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Setting up a business in Bolivia

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  1. Presentation of Bolivia
    1. Overview
    2. Political and legal
    3. Economic and financial
    4. Social and culture
  2. The lithium market
    1. Lithium presentation and major applications
    2. World market
    3. Lithium resources in Bolivia
    4. Current and forecast demand in lithium
  3. Establishing our company in Bolivia: Issues
    1. Competitors
    2. Timing in setting up the business
    3. Government policies
    4. Specific government policy for the Lithium exploitation
    5. Ecology
    6. Financial aspect
    7. Supply
    8. Labor
    9. Geography and transportation

Bolivia is a Republic. The seat of government is in La Paz, although the legal capital and also the seat of justice are located in Sucre. The country is separated in 9 administrative divisions: Chuquisaca, Cochabamba, Beni, La Paz, Oruro, Pando, Potosi, Santa Cruz and Tarija.

Bolivia gained its independence from Spain on 6th August 1825 and ever since then, it's legal system is based on the Spanish law and the Napoleonic Code.

The main political movements are the Movement toward Socialism (MAS), Social Democratic Power (PODEMOS), Nationalist Revolutionary Movement (MNR), and National Unity (UN).

Since 2005, the chief of state is Evo Morales; he has been elected by universal adult suffrage, by the people above 18 years old. He is the first aborigine president and his election changed the battle of wills bringing hope and aspirations among aborigine, poor or isolated people.

The Bolivian law is based on a constitution of 1967 and it was revised in August 1994. However a new constitution has been drafted in 2007, a referendum was scheduled for last January, and the document has been approved.

The project of the constitution involves some rules on the rights over water supply, food security, health, education, accommodation, basics services, justice and various other rights. The privatization of water management from the control of private enterprises of energy supply or basic services, will be prevented by the Constitution, although President Evo Morales has nationalized vast natural gas reserves.

[...] Legal The Bolivian law is based on a constitution of 1967 and it was revised in August 1994. However a new constitution has been drafted in 2007, a referendum was scheduled for last January, and the document has been approved. The project of the constitution involves some rules on the rights over water supply, food security, health, education, accommodation, basics services, justice and various other rights. The privatization of water management from the control of private enterprises of energy supply or basic services, will be prevented by the Constitution, although President Evo Morales has nationalized vast natural gas reserves. [...]


[...] For a long time, Bolivia has been weakened by it's in land isolated location and by the non development of transport and communication networks. Today, railway infrastructures have spread out and trains link Bolivia to harbors, located on the Atlantic and Pacific Ocean. For example, the main line connects La Paz to the harbor of Antogasta in Chile. As far as roads are concerned, very little are paved and most of them can be used only during the dry season. [...]


[...] Then, Bolivia is a communitarian culture where individuals are well integrated in groups and where families; communities are essential. For example loyalty is central and relationships are built on the long term. Afterwards, Bolivia is said to be a masculine culture. In other words, sex roles are traditional; conflicts are resolved by force rather than consensus and the gap between men and women is huge. Power distance refers to the different solutions to the basic problem of human inequality. Bolivia, like other South American countries, has high power distance since organisations are hierarchical; subordinates expect authoritative behaviours from their superiors. [...]

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