Country Studies

Bolivia's informal economic sector is the largest in Latin America and has been attributed to many factors including the burden of regulations, the weakness of public institutions, and the lack of perceived benefits to formality. 'Increasing Formality and Productivity of Bolivian Firms' presents fresh qualitative and quantitative analyses to help understand the reasons why firms are informal and the impact of formalization on their profitability, in order to better inform appropriate policies. A crucial finding of the study is that the impact of tax registration on profitability depends on firm size and the ability to issue tax receipts. The smallest and largest firms have lower profits as a result of tax registration because their cost of formalizing exceeds benefits. The study concludes by recommending policy priorities to increase the benefits of formalization through information, training, access to credit and markets, and business support. Longer-term policy recommendations include simplifying formalization, regulatory, and taxation procedures and reducing their costs, as well as measures to boost the productivity of small and micro firms.

Unlocking Caribbean Trade Potential: Policy Options for Growth and Poverty Reduction Is the Caribbean ready to thrive in the global market? This World Bank Country Study offers a comprehensive analysis of trade and integration challenges and opportunities in the Caribbean, providing policy options for sustained growth, job creation, and poverty reduction. Explore strategies for: - Accelerating trade integration and improving competitiveness - Addressing macroeconomic and structural constraints - Leveraging the Economic Partnership Agreement (EPA) - Capitalizing on a changing international environment For policymakers, economists, and development practitioners seeking actionable insights to shape a more prosperous Caribbean future.

The government of Bolivia seeks to reinvigorate the nontraditional export sector as part of its national development strategy. This Country Study investigates the role that trade should play in Bolivia's development strategy, given the country's rich resource endowment, and examines the lessons of Bolivia's integration into the global economy. Considering the past links between trade and Bolivia's economy, the study analyzes the impact of different scenarios on growth, employment, trade flows, and poverty; it also evaluates barriers to higher export competitiveness and constraints on exporting firms. The study concludes that preferential access to world markets is necessary but not sufficient for success in nontraditional exports. Efficient services are necessary to reduce exporters' costs, and the government should be more proactive in laying the foundation for export diversification, increasing the effectiveness of institutions, and addressing impediments to crossborder trade.

'The Invisible Poor' seeks to raise the profile of the rural poor in Argentina, promote dialogue on rural poverty issues, provide the best currently available information about rural poverty, and offer a basis for discussions on how to expand household survey data collection to rural areas. Most previous work has been based on case studies or one-time surveys in a few provinces and consequently has been of limited use for drawing conclusions about rural conditions overall in Argentina. Largely because of data limitations, profound gaps exist in the understanding of rural poverty in Argentina. As a result, the rural poor have sometimes been neglected in policy discussions. This study does not directly address policy responses. Rather it seeks to provide an analytical basis for understanding the conditions of rural life, with the ultimate goal of helping policy makers improve the welfare of Argentina's rural poor through evidence-based policy.