Bolivians issued a decisive rebuke to two decades of socialist rule, electing centrist Senator Rodrigo Paz as president, ending the dominance of the left-wing Movement for Socialism since Evo Morales first took power in 2005.
“Ideology does not put food on the table,” Paz said in his victory speech. “What it does do is the right to work, strong institutions, legal security, respect for private property, and certainty about your future.” Although Paz is the son of former President Jaime Paz Zamora, who was in office from 1989 to 1993, and spent more than two decades in politics as a lawmaker and mayor, he entered this race as an underdog, unexpectedly jumping from the bottom of the polls to first place in the first round of voting in August.
With the slogan “Capitalism for All,” Paz presented himself as a pragmatic reformer, winning the support of voters fed up with rampant inflation, chronic fuel shortages, and economic mismanagement.
Paz (58 years old), an economist who holds a degree in political management from American University in Washington, DC, promised to balance market reforms with thoughtful social policies. He inherits an economy in crisis: year-on-year inflation has risen to 23%, the highest level since 1991, and fuel shortages continue to paralyze daily life. Since 2023, Bolivia has also been experiencing a severe dollar shortage, leaving many unable to access their own savings. Paz pledged to offer a tax amnesty for undeclared currency, with the aim of bringing hidden assets into official financial channels without immediately resorting to the International Monetary Fund, abandoning the country’s fixed exchange rate system, and stabilizing public spending.
Among Paz’s priorities is also to repair the torn relations between Bolivia and the United States. Under Morales, Bolivia expelled the ambassador and expelled the Drug Enforcement Administration. Baz’s references to the Trump administration have been well-received, and for good reasons. Washington views Bolivia’s untapped lithium reserves — estimated at 23 million tons — as an important asset in the race to secure battery supply chains, especially amid Chinese export restrictions. But again, the new president must first deal with the most pressing challenges. Its success will depend on restoring confidence in the currency, curbing inflation, and stabilizing the country’s dwindling foreign reserves.
