Bolivia's nonrenewable natural resource policy and management: A curse or a blessing

Bolivia is one of many cases of rich lands and poor people. The exploitation of rich natural resources in Bolivia spans more than five centuries and yet Bolivia is one of the most impoverished countries in South America. The purpose of this study is to identify lessons learned from the history and present of Bolivia and its neighbors and to make recommendations to inform decision making for policy makers and managers governing the extraction of lithium and the utilization of the benefits so derived. I have done this by: 1) identifying past patterns of resource extraction and the distribution of monies earned, 2) examining resource curse literature and policies implemented in lithium triangle countries to determine whether they are applied currently in Bolivia; and 3) comparing past and current patterns of resource extraction between free market-led and state-control regimes with respect to the intensity of extraction and their ability to generate wellbeing for Bolivia's people. There are four key patterns of control of the organization of extraction: (1) a historical appropriation of extraction, (2) the political and economic dynamics/interests behind extraction (3) legal vacua from Government inaction related to resource property/domain and distribution of revenues; and (4) political and economic shifts between deregulation of markets and state control. These patterns are apparent in a larger political context where: 1) dominant interests in extraction, although variable in the composition of actors and individuals, have been able to retain political power that translated into access to and control of resources through the manipulation of formal institutions in successive governments; and 2) the political and economic swings between state-led and free market policies - triggered alternately by society's claim over resource sovereignty and free market promises of economic growth - have prevented Bolivia from diversifying its economy or placing the country in an important position as exporter of raw materials to improve its economic relation as a producer in the world market.