Determinants of direct foreign investment and the challenges these expose for Bolivia: mixed-economy companies for the development of natural resources

Abstract

This article of critica! analysis has the objective of developing sorne aspects related to Foreign Direct lnvestment, to generate a reflection of this on the impact on the economic and social development of our country. The competitiveness of a country depends on many factors, and among these are the conditions that are offered to investors. Both public and private, domestic and foreign investments generate development and economic and social growth of a country. The absence of investment can lead to stagnation and eventual decline in the production of goods and services; that is, lower income for the country and, in fact, tax revenues. The identified challenges: generate more investment to increase economic growth, generate employment and reduce poverty. There are severa[ successful models of mixed companies. The formation of partnerships between state companies and prívate companies takes various forms and modalities in schemes that allow both parties to establish win-win businesses. Likewise, there is a multiplicity of strategic, commercial and operational factors that affect the viability of any investment. An alternative to generate agreements and strategic and profitable companies and increase investments to develop the natural resources of Bolivia is to establish Mixed Economy Companies (MEC), between public and prívate companies.