Bolivia’s Richest Man Pitches Harvard Plan to Avoid Economic Collapse

Marcelo Claure, Bolivia’s wealthiest individual and vice chairman of Shein, has unveiled the 'Bolivia 360' plan, a 15-month structural reform program developed with Harvard University’s Growth Lab. The initiative aims to prevent what Claure describes as an imminent economic collapse in Bolivia, characterized by exhausted international reserves, a fiscal deficit potentially reaching 13% of GDP, and rising inflation. The plan, led by economist Ricardo Hausmann, involves three phases: comprehensive economic diagnosis, socialization with political and business leaders, and implementation support for the next government. Claure warns that Bolivia risks becoming the 'next Venezuela' due to semi-hyperinflationary dynamics stemming from lost hydrocarbon revenues since 2014. He has pledged to channel international institutional capital into the country only if pro-market reforms are adopted. Notably, Claure has not visited Bolivia for over a year due to security threats. The proposal includes establishing a $10 million SME investment fund and a political leadership institute, targeting critical areas such as fiscal deficit reduction, central bank independence, and fuel subsidy liberalization amidst a fractured political landscape.