Power Transition in Bolivia and the Global North's Insatiable Appetite for Natural Resources
In the heart of South America, Bolivia, the country with the world's largest estimated lithium reserves, finds itself at a crossroads. The political landscape has been shifting, and the future of its burgeoning lithium industry hangs in the balance.
Evo Morales, a former president who had been in power for over a decade, abruptly halted a joint project with ACI Systems GmbH, a German company with the only lithium extraction project in Bolivia, by decree without providing reasons. This move, along with other political decisions, sparked protests that eventually led to Morales' resignation.
Morales was a polarising figure, with his supporters primarily consisting of citizens who had been neglected by former politics, such as farmers and indigenous people. His neoextractivist policy, aiming to nationalize the lucrative commodity sector and redirect revenues into extensive social programs, was a significant part of his political platform.
However, the pursuit of lithium extraction, a critical raw material for green technologies like electric vehicles, has been met with resistance. Exorbitant socio-ecological costs, such as water shortages, possible expropriations, and lack of profit sharing, have led to protests. Interestingly, these protests were led by former supporters of Morales, who now question the connection between the change of power and the national lithium industry.
The political vacuum left by Morales has been filled by an interim president, Jeanine Añez. However, her administration has not been without controversy. Protests against the German-Bolivian project and lithium extraction policy have continued, with many former government supporters fighting against the interim president.
The international community has also been closely watching Bolivia's lithium industry. The USA, China, and many EU member states have been negotiating lithium extraction projects in Bolivia. Interestingly, interest groups from the Global North involved in these projects include European actors linked to the EU-Mercosur trade agreement. These actors emphasise environmental standards aligned with the Paris Climate Agreement but face criticism for potentially deepening dependency on raw material exports and influencing political-economic dynamics in Bolivia.
As Bolivia navigates its political future, the path forward remains uncertain. Evo Morales' plans to return as president and the withdrawal of the project termination with ACI Systems GmbH have caused confusion. Bolivia's lithium industry, strategically important for countries of the Global North to promote sustainable development, particularly for the uptake of e-mobility, is at the centre of this uncertainty.
One thing is certain: the future of Bolivia's lithium industry will have far-reaching implications, not just for the country, but for the world. As the situation evolves, it will be crucial to balance the need for economic development with the protection of the environment and the rights of the people.
