{"id":4089,"date":"2015-04-28T13:54:00","date_gmt":"2015-04-28T17:54:00","guid":{"rendered":"https:\/\/www.bu.edu\/gdp\/?p=4089"},"modified":"2022-11-15T11:28:27","modified_gmt":"2022-11-15T16:28:27","slug":"an-assessment-of-the-environmental-and-social-impacts-of-chinese-trade-and-fdi-in-bolivia","status":"publish","type":"post","link":"https:\/\/www.bu.edu\/gdp\/2015\/04\/28\/an-assessment-of-the-environmental-and-social-impacts-of-chinese-trade-and-fdi-in-bolivia\/","title":{"rendered":"An Assessment of the Environmental and Social Impacts of Chinese Trade and FDI in Bolivia"},"content":{"rendered":"<figure id=\"attachment21553\" aria-describedby=\"caption-attachment21553\" style=\"width: 646px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" src=\"\/gdp\/files\/2015\/04\/sifan-liu-Ry6Imrao4hE-unsplash-636x424.jpg\" alt=\"\" width=\"636\" height=\"424\" class=\"size-medium wp-image-21553\" srcset=\"https:\/\/www.bu.edu\/gdp\/files\/2015\/04\/sifan-liu-Ry6Imrao4hE-unsplash-636x424.jpg 636w, https:\/\/www.bu.edu\/gdp\/files\/2015\/04\/sifan-liu-Ry6Imrao4hE-unsplash-1024x683.jpg 1024w, https:\/\/www.bu.edu\/gdp\/files\/2015\/04\/sifan-liu-Ry6Imrao4hE-unsplash-768x512.jpg 768w, https:\/\/www.bu.edu\/gdp\/files\/2015\/04\/sifan-liu-Ry6Imrao4hE-unsplash-1536x1024.jpg 1536w, https:\/\/www.bu.edu\/gdp\/files\/2015\/04\/sifan-liu-Ry6Imrao4hE-unsplash-2048x1365.jpg 2048w\" sizes=\"(max-width: 636px) 100vw, 636px\" \/><figcaption id=\"caption-attachment21553\" class=\"wp-caption-text\">Uyuni Salt Flat, Bolivia. Photo by Sifan Liu via Unsplash.<\/figcaption><\/figure>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">China has become an important partner for Bolivia, both diplomatically and economically, having signed over 400 cooperation, aid and loan agreements. The country has also been a small but fast-growing partner, active in Bolivia&#8217;s mining sector and set to be Bolivia\u2019s main partner in developing its lithium reserves. Bolivia\u2019s exports to China have been concentrated in minerals, while imports have been concentrated in manufactured capital and consumer goods. Despite high prices for metals, Bolivia has experienced a significant trade deficit with China. Due to the high concentration in the mining sector, exports to China have put pressure on Bolivia\u2019s water supplies.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">In a <\/span><a href=\"https:\/\/www.bu.edu\/gdp\/files\/2017\/09\/Bolivia.pdf\"><b><i>new working paper<\/i><\/b><\/a><span style=\"font-weight: 400;\">, Alejandra Saravia L\u00f3pez and Adam Rua Quiroga examine Bolivia\u2019s mining sector in light of the participation of the Chinese firm, Jungie Mining, and offer recommendations to <\/span> <span style=\"font-weight: 400;\">improve environmental and social outcomes from foreign direct investment (FDI), specifically Chinese FDI in the mining sector.\u00a0<\/span><\/p>\n<h5><b>Main findings:\u00a0<\/b><\/h5>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chinese tin mining is associated with water pollution and conflicts over water use.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Despite being in its early stages, Jungie Mining\u2019s activities have already been suspended due to water pollution in surrounding communities and has already clashed with local communities over water rights.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Jungie case indicates the Bolivian government lacks the capacity and\/or willingness to enforce and upgrade existing environmental laws.\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">For four years, the Bolivian government allowed the firm to operate without obtaining an environmental license and set a troublesome example by delaying construction of pollution remediation infrastructure in publicly run mining operations.\u00a0<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The new Law on Mining and Metallurgy, which explicitly gives mining priority to the use of water, also gives the Mining Ministry the authority to use environmental licenses. This is seen as opening potentially serious conflicts of interest.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">On the other hand, Jungie Mining has actively engaged in community consultation processes and has respected outcomes, ensuring processing facilities are located in consenting communities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Furthermore, the firm is operating in a joint venture with a local cooperative, an arrangement that could bring new technology to the cooperative sector and ensure the local population benefits from mining.\u00a0<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><span style=\"font-weight: 400;\">Bolivia\u2019s relationship with China is set to deepen through the development of local lithium reserves. This prospect brings great opportunities for the national economy, but L\u00f3pez and Quiroga\u2019s case study on tin highlights areas of deep concern. To address these areas and prevent their repetition in future lithium projects, L\u00f3pez and Quiroga\u00a0 recommend strengthening the enforcement of environmental regulations in all contexts and fostering transparency in public concessions contracts. Furthermore, they emphasize the\u00a0 need to revisit and reform the Law on Mining and Metallurgy to ensure that communities and small farms have access to sufficient water for their survival and to avoid regulatory capture in the issuing of environmental licenses.\u00a0 L\u00f3pez and Quiroga suggest supplementing the accumulating international reserves with a stabilization fund or sovereign wealth fund, if the appropriate institutional structures can be established.<\/span><\/p>\n<a href=\"https:\/\/www.bu.edu\/gdp\/files\/2017\/09\/Bolivia.pdf\" class=\"button\">Read the Working Paper<\/a>\n","protected":false},"excerpt":{"rendered":"<p>China has become an important partner for Bolivia, both diplomatically and economically, having signed over 400 cooperation, aid and loan agreements. The country has also been a small but fast-growing partner, active in Bolivia&#8217;s mining sector and set to be Bolivia\u2019s main partner in developing its lithium reserves. Bolivia\u2019s exports to China have been concentrated [&hellip;]<\/p>\n","protected":false},"author":10886,"featured_media":21553,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1149,65,156,72,105,77,76,104,110,111,61,3064],"tags":[237,2688,2687,1094,394,2207,2689,2694,437,2158,2690,1936,408,2305,2695,2691,1142,999,2693,2692,2866],"_links":{"self":[{"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/posts\/4089"}],"collection":[{"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/users\/10886"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/comments?post=4089"}],"version-history":[{"count":6,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/posts\/4089\/revisions"}],"predecessor-version":[{"id":22790,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/posts\/4089\/revisions\/22790"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/media\/21553"}],"wp:attachment":[{"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/media?parent=4089"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/categories?post=4089"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bu.edu\/gdp\/wp-json\/wp\/v2\/tags?post=4089"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}