Bolivia has what most investors look for: minerals, energy, and business that can expand given proper access to funds. What it lacks is the assurance that will help turn that money into productive investment. You need more than good-looking reserves and pitch decks. You also need to trust that your money is being spent safely.
This is the argument presented by Facundo Gómez Minujín. JPMorgan’s chief executive officer for Argentina, Uruguay, Bolivia, and Paraguay. By bringing up the country’s constitution, he asks whether there can be a Bolivian economic recovery.
Is The Constitution Stopping Investment?
During the podcast “La estrategia del día” on Bloomberg Línea, Gómez Minujín said Bolivia’s constitution is holding back investment. He said the following, according to the English translation of the article: “The Constitution is limiting foreign investment today.”
This is the opinion of someone who is trying to invest his money. To figure out whether Bolivia’s constitution is blocking specific investments, “we will need to dive deeper into our laws.”
What this can translate to on a business level is that investors may hesitate to invest their money. When you’re putting your money down for many years, you want to know what you’re working with and how conflicts can be resolved. Uncertainty may prevent some deals from going through, which could hinder Bolivia’s economic recovery.
Gómez Minujín mentioned that potential investors were not currently looking to make deals in Bolivia. This goes to show that although Bolivia may be able to attract more investment with some changes to its laws and constitution, the country is still not reaching its potential.
Bolivia will have to answer the following question if it wants more money flowing into government coffers.
Legislation Or Constitutional Change?
As stated earlier, Gómez Minujín said there are two ways to increase investment. Through legislation or changing the Bolivian constitution.
By creating laws, Bolivia can allow its government to create better conditions for investors. But he believes that those laws may run into constitutional issues. In this scenario, Bolivia would have a law that may attract investors but has an uncertain legal basis.
If Bolivia changes its constitution, there is another problem. Gómez Minujín believes that the executive branch would have to reach a supermajority in Congress and hold a referendum. This may turn into a referendum against the country’s current president, Rodrigo Paz.
“We have to see if the president wants to open Pandora’s box,” He stated.
The South American country’s government has already proposed a law to increase investment in Bolivia. We will see what happens once Congress votes on it and which terms it accepts.
How Investment Will Help Bolivian Economic Recovery
Getting more investment in the country will help Bolivia recover. With fewer dollars coming from gas, the country and its government need to find other ways to bring dollars into the economy.
By increasing investment, we hope to see:
- More exports, which can generate more dollars from selling abroad.
- Significant job creation.
- Technology that can allow for better business practices.
- A diversification of the economy by opening up new markets.
Although this will take time. Once Bolivia can build these things, open new factories, and get its products to consumers, the country can start to recover from its dollar shortage.
That is why having this conversation now can help Bolivia secure those investments sooner.
Gómez Minujín believes that without more investment, Bolivia won’t be able to solve its debt problems.
Social Implications Of Stabilizing the Bolivian Economy
Along with changing laws, Bolivia is stabilizing its economy. Bloomberg Línea reported that the IMF gave the country about US$1.9 billion to help fund economic changes.
Gómez Minujín believes unifying Bolivian exchange rates will help in the short term. He expects to see government expenses and subsidies lowered as well. Although he does not know the terms of this deal.
He stated, “We still need to learn more about this agreement”.
“We will have to see what steps the government takes to help the nation’s economy, while also helping citizens who may suffer from inflation.”
If Bolivians do not trust in this, the country will not be able to recover.
Bolivia vs. Argentina
Gómez Minujín discussed Bolivia’s similarities with Argentina and how Argentina is adjusting its economy. Argentina is earning more dollars from agricultural products, oil, and gas. This is important because when a country is able to generate more dollars, it can have more stability. Bolivia will need to find ways to help its economy stabilize using the tools that it has.
By having more dollars, Argentina’s government and businesses can thrive.
Investment In Bolivia Will Require More Than Just Legislation.
Once Bolivia attracts more foreign direct investment, it will need to decide what opportunities it is willing to invest in. Citizens will need to see jobs being created and prices remaining stable.
Bolivia’s path to economic recovery will depend on whether reform can earn the confidence of both investors and citizens. Clear legal protections and credible economic policies could encourage businesses to commit capital, expand production, and create jobs. Yet lasting progress will also require protecting vulnerable households during the adjustment and showing that investment improves everyday life. By pairing greater certainty for businesses with tangible opportunities for Bolivians, the country can begin turning its economic potential into sustained growth.