In a significant political shift for Bolivia, conservative politician Rodrigo Paz was officially sworn in as the new president on Saturday, marking the conclusion of nearly 20 years dominated by a single political party. This historic inauguration took place before a gathering of lawmakers and foreign dignitaries, where Paz solemnly raised his right hand before a Bible and a cross, declaring,
“God, country, and family, I do swear.”
He was then presented with the presidential sash and medals, symbolizing his new role.
Paz’s ascension to the presidency comes at a critical time for the nation, as many citizens are grappling with severe fuel shortages and soaring food prices, both hallmarks of what experts are labeling the worst cost of living crisis in decades. The 58-year-old politician’s victory in a runoff election last month was unexpected, particularly as he triumphed over his more established rival, former President Jorge “Tuto” Quiroga.
Challenges Ahead for the New Administration
Taking office, Paz faces the daunting task of addressing an economy in disarray, a situation largely attributed to the two-decade rule of the Movement Toward Socialism party, which was founded by the influential former President Evo Morales. Once thriving during the commodities boom of the early 2000s, the party’s economic strategies have faltered, leading to dwindling natural gas exports and the collapse of its model characterized by generous subsidies and a fixed exchange rate.
With the availability of US dollars diminishing and chronic fuel shortages affecting daily life, Bolivians have placed their hopes in Paz to guide them out of what has been described as the most severe economic crisis in 40 years. While proposing significant reforms, he intends to implement them at a more cautious pace than Quiroga, who advocated for an IMF bailout and aggressive fiscal measures.
Paz’s Vision for Bolivia’s Future
In his inaugural address, Paz painted a grim picture of the country’s situation:
“The country we inherited is devastated … morally and materially indebted, with endless lines for fuel and empty markets.”
He emphasized a determination to reintegrate Bolivia into the global community, asserting,
“Never again will the country be held hostage by an ideology; ideology doesn’t put food on the table.”
The inauguration was attended by regional leaders including Argentina’s Javier Milei, Chile’s Gabriel Boric, and Ecuador’s Daniel Noboa, highlighting the significance of the occasion. Following his electoral win on October 20, Paz has begun distancing Bolivia from the ALBA bloc, which includes countries like Cuba and Venezuela, while fostering closer ties with the United States, a relationship that had soured after Morales expelled the US ambassador in 2008.
Additionally, Paz is engaging with international financial institutions to explore potential economic assistance. He has already secured an initial agreement with the Andean Development Corporation for a $3.1 billion (€2.68 billion) loan aimed at revitalizing the economy over the coming years. His government also plans to collaborate with international organizations on security issues, including working with the US Drug Enforcement Administration (DEA), which was expelled from Bolivia in late 2008.
Expressing his commitment to governance, Paz remarked,
“We haven’t been handed a throne, but a task. This is the time for true democracy and respect for the law; no one is above the law. We will overcome that disgraceful and shameful past.”
With his Christian Democratic Party controlling only 39% of the 166-seat Legislative Assembly, he will need to effectively build alliances with various political blocs to advance his agenda.