Bolivia has inadequate institutions on which farmers can rely for technical advice. The scope for improvement appears to be considerable, however, if appropriate technologies are generated and diffused. Government intervention has been haphazard, resulting in a poorly defined pricing and investment policy. For pricing policy, this report recommends that the government: (i) create a unit to design pricing policies for items it intends to control and to publish these prices; (ii) discontinue setting prices which have been unenforceable; (iii) use border prices as a reference point for fixing domestic producer prices; (iv) dissolve the bodies responsible for purchasing cereals at official producer prices; (v) phase out the subsidy on wheat; (vi) lift regulations restricting the sugar cane producing sector; (vii) remove export regulations; (viii) investigate transferring some agroindustries to the private sector; and (ix) abolish price regulations for competitive agro-based commodities. Investment strategy should specify the role of domestic executing agencies, the coordinating mechanisms between institutions, the resources needed, and the contribution of each project to the overall strategy.