How are the Gas and Oil Revenues Distributed?
) (Heller School for Social Policy and Management, Brandeis University) Abstract This report analyzes the importance of the hydrocarbon sector in Bolivia. The oil and gas sector currently represents a vital component of the Bolivian economy, accounting for 7 percent of the GDP in term of production and more than 30 percent of total government income. In addition, the hydrocarbon sector not only represents an important economic sector but also a political and social instrument for negotiations, mobilization and social participation. The hydrocarbon sector in Bolivia also plays a strategic geopolitical role in South America as it has the second largest reserves of natural gas in the region after Venezuela. However, the current Bolivian nationalization process has placed this privileged position of the country into question as Bolivia is trying to undo twenty years of neo-liberal policies with the adoption of more nationalistic policies, assuming the control of the sector and challenging
