Abstract
The article discusses the evolution and current state of the territorial dispute between Bolivia and Chile, as well as the prospects for its settlement, taking into account possible options that would satisfy both sides. Appeared in the mid of the XIX century, the conflict remains relevant at present, hindering the development of bilateral relations. An important feature of this dispute is not only its long history and the multiplicity of periods of escalation and de-escalation, but also the involvement of other actors, as well as the engagement of various institutions to resolve it. The consequences of the loss of coastal territory for the development of Bolivia are examined in details. As a result of consideration of the practices of the settlement of territorial disputes accumulated in international history, renting out part of the territory and establishing a joint management regime were substantiated as the most suitable. The conflict between Bolivia and Chile poses no threat to the regional security, since the conflict is unlikely to escalate to war. But at the same time, the actualization of this dispute at the beginning of the XXI century signifies the erosion of bilateral trust between the two large states, which, in turn, can further affect the intensity of bilateral cooperation and regional integration initiatives.
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