Bolivia investment law draft faces constitutional challenges

The investment law draft submitted by the Rodrigo Paz government to the Plurinational Legislative Assembly is facing criticism regarding its constitutional feasibility and potential for corruption.

Critics argue that the proposed law cannot resolve existing barriers to foreign investment in sectors such as hydrocarbons, lithium, mining, and energy because those restrictions are embedded in the 2009 Constitution. Specific constitutional articles currently prohibit international arbitration for hydrocarbon companies, mandate state control over natural resource chains, and require a minimum 51 percent state participation in mixed societies.

Deputy Carlos Alarcón has described the project as a poorly executed modification of existing 2014 regulations. He warned that the creation of a National Investment Agency under a specific ministry poses corruption risks. Alarcón proposed an alternative four-article reform aimed at modifying the Constitution through a legislative vote and subsequent referendum to remove economic and judicial barriers, while explicitly prohibiting nationalization and expropriation.