Bolivia is one of the poorest countries in Latin America, even though it has an abundance of natural resources, including oil and natural gas reserves. The economy experienced positive development during the years of high raw material prices. However, a large number of structural problems, which were not improved even when the economy was strong, hamper further progress. Structural problems include: unfavourable geographical conditions, strong regional inequalities as well as a politically and socially deeply divided population, dependence on the global market prices of a small handful of raw materials, weak public administration and challenging conditions for the private sector. KfW Development Bank supports Bolivia’s development agenda in three areas in particular: drinking water supply and sanitation, sustainable agricultural development and the expansion of renewable energy. This is intended to contribute to poverty alleviation and climate change adaptation, as well as to the prevention of greenhouse gases that are harmful to the climate.
