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The Economy of Bolivia

Silver, Tin and Extractive History

Potosí's silver funded the Spanish empire, and later tin mining shaped Bolivia's economy and politics.

A resource story with a long shadow.

Cerro Rico

The silver mountain at Potosí made it one of the world’s richest cities in the 16th century.

Forced labour

Indigenous workers were forced into the mines under the mita system.

Tin

In the 20th century, tin barons dominated the economy until nationalisation in 1952.

Legacy

Boom and bust cycles left deep inequality and dependence on commodities.

A mine still working

Miners still extract minerals from Cerro Rico with basic tools.

Ignoring the human cost of extraction

Working conditions were and are harsh.

Key takeaways
  • Potosí was a silver giant.
  • Forced labour built wealth.
  • Tin dominated later.
  • Dependence has persisted.
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