Project assistance completion report : policy reform no. 511-0571

Through support of the GOB's Economic Policy Analysis Unit (UDAPE), the project was able to play a significant role in accelerating economic growth in Bolivia by providing the GOB with recommendations for structural reforms that facilitated alternative development and expanded investment in non-coca activities. It also supported the Mission's efforts to address policy reform crosscutting issues. UDAPE completed 779 (versus a target of 225) economic policy studies, and the Institute of National Statistics, the Social Policy Analysis Unit, the Central Bank, and the Population Policy Unit developed 15 analyses leading to macroeconomic and sectoral reforms. UDAPE established a good reputation among public and private sector entities, international organizations, and foreign research institutions; participated actively in GOB economic cabinet meetings; and represented the GOB during meetings with multilateral donors. The following lessons were learned. (1) UDAPE provided the GOB with high-quality technical recommendations in the areas of macroeconomic and sectoral policy reform without participating in partisan political activities. Consequently, UDAPE increased its prestige, and insured its independence and continuity over the past decade. (2) UDAPE's extensive experience in macroeconomic and sectoral analysis has given it the status of a model institution; other countries, including Honduras, are interested in learning more about UDAPE's role in policy design and implementation. (3) The approval of a follow-on project, Technical Support for Policy Reform, and the GOB's development of the Social Policy Analysis Unit (UDAPSO), modeled after UDAPE, are testimonies to the project's success.