Bolivia's Right-Wing Candidate Vows to Overhaul Nation's Economy

Strategic Insights -

Bolivia, a landlocked nation of 12 million, is on the cusp of a historic presidential election, with two pro-business candidates, including the most right-wing candidate in the nation's history, forging an unprecedented runoff. The outcome could have far-reaching implications for the country's state-directed economy, which has been plagued by inefficiencies and a lack of foreign investment. After three failed presidential bids and the collapse of the long-ruling leftist party, incumbent candidate Quiroga, a 65-year-old former vice president and industrial engineering graduate of Texas A&M University, is vowing to reshape Bolivia's economy into a capitalist order based on markets and private property.

Key Takeaways:

  • Quiroga plans to transfer shares in Bolivia's abundant minerals from the government to individual citizens, placing most of the economy in private hands and dismantling the key pillar of resource nationalism that has held sway for almost two decades.
  • His proposal involves a "liberal ownership revolution," where all Bolivian adults would receive stakes in the country's vital lithium, iron, and gas industries, effectively creating a giant mutual fund for investment.
  • Ramiro Cavero, Quiroga's economic team head, rejected use of the term privatization, which is a hot-button word in Bolivia due to its complex history of nationalization and exploitation.
  • Bolivians would be able to sell their shares to foreign firms but not for several years, and the government would no longer dominate the gas and mining sectors, allowing for increased foreign investment.
  • Quiroga estimates that a $4 billion bailout from the International Monetary Fund and other multinational lenders is needed to halt Bolivia's runaway inflation and replenish scarce U.S. dollar reserves.
  • He plans to secure a $12 billion bailout and use the influx of cash to import badly needed fuel, alleviate the country's crippling fuel shortages, and attract foreign investors by slashing corporate and sales taxes and offering companies guarantees of international arbitration.

Statistics:

  • Bolivia has a population of 12 million.
  • Quiroga's plan would affect almost the entire economy, with stakes in vital industries like lithium, iron, and gas being transferred to individual citizens.
  • The proposed bailout from the International Monetary Fund and other multinational lenders is estimated to be $12 billion.
  • Quiroga estimates that Bolivia needs $4 billion to fund his proposed pension increases for retirees.
  • Bolivia's inflation rate is running high, and the country is in need of a financial system overhaul.
  • The share of the economy in private hands would be significantly increased under Quiroga's proposal, reducing state dominance in key sectors.

Sources:

  • Associated Press article, 2025.
  • Interviews with Quiroga and Ramiro Cavero.
  • The text does not provide explicit dates for Morales' presidency, but it mentions that he held power from 2006 until his 2019 ouster.