Why Resource-Rich Bolivia and Venezuela Remain Poor: The Role of State Institutions

South America is rich in natural resources, yet the wealth is unevenly distributed. While countries like Brazil, Peru, and Chile profit significantly from their resources, others such as Bolivia and Venezuela struggle despite their abundance. The article argues that the failure to capitalize on these resources is largely due to weak state institutions. It challenges the notion of a unified Latin American identity, pointing instead to extreme social inequalities that connect people from Mexico to Brazil. The piece appears in the feuilleton section of the Neue Zürcher Zeitung, a Swiss newspaper, and reflects on the continent's economic paradoxes.