State capacity for green growth: Analyzing industrial policy in the Latin American lithium triangle

Abstract

This research aims to explain the various policy failures observed in lithium policies across Latin America, demonstrating how the industrial development of mining activities ultimately depends on existing state capacities. The research conducts a detailed analysis of lithium policy in Chile, with Argentina and Bolivia serving as comparative cases, thereby increasing the validity of the results. The study utilizes a qualitative methodology that includes 31 interviews with key actors, a systematic review of the press, analysis of government documents, and non-participant observation of lithium forums. The findings highlight how different deficits in state capacity have varying impacts on the types of policy failures present in lithium policies. The analysis proposes various types of state capacity deficits and their link to policy failures, advancing the discussion of green industrial policies from a peripheral perspective.