A/HRC/43/45/Add.1 I. Introduction 1. Pursuant to Human Rights Council resolutions 34/3 and 37/11, the Independent Expert on the effects of foreign debt and other related international financial obligations of States on the full enjoyment of all human rights, particularly economic, social and cultural rights, Juan Pablo Bohoslavsky, conducted an official visit to the Plurinational State of Bolivia from 6 to 15 May 2019. The purpose of the visit was to examine the impact of debt and illicit financial flows on the enjoyment of human rights and to assess the effectiveness of macroeconomic policies, including fiscal and tax policies, in contributing towards the full realization of human rights. 2. During his visit, the Independent Expert met with the Minister of Foreign Affairs, the Minister of Economy and Public Finance, the Minister of Labour, Employment and Social Security, the Minister of Development Planning, officials from the Ministry of Education, the Ministry of Health, the Ministry of Labour, Employment and Social Security, the Ministry of Justice and Institutional Transparency, the Central Bank of Bolivia, and the National Tax Service, and members of the Plurinational Legislative Assembly. During his visit to Sucre, the Independent Expert met with a judge of the Supreme Court, and officials from the autonomous departmental government of Chuquisaca and the autonomous municipal government of Yamparáez. He also met with the Ombudsman and representatives of the United Nations country team, international financial institutions, multilateral development banks, civil society organizations, academic institutions, trade unions, the diplomatic community and the private sector. 3. The Independent Expert is grateful to the Government for its full cooperation before, during and after his visit. The Independent Expert’s visit was carried out in a spirit of cooperation, which fruitfully resulted in a series of constructive dialogues with the Government. The Independent Expert hopes to continue the dialogue, with a view to providing any necessary technical advice to the Government in the future. II. Overview of the current context 4. Under the leadership of the President, Evo Morales, between 2006 and 2019, the political, economic and social model in the Plurinational State of Bolivia has gone through radical changes over the past decade or so. Mr. Morales, who was the first indigenous leader of the country, spearheaded the adoption of the new Constitution in 2009 and founded the Plurinational State of Bolivia, which explicitly recognized pluralism and the rights of indigenous peoples. The Constitution also cemented the central role of the State in economic planning and development and in the management of natural resources. Leaving behind its “colonial, republican and neo-liberal” past,1 the Government decisively nationalized key industries and sectors, most notably hydrocarbons. The export boom in the mining and hydrocarbon sectors, coupled with increased public investment and household consumption, has helped the Bolivian economy grow at an unprecedented pace. Between 2005 and 2017, the gross domestic product (GDP) grew almost fourfold from $9.5 billion to $37.5 billion.2 Once a heavily indebted low-income country, the Plurinational State of Bolivia is now a middle-income country with the fourth highest economic growth in the Latin America and the Caribbean region.3 5. One of the unique elements of the economic model is that the Government has strategically increased revenue through the introduction of a direct tax on hydrocarbons. Due to the export boom, the fiscal revenue increased at an annual rate of 17 per cent 1 2 3 Constitution of the Plurinational State of Bolivia (2009), preamble. World Bank, “Bolivia”, DataBank. Available at https://data.worldbank.org/country/bolivia (accessed on 24 December 2019). Economic Commission for Latin America and the Caribbean (ECLAC), Economic Survey of Latin America and the Caribbean, 2018 (United Nations publication, Sales No. E.18.II.G.4), p. 98. 3