The government observes IMF method and says it reduced informality by 45.98%

The government observes IMF method and says it reduced informality by 45.98%

In view of the report issued by the IMF that states that Bolivia's economy has the highest informality in the world, the Ministry of Economy assured that the indicator fell to 45.98% and was the second country with the highest level of reduction of that variable after From Uruguay.

Informality in Bolivia fell from 68.09% in 1991 to 45.98% in 2015 and was the second country that most reduced this indicator in South America, according to the report of the International Monetary Fund (IMF).

 According to the study of Shady economies around the world: what we learned in the last 20 years? , published by the IMF, Bolivia has 62.3% of informality, followed by Zimbabwe with 60.6%, out of a total of 158 countries studied.

Although the Ministry of Economy does not agree with the calculation methodology of the informality index, Bolivia reduced that indicator to 45.98% thanks to the economic policies applied with the new Economic Community and Productive Social model.

"The data of the study shows how in the studied period informality in Bolivia decreases from 68.09% in 1991 to 45.98% in 2015, constituting the second biggest fall recorded between 2006 and 2015 with respect to the rest of the countries, an aspect that is rather remarkable, "according to the report of the Ministry of Economy and Public Finance.

According to the data of that State portfolio, 62% of informality in the Bolivian economy is not other than the average of the period 1991-2015, being that it is essentially explained by the performance comprised between 1991 and 2005. informality as an economic problem is a legacy of the neoliberal economic policy that resulted in a limited formal business fabric due to the lack of sustainability of macroeconomic results among many other factors.

In the neoliberal period, informality was 68.3% on average, according to the IMF. Thanks to the application of the Economic Community Social Productive Model, which allowed to reduce poverty and achieve the highest growth rates in the region for many years -among other achievements-, informality was reduced by more than 22 percentage points, with the second largest decrease within the continent, according to IMF data.

The study of the international organization confirms the results achieved by the Bolivian economic model, regarding the economic growth of Bolivia, the reduction of extreme poverty and the decrease of informality in the country.

 ONLINE BANGLA SITE / 30 July 2018