Every day, thousands of residents travel between El Alto and La Paz aboard Mi Teleférico. Yet according to economist Dr. Joaquín Morales, the system's greatest contribution is not simply moving people more quickly. In an interview, Morales, a tenured professor in economics at The Universidad Privada Boliviana (UPB) and a specialist in the study of the popular economy, explained that some of the greatest benefits of the cable car system are on the informal, or popular, economy in La Paz and El Alto. 

 

To begin the interview, Morales discussed the popular economy that exists in La Paz and El Alto. He explained how Bolivia has one of Latin America’s largest informal sectors due to the fact that formalizing a business is a complex process in Bolivia, and often the benefits of becoming a formal business do not outweigh the costs, such as increased taxation. He also explained how rather than aggressively enforcing registration requirements, the government in La Paz and El Alto generally tolerates informality to preserve livelihoods and economic activity. In an academic paper, Morales advocates for the support of the informal, or popular economy, as it is the one that generates great economic activity and supports large numbers of residents. He argues that support of the popular economy can actually create increased economic integration and decreased inequality. 

 

During the interview, Morales observed that a key contributor to the success of the popular economy is Mi Teleférico. According to Morales, this system creates incredible benefits for the popular economy by reducing commuting time for vendors, many of whom are travelling from El Alto to La Paz to sell goods. Similarly, the cable cars open up new markets for vendors by providing reliable accessibility to markets and customers in the city centers of La Paz. Furthermore, the system allows for increased opportunities outside of selling goods, such as labor based gigs that are abundant in La Paz. 

 

In addition to providing increased access for vendors and workers who hope to benefit from opportunities in La Paz, the cable cars allow residents of La Paz, many of whom are affluent, to access goods in El Alto. As an example, Morales discussed the Mercado 16 de Julio, a sprawling market located in El Alto that covers 200 blocks and sits directly next to multiple different Teleférico stations. Since the implementation of the cable cars, tourism in the market has boomed. Many customers now travel easily from La Paz to El Alto to buy goods from vendors, many of whom work informally. Thus, the cable car are a clear economic assistance to vendors and workers of the informal economy. 

 

Morales also explained that the economic integration from increased cash flows to those in the informal sector can contribute to social integration as well. Transportation does not automatically eliminate prejudice, but it can lead to people interacting with each other much more frequently, which, Morales argued, can contribute to reductions in classism and racism. 

 

Still, Morales noted that infrastructure alone is not enough to fully economically and culturally integrate La Paz and El Alto. Additional ways to increase integration could include providing more support to the informal economy through increased infrastructure, offering easier pathways to join business associations, and a diversification of goods sold. 

 

To close the interview, Morales explained that while Mi Teleférico has been greatly beneficial to the informal economy in La Paz and El Alto, there is still more to be done. Continued investment in infrastructure and stronger support for informal businesses remain essential for achieving deeper and more lasting integration.