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⁸ We deflated nominal prices by the Consumer Price Index (CP1) (1985 = 100).

⁹ The terms of trade are defined as the ratio of Wholesale Agricultural Prices to Industrial Prices (1985 = 100).

¹⁰ UDAPE, Análisis de la encuesta de precios de finca-US AID, unpubl. manus. (La Paz, 1989), p. 15Google Scholar and UDAPE, ‘Análisis del Impacto’, pp. 117–119.Google Scholar

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¹⁷ UDAPE, ‘Evolución del comercio exterior de productos agropecuarios (1980–1987)’, Working Paper (La Paz, 1989Google Scholar and Morales, , ‘Impacto de los ajustes…’, p. 15.Google Scholar

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¹⁹ World Bank, Bolivia. Poverty Report, p. 30Google Scholar and Bolivia. Agricultural Pricing and Investment Policies (Washington, D.C., 1984).Google Scholar

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²⁴ Morales, and Sachs, , ‘Bolivia's Economic Crisis’ (1989), p. 70Google Scholar and ‘Bolivia's Economic Crisis’ (1990), p. 232.Google Scholar Spending probably fell in real terms during 1982–5, though it rose as a percentage of collapsing GDP.

²⁵ Horton, S., ‘Labour Markets in an Era of Adjustment: Bolivia’, unpubl. manus. (New Haven, 1990), p. 20.Google Scholar

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²⁸ An anonymous referee perceptively observed that: ‘Low response of agricultural output to rising real wholesale producer prices suggests the hypothesis that the price rises were perceived as transitory. Peasants probably saved the extra proceeds and “invested” them in durable goods, that are often the preferred assets of the poor, instead of in improvements to increase their supply. Besides, under some reasonable hypotheses, better prices and income need not induce more work’.

²⁹ As one anonymous referee noted, better wholesale prices do not imply, either factually or logically, better farmgate prices. Owing to the many imperfections in Bolivia's agricultural marketing system, improved wholesale agricultural prices may not have necessarily translated into higher farmgate prices.

³⁰ Cardoso, E., ‘Food Supply and Inflation’, Journal of Development Economics, vol. 8 (1981), pp. 269–284CrossRefGoogle Scholar; Edel, M., Food Supply and Inflation in Latin America (New York, 1969).Google Scholar

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³² The poorest 20–25% of the population in a developing country typically spend 60–80% of their income on food. See Mellor, J. W., ‘Food Policy, Food Aid and Structural Adjustment Programmes: The Context of Agricultural Development’, Food Policy, vol. 13 (1988), p. 14.CrossRefGoogle Scholar Information on food expenditures for Bolivia comes from De Franco, M. and Godoy, R., ‘Potato-Led Growth. The Macroeconomic Impact of Technological Innovations in Bolivian Agriculture’, Journal of Development Studies (forthcoming).Google Scholar

³³ Morales, and Sachs, , ‘Bolivia's Economic Crisis’, (1990), p. 171.Google Scholar

³⁴ Pastor, , ‘Bolivia’.Google Scholar

³⁵ ibid.

³⁶ ibid.

³⁷ Morales, and Sachs, , ‘Bolivia’ (1990), p. 171.Google Scholar

³⁸ Pastor, , ‘Bolivia’.Google Scholar

³⁹ Espejo, J., ‘El empleo y la distributión del ingreso durante la inflatión’, Universidad Católica de Bolivia, Working Paper no. 05/90 (La Paz, 1990), p. 26.Google Scholar

⁴⁰ Espejo, , ‘El sector productivo…’, p. 56Google Scholar and ‘El empleo y la distributión’, p. 27.

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