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Bolivia’s Rodrigo Paz Sworn In as President, Restores U.S. Ambassador-Level Ties

The centrist outlines subsidy cuts with tax reform to confront the worst economic crisis in decades.

Overview

  • Official results show Paz won the October runoff with about 55% to Jorge Quiroga’s roughly 45%, and the rival’s supporters allege fraud.
  • Annual inflation reached 19% in October after a July peak of 25%, with foreign-exchange reserves largely depleted by fuel subsidies and reported shortages of fuel, food and medicines.
  • Paz pledged a pro-market program branded “Capitalism for all,” promising to cut fuel subsidies by more than half and pursue tax changes while maintaining social spending.
  • Bolivia and the United States announced a return to ambassador-level relations, with U.S. Deputy Secretary Christopher Landau calling it the proper level after both countries expelled ambassadors 17 years ago.
  • The new government points to the country’s world-leading lithium reserves as a draw for fresh investment after years of slow development.