ABSTRACT

This chapter provides a description of the trade and investment provisions in the relevant regional trade agreements of Bolivia. It discusses how these provisions have affected the composition of trade and foreign direct investment. The chapter describes how such trade and investment have affected poverty. It analyses how regional integration (RI) has affected poverty in Bolivia. In Bolivia, RI started progressing rapidly once macroeconomic stability was achieved in 1986. The RI processes involving Bolivia started in 1960 with the Latin American Free Trade Association (LAFTA), which had the objective of promoting the economic integration of the region and creating a common market. Moreover, at the beginning of the 1980s, the members of LAFTA created the Latin American Integration Association (LAIA) with the objective of promoting bilateral and extraregional agreements. LAIA is an intergovernmental organization, which continues the integration process started by LAFTA.