IDENTIFICATION OF THE FACTORS THAT CAUSED THE SHORTAGE OF DOLLARS IN THE BOLIVIAN ECONOMY DURING THE 2023-2024 PERIOD

Abstract

This research aimed to analyze the underlying causes of the dollar shortage experienced by Bolivia during the 2023-2024 period. Through a mixed methodology, it was identified that the foreign exchange crisis was the result of a complex interplay of internal and external factors.

Among the internal factors, the high dependence of the Bolivian economy on income from hydrocarbon exports, especially natural gas, stands out. The volatility of international prices for these commodities, coupled with imprudent fiscal management that prioritized current spending over investment, placed significant pressure on international reserves. Additionally, the lack of productive diversification and the implementation of protectionist economic policies limited the country’s ability to generate foreign exchange through other sources.

External factors, such as the global economic slowdown and the decline in global demand for commodities, exacerbated the situation, reducing export earnings and hindering access to external financing.

The consequences of this crisis were multiple and of great impact. The dollar shortage generated inflationary pressures, eroded the purchasing power of the population, and created uncertainty in the business sector. Additionally, it limited the country’s ability to import essential goods and services, affecting production and consumption.

In conclusion, the dollar shortage in Bolivia was the result of a combination of structural and cyclical factors. To overcome this crisis and prevent it from recurring in the future, it is necessary to implement a series of measures that promote economic diversification, strengthen institutions, and improve fiscal management.