CaliToday (20/10/2025): Bolivians elected center-right senator and economist Rodrigo Paz as their new president on Sunday, handing the 58-year-old a deeply challenging mandate: to pull the nation from the brink of its worst economic crisis in 40 years.
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| Bolivians elected Rodrigo Paz as president as the country faces its worst economic crisis in decades (Lucas AGUAYO) |
Paz's victory signals a stark political pivot for the Andean nation. He campaigned on a platform of radical economic reform, promising to slash massive public spending especially on crippling fuel subsidies and introduce a "capitalism for all" approach. This marks a clear and decisive break from the preceding two decades of socialist government.
The president-elect, who will assume office on November 8, has promised his governance style will be one of "consensus." It's a pledge that will be immediately tested, as he inherits a deeply divided society, a fragmented parliament, and an economy in freefall.
The Economic "Ticking Time Bomb"
Paz will have no honeymoon period. He takes the helm of an economy gripped by 23 percent year-on-year inflation, a chronic shortage of fuel that has paralyzed transportation, and a severe shortage of U.S. dollars.
This crisis is the direct result of the previous government's policies: massive state subsidies that have drained public coffers, coupled with a sharp decrease in the country's vital gas exports.
"Stabilizing the economy will require very firm measures," economist Napoleon Pacheco, a professor at La Paz's San Andres university, told AFP.
Those "firm measures," however, are precisely what makes Paz's task so perilous. His core promise to cut fuel subsidies is a political landmine. Such a move would undoubtedly raise prices for the general public in the short term, a hard sell to an already struggling population.
Analyst Daniela Osorio of the German Institute for Global and Area Studies warned that implementing these necessary but painful austerity measures "could lead to a social uprising."
A Nation Divided
Paz's first challenge, even before tackling the economy, is addressing a deep-seated public mistrust. Maria Teresa Zegada, a sociologist at San Simon University, noted there is "growing public dissatisfaction with politics" across the board.
The results of Sunday's run-off election paint a picture of a country fractured along old fault lines. The more conservative and affluent eastern lowlands largely supported right-wing candidate Jorge Quiroga. Meanwhile, the more impoverished western highlands, with its large Indigenous population, backed Paz.
Osorio said these trends point to a dangerous "revival of traditional divisions between the east and the west, as well as between urban and rural areas."
This sentiment was echoed on the streets. Maria Choquetapi, a woman from the Aymara Indigenous group in the town of Laja, told AFP, "I would like the new government to roll up their sleeves and really get to work, not like their predecessors."
Governing Without a Majority
Paz's promise of "consensus" is not just a talking point; it is a political necessity. While his party is now the biggest bloc in parliament, it holds no outright majority.
To govern effectively, Paz will have to "find agreements," as Zegada noted.
Bolivia's parliament will be dominated by the right, with the four right-wing parties holding all 36 seats in the Senate and 119 of the 130 seats in the Chamber of Deputies. This means Paz must constantly negotiate and build alliances with his former political rivals, even after what Osorio described as a painful campaign that left "wounds."
The Long Shadow of Evo Morales
Casting a long shadow over the entire election is the man who defined Bolivian socialism: former president Evo Morales.
Morales, who governed from 2006 to 2019 and was barred from running this year, remains a deeply popular figure, especially among Indigenous Bolivians. His influence was felt in the first round of the election, where he successfully convinced nearly one in five voters to spoil their ballot in protest of his exclusion.
While internal divisions in his Movement Towards Socialism (MAS) party have seen his influence weaken, analysts warn against underestimating him.
Morales is currently the target of an arrest warrant for human trafficking over an alleged sexual relationship with a minor an accusation he vehemently denies.
Despite these issues, analyst Osorio stated that even a weaker Morales "remains a destabilizing factor."
This presents the ultimate threat to Paz's government. Zegada, the sociologist, confirmed that Morales's supporters "have already warned that if the next government does not live up to its promises, they will mobilize to overthrow it."
For President-elect Paz, the clock is ticking. He must navigate a parliamentary maze and defuse an economic time bomb, all while the architect of Bolivia's socialist past watches from the wings, waiting for a single misstep.
