ABSTRACT
This chapter considers an intermediate case, where elements of remarkable success are combined with elements of retrogression particularly in terms of political stability. Indeed, of all the countries in sample, Bolivia is the one where most people have been killed in political conflict arising from the natural resource curse not only in recent times, but throughout the country's two hundred years as an independent republic. The chapter examines in relation to Bolivia, the political origins and the impact of fiscal policies which aim to combat the natural resource curse, and thereby achieve diversification of the economy and sustained reduction in poverty. Recovery from the disaster was initiated under the guidance of the same Victor Paz Estenssoro who had wrought the Bolivian Revolution of 1952, now acting as a father-figure and bringer of stability rather than as an agent of transformation. Bolivia contains a higher proportion of indigenous people, more than 60", than any other Latin American country.
