RGE - Why Is Bolivia Doing (Relatively) Well?

Why Is Bolivia Doing (Relatively) Well?

This is a question that several have asked. My answer is not as technical as this good article. My hunch is that "la crisis" (financial meltdown) has not affected Bolivia as much because such a high percentage of the economy, at least here in Cochabamba, is internal. Cochabamba is a hub for agricultural production. It was once known as the breadbasket of the Inca Empire. Much of the local economy is sale of agricultural products and the resultant conversion of these sales into purchases of finished goods. Another piece of the economic matrix is the relatively large number of foreign students in local universities. This is outside money coming into the local economy. Other parts of Bolivia, such as the mineral mining areas, are not so lucky. Commodity prices have really been down and several mines are effected. The reference article is a good view of what is going on in more technical terms.