Rodrigo Paz Pereira was sworn in as president of Bolivia this Saturday in La Paz, after winning the runoff election on October 19.
“The country we inherited is devastated; they left us a broken economy with the lowest international reserves in 30 years, they left us inflation, shortages, debt, distrust, and a paralyzed state,” the president said after receiving the presidential sash at the Plurinational Legislative Assembly.
Paz called for unity and for setting aside ideologies to move the country forward, while also criticizing his predecessors—Evo Morales and Luis Arce—for the economic crisis. “What the hell did they do with the boom?” he asked. “Bolivia decided to wake up, and it did so standing tall, with the most powerful weapon there is: the vote and democracy,” he affirmed.
In his first speech, the president reiterated the guidelines of his economic plan focusing on the decentralization of public resources and the promotion of production through accessible credit, tax reforms and the elimination of administrative obstacles.
The inauguration was attended by the presidents of Argentina (Javier Milei), Chile (Gabriel Boric), Paraguay (Santiago Peña), Uruguay (Yamandú Orsi), Ecuador (Daniel Noboa), and a delegation from the United States government, headed by Secretary of State Christopher Landau.
The gathering symbolizes the change of course that Bolivia will take in its foreign policy after 17 years without diplomatic relations with the United States, more than 40 with Chile and 20 years of an anti-imperialist international agenda.
“Never again will Bolivia be isolated from the world,” Paz declared after greeting the international delegations.
This shift fits into the regional trend of new liberal governments - following the victory of Javier Milei in Argentina and Daniel Noboa in Ecuador - and constitutes the end of the cycle of the Movement for Socialism (MAS) that governed Bolivia in the last two decades, with Evo Morales and Luis Arce in power.
Paz, 58, is the son of former president Jaime Paz Zamora (1989-1993) and an experienced politician who, before becoming president, served as a congressman, city councilor, mayor, and senator. Born in Santiago de Compostela during his father's exile, he trained as an economist with studies in international relations and political management.
His victory in the first round was surprising; polls placed him far from reaching the runoff, which he ultimately won in six of nine regions with 54% of the vote, defeating former conservative president Jorge Quiroga (2001-2002). Many analysts believe the largest share of votes came from his running mate, Edmand Lara, a former police officer who became famous on TikTok for denouncing corruption and abuses within the force.
During his campaign, he focused on speaking to informal workers, who represent 80% of the workforce, with vague but popular slogans like “capitalism for all,” which helped him win over the new majorities: the urban bourgeoisie of indigenous origin, born during the MAS era, who define themselves politically by their social position, live in urban centers, and are merchants, transporters, or union members who have accumulated wealth in recent years. “It is a new popular subject with a different kind of expectations and horizon, with aspirations for modernity and social advancement,” explains sociologist Luciana Jáuregui.
Paz also knew how to read the message that a deeply nationalist country wanted to hear and his economic proposals were more gradual than those of Quiroga, with dependence on external financing being the substantial difference between the two candidates.
Paz stated that he would not seek international loans until he had "put his house in order" because he believed that with existing loans and adjustments to fiscal policy he could stabilize public finances."When money isn't stolen, there's enough," was one of his slogans.
However, in his first weeks as president-elect, he did the opposite: he traveled to the United States, met with the IMF, the IDB, and the World Bank, and then secured a multimillion-dollar loan from CAF. With this shift, he quickly won over the business elites who had previously viewed him with suspicion.
In the days leading up to his inauguration, he met with entrepreneurs from El Alto and business leaders from Santa Cruz, the two most populous and wealthiest regions in the country, delivering a message of unity and a boost to national production. He offered them investment and access to international trade to overcome the crisis together.
Paz begins his term today amidst the storms of a structural economic crisis: fiscal deficit, inflation, recession, shortages of dollars and fuel, and dwindling reserves. He expressed good intentions and promised a team of experts to steer the country in the right direction, but he will need the support of a fragmented parliament with multiple internal factions.
At the end of his inaugural address, he called on legislators to forge a “National Bicentennial Agreement” with all political forces to work in unison. “It is not the nation that is transformed, but the entrenched state that is transformed. That is my commitment to you,” he declared.
“We stand firm, steadfast for the homeland and determined to rebuild it. We will get through this,” he concluded. The challenge is as great as the expectations the country has placed on him, but time will soon begin to exert its pressure.
