Rules, institutions and policy capacity: A comparative analysis of lithium-based development in Argentina, Bolivia and Chile

We carry out a comparative institutional analysis of lithium development in neighboring Argentina, Bolivia and Chile, which together hold over 50 % of world lithium reserves. The comparison reveals that lithium institutional development is subject to long-term processes and contingent junctures within domestic political economies. The potential pivotal role of Chile's national development corporation, CORFO, illustrates the transformative significance of the slogan "institutions matter": though rules and their enforcement are crucial, effective governance hinges primarily on fostering an institutional ecosystem conducive to mission agreement and translation. Engaging with the mission economy perspective, we argue that "good institutions" entail dynamic policy capacities that regulate and innovate economic development for the public good. Studying how, when and what types of policy capacities develop in the Lithium Triangle countries sheds light on the "institutions matter" inquiry of the political economy of development.