Bolivia Elects Rodrigo Paz Amid Worst Economic Crisis in Four Decades

Bolivians have elected Rodrigo Paz, a center-right senator and economist, as president, marking a significant political shift after nearly two decades of socialist rule by the Movement Toward Socialism (MAS) party. Paz campaigned on economic reform centered around cutting public spending, particularly fuel subsidies, and promoting a "capitalism for all" approach to address the country's worst economic crisis in 40 years, characterized by 23% inflation and severe shortages of fuel and dollars. His presidency, starting in November, aims for consensus governance amid deep societal divisions, with the richer eastern regions supporting his right-wing rival Jorge Quiroga, and the poorer, Indigenous western regions backing Paz. Analysts warn that while firm economic measures are necessary to stabilize the economy, they risk sparking social unrest given widespread public dissatisfaction and ongoing protests. The crisis stems from years of underinvestment in hydrocarbons, depletion of dollar reserves due to subsidies, and shrinking gas exports, leaving Bolivia struggling to meet basic needs like fuel and medicine. The election concludes an era of populist governance, with voters hoping the new leadership can stabilize the economy and improve living conditions.