From Land Wars to Gas Wars: Chile–Bolivia Relations and Globalisation

Chile and Bolivia have been intertwined in a complex relationship of hostility and cooperation for over a century. Since the Bolivian defeat in the War of the Pacific and the Treaty of Peace and Friendship of 1904, issues of resource sharing and Bolivia’s sovereign access to sea on the Pacific side have altered the dynamics of such a relationship. Indeed, they appear to be the major stumbling blocs to attempts at normalisation of relations between the two Andean neighbours. In the recent years, Chile–Bolivia relations have been strained over the issue of gas. Bolivia’s political volatility over gas and Chile’s refusal to discuss the issue of access to the sea were viewed as being part of the same quagmire of relations. However, despite disparities in development between the two countries, globalisation has altered the context of mutual engagement. Against this backdrop, the article specifically looks at one such contemporary issue of bilateral contestation, that is, the gas issue. The article will examine its geo-economic significance in the larger context of regional cooperation and energy security. It intends to probe the plausibility of the argument that the gas issue has the promise and potential to lighten the sedimented antagonism between the two.