THE EFFECT OF THE EXTRACTIVIST ECONOMIC MODEL ON INFLATION AND A PROPOSAL FOR VIRTUOUS CIRCULAR GROWTH IN BOLIVIA

Bolivia repeats its cause and effect with its economic crises marked every twenty years, with many common and determining factors, mainly the shortage of foreign currency, which generated known macroeconomic imbalances, due to high levels of inflation, devaluation of the exchange rate, fiscal and trade deficit, due to the high internal and external public debt, as well as the significant fall in international reserves and of course the Gross Domestic Product each of these variables will be the subject of study in the last period 2006 to 2024 for the present research. It should be noted that Bolivia's history was identified by having models of circularity of development and economic growth applied and characterized by non-renewable resources such as the exploitation of its mineral and hydrocarbon raw materials, exported without added value focused on attracting foreign exchange, but with a weak private productive apparatus causing labor informality.  unemployment, country risk and poverty that was growing year after year. That is, they start with virtuous economic circularity with high reserves of raw materials and end with the depletion of these raw materials and with an economic crisis of vicious circularity. In this understanding, the objective of this article is to propose an economic model of virtuous circularity with stability, profitability and sustainability of development and economic growth for the Bolivian economy based on a productive apparatus with renewable sectors with formal and stable employment based on a knowledge economy in science, technology and innovation.