Lithium and Dependency : A Comparative Analysis of Argentina and Bolivia

Sammanfattning

This thesis examines how different lithium governance model in Argentina and Bolivia affect dependency outcomes in their lithium sector. The majority of existing research in the field has discussed the lithium sector in Latin American countries more broadly, this thesis focuses specifically on how governance choices shape dependency levels. Methodologically, it is designed as a comparative case study with a mixed‑methods approach. Dependency theory provides the theoretical framework and is operationalized through a five-indicator framework consisting of institutional influence, export concentration, value chain position, technology dependence, and ownership. The indicators are derived from dependency theory and are applied systematically to both cases. The findings suggest that the choice of governance framework only has a limited impact on overall dependency outcomes, pointing towards structural factors as the decisive force. This implies that despite lithium’s contemporary relevance, longstanding patterns of dependency are reproduced. Argentina and Bolivia are chosen because of the significant differences in their lithium governance frameworks. While Argentina adopted a market-liberal approach that actively attracts foreign actors, Bolivia’s approach emphasizes state control and resource nationalism. As two geographically close countries with a history of resource exploitation and large lithium deposits, yet polar opposite governance models, they provide a useful contrast for showcasing the impact of political and institutional choices on dependency. This thesis uses the five operationalization indicators to uncover how global power dynamics within the lithium sector keep Argentina and Bolivia in their upstream value chain position and hinder them from progressing. It also shows how China is the dominating force within the lithium sector and how this affects dependency for Argentina and Bolivia.