The Political Economy of Bolivia and Peru

Over the first two decades of the twenty-first century—a period marked by profound global transformations and recurrent crises for many Latin American economies—two countries appeared to stand out for their sustained growth and notable improvements in social indicators: Bolivia and Peru. Despite divergent policy orientations, income derived from the large-scale exploitation of natural resources became the central pillar of economic growth in both countries. This book explores the political economy of Bolivia and Peru by situating their development trajectories within the changing global context of the twenty-first century and argues that the recent boom represents not a structural break, but rather a renewed phase of a long-standing extractivist accumulation pattern dating back to the colonial period. The book examines why, despite having formally escaped colonial rule almost two centuries ago—and notwithstanding an unusually favorable international environment—both Bolivia and Peru remain highly dependent on primary commodity exports. Drawing on a comparative framework that combines world-systems analysis and political settlements theory, it assesses how global economic pressures were mediated through distinct domestic coalitions, institutions, and strategies of rent distribution. While national policies to overcome natural-resource dependence differed markedly in discourse and design, the analysis shows that neither country succeeded in fundamentally transforming its position within the global economy. Instead, the underlying pattern of surplus extraction from peripheral economies by core actors persists, albeit through reconfigured mechanisms. This book will be of great interest to readers in political economy, development studies, international relations, and Latin American studies.