Rodrigo Paz Wins Bolivia’s Presidency Amid Economic Turmoil

Bolivians have delivered a decisive rebuke to two decades of socialist governance, electing centrist senator Rodrigo Paz as president and ending the leftist Movement for Socialism’s dominance ever since Evo Morales first took power in 2005.

“Ideology doesn’t put food on the table,” Paz said in his victory speech, “What does is the right to work, strong institutions, legal security, respect for private property, and having certainty about your future.” Although Paz is the son of former President Jaime Paz Zamora, who was in office from 1989 to 1993, and has spent more than two decades in politics as a lawmaker and mayor, he entered this race as an underdog, shooting unexpectedly from the bottom of the polls to a first-place finish in the first round of voting in August.

Running on the slogan “Capitalism for all,” Paz positioned himself as a pragmatic reformer, capturing the support of voters weary of rampant inflation, chronic fuel shortages, and economic mismanagement.

Paz, 58, an economist with a political management degree from American University in Washington, DC, promised to balance market reforms with measured social policies. He inherits an economy in crisis: year-on-year inflation has surged to 23%, the highest since 1991, and fuel shortages continue to paralyze daily life. Since 2023, Bolivia has also struggled with a severe dollar shortage, leaving many unable to access their own savings. Paz pledged to offer a tax amnesty for undeclared currency, aiming to bring hidden assets into formal financial channels without immediately turning to the IMF, abandon the country’s fixed exchange rate system, and stabilize public spending.

Among Paz’s priorities is also mending Bolivia’s fractured relationship with the US. Under Morales, Bolivia expelled the ambassador and kicked out the Drug Enforcement Administration. Paz’s signals to the Trump administration were well-received, and for good reasons. Washington views Bolivia’s untapped lithium reserves—estimated at 23 million tons—as a critical asset in the race to secure battery supply chains, particularly amid China’s export restrictions. Then again, the new president will first have to address the most urgent challenges. His success will depend on restoring confidence in the currency, curbing inflation, and stabilizing the country’s dwindling foreign reserves.