The equitable use and distribution of shared water resources is a topic of renewed regional debate in Latin America, especially given the recent review of the Binational ITAIPU Treaty between Brazil and Paraguay. Building more equitable and transparent agreements in this context requires an understanding of the historical trends of negotiations. This study analyzes five decades of negotiations on the shared use of water resources in the Paraná River Basin, drawing on interviews with former negotiators and officials from Argentina, Brazil, and Paraguay. The complex interaction between internal dynamics and geopolitical factors in establishing state-owned transboundary hydroelectric plants is highlighted. Based on these findings, we propose a conceptual framework that identifies the key elements to consider when negotiating strategic resources at national and regional levels. This study, extending beyond the Paraná basin, offers an applicable model for managing other shared natural resources, providing useful insights into negotiation strategies for transboundary resource and infrastructure management.
30 December 2020 in Reportes científicos de la FACEN
In the context of the increasing global interest in sustainable transportation solutions, this research investigates South America's potential role within the electric vehicles (EVs) supply chain. The objective of this study is to conduct a comprehensive literature review to identify opportunities for South American involvement in various stages of the EV supply chain, with the aim of creating conductive scenarios for future research endeavors. The bibliometric analysis reveals limited scientific ouput in the region concerting the EV supply chain, with Brazil emerging as the most active contributor since 2010. However, recent developments show heightened interest from Chile, Colombia, Mexico and Peru. This research underscores the region's engagement in lithium extraction, crucial for EV batteries, but points out the lack of progress in other stages of the chain at the industrial level. Studies suggesting the feasibility of component production in Brazil through its economic relationship with Argentina, along with the proposed Bolivia-Paraguay integration to produce lithium-ion batteries and EVs, point out how regional collaboration can drive advances in other stages of the chain, also highlighting the importance of investment in research and the effective use of the region's resources. It raises the possibility that the region can play an important role in the EV industry if it seizes opportunities in a joint quest towards sustainable mobility.
Lithium-ion batteries are essential for electric vehicles, requiring critical resources such as lithium and cobalt. Paraguay’s integration into the electric vehicle supply chain presents an opportunity to leverage its renewable energy and strategic location. This study evaluates potential partners for Paraguay to establish a lithium-ion battery and electric vehicle assembly plant in the Chaco region. A multi-criteria decision analysis using the Analytic Hierarchy Process and expert opinions assessed Argentina, Brazil, Bolivia, and Chile based on economic, energy, environmental, social, political, and geopolitical factors. The results indicate Chile as the most favorable partner (29.5%), followed by Argentina (25.9%), Bolivia (22.8%), and Brazil (21.6%). Chile’s strengths lie in its environmental policies and political stability, while Argentina offers logistical advantages and resource availability. The findings highlight strategic pathways for Paraguay’s integration into the electric vehicle supply chain and the importance of targeted collaboration to enhance regional lithium-ion battery production and commercialization.
The abundance of clean and renewable electrical energy constitutes a strategic asset for the development of the countries, and Paraguay has great availability of hydroelectric energy based on its participation in the binational power plants Itaipu and Yacyretá, in condominium with Brazil and Argentina.. However, a large part of the electricity production is not consumed in the country and is transferred to both Argentina and Brazil. In this sense, it is clear that the strategic use of the surplus of hydroelectricity that is currently being transferred could be key to lead the process of economic and social development in Paraguay, either by encouraging the consumption of its energy through the installation of industries, thus generating jobs and mobilizing the internal economy, or selling the surplus to third countries. Any selected alternative and the rejection of other alternatives will be inextricably linked to an opportunity cost. This work presents a methodology that allows identifying the opportunity cost of the sale of Paraguayan electricity to the Brazilian electricity market, with the use of the Analytical Hierarchy Process (AHP). It was possible to determine energy sales prices in the Brazilian market, for which rents would be generated that would significantly affect the development of Paraguay, ranging from US $63,55/MWh to US $2.841/MWh. It can be concluded that a scenario of high export of Paraguayan hydroelectric energy to Brazil presents an opportunity cost, for several scenarios where decision makers have a notorious predilection for the Economic, Environmental and Social criteria, in addition to some combinations of these criteria with others.