Bolivia reportedly decisively turned the page on nearly two decades of socialist rule Sunday, electing Senator Rodrigo Paz as president after he campaigned on restoring relations with the United States and opening the nation’s vast mineral wealth to global investment.
Paz, 58, the centrist son of a former Bolivian president, captured 55 percent of the vote, defeating conservative former president Jorge Quiroga, according to the nation’s electoral tribunal. Quiroga quickly conceded, congratulating his rival for what he called a “clear and legitimate” victory.
The result marks a stunning reversal for the left-wing Movement Toward Socialism party, or MAS, which has dominated Bolivia’s politics since 2006 under Evo Morales and his successor, Luis Arce. Paz, who campaigned on a message of “capitalism for everyone,” vowed to bring Bolivia’s economy back from crisis through market-oriented reforms and renewed ties with Washington.
“Bolivia is ready to rejoin the free world,” Paz told supporters. “We’ll look for a way to be attractive to foreign and national investments. The most important thing is for you to feel like the resources are yours and you benefit from them.”
Paz has been sharply critical of the nation’s past alliances with regimes in China, Iran, and Venezuela, which he has described as “undemocratic and parasitic.” He said his administration would seek to rebuild trust with the Trump administration, after years of hostility that saw the U.S. ambassador expelled and American development agencies forced out under Morales.
At the heart of Paz’s economic agenda is a plan to revive Bolivia’s mining and energy sectors, particularly its untapped lithium reserves—the largest in the world. Previous socialist governments kept a tight grip on the industry, deterring foreign investors and leaving Bolivia behind regional rivals Argentina and Chile. While Paz signaled he would invite foreign investment, he said local communities would have a voice in development.
Bolivia’s economy, once buoyed by natural gas exports, has been battered by mismanagement and declining production. Central bank reserves have plunged from $15 billion in 2014 to about $2 billion, while inflation has soared to over 23 percent, its highest level in three decades.
The fiscal deficit is expected to hit roughly 20 percent of GDP this year, according to the Institute of International Finance, which recently concluded that “Bolivia’s model has run out of road.”
Analysts say Paz will face immediate resistance from powerful unions and social movements aligned with MAS, especially if he moves to cut costly fuel subsidies that drain roughly $3 billion annually. Though Paz’s coalition holds a majority in Congress, he will need support from Quiroga’s party and moderate left lawmakers to push reforms through.
Morales, who ruled for 14 years before being forced out amid allegations of electoral fraud, remains a looming presence. Confined to a rural stronghold while facing allegations of statutory rape involving a 15-year-old girl—a charge he denies—Morales has continued to stir unrest. After being barred from running, he urged supporters to spoil their ballots, vowing to return to power.
“We’ll return with the indestructible force of the people,” Morales declared Sunday.
For now, however, that force has given way to a new chapter in Bolivia’s political life—one defined by free markets, closer U.S. ties, and the end of a socialist experiment that many Bolivians believe left their country poorer and more divided than ever.
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