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Prospects and pitfalls of global production networks: an analysis of Bolivia’s oil and gas sector

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No. 61 (2021)
https://doi.org/10.5354/0719-5370.2021.60741

Abstract

This article analyses the prospects of regional development through the oil and gas sector in Bolivia. The author applies the global production networks approach and investigates three processes of ‘disarticulations’. While some firms in the city of Santa Cruz benefit from their integration into the oil and gas sector, the regional economy is also affected by the downgrading of these firms, their exclusion from the sector and the non-participation of others. Based on 16 interviews with key players and information from secondary sources, the author explains that this negative development results from the transformation of the corresponding networks towards a ‘turn-key’ model, which is beneficial to foreign engineering, procurement, construction, and management (EPCM) companies. He concludes, however, that one must recognise that participation in the global economy creates inconveniences and opportunities –a fact that indicates that there is need for a theory that explains under which conditions the processes of disarticulacions apply−.

Keywords:

Disarticulation, global production network, oil and gas sector, Santa Cruz

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How to Cite
Scholvin, S. (2021). Prospects and pitfalls of global production networks: an analysis of Bolivia’s oil and gas sector. Investigaciones Geográficas, (61), 4–15. https://doi.org/10.5354/0719-5370.2021.60741
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Investigaciones Geográficas
Facultad de Arquitectura y Urbanismo
Universidad de Chile
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