Victory for Moderate Paz in Bolivian Presidential Election
In a significant political shift, the people of Bolivia have chosen a moderate, business-friendly senator as their new leader, following twenty years of governance under the left-leaning Movement Toward Socialism party. Rodrigo Paz emerged victorious in the election, capturing 54.6% of the vote, while his right-wing opponent, Jorge "Tuto" Quiroga, a former interim president, received 45.4%.
A New Era for Bolivia
Upon his victory, Paz expressed his intention to reintegrate Bolivia into the global community. The 58-year-old economist-turned-senator emphasized the need to "open Bolivia to the world and restore its role." This approach is seen as a response to the economic hardships that have plagued the country for years.
Since 2023, Bolivia has struggled with a significant shortage of US dollars, which has triggered the worst economic crisis the country has seen in decades. This has resulted in Bolivians being unable to access their savings and has negatively impacted imports. Additionally, the country's currency, the Boliviano, has experienced a significant depreciation, losing almost half its value. Last month, inflation reached a staggering 23%, the highest since 1991.
Presidential Aspirations and Promises
Both Quiroga and Paz campaigned as agents of change, promising to steer the nation away from the populist economic policies of the past two decades. Their campaigns followed the ousting of the Movement Toward Socialism party, founded by former President Evo Morales, in a previous election. This change was largely attributed to voters' dissatisfaction with internal party conflicts and national fuel shortages.
Quiroga and Paz committed to correcting the exchange rate, restructuring state-owned enterprises, and attracting foreign investment. Quiroga proposed drastic spending cuts, reducing the size of the government, privatizing state-involved industries, and securing a quick loan from the International Monetary Fund. Conversely, Paz proposed a strategy that eschews assistance from the International Monetary Fund. Instead, he plans to combat corruption and the growing black market while gradually eliminating government fuel subsidies over time.
The Challenge of Balancing Social Welfare with Economic Stability
While both Quiroga and Paz expressed a desire to maintain social welfare programs while stabilizing Bolivia's economy, economists argue that achieving both simultaneously is not feasible. Both candidates agreed on the necessity of ending fuel subsidies, which cost the government more than $2 billion annually, for the survival of Bolivia's economy. However, they acknowledge the challenges this presents, with citizens and trade unions threatening unrest if either candidate touches the fuel subsidies.
Bolivia, which enjoyed considerable wealth in the early 2000s due to gas exploration and production, has seen these industries decline significantly. The nation's next chance to alter its economic course lies in exploiting its vast lithium deposits, the largest in the world.
Meet Rodrigo Paz
Paz, the son of a former president, is a relatively unknown figure despite his two-decade-long political career. His success in the August election caught many by surprise. His running mate, Edmand Lara, a former police officer who gained popularity after a video of him speaking out against corruption went viral, played a significant role in attracting votes, particularly from working-class residents in the Bolivian highlands.
Throughout their campaign, Paz and Lara traversed the country, promoting their "capitalism for all" agenda and positioning themselves as a stark contrast to their wealthy opponent Quiroga and his affluent supporters.
The Impact on Bolivia's International Relations
Both Paz and Quiroga have signaled their intent to strengthen ties with the United States, marking a significant departure from the anti-American stance of the previous Movement Toward Socialism leadership. They both visited Washington to meet with the US president, signaling a potential transformative opportunity for the future of Bolivia's international alliances.