Possibilities and constraints of the lithium extraction and industrialization in Bolivia: A case study of local impacts ISELIN VALDERSNES MARØY SUPERVISOR Vito Laterza University of Agder, 2019 Faculty of Social Sciences Department of Global Development and Planning For all the Bolivians who so generously shared a little piece of their lives with me. i Abstract With the pressing issue of an inevitable energy-transition, lithium batteries present itself as part of the solution. Lithium batteries have the ability to harness and store great amount of energy and are thus key for the renewable energies. While lithium can be applied in green technologies, and thus be part of the solution in mitigating emissions, this thesis aims at analyzing local impacts of lithium extraction. Beneath the salt crusts of the world’s largest salt flats, Salar de Uyuni in Bolivia, vast reserves of lithium are found in brine (high-concentrated salt water). This could potentially represent major economic profits for Bolivia, if they are able to industrialize and turn it into value-added products. A case study was chosen for the research design, as the thesis aim at exploring local perceptions of the project. Communities surrounding Salar de Uyuni was chosen as research sites, and qualitative interviews were conducted with both residents living there, as well as with decisionmakers and experts in La Paz. In the past, Bolivia has been subject to unfair policies leaving multinationals with the profit of natural resources while the people have not benefitted much from the extraction. Through nationalizing key natural resources industries, esp. in the oil & gas sector, Evo Morales and the Movimiento al Socialismo (MAS) administration have turned the tide, after years of economic control by multinational companies. The lithium sector however has still not been fully developed, hence questions arise about whether the sector development in the future will produce substantial benefits for local communities and the national society, and how these might, or might not be outweighed by negative environmental and social effects. The main objective of this thesis is therefore to explore the possibilities and constraints of the lithium project, as well as analyzing the rationales driving it. The findings suggest there are several challenges for building a successful lithium industry. The environmental impacts of the project are not fully understood, and it remains unclear how it might affect local communities. Lack of transparency makes it challenging to gain information about the project, and the findings depict a lack of cooperation between the central government and local actors. The lithium project has great potential, but issues regarding distribution of revenues have created tensions in the areas surrounding Salar de Uyuni. ii Acknowledgements I want to express my deepest gratitude to all the helpful, welcoming people I met in Bolivia. This thesis would not have been possible without their hospitality and eagerness to help. I especially want to thank Fatima and Tania at CESU, Universidad Mayor San Simón in Cochabamba for welcoming me and providing support throughout my stay in Bolivia. I also want to thank Franc and Hildegunn for helping me with Spanish lessons and getting started in La Paz. I am particularly grateful for the guidance by my supervisor, Vito Laterza. His abilities to provide broader perspectives on topics discussed, as well as continuous positive encouragement and feedback, has been invaluable. I appreciate the many learning moments this master’s programme has provided, and for the time spent with fellow students. A special thanks go out to Ane and Linn, as well as Inger Lise, whom have been great supporters through the final stages of writing the thesis. Sharing the ups and downs of the writing process has been incredibly helpful and motivating. Stian, for all the love, support and patience throughout this whole process, I am forever grateful. Your firm belief in me has motivated me to achieve more. For my friends, family, and in-laws, I am thankful for the interest you have shown in my work and for always cheering me on (despite not knowing what I am talking about most of the time). iii Table of content Abstract ....................................................................................................................................................ii Acknowledgements ................................................................................................................................. iii List of abbreviations ................................................................................................................................ vi List of figures .......................................................................................................................................... vii List of pictures ........................................................................................................................................ vii List of tables ........................................................................................................................................... vii 1. Introduction ......................................................................................................................................... 1 1.1 Problem statement ........................................................................................................................ 2 1.2 Main objectives and research questions ....................................................................................... 3 1.3 Study areas .................................................................................................................................... 4 1.3.1 Socio-economic characteristics .............................................................................................. 6 1.3.2 Demography ........................................................................................................................... 7 1.4 Yacimientos de Litio Bolivianos (YLB) ............................................................................................ 8 1.5 Organization of thesis .................................................................................................................... 8 2. Methodology ..................................................................................................................................... 11 2.1 Ontological and epistemological foundations ............................................................................. 11 2.2 Research design: Case study ....................................................................................................... 13 2.2.1 Quality criteria ...................................................................................................................... 13 2.3 Data collection ............................................................................................................................. 15 2.3.1 Semi-structured interviews .................................................................................................. 15 2.3.2 Informal conversations ......................................................................................................... 16 2.3.3 Document analysis ............................................................................................................... 17 2.3.4 Sampling ............................................................................................................................... 17 2. 4 Method for analyzing data ......................................................................................................... 20 2.5 Ethical considerations ................................................................................................................. 20 2.6 Challenges and risks .................................................................................................................... 21 2.7 Reflexivity .................................................................................................................................... 23 3. Literature review, theoretical framework and context analysis ....................................................... 24 3.1 Theoretical framework ................................................................................................................ 25 3.1.1 Neoliberalism in Bolivia ........................................................................................................ 25 3.1.2 Political ecology .................................................................................................................... 27 iv 3.1.2.1 Vivir Bien ........................................................................................................................ 28 3.1.2.2 Rights of Mother Earth .................................................................................................. 29 3.1.3 Coloniality/Modernity .......................................................................................................... 29 3.1.4 International political economy (of energy) ......................................................................... 30 3.1.5 Imaginaries in Bolivia ............................................................................................................ 31 3.2 Background and context analysis ................................................................................................ 32 3.2.1 Identity and class discourses