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Rodrigo Paz Is Sworn In as Bolivia’s President, Signaling a Gradual Market Shift

He takes office facing the worst economic crisis in decades with only a legislative plurality.

Overview

  • The inauguration ends nearly 20 years of rule by the Movement Toward Socialism, marking a sharp political turn.
  • Bolivia confronts inflation above 20% alongside severe shortages of fuel and U.S. dollars after years of subsidies and a fixed exchange rate.
  • Paz pledges a "capitalism for all" program with gradual market reforms and rejects an immediate IMF bailout or shock therapy.
  • He plans to restore relations with the United States and to cooperate with international security agencies, including the U.S. DEA.
  • Governing will require alliances as his party holds 39% of assembly seats, and the government reports an initial $3.1 billion Andean Development Corporation loan to support recovery.