Why Commodity Booms Have Not (Yet?) Boosted Human Capital: Bolivia’s Struggle to Create a Skilled Workforce

Do windfalls from the extractive sector help developing countries invest in human capital? To date, empirical studies remain inconclusive. Using Bolivia as a case study, this chapter examines the specific political-economic dynamics that led the country to increase spending on education yet at the s...

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Main Authors: Fritz Brugger, Kathlen Lizárraga Zamora
Format: Article
Language:English
Published: Institut de Hautes Études Internationales et du Développement 2014-11-01
Series:Revue Internationale de Politique de Développement
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Online Access:https://journals.openedition.org/poldev/1779
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author Fritz Brugger
Kathlen Lizárraga Zamora
author_facet Fritz Brugger
Kathlen Lizárraga Zamora
author_sort Fritz Brugger
collection DOAJ
description Do windfalls from the extractive sector help developing countries invest in human capital? To date, empirical studies remain inconclusive. Using Bolivia as a case study, this chapter examines the specific political-economic dynamics that led the country to increase spending on education yet at the same time failed to build a skilled workforce. Overall, the study finds that while the mining sector continued to seek unskilled, cheap labour, the capital-intensive hydrocarbon sector, for its part, developed on-the-job training programmes. Meanwhile, education policies failed to anticipate evolving demand from the labour market. As a result, vocational training suffered, a situation further compounded by efforts of powerful groups in the education sector to protect their own, somewhat narrow interests, at the expense of educational achievements. It concludes that the rise of private education and popular skills-based training programmes cannot substitute for development of a functional vocational training system, capable of supporting the country’s ambition to develop a world-class lithium processing industry with linkages in strategic sectors.
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spelling doaj-art-baf71d13082d47b8bf6cdaf88780086a2025-08-20T02:22:04ZengInstitut de Hautes Études Internationales et du DéveloppementRevue Internationale de Politique de Développement1663-93751663-93912014-11-01510.4000/poldev.1779Why Commodity Booms Have Not (Yet?) Boosted Human Capital: Bolivia’s Struggle to Create a Skilled WorkforceFritz BruggerKathlen Lizárraga ZamoraDo windfalls from the extractive sector help developing countries invest in human capital? To date, empirical studies remain inconclusive. Using Bolivia as a case study, this chapter examines the specific political-economic dynamics that led the country to increase spending on education yet at the same time failed to build a skilled workforce. Overall, the study finds that while the mining sector continued to seek unskilled, cheap labour, the capital-intensive hydrocarbon sector, for its part, developed on-the-job training programmes. Meanwhile, education policies failed to anticipate evolving demand from the labour market. As a result, vocational training suffered, a situation further compounded by efforts of powerful groups in the education sector to protect their own, somewhat narrow interests, at the expense of educational achievements. It concludes that the rise of private education and popular skills-based training programmes cannot substitute for development of a functional vocational training system, capable of supporting the country’s ambition to develop a world-class lithium processing industry with linkages in strategic sectors.https://journals.openedition.org/poldev/1779policy coherenceeconomic | development historypublic expenditurecommoditieseducationyouth
spellingShingle Fritz Brugger
Kathlen Lizárraga Zamora
Why Commodity Booms Have Not (Yet?) Boosted Human Capital: Bolivia’s Struggle to Create a Skilled Workforce
Revue Internationale de Politique de Développement
policy coherence
economic | development history
public expenditure
commodities
education
youth
title Why Commodity Booms Have Not (Yet?) Boosted Human Capital: Bolivia’s Struggle to Create a Skilled Workforce
title_full Why Commodity Booms Have Not (Yet?) Boosted Human Capital: Bolivia’s Struggle to Create a Skilled Workforce
title_fullStr Why Commodity Booms Have Not (Yet?) Boosted Human Capital: Bolivia’s Struggle to Create a Skilled Workforce
title_full_unstemmed Why Commodity Booms Have Not (Yet?) Boosted Human Capital: Bolivia’s Struggle to Create a Skilled Workforce
title_short Why Commodity Booms Have Not (Yet?) Boosted Human Capital: Bolivia’s Struggle to Create a Skilled Workforce
title_sort why commodity booms have not yet boosted human capital bolivia s struggle to create a skilled workforce
topic policy coherence
economic | development history
public expenditure
commodities
education
youth
url https://journals.openedition.org/poldev/1779
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