Leiden University Student Repository

Hoenderdos, Karel (2015)

Avoiding the resource curse in Bolivia - dealing with lithium abundance through a historical lens

Bachelor thesis | International Studies (BA)

Bolivia has a failed past in terms of generating prosperity through resource abundances. The country held enormous reserves of silver, tin, and natural gas, and is now in possession of half of the world’s supply of lithium, necessary in the fabrication of rechargeable batteries. The assumption is that the world will turn to electric vehicles in the near future, a shift that will increase the demand for Bolivian lithium dramatically. The phenomenon that a country rich in resources suffers from economic distress is called the resource curse. This thesis attempts to delve deep into the underlying causes of past examples of the resource curse in Bolivia, to determine whether there are similarities that can serve as recommendations to the present. Political stability is a prerequisite to avoid the curse, as well as macro-economic policy and diversification in the economic sphere. Bolivia is holding one of the treasures of the 21st century and needs to create the optimum circumstances in...Show moreBolivia has a failed past in terms of generating prosperity through resource abundances. The country held enormous reserves of silver, tin, and natural gas, and is now in possession of half of the world’s supply of lithium, necessary in the fabrication of rechargeable batteries. The assumption is that the world will turn to electric vehicles in the near future, a shift that will increase the demand for Bolivian lithium dramatically. The phenomenon that a country rich in resources suffers from economic distress is called the resource curse. This thesis attempts to delve deep into the underlying causes of past examples of the resource curse in Bolivia, to determine whether there are similarities that can serve as recommendations to the present. Political stability is a prerequisite to avoid the curse, as well as macro-economic policy and diversification in the economic sphere. Bolivia is holding one of the treasures of the 21st century and needs to create the optimum circumstances in which they can extract, produce, and export their lithium in sustainable conditions for sustainable profit.Show less

Lithium

Bolivia

Resource Curse

Tin

Natural Gas

Author

Hoenderdos, Karel

Faculty

Faculty of Humanities

Specialisation

Latin-America

Supervisors

Thomas, Lindblad

ECTS Credits

10

Language

en