Bolivian reintegration into global markets has become one of the most pressing economic priorities for the incoming administration. In the context of a challenging economic landscape—marked by fiscal stress, declining investment, and deteriorating global confidence—Bolivia is at a turning point. Rebuilding its relationship with international partners, investors, and institutions will be essential if the country expects to regain competitiveness, attract long-term investment, and generate sustainable growth.
The events surrounding the October 31 visit of Bolivia’s president-elect, Rodrigo Paz, to Washington, D.C.—where he met with the U.S. Secretary of State and senior officials from key multilateral financial organizations—highlight this urgent reality. The goal of the visit was clear: to secure financial support to stabilize the national budget, address public spending needs, and lay the groundwork for renewed public investment amid the severe economic challenges inherited from past administrations.
Yet public investment alone will not be enough. A strong, credible, and proactive strategy to bring Bolivia back into the world economy is indispensable.
Why Bolivia Must Prioritize Its Reintegration into the Global Economy
Sustainable economic development requires two fundamental components: public investment and private investment. While the government can inject resources into infrastructure, social programs, and state-led projects, private investment—especially foreign direct investment (FDI)—is what brings productivity, innovation, know-how, and long-term growth. Without foreign capital flowing into productive, high-impact sectors, Bolivia cannot build a robust and sustainable development model.
Unfortunately, Bolivia has experienced a stark decline in FDI. According to ECLAC, Latin America received $188.962 billion in FDI in 2024, but Bolivia captured only $247 million, equal to just 0.13% of the regional total. In other words, the country has become nearly irrelevant as a destination for global investors.
For Bolivia’s reintegration into global markets, this declining investment trend is unsustainable and must be reversed through a coherent, credible, and long-term state policy.
A Four-Pillar Roadmap for Bolivia’s Reintegration into Global Markets
To successfully reinsert itself into the global economy, Bolivia must advance across four complementary fronts:
- Domestic legislative reforms
- International legal realignment
- Institutional reintegration
- Contractual restructuring
Together, these four pillars form the basis for a modern, credible, and market-oriented economic framework.
1. Domestic Legislative Reform: Rebuilding National Legal Certainty
The first step for Bolivian reintegration into global markets is the creation of a safe and trustworthy domestic legal environment. Investors will not bring capital into a country where laws are contradictory, unpredictable, or susceptible to political manipulation.
Key domestic challenges
Several existing laws actively discourage investment. A prime example is the Marcelo Quiroga Santa Cruz Law, which enables the criminal prosecution of business leaders without effective judicial oversight. Its discretionary application has allowed authorities to use it as a pressure tool or—even worse—as a political weapon. Its retroactive enforcement violates international due-process standards and severely undermines investor confidence.
Additionally, the 2009 Constitution prohibits the State from submitting to international arbitration in hydrocarbon disputes (Article 366). Although subsequent laws, such as Law 708 and General Ruling 002/2016, sought to soften this restriction, Bolivia still has a hostile environment toward arbitration—one of the most critical mechanisms for investor protection.
Where Bolivia must go next
- Modernize and streamline legislation affecting investment.
- Remove or revise contradictory or discretionary norms.
- Establish predictable, transparent regulations aligned with international best practices.
- Clearly define when the State can participate in international arbitration.
By creating a stable regulatory framework, Bolivia can restore trust and demonstrate that the rule of law—not politics—guides economic decision-making.
2. International Legislative Realignment: Reconstructing Investment Treaties
A successful strategy for Bolivian reintegration into global markets requires rebuilding the country’s international legal architecture.
During the 1980s and 1990s, Bolivia signed more than twenty Bilateral Investment Treaties (BITs) with strategic global partners, including the United States, Germany, Spain, the United Kingdom, and France. These agreements provided legal certainty, clear dispute-resolution mechanisms, and standardized rules for investors.
However, successive MAS governments dismantled nearly all of these treaties, leaving Bolivia with minimal international investment protection and few institutional channels to resolve disputes.
Priority actions for reengagement
- Renegotiate and sign new BITs that attract high-quality investment.
- Rejoin ICSID (International Centre for Settlement of Investment Disputes) to provide reliable, internationally recognized dispute resolution.
- Establish minimum environmental, labor, and governance quality standards that investors must meet to obtain treaty protections.
These steps would send a clear message to the global community: Bolivia is ready to restore trust, follow international norms, and offer stable conditions for long-term investment.