Bolivia is undergoing a seismic shift, both politically and economically, as a new conservative government led by President Rodrigo Paz takes the helm after nearly two decades of leftist rule. The transition comes at a crucial moment for the landlocked South American nation, which finds itself at the intersection of global drug policy, critical mineral supply chains, and shifting diplomatic alliances.
According to data released by the United Nations Office on Drugs and Crime (UNODC) on Monday, the area under coca cultivation in Bolivia surged by 10% between 2023 and 2024, reaching an estimated 340,000 hectares. This expansion cements Bolivia’s position as the world’s third-largest coca producer, trailing only Peru and Colombia. While Bolivian law permits coca cultivation on up to 220,000 hectares for traditional Indigenous uses, such as chewing the leaves and preparing herbal infusions, the UNODC identified a stark gap between what’s legal and what’s actually happening on the ground.
“The difference between the approved surface and what has been detected amounts to 120,000 hectares,” Monica Mendoza, UNODC’s representative in Bolivia, explained during a press conference covered by Greek City Times. The excess, authorities and experts agree, is largely attributed to the activities of drug trafficking networks. After all, coca leaves are the primary raw material for producing cocaine hydrochloride, a fact that has long placed Bolivia in the crosshairs of international anti-drug efforts.
Interior Minister Marco Antonio Oviedo didn’t mince words when addressing the causes behind the ballooning coca fields. He pointed directly to the “leniency that prevailed in the recent past,” referencing the years of left-wing governance from 2006 to 2025. Oviedo pledged that the new administration would “work intensively to reduce coca cultivation,” signaling a tougher stance moving forward.
This new approach is part of a broader political transformation. Rodrigo Paz, who was elected president several weeks before December 16, 2025, is Bolivia’s first conservative leader in nearly twenty years. He took office in early November, promising to scrap a raft of taxes and overhaul the country’s economic and diplomatic orientation. His government wasted little time in repairing relations with Washington after years of anti-American hostility—a legacy of former President Evo Morales, a charismatic coca-growing union leader who famously expelled the U.S. Drug Enforcement Administration (DEA) in 2008 and aligned Bolivia with Russia, Iran, and Venezuela.
Now, the winds have shifted. Last month, Ernesto Justiniano, newly tasked with leading Bolivia’s fight against drug trafficking, announced that the DEA would return to the country “very soon.” According to Greek City Times, Justiniano described the estimated volumes of cocaine produced in Bolivia as “excessive” and outlined the government’s intention to eliminate illegal coca crops while intensifying operations against trafficking networks. The return of the DEA marks a dramatic reversal, underscoring the Paz administration’s determination to crack down on narcotics and, by extension, restore international confidence.
This restoration of confidence is already having tangible effects. As Fox News Digital reported, Bolivia’s sovereign bonds have risen in value and the chronically depreciating currency has regained some ground against the dollar in unofficial trading. The U.S. State Department has announced new agreements on nuclear cooperation and security assistance, and for the first time, Bolivia has granted Elon Musk’s Starlink permission to operate in the country—after a previous refusal under the outgoing government.
Foreign Minister Fernando Aramayo, speaking during a visit to Washington to sign an agreement reestablishing diplomatic ties with Israel (which had been severed during the Gaza conflict by the previous government), made the new direction clear. “We are looking for a long-term relationship with the U.S., relations based on the same values and interests that we share, for democracy and to create a new alliance in South America,” Aramayo said, as cited by Fox News Digital.
Paz’s victory followed the unraveling of the leftist MAS party, which had governed Bolivia under Morales and his successor Luis Arce. The party fractured amid economic crises, corruption scandals, and growing public anger over alleged narcotrafficking networks embedded in the state. This collapse opened the door for Paz’s conservative, pro-business platform—a dramatic turn for a country that had been one of China and Venezuela’s closest ideological allies in the region.
The new administration is also rethinking Bolivia’s approach to its most valuable natural resource: lithium. With the world’s largest reserves—double those of neighboring Chile—Bolivia’s lithium has long been coveted by global powers. But commercial extraction has proved tricky. High levels of magnesium in the brine and the country’s remote location, more than 300 miles from the nearest Chilean port, make production expensive and logistically challenging, according to the U.S. Geological Survey.
The previous government under Arce had signed contracts with Chinese and Russian companies, betting on new direct-extraction techniques to overcome purity issues and accelerate production. Last year, state lithium company YLB inked deals with a unit of China’s Contemporary Amperex Technology Co. Ltd. and Russia’s Uranium One. However, neither project is close to commercial production, and both have faced congressional scrutiny. Paz’s administration has signaled it will review these contracts for transparency and national benefit, with senior adviser José Luis Lupo telling Bloomberg News, “If there’s something positive to resume it will be resumed, but we believe that those lithium contracts were forged behind the backs of the regions and the country.”
Despite the pivot toward the U.S. and Western allies, Paz has also vowed not to “sell out” the Uyuni salt flat—an iconic symbol of Bolivia’s sovereignty and Indigenous heritage. His campaign, while pro-business, emphasized maintaining social programs and decentralizing government to avoid alienating supporters of former President Morales.
Bolivia’s new foreign policy has already borne fruit. Aramayo’s comments about U.S. technology hint at possible deals that could see American companies and expertise helping to unlock Bolivia’s lithium potential and, in the process, secure critical mineral supply chains for the West. “The U.S. has a lot of technology and has a lot of experience and sustainable extraction of resources,” Aramayo said. “We want to take advantage of that. Of course, we want to receive some technology transfers and to be part of the whole chain of production.”
Meanwhile, the Trump administration’s previous funding for mine development in Brazil suggests sustained U.S. interest in securing South America’s mineral wealth—now with Bolivia possibly in play.
As Bolivia steps onto the global stage with a new government, a tougher approach to coca cultivation, and a recalibrated foreign policy, the world is watching closely. Whether Paz’s administration can balance tradition, economic opportunity, and international expectations remains to be seen. But one thing’s for sure: Bolivia’s crossroads moment is reshaping not just its own future, but the broader dynamics of South America’s politics and resources.