Inflation Forecast Raised

July 2008 | Risk Summary

Political risk in Bolivia continues to increase at an alarming rate. The vote on June 22 in favour of greater autonomy in the southern Bolivian province of Tarija was supported by over 80% of voters, and means that Tarija now joins the provinces of Santa Cruz, Pando and Beni in its call for freedom from President Evo Morales' government on areas of taxation, natural resources and policing. Combined with the potential fallout from a recall referendum scheduled for August 10, this has led to a downgrade in Bolivia's short-term political risk rating from 50.6 to

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