Browse Profiles > Bolivia > Business Indicators

  Score Rank
Standards Compliance Index 8.33 out of 100 75
Business Indicator Index 5.24 out of 12 73
Bolivia
Business Indicators
With an overall score of 5.24/12, Bolivia is below standard on the economic, legal, and political indicators that make up our Business Index. Bolivia is a market-based statist economy and a difficult place to do business. Its president, Evo Morales, was swept in to office on a platform of nationalization and a movement away from market-oriented policies. Nationalizations have occurred in the hydrocarbons sectors and the administration has promised to extend this policy into other national resources as well. Bolivia theoretically encourages foreign investment and according to provisions of the Investment Law No. 1182 of 1990, foreign firms must be treated the same as national firms. However, they are often subject to arbitrary regulatory decisions, unfavorable interpretations of the law and a corrupt judicial system. Although Bolivia's property rights are guaranteed under Bolivian law, these rights are not always enforced. The U.S. Department of Commerce reported in 2007 that "Bolivia is prone to social unrest that can quickly become violent and disrupt the transportation of goods and people." The opening years of the 21st century have seen protests against foreign investment that have at times turned violent. Bolivia ranks 102nd out of 180 countries in the 2008 Transparency International Corruption Perception Index and receives a score of 3.0 reflecting an extensive level of corruption in the country.  

Business Indicators

Forex Regulations - Capital Controls [text]
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