Economic Prospects Amid Regional Autonomy

Despite robust economic expansion of 4.6% seen in Bolivia in 2007, we believe that the deepening political divide poses a dangerous threat to the country's medium-term growth prospects. With the wealthier regions becoming increasingly militant in their drive towards secession, the capital La Paz faces growing economic risks. In contrast, more freedom from the central government would provide major room for significant growth opportunities in the eastern states.

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