| Abstract: | Bolivia is a country of great mineral wealth with known reserves estimated to be worth over US$7 billion. Despite this great potential wealth, in the early 1980s the mining industry of Bolivia found itself in a crisis characterized by excessive state intervention in the industry, a financially troubled state mining company, large areas of the country off-limits to mineral development, an irrational tax system which discouraged mining and labour unrest. To deal with these problems, the government decided to restructure the mining industry so as to encourage private participation. This paper describes the policies introduced to revitalize the mining industry as well as projections of what the future benefits would be to the country if those policies are successful in achieving their objectives. |
