On October 28, 2023, conservative politician Rodrigo Paz was sworn in as Bolivia’s new president, marking a significant transition for the nation after nearly 20 years of governance by the Movement Toward Socialism party. This shift comes in the wake of economic turmoil characterized by severe fuel shortages and high food prices, which have plagued Bolivia over recent years.
Paz, 58, took the oath of office surrounded by lawmakers and foreign dignitaries in the capital, La Paz. He pledged his commitment to the country by stating, “God, country, and family, I do swear,” before receiving the presidential sash and medals. His election victory was particularly surprising as he defeated the more established right-wing candidate, former President Jorge “Tuto” Quiroga, in a runoff held last month.
Economic Challenges and Promises of Reform
The new president faces a daunting economic landscape, inheriting a country grappling with its worst economic crisis in 40 years. The Movement Toward Socialism, once buoyed by the commodities boom of the early 2000s, has seen its influence wane as natural gas exports dwindled and its economic model faltered. High inflation and a scarcity of U.S. dollars have left many Bolivians hopeful for change under Paz’s leadership.
Paz has proposed a series of gradual reforms to stabilize the economy, contrasting with Quiroga’s more aggressive proposals for an International Monetary Fund bailout. Voters showed a clear preference for Paz’s approach, seeking a path out of the crisis without drastic shocks.
Among the attendees at the inauguration were leaders from neighboring countries, including Javier Milei of Argentina and Gabriel Boric of Chile, underscoring regional interest in Bolivia’s new direction. Following his election, Paz has signaled a shift away from the ALBA bloc, which includes allies like Cuba, Nicaragua, and Venezuela, and is moving closer to the United States.
International Engagement and Future Alliances
Paz’s administration is engaging with international financial institutions to explore potential economic assistance programs. One significant development is an initial agreement with the Andean Development Corporation for a $3.1 billion loan aimed at bolstering Bolivia’s economic recovery over the coming years. Michael Shifter, from the Inter-American Dialogue, remarked that Paz can expect goodwill from foreign investors but cautioned that his success depends on timely and effective policy implementation.
Additionally, Paz announced plans for cooperation with international security organizations, including the U.S. Drug Enforcement Administration, which had been expelled from Bolivia during Evo Morales‘s presidency in 2008. This move indicates a significant shift in Bolivia’s approach to international relations and security.
As Paz prepares to lead a government where his Christian Democratic Party holds only 39% of the 166 seats in the Legislative Assembly, building coalitions with other political blocs will be crucial for his administration’s success. The challenges ahead are substantial, but the hope for recovery and stability resonates strongly among the Bolivian populace.
