Why has Bolivia’s landlocked location made economic development more difficult?

Bolivia’s landlocked status has historically hindered its economic growth by creating significant logistical and financial obstacles to international trade.12

Economic and Logistical Challenges

• Increased Costs: As a landlocked developing country, Bolivia faces higher transport costs for importing and exporting goods, which discourages investment and reduces its competitive edge in global markets.1
• Dependence on Neighbors: Because it lacks its own seaports, Bolivia must rely on the infrastructure and diplomatic cooperation of neighboring countries to access the Pacific Ocean and Atlantic Ocean. This reliance can lead to complications if transit routes are inefficient or if political tensions arise.12
• Historical Context: Bolivia lost its Pacific coastline to Chile during the War of the Pacific (1879–83). While subsequent treaties have granted Bolivia rights to use foreign ports for transit, the country continues to seek greater autonomy and improved trade opportunities.132

Internal Geography

Beyond its landlocked position, Bolivia’s economic development is further complicated by a challenging internal geography characterized by the Andes Mountains and seasonally flooded plains, which make domestic transportation difficult and often hazardous.2