Finanacial Management

Business Plan for a Bakery in Bolivia

Bolivia: Description

Bolivia is a democratic republic and a developing country, ranking 117 (out of 177 countries) on the Human Development Index score, and a poverty level of around 60%.

The Bolivian population, estimated at 9 million, is multiethnic, including Amerindians, Europeans, Asians and Africans. The main language spoken is Spanish, although the Aymara and Quechua languages are also common. The large number of different cultures within Bolivia has contributed greatly to a wide diversity in fields such as art, cuisine, literature and music. (CIA, World Book, 2009)

At 1,098,580 square kilometers (424,160 sq mi), Bolivia is the world's 28th-largest country. Bolivia has been a landlocked nation since 1879, when it lost its coastal department of Litoral to Chile in the War of the Pacific. However, it accesses the Atlantic via the Paraguay River (CIA, World Book, 2009).

Economy Situation:

Bolivia has the lowest GDP per capita in South America. However, the country is rich in natural resources. Its GDP in 2008 is estimated to be $17.2 billion (Bladex, 2009) and grew by 6.15% (IKN, 2009). The GDP is distributed among agriculture with 15.0%, having as main products soybeans, coffee, cotton, corn; industry with 36.4%, having as main products mining, petroleum, food and beverages, tobacco; and the services sector with 48.6%. (Bladex, 2009)

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The projected growth of the GDP for 2009 will be much less than as compared with 2008. On the other hand, GDP per capita increased to a nominal rate average of 19.5% during period 2005 - 2008. (Bladex, 2009)

Bolivia is one of the poorest and least developed countries in Latin America. Following a disastrous economic crisis during the early 1980s, reforms spurred private investment, stimulated economic growth, and cut poverty rates in the 1990s. The period 2003-05 was characterized by political instability, racial tensions, and violent protests against plans -...