By El Diario:

Human Capital and Development

  • Bolivia’s educational quality ranks below that of other countries in the region, prompting calls for technical reforms and policy changes to improve the national economy.

In recent years, Bolivia has lost ground in educational quality and, consequently, in human capital development, which directly affects productivity. Analysts argue that authorities must undertake major reforms to reverse this trend and confront unions that defend their privileges.

The country also records low educational quality and, at the regional level, setbacks have been observed in this area, according to the PISA Report (Programme for International Student Assessment).

Bolivia has fallen behind in human capital formation because successive governments focused on exploiting natural resources without offering alternatives to transform the productive structure. After gas production declined, the country entered an economic and energy crisis.

Education

According to economists consulted, the current state of human capital development stems from insufficient investment in educational quality and a lack of meaningful reforms, with policies often driven more by political and ideological considerations than by technical criteria.

For example, economist and professor at the Technical University of Oruro (UTO), Ernesto Bernal, points to the educational reform embodied in the Avelino Siñani Law, which he says emphasizes ideological student training.

He argues that educational improvement should begin in the earliest school years, with students receiving an International Baccalaureate-style education, similar to systems used in some countries in the region and available in Bolivia only at very high cost.

Bernal proposes that students should learn English, strengthen their mathematics skills, and improve in other core subjects so they can enter secondary school with a solid academic foundation and be prepared for greater challenges.

He therefore suggests developing a new educational reform based on this model while simultaneously training teachers to adapt to the changes.

“Structural changes take time,” he noted, adding that results would be visible only in the long term, approximately 10 to 20 years.

According to Bernal, a better-educated population would be more productive, leading to higher economic growth.

Bolivia has faced major structural problems since becoming primarily an exporter of raw materials and neglecting the expansion of its productive base due to a shortage of human capital, a problem dating back to the country’s founding.

An educational reform based on these recommendations would improve training, individual productivity, and employment opportunities, generating a significant impact on national economic growth.

To advance such a process, all key stakeholders—including teachers—must be involved. The government would need to explain that educational changes would not threaten teaching jobs while also implementing training programs in multiple disciplines to improve human capital development.

However, this process requires funding, and Bolivia currently lacks the necessary resources. This financial constraint, combined with politicians’ failure to prioritize education policies, could become another obstacle to reform.

Investing in Human Capital

Economic analyst Gustavo Machicado argues that Bolivia has not invested meaningfully in human capital since the 1980s.

“If there has been any investment, it has produced no results, and the reforms that were needed were never implemented,” he said.

The shortage of human capital affects the economy through lower productivity and slower growth rates.

Machicado stated that educational reforms aimed at strengthening human capital are difficult throughout Latin America because powerful interest groups, including unions in the health and education sectors, resist change.

“Investing in human capital requires reforms in education and healthcare,” he said, adding that unions often block such efforts, making reforms difficult, though changes can still be achieved through alternative approaches.

Reform

Machicado highlighted the educational reform introduced in 1955 through the Bolivian Education Code, which increased productivity. He argued that its results partly explain the economic growth experienced during the 1960s and 1970s. Since then, no comparable reform has been implemented.

He explained that the reform promoted the mass construction of rural schools. Once that objective was achieved, progress stalled. Future initiatives, he said, should have focused on improving educational quality in urban and provincial areas, a task that remains unfinished.

Machicado also noted that the lack of human capital is reflected in the shortage of professionals capable of guiding authorities through the current economic crisis and designing effective strategies. In the absence of such expertise, Bolivia often turns to the International Monetary Fund (IMF) for guidance.

Low Levels

Economic analyst Bernardo Fernández said that human capital encompasses the full range of skills and abilities developed from the earliest stages of education through professional life.

He acknowledged that Bolivia possesses a certain level of human capital that helps sustain the economy, but compared with neighboring countries, there remains a significant gap and overall lower levels of development.

Measuring Human Capital

Fernández explained that one common way to measure human capital across economies is through average worker productivity, which remains low in Bolivia.

This productivity is sometimes reflected in minimum wages. However, during the gas boom years, the minimum wage rose significantly under policies implemented by the Movement for Socialism (MAS), despite not necessarily corresponding to average worker productivity.

“At first, the average minimum wage did not reflect people’s productivity—it was unfair,” he said, adding that later reforms under the MAS government reversed the situation.

“Bolivia has not managed to make the leap into the digital era. It does not fully utilize technology, keep up with best practices, or maximize the use of equipment and tools, all of which directly affect productivity levels,” he observed.

Regionally, Bolivia lags behind in human capital and productivity because governments have focused heavily on exploiting natural resources—particularly minerals and hydrocarbons—at the expense of other sectors.

“There are no incentives for diversifying productive activity. We have not encouraged young people to think about emerging careers, new market trends, or new production methods linked to artificial intelligence and economic digitalization,” he explained.

Fernández lamented that the revenues generated during the commodity boom were not invested in other productive sectors.

“And when the money runs out, we find ourselves where we are today,” he said.

The lack of human capital also hinders changes in the productive and energy matrix, limits solutions to declining gas production, and reduces the country’s ability to identify new sectors capable of supporting economic growth.

“We find ourselves at this crossroads,” he concluded.

Finally, he noted that society is not accustomed to long-term change, making it challenging for authorities to implement educational reforms whose benefits take years to materialize.

“In developing countries like Bolivia, the long term barely exists—it is extremely short-term,” he said, emphasizing that education is inherently a long-term process.

Analysis

According to Ipsos’ 2026 Education Monitor, 52% of respondents say the quality of the educational system is poor, while only 2% rate it as good. Criticism is strongest in Cochabamba (66%) and among Generation X respondents (66%).

The survey also found that 70% support banning children from accessing social media, while only 41% believe artificial intelligence should be prohibited in schools.

Bolivians are more likely to recommend that young people attend university before entering the labor market: 45% favor university first, while 26% support entering the workforce directly.

Meanwhile, 51% believe the current school curriculum adequately prepares students for future careers, while 68% think young people would have better opportunities if they moved abroad.

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