Bolivia’s Rodrigo Paz Vows to Restore US Relations After Election
Bolivia’s newly elected president, Rodrigo Paz, has made clear his intention to mend ties with the United States following a decisive victory in the recent presidential election. As the first conservative president in two decades, Paz’s election marks a significant shift away from the leftist policies of the past, particularly those implemented by the Movement Toward Socialism party. He won with 54.5% of the vote, defeating former President Jorge “Tuto” Quiroga in a runoff election held on October 29, 2023.
Paz’s administration will face the daunting task of addressing a severe economic crisis, which has been exacerbated by years of strained relations with the U.S. His commitment to improving relations with Washington includes attracting foreign investment to Bolivia, a country that has struggled to engage with international markets. In a statement, U.S. Secretary of State Marco Rubio described Paz’s victory as a “transformative opportunity” for collaboration on issues including investment, immigration, and security.
Economic Challenges Loom Large
In his first press conference after the election, Paz emphasized the need for a pragmatic approach to the nation’s financial woes. He acknowledged the economic challenges ahead, including soaring inflation that reached 23% in September—the highest level since 1991. With the central bank nearly depleting its reserves of U.S. dollars, fuel shortages have become commonplace, leading to long lines at gas stations across major cities.
Paz rejected a proposed bailout from the International Monetary Fund (IMF), opting instead to seek assistance from the U.S. and other “friendly countries.” He indicated that discussions were already underway to secure necessary fuel imports following his inauguration on November 8, 2023. “The process is underway. We are coordinating to ensure that the much-needed fuel can arrive,” Paz stated, highlighting the urgency of the matter.
His economic team, led by José Gabriel Espinoza, confirmed that while the U.S. would not provide gasoline directly, its support has been vital for establishing a supply network for fuel imports.
A Shift in Political Dynamics
Paz’s rise is notable not only for his conservative stance but also for his political lineage; he is the son of former leftist president Jaime Paz Zamora. His campaign was bolstered by his running mate, Edman Lara, a former police captain who gained popularity through social media. Lara’s grassroots appeal resonated with many voters who were disillusioned with the political establishment.
Despite his populist promises, Paz has been cautious about making extravagant commitments. He aims to implement targeted cash transfers to support poorer families while maintaining stable fuel prices for transport workers. The Bolivian Congress has already approved a $3.5 billion loan to be disbursed in the coming months, and Paz is actively seeking an additional $600 million to stabilize the economy within his first two months in office.
Addressing concerns about foreign investment and national debt, Paz emphasized the necessity of “putting the house in order.” He indicated that constitutional changes may be required, a move that raises apprehensions among Bolivia’s Indigenous majority, who have recently gained political representation.
Paz assured that his government would respect commitments to Indigenous communities while also reforming a judiciary seen as politicized. He plans to convene a summit immediately following his inauguration to generate actionable proposals, demonstrating his commitment to collaboration across the political spectrum.
As Bolivia embarks on this new political chapter, observers will be watching closely to see how Paz navigates the complex interplay of economic reform, foreign relations, and domestic governance. His ability to forge a cooperative political environment will be crucial in addressing the multifaceted challenges facing the nation.
