Bolivia’s Economic Pivot: Unlocking the Mining and Lithium Potential

Abstract

Bolivia’s mining sector holds exceptional potential. The country possesses one of the world’s largest lithium resources, ranks fifth in global silver production, and is the fourth-largest zinc exporter. Yet output has stagnated for over a decade: no large-scale mine has entered production since 2014, and export growth reflects rising prices, not increased output. The regulatory environment is the central constraint: administrative contracts cannot be transferred or used as collateral, large areas are reserved for state enterprises, and Bolivia’s withdrawal from international arbitration has weakened investor protection. Cooperatives and private firms coexist without a framework for formal collaboration, generating conflicts and fiscal distortions. Roughly 60% of Bolivia’s territory remains geologically unexplored, raising exploration risk and limiting the discovery of new deposits. This publication proposes a reform agenda spanning the regulatory, institutional, and fiscal dimensions of the sector, with particular attention to lithium as Bolivia’s most significant untapped opportunity.