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Ex-presidents

Bolivia Elects New President, Ending Two Decades of Leftist Rule

Strategic Insights

— 1 min read

Bolivian voters on Sunday choose between two conservative candidates, right-wing former President Jorge Quiroga and centrist Senator Rodrigo Paz, after the leftist Movement Toward Socialism (MAS) party was voted out of government in August. The country has been crippled by a severe economic crisis, including a shortage of US dollars and a devalued currency, with inflation reaching 23% in the past month.

Key Takeaways:

  • Both presidential candidates, Jorge Quiroga and Rodrigo Paz, have pledged to pivot the country away from two decades of populist economic policy and fix the exchange rate, restructure state-owned businesses, and attract foreign investment.
  • Quiroga proposes securing a quick loan from the International Monetary Fund (IMF) coupled with drastic spending cuts, reductions in the size of government, and the privatization of state-owned industries.
  • Paz wants to avoid IMF assistance by tackling corruption and the black market, and slowly phasing out government fuel subsidies over time.
  • Economists warn that Bolivia's budget cannot be balanced if welfare programs are maintained alongside economic stabilization.
  • Ending fuel subsidies, which account for over $2 billion in government funding each year, is seen as crucial to the country's economic survival, but citizens and trade unions have threatened unrest if touched.
  • Bolivia has massive lithium deposits, the largest in the world, which could change the country's economic trajectory.

Statistics:

  • Bolivia has been crippled by a shortage of US dollars since 2023, resulting in the country's worst economic crisis in decades.
  • The Boliviano currency has lost nearly half its value.
  • Last month, inflation hit 23%, its highest level since 1991.
  • Over $2 billion (E1.72 billion) in government funding is spent on fuel subsidies each year.
  • 7.9 million eligible voters are involuntarily participating in Sunday's election.

Sources:

  • Ari Shapiro, "Bolivia's Presidential Runoff Pits Two Conservative Capitalists Against Each Other", NPR, 2023.
  • MacDonald, "Bolivia's Voters Head To Polls", AP News, 2023.
  • "Capitalism for All: Bolivia's Presidential Election", BBC News, 2023.

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