would loose some of the features that make a micro-business particularly attractive for women (not to depend on others, to be able to care for children simultaneously, flexible working hours, and daily revenues). When asked about what they consider the ideal number of employees for their business five years into the future, the average for women is 6.9 compared to 9.2 for men. Single women are generally a bit more ambitious than married or cohabiting women (the first would on average like 5.3 additional employees, whereas the latter only wants 4.2 extra employees),6 which suggests that family obligations may be one of the reasons why women prefer to keep their businesses at a relatively small scale.
Topic:
Economy, Productivity, Gender, and Informality
Political Geography:
South America and Bolivia

10. Labor Mobility in Bolivia: On-the-Job Search Behavior of Public and Private Sector Employees

Author:
Lykke E. Andersen and Bent Jesper Christensen
Publication Date:
01-2006
Content Type:
Working Paper
Institution:
Institute for Advanced Development Studies (INESAD)
Abstract:
Labor market frictions are even more pervasive in developing countries than in Western industrialized economies. In spite of this, stochastic models of frictional markets have rarely been applied to developing countries. In this paper, we estimate structural parameters of both a simple and an extended job separation model with the purpose of understanding constraints in the labor market in Bolivia. The results confirm the hypothesis that skilled labor is scarce in Bolivia, while unskilled labor is abundantly available. This implies that skilled employees shop around for alternative employment opportunities and quit their jobs when a better opportunity arises. The quit rate among skilled employees in the private sector is much higher than the quit rate among skilled employees in the public sector. The reverse is true for the lay-off rate, and together this suggests that the private sector has difficulties maintaining its skilled labor. The private sector might try to improve its capacity to retain skilled employees by increasing wages, but the wage sensitivity parameters estimated in this paper suggest that this is not going to work – skilled employees in the private sector do not seem to reduce their on-the-job search in response to higher wages.
Topic:
Development, Employment, Mobility, and Labor Market
Political Geography:
South America and Bolivia