Bolivia is entering a new chapter of political and economic transformation, marked by sweeping changes at the highest levels of government and ambitious plans to stabilize its finances. On November 21, 2025, President Rodrigo Paz, who took office at the start of the month, made headlines by dissolving the Ministry of Justice—a move that fulfilled a key campaign promise and signaled a sharp break from the country’s recent past. At the same time, Bolivia’s new economic leadership is setting its sights on securing up to $5 billion in multilateral loans for 2026, with a strategy to return to international credit markets by late 2026 or early 2027, according to Finance Minister José Gabriel Espinoza, as reported by Keystone-SDA.
The dissolution of the Ministry of Justice came as a surprise to many, arriving just hours after President Paz dismissed Justice Minister Freddy Vidovic. Vidovic, who had been sworn in only two weeks earlier, was found to have hidden a 2015 conviction for bribery and aiding the escape of a businessman—a conviction that carried a three-year prison sentence. Under Bolivian law, individuals with criminal convictions are barred from holding public office, making Vidovic’s appointment untenable once his past came to light. The controversy quickly escalated, with Paz initially planning to replace Vidovic with Jorge Franz García by decree. Instead, he opted for an even bolder step: abolishing the ministry altogether.
In a press release, President Paz referenced his campaign commitments and the grievances of many Bolivians over the last two decades of governance. "Today I am keeping my word," Paz declared, standing before the nation. "An end to the Ministry of Persecution, an end to the Ministry of Injustice." The 58-year-old president, a Christian Democrat, framed the move as a necessary correction to what he described as years of misuse of the justice system by the previous left-leaning governments. According to Keystone-SDA, Paz argued that the Ministry of Justice had been weaponized against political opponents during the last 20 years, contributing to an atmosphere of distrust and division.
This dramatic restructuring of the justice system has sparked debate across Bolivia’s political spectrum. Supporters of Paz see the abolition as a long-overdue reckoning with alleged abuses of power, while critics warn that eliminating a central institution of government could undermine legal protections and the rule of law. The president’s decision to dissolve the ministry, rather than simply replace its leadership, underscores his determination to chart a new course for the country.
Meanwhile, Bolivia faces significant economic challenges that require urgent attention. Finance Minister José Gabriel Espinoza, in a recent interview highlighted by Keystone-SDA, outlined the government’s plan to secure up to $5 billion in multilateral loans in 2026. These loans are expected to come from international organizations such as the International Monetary Fund and the World Bank, both of which have provided support to Bolivia during past periods of financial difficulty. Espinoza emphasized that the government’s goal is to stabilize the economy and restore investor confidence, with an eye toward re-entering international credit markets by late 2026 or early 2027.
The new administration’s approach reflects both pragmatism and a sense of urgency. Bolivia’s economy has struggled with declining foreign reserves, rising fiscal deficits, and persistent inflation in recent years. Access to multilateral loans could provide much-needed liquidity and help the government implement reforms aimed at boosting growth and reducing poverty. However, returning to international capital markets will require Bolivia to demonstrate fiscal discipline and political stability—two qualities that have often been elusive in the country’s recent history.
The twin dramas of political reform and economic recovery are playing out against a backdrop of deep public skepticism. Many Bolivians, weary from years of political infighting and economic hardship, are watching closely to see whether Paz’s government can deliver on its promises. The rapid dissolution of the Ministry of Justice, while symbolically powerful, leaves unanswered questions about how the justice system will function in the absence of a central authority. Will regional courts and local authorities be empowered to fill the gap, or will the government propose new structures to ensure access to justice and legal accountability?
For supporters of Paz, the move is an emphatic repudiation of the previous era. They argue that the Ministry of Justice had become synonymous with political persecution and that its abolition is a necessary step toward reconciliation and democratic renewal. Critics, however, caution that dismantling such a key institution could create legal uncertainty and weaken protections for citizens. Some legal experts have questioned whether the government has a clear plan for managing ongoing cases or ensuring the independence of judges and prosecutors in the new system.
Espinoza’s economic roadmap is similarly ambitious. Securing $5 billion in multilateral loans would be a significant achievement for Bolivia, providing resources to address urgent needs in infrastructure, health, and education. Yet, the conditions attached to such loans often require tough reforms, including austerity measures and increased transparency. The government’s ability to balance these demands with its political commitments will be closely scrutinized by both domestic and international observers.
As Bolivia prepares to re-engage with international creditors, the stakes could hardly be higher. Access to global capital markets has been limited in recent years, with investor confidence shaken by political instability and concerns about governance. Espinoza’s timeline—to return to these markets by late 2026 or early 2027—reflects a belief that the new administration can restore credibility and attract foreign investment. Achieving this will require not only sound economic management but also progress on the rule of law and institutional reform, areas now in flux following the dissolution of the Ministry of Justice.
For now, President Paz appears determined to press ahead with his agenda, confident that bold action is needed to break with the past and lay the groundwork for a more prosperous future. His declaration—"An end to the Ministry of Persecution, an end to the Ministry of Injustice"—captures both the promise and the peril of this moment. As Bolivia navigates these uncharted waters, the world will be watching to see whether the country can achieve the stability and renewal its people so clearly desire.
In the coming months, the effectiveness of these sweeping changes will become clearer. For now, Bolivia stands at a crossroads, its future shaped by the interplay of political courage, economic necessity, and the enduring quest for justice.
