Bolivia, long known for its rich cultural heritage and mountainous landscapes, is once again at the center of international attention—but this time, for reasons that reach from the Andean highlands to the global economic stage. On December 17, 2025, President Rodrigo Paz’s administration announced a sweeping initiative to overhaul the country’s legal framework for coca leaf cultivation, responding to mounting concerns over expanding coca crops and their links to drug trafficking. At the same time, the new government is placing a bold bet on Bolivia’s vast lithium reserves and its budding partnership with the United States to help steer the nation out of a persistent economic slump, as reported by The Wall Street Journal.
According to the 2024 Coca Crop Monitoring Report by the United Nations Office on Drugs and Crime (UNODC), Bolivia ended 2024 with approximately 34,000 hectares of coca crops—a staggering 10% jump from the previous year. This figure overshoots the 22,000-hectare limit authorized by the 2017 General Law of Coca by a hefty 12,000 hectares, raising red flags among policymakers, international observers, and local communities alike. The report, presented in La Paz, underscored the dual nature of coca leaf in Bolivia: while it’s protected by the Constitution for traditional, medicinal, and cultural uses, a significant portion is diverted to the production of cocaine.
Adding to the sense of urgency, the World Health Organization earlier this month reaffirmed its decision to keep coca leaf on its list of controlled substances, citing the ongoing risk to public health due to its ease of conversion into cocaine. Against this challenging backdrop, the UNODC has urged the Paz administration to bolster its control strategies, especially in protected areas, and to update its data on domestic demand for licit coca consumption.
Vice Minister for Social Defense and Controlled Substances Ernesto Justiniano, speaking to El Deber, acknowledged the gravity of the situation. "Bolivia has more coca than it needs for traditional uses. Crops have not stayed at 22,000 hectares. By 2024, they were at 34,000, and in the next report, we will probably be close to 40,000 hectares because very little was eradicated this year—barely 1,700 hectares," he stated. Justiniano’s frank admission highlights a growing consensus within the government that the existing legal framework, particularly the 22,000-hectare cap established in 2017, may lack a solid technical basis.
Indeed, the Vice Minister recalled a 2013 study estimating that only 14,700 hectares were needed to satisfy legal, traditional consumption in Bolivia. The subsequent decision to raise the limit to 22,000 hectares in 2017, he said, is now under scrutiny for lacking "technical justification," as reported by ERBOL. This reassessment forms the backbone of the government’s new approach: before amending the law, authorities plan to conduct a comprehensive study to determine the actual domestic demand for coca leaf. This process will involve inviting representatives from coca-growing groups, academic institutions, and other sectors to participate, ensuring transparency and broad buy-in.
"To prepare the new study on domestic demand for coca leaf, authorities said they will invite representatives from coca-growing groups, academic institutions and other sectors to ensure transparency of the data," according to the UPI report. The government’s openness to collaboration is seen as a pragmatic step, especially given the tense relationship with coca growers in certain regions. Negotiations are expected to begin in earnest once the study’s findings are released, with particular attention to the Chapare region in central Bolivia—a stronghold of former President Evo Morales and a hotbed of resistance to eradication efforts.
In 2025, eradication efforts have been modest at best, with only about 1,700 hectares of illegal coca crops eliminated. Farmers in the tropical Cochabamba region, especially in Chapare, have actively blocked these efforts, complicating the government’s anti-drug strategy. Still, the Paz administration is signaling a renewed commitment to making eradication of illegal coca crops a central pillar of its anti-drug policy, with a focus on curbing surplus production that feeds into the drug trade.
But the story of Bolivia in 2025 isn’t just about coca. As The Wall Street Journal reported on December 17, the country is also sitting atop one of the world’s most coveted resources: lithium. After two decades of Socialist rule, Bolivia’s new pro-U.S. government is looking to leverage its lithium reserves—and closer ties with Washington—to jumpstart an economy that’s been teetering on the edge. Lithium, essential for batteries powering everything from smartphones to electric vehicles, is in hot demand worldwide. Bolivia’s reserves are among the largest on the planet, and the Paz administration sees this as a once-in-a-generation opportunity to transform the nation’s fortunes.
The pivot to lithium is more than just a resource play; it’s a signal of a broader geopolitical realignment. By courting U.S. investment and expertise, the Paz government hopes to attract the capital and technology needed to develop its lithium sector while fostering economic growth and job creation at home. This strategy marks a sharp departure from the policies of previous administrations, which often favored state control and were wary of foreign influence.
Yet, as with coca, the path forward is riddled with challenges. Developing lithium resources at scale requires not only massive investment but also careful environmental management and sensitive negotiations with local communities, many of whom are wary of large-scale mining projects. The government’s dual focus—reining in illegal coca cultivation while promoting lithium as an engine of growth—reflects the complex balancing act facing Bolivia in this new era.
As negotiations with coca growers loom and lithium deals are hammered out, the Paz administration finds itself walking a tightrope. On one hand, there’s the need to honor Bolivia’s cultural traditions and protect the livelihoods of thousands of small farmers. On the other, there’s mounting international pressure to curb drug trafficking and seize the economic potential of the country’s mineral wealth.
For now, all eyes are on the upcoming study of domestic coca demand and the government’s ability to bring together diverse stakeholders for a transparent and credible process. Success could pave the way for a more rational, evidence-based policy on coca cultivation—one that respects tradition while tackling the realities of the drug trade. Meanwhile, the lithium gamble, if managed wisely, could provide the economic lifeline Bolivia desperately needs.
It’s a pivotal moment for Bolivia, as it seeks to reconcile its past with the demands and opportunities of the present. The choices made in the coming months will shape not just the future of coca and lithium, but the very trajectory of the nation itself.
