Paper short abstract:

Bolivia's relationship with its natural resources has been very contentious historically. Currently, hydrocarbons and lithium dominate discourse and development. This essay demonstrates how Evo Morales used resource nationalist rhetoric but a pragmatic economic policy to build political legitimacy.

Paper long abstract:

Bolivia's relationship with its natural resources has been very contentious historically. The discovery of enormous silver reserves in Bolivia's altiplano by the Spanish colonizers marked the beginning of Bolivia's extractive economy which has consistently served foreign rather than domestic interests. Discovery of hydrocarbons in the 20th century prompted many different policy paths for how to deal with the nation's hydrocarbons to achieve economic development. Lithium is a much "newer" natural resource both in terms of global primacy and in the Bolivian extractivist context but has become a pillar of economic development in Bolivia. Political rhetoric by the Movimiento al Socialismo regading both hydrocarbons and lithium is resource nationalist.

This resource nationalist discourse regarding lithium and hydrocarbons has been very similar and revolves around (1) the demonization of foreign, especially Western and neoliberal, companies compounded with a 'from Bolivia for Bolivians' touch, and (2) these resources being the driver of development. Despite strong rhetoric, the economic policies to achieve resource nationalism were much more pragmatic. Hydrocarbons witnessed a 'soft' nationalization with high taxes but transnational corporations remained in charge of the extraction process. Bolivia did try to construct a small lithium industry 'by Bolivians and for Bolivians.' In order to scale-up production, however, the state has been seeking foreign partners to provide investment and expertise to the anger of the general public. Hence, Morales has built his political legitimacy around walking a fine line between resource nationalist rhetoric and more nuanced neoliberal economic policy.