SMALL SCALE MINING AND ECONOMIC AID IN BOLIVIA

Although the small-scale mining sector in Bolivia has absorbed economic aid, little or no improvement has resulted. It appears that much closer technical and financial co-operation with those operating small mines is called for, including rigid credit supervision. Problems in small-scale mines arise from difficult mining conditions, the tax structure and capital market situation as well as the employment patterns of the mine operators. It is suggested that mechanized projects may not always be the best way to overcome poor conditions, but where they are, lack of collateral is frequently an obstacle. In such cases, a three stage approach to project implementation is proposed.