Bolivia inequality progress may be slow to recover

Significance

The success is reducing the Gini coefficient from 0.61 in 2002 was based mainly on reducing poverty through greater state investment and increased employment, rather than measures to redistribute wealth. Progress stagnated after 2014.

Impacts

• The recovery in income among low-paid workers is likely to take time to materialise.
• The Arce administration is unlikely to engage in explicitly redistributive policies.
• Continued urbanisation will help reduce extreme poverty levels over the medium term.