Bolivia partner of the BRICS+: need for its own, strategic and intelligent commercial diplomacy

In recent weeks, President Luis Arce Catacora has announced, among his official speeches, the ‘entry’ of Bolivia to the BRICS+ (formerly BRICS), an association, group and political and economic forum of emerging countries, which has become a alternative international space to the G7, made up of developed countries, an economic bloc that has been gaining strength and prominence on the global stage as an economic and geopolitical alternative to the traditional leadership of the dominant countries.

Bolivia has shown interest in strengthening ties with this group, seeking opportunities to diversify its commercial relations and strengthen its economy. Therefore, it is urgent to analyze the advantages and disadvantages for Bolivia and, if it decisively integrates, its economic projections for international trade.

Indeed, one of the central objectives of the BRICS+ consists of promoting international trade, reducing dependence on traditional markets such as the United States and Europe, as well as developing an alternative financial architecture, with the consolidation of the New Development Bank (NDB). ), which provides financing to projects in developing countries, to finally increase political influence in international organizations such as the UN and the IMF.

In the case of Bolivia, a country with an emerging economy and with abundant natural resources, it finds in the BRICS+ a strategic opportunity to strengthen its position in international trade, however, the possibility of integrating or strengthening relations with this bloc responds to several factors, such as be: a. Commercial Diversification: reduce dependence on its traditional markets, such as the United States and Europe, and expand its access to Asia and Africa; b. Investment Attraction: BRICS countries, especially China and India, have a high interest in investing in strategic resources such as lithium and gas; c. Access to Alternative Financing: The NDB offers a less conditional source of financing than traditional institutions such as the IMF.

Among the advantages that we could highlight in the case of Bolivia, we can highlight: 1. Access to Emerging Markets: the BRICS+ brings together more than 40% of the world’s population and generates approximately 25% of global GDP, so integrating or strengthening Cooperation with this bloc would allow Bolivia to expand its exports to markets with high demand for raw materials such as gas, lithium, minerals and agricultural products; 2. Investments in Infrastructure: China, a leading member of the BRICS+, has already invested significantly in infrastructure in Bolivia. Expanding these relationships could accelerate strategic projects, such as highways, railways and industrial processing plants, boosting its economy; 3. Strengthening Lithium and Renewable Energies: India and China, both leaders in green technology, could be strategic partners for the development of the lithium industry in Bolivia. In addition, the BRICS promotes energy transition projects, which aligns with Bolivia’s plans to develop renewable energies; 4. More Accessible Financing: The NDB could provide credit to Bolivia for infrastructure and development projects without the strict conditions of the IMF or the World Bank. This would give the country greater financial flexibility to execute long-term projects.

At the international trade level, it is estimated that Bolivia’s participation in BRICS markets could increase its exports by up to 15% annually, especially in sectors such as lithium, gas and agro-industrial products; In the long term, strengthening these relationships could position Bolivia as a relevant player in the global supply chain for batteries and clean technologies. As for direct investments, particularly in infrastructure and technology from countries like China and India, they could exceed $2 billion in the next five years, energizing strategic sectors, which would give GDP growth, according to analysts, up to 1% additional to Bolivia’s annual GDP, depending on the implementation of effective policies to take advantage of opportunities.

As noted, Bolivia’s active participation in the BRICS+ can bring important advantages, however, the following risks can also be noted: 1. Economic Dependency: increasing the trade relationship with BRICS+ countries, especially China, could lead to economic dependency . Bolivia could become an exclusive supplier of raw materials without diversifying its economy towards products with greater added value; d. Inequality in Negotiations: within the BRICS+, economies like China and Russia have much greater weight than countries like South Africa or a possible member like Bolivia. This could place Bolivia in a disadvantageous position in trade and political negotiations: 3. Competition with Similar Economies: in sectors such as lithium and mining, Bolivia would face direct competition with other emerging countries seeking to attract investments from the BRICS+. This could limit economic benefits if favorable terms are not negotiated; 4. Environmental Impact: integration with the BRICS could accelerate the exploitation of natural resources in Bolivia, generating social and environmental tensions, especially in indigenous communities and protected areas.

Having a comparative study of the effects and impacts of the BRICS+, at a global level we can highlight the case of Brazil, as a founding member of the BRICS+, has managed to diversify its trade towards Asia, especially with China, which is now its main partner as well as receive significant NDB funding for infrastructure projects.

In conclusion, we can indicate that Bolivia’s participation in the BRICS+ represents a window of opportunity for Bolivia on its path towards economic diversification and global integration; however, this relationship must be managed with caution, ensuring that the economic benefits do not compromise long-term sustainability or sovereignty of the country, success that will depend on the country’s ability to develop a own, strategic and intelligent commercial diplomacyas well as negotiate fair agreements, promote local industrialization and diversify its exports.