1. DOES INTEGRATED SUPERVISION WORK IN EMERGING MARKETS-THE CASE OF BOLIVIA-- PRESENTATION BY Pablo Gottret, Ph.D World Bank Senior Economist and Former Superintendent of Pensions, Insurance and Securities of Bolivia

3. OBJECTIVES AND VISION SET FOR THE SUPERINTENDENCY OF PENSIONS, INSURANCE AND SECURITIES OBJECTIVES: Promote and control the prudent and transparent sustainable growth of the sectors under its supervision. VISION: Institutional investors channeling long term internal savings through the capital markets to the real sector, infrastructure and services, on the basis of risk rated instruments (investment grade or better) according to a prudent portfolio requirement which generates a market rate of return for such savings.

4. INSTRUMENTS AND WORK ETHICS INSTRUMENTS: Organized under 4 pillars Regulation: Draft and issue (according to mandate) appropriate regulation for the capital markets, pension and insurance laws. Supervision: Supervise compliance of regulation Information: Ensure availability and access to on time and accurate information regarding the sectors under supervision, market behavior and the supervised institutions. Education: Educate the population regarding the different markets and the rights and obligations of the different economic agents in those markets. WORK ETHICS: Honesty, Transparency, Professionalism and Team Work.

5. Impact of the Merger on the Bolivian Capital Market

6. MUTUAL FUNDS PORTFOLIO (in US$ MILLIONS - at end of each period) (in US$ MILLIONS - at end of each period) Dec-1992 to Dec-2002

7. BOLIVIAN STOCK EXCHANGE TRANSACTION RATES OF RETURN TRANSACTION RATES OF RETURN (Fixed Income Securities - 28 day averages in US$) September 2001 to December 2002

8. SHAREHOLDERS IN MUTUAL FUNDS (N° of INVESTORS - at end of each period) (N° of INVESTORS - at end of each period) Dec-1998 to Dec-2002

9. VOLUMES TRADED IN THE BOLIVIAN STOCK EXCHANGE (in US$ MILLIONS, Period 1998-2002)

10. VOLUMES TRADED IN THE BOLIVIAN STOCK EXCHANGE (in US$ MILLIONS, Period 1998-2003)

11. SECURITIES TRADED IN THE BOLIVIAN STOCK EXCHANGE (YEAR 2002, percentages)

12. CORPORATE BONDS ISSUED

13. SECURITIZATIONS ISSUED

14. TREASURY BONDS ISSUED

15. T-BILLS ISSUED

16. Structure and Crisis How the new structure helped during the crisis: Depth of secondary markets for long term instruments. Supervision of Conglomerates Relevance of supervising authority in decision making

17. UNFINISHED JOB Corporate Governance: Transparency, auditing and internal control systems, minority right protection. Conflicts of Interest Regulation. Property Rights and Registries Crowding out and investment abroad.