Public trusts in Bolivia

Abstract

The trust concept arises from the trust of a rights holder, known as the settlor, who temporarily transfers the administration of those rights to a banking or financial entity known as the trustee, so that the latter may transfer them to the former or a third party known as the beneficiary.

This article was written to provide an understanding of the concept, scope, and reasons why we consider the “public” trust a highly reliable instrument as part of the fiscal and public investment policy implemented by the Bolivian State. We maintain the hypothesis that, in order to fulfill its purpose, it must be structured in such a way that it not only fulfills its purpose but also contributes to the country’s economic and social development. Finally, and despite considering it timely and pertinent to use this public policy tool, the lack of access to updated information and, therefore, the lack of transparency regarding its management and results are aspects that should be changed so that the population as a whole understands the benefits and results of its applicability, and so that entities comply with its effective implementation.