Direct foreign investment (DFI)
is the main component of the growth experienced by private
investment in Bolivia. DFI has grown from US$ 169 million
in 1992, when it represented 45% of private investment
and 18.4% of total investment in Bolivia, to reach a figure
nearing US$ 1,000 million in 1999.
Direct foreign
investment represents approximately 10% of the Gross Domestic
Product.
The size of the DFI in the
90´s reflects the impact of the privatization process
of public companies. A substantial part of the privatization
and capitalization process schedule was completed in 1999.
This explains the lower DFI starting in the year 2000.
International market stability,
on top of lower growth rates in the economies of neighboring
countries, affected the economic activity in Bolivia,
reducing the growth levels of the country significantly
from 1999 onward.
Direct Foreign Investment Composition
(1992 - 1999)
The hydrocarbon sector went
from a 22.44% participation in the DFI in 1992 to 38.25%
in 1999, peaking at 58.51% in 1998. The industrial and
agroindustrial sector had a stable performance between
1993 and 1996, with an important drop in 1997 and 1998
and a notorious recovery in 1999 when it reached a 15.36%
participation in direct foreign investment.
The commerce and services sector
has grown steadily from 1994 onward. Its participation
in the DFI peaked at 44.05% in 1999, leaving the hydrocarbons
sector second in relative importance.
Accumulated Direct Foreign
Investment (1992 – 1999)
The direct foreign investment
accumulated between 1992 and 1999 amounts to US$ 4,477.07
million.
Investment by Country of Origin
During the year 2000, direct
foreign investment came mainly from the United States
of America with an approximate amount of US$ 337 million,
corresponding to 44.9% of the DFI.
Location of the Direct Foreign
Investment
Direct foreign investment flows,
by department, show that Santa Cruz absorbed the largest
amount of resources reaching US$ 356.5 million during
the year 2000. This represents a 47.53% of the total,
followed by La Paz with US$ 143.3 million, equivalent
to 19.10%.
(Information
provided within this page has been obtained from Centro
de Promoción Bolivia - CProbol)
