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Economy / Bolivia


August 2012 | Risk Summary

The Brazilian newspaper Veja in early July accused Bolivian Minister for the Presidency Juan Ramón Quintana of having connections to convicted drug trafficker Maximiliano Dorado Munhoz Jr. The allegations raise further questions about the level of corruption in the government of President Evo Morales, which has struggled to improve its reputation following a 2011 corruption scandal involving the former head of the counternarcotics force. Political corruption can act as a significant drag on economic growth and weigh on foreign investment. Evidence of growing corruption in Bolivia could persuade us to downgrade our short-term political risk ratings for country.

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