Diego Peñaranda Molina

Diego Peñaranda Molina is a Bolivian economist with experience in international organisations, think tanks and academic research. Before joining Open PEA, he worked with the Inter-American Development Bank, the Aru Foundation and the Institute for Socio-Economic Research (IISEC), contributing to research and policy analysis on macroeconomic stability, fiscal policy, public expenditure and economic development in Latin America.

His research interests include macro-fiscal policy, export diversification and economic growth. His work combines applied econometrics, quantitative analysis and policy-oriented research, with a focus on producing evidence that can inform decision-making and public debate.

Diego holds a BA in Economics from the Universidad Católica Boliviana and an MSc in Economics (with a specialisation on Economic Development) from the Universidad Privada Boliviana. He is currently pursuing a Master of Public Policy at the Blavatnik School of Government, University of Oxford, as a Chevening Scholar.
 

What motivates me at Open PEA

I believe that many of the economic challenges facing my country, Bolivia, are fairly well documented and diagnosed. These include dependence on natural resources, low productivity, and precarious health and education sectors, amongst others. However, the policies and reforms needed to address these issues are rarely implemented. Even when they are, many initiatives do not stand the test of time or are even reversed.

For a long time, I thought the key was to produce better evidence. Build better statistical tools, and better designed public policies will follow. I still deeply believe in the value of rigorous research and sound economic analysis. But I’ve now learned that the technical quality of a proposal often does not guarantee its implementation. Many recommendations fail not because they are incorrect, but because they come up against political and institutional constraints.

Policymakers rarely operate under ideal conditions, particularly in low- and middle-income countries in the Global South. I am interested in understanding how to move forward through feasible reforms, even if they do not always generate ‘first-best’ economic outcomes. Progress usually comes from solutions that are good enough to be sustained over time.

To better understand these dynamics, politics must be treated as a central part of the explanation rather than as a residual variable. In this sense, Open PEA feels like an excellent platform for trying to understand the gap between diagnosis and implementation, as it seeks to produce useful, realistic and pragmatic knowledge for those who want to bring about real change. I am delighted to contribute to rigorous and genuinely useful analysis presented in formats accessible to audiences in and beyond academia.

Selected publications

Jimenez, W., J. Prat and D. Peñaranda (2026) ‘How are health and education budgets allocated in Bolivia?’, Inter-American Development Bank. ⧉

Lopez, R., J. Prat, W. Zanoni and D. Peñaranda (2025) ‘How are health and education budgets allocated in the Andean Region?’, Inter-American Development Bank. ⧉ 

Peñaranda, D. and T. Millán (2024) ‘Macro-fiscal effects of a new Sovereign Wealth Fund using natural resource revenues in Bolivia: the DIGNAR dynamic general equilibrium model’, AruSearch Research Journal, No. 4. ⧉ 

Jiménez, W., J. Cortez, D. Peñaranda and M. Villalpando (2024) ‘Growing old in Bolivia: Situation, trends, and challenges for the protection and care of the elderly’, UNFPA Report. ⧉ 

Velasco, O., W. Jiménez, D. Peñaranda and J. Cortez (2023) ‘Fiscal policy and public debt in the transition to carbon neutrality. The case of Bolivia’, REDSUR Working Paper. ⧉ 

Cortez, J., D. Peñaranda and D. Valdivia (2023) ‘Multidimensional index of political polarization in Bolivia’, Friedrich-Ebert-Stiftung. ⧉ 

Cortez, J., D. Peñaranda and D. Valdivia (2023) ‘Public debt sustainability in Bolivia: forecasts and post-pandemic scenarios’, AruSearch Research Journal, No. 2. ⧉ 

Peñaranda, D. (2021) ‘Determinants of export diversification in South America: an analysis using dynamic panel data models’, IISEC Working Paper. ⧉ 

Wanderley, F., C. Castro, D. Peñaranda and R. Aruquipa (2021) ‘Characteristics and quality of work in Bolivia before the Covid-19 pandemic’, IISEC Working Paper. ⧉ 

Fernández, D., S. Mansilla, A. Martínez and D. Peñaranda (2019) ‘Sovereign bond analysis and their performance in the Bolivian economy’, Serie Debate Público, No. 75, Fundación Jubileo. ⧉