Bolivia is waking up to a new era, and the signs of change are hard to miss. On November 14, 2025, the iconic clock atop the Legislative Assembly building in La Paz was restored to its conventional design, symbolizing a return to tradition after years of political experimentation. The order came directly from Rodrigo Paz, Bolivia’s newly inaugurated president, and it’s only the most visible marker of a sweeping transformation underway in the country.
For two decades, Bolivia was governed almost without interruption by socialist administrations, most notably under Evo Morales. Those years, as reported by Bloomberg and The Daily Signal, were marked by economic turbulence, culminating in one of the worst downturns in Bolivia’s history. Gasoline shortages led to long lines at fuel stations, the currency languished in unofficial markets, and investor confidence plummeted. But now, in the wake of Paz’s election last month, Bolivia’s streets—and its markets—are telling a different story.
The gas lines have all but vanished, a practical relief for everyday Bolivians who had grown accustomed to waiting hours for a tank of fuel. The boliviano, Bolivia’s currency, has surged in value on the unofficial exchange, signaling renewed faith in the nation’s economic prospects. Bond investors, once wary of the country’s creditworthiness, are now eyeing Bolivia with optimism. According to Bloomberg, these developments are directly linked to the new government’s promises and early actions.
Rodrigo Paz’s victory in the October runoff election was historic. Facing off against former President Jorge “Tuto” Quiroga, Paz emerged as the standard-bearer of a new political direction—not as far to the right as some had hoped, but certainly a marked shift from the socialist status quo. As The Daily Signal notes, “Last month, the people of Bolivia ended decades of socialist rule in the country with the election of Rodrigo Paz.” The election, in the words of the publication, “marks a significant shift in Bolivia’s political landscape.”
With this shift comes opportunity—not just for Bolivia, but for the United States as well. The Paz administration has wasted little time in signaling its intentions: it aims to strengthen ties with the U.S. and its regional allies. The government’s economic agenda is ambitious: cut red tape, simplify taxes, reduce trade barriers, and create a business-friendly environment. The hope is to attract foreign investment and stimulate domestic enterprise, breaking the cycle of stagnation that has haunted Bolivia for years.
But there’s more at stake than just economic reform. Bolivia’s vast reserves of rare earth elements—those 17 minerals critical to the manufacture of advanced technologies—have suddenly become a focal point in the broader geopolitical contest between the U.S. and China. As The Daily Signal points out, “Closer trade ties with Bolivia could help the United States gain greater access to Bolivia’s rare earth reserves.” The U.S. currently relies on China for 70% of its rare earth imports and 90% of global rare earth processing. In an era of rising tensions and the ever-present specter of trade wars, this dependence is widely seen as a strategic vulnerability.
“The U.S. needs to find alternative sources for these minerals,” The Daily Signal argues, and Bolivia—alongside partners like Japan and Ukraine—could be a key piece of the puzzle. The stakes are high: “Considering the possibility of war between China and the U.S., this dependence poses a huge threat to U.S. security.” The publication suggests that the Trump administration should move quickly to secure a trade deal with President Paz, even recommending an invitation to Washington, D.C., as a diplomatic overture.
This isn’t just about minerals, though. There’s a larger vision at play—one that harks back to the Monroe Doctrine, the 19th-century policy aimed at keeping foreign powers out of the Western Hemisphere. In today’s context, the threat is less about Europe and more about China, which has become an increasingly influential economic player in Latin America. “Strengthening ties with Bolivia will also help the U.S. reestablish the Monroe Doctrine,” writes The Daily Signal, noting that the U.S. is already pushing back against Chinese influence in places like the Panama Canal.
The regional context is also important. Bolivia’s political shift is part of a broader trend, exemplified by the rise of Javier Milei in Argentina, another leader determined to reduce his country’s dependence on China. While Paz is not as conservative as Milei, the two represent a growing movement in South America away from leftist populism and toward market-oriented reform. The hope among U.S. policymakers and commentators is that closer ties with these leaders will help “stem Chinese sway in the region.”
But there are risks, too. The article in The Daily Signal cautions that mishandling relations with Bolivia could backfire. “If Trump were to handle Bolivia with the same aggression and flippancy that he approached Canada, he risks losing a potential source of critical rare earths. Worse, a failed Paz administration could lead to the socialists returning to power in Bolivia.” Such a reversal, the article warns, would “secure China another access point in the Western Hemisphere.”
For everyday Bolivians, the stakes are personal as well as political. The disappearance of gas lines, the rebound of the currency, and the prospect of new jobs and investment are more than abstract policy goals—they’re tangible improvements in daily life. The Paz administration’s success or failure will be measured not just in macroeconomic statistics or diplomatic communiqués, but in the lived experience of Bolivian citizens.
Of course, challenges remain. Reforming tax codes, slashing bureaucracy, and reducing trade barriers are all easier said than done. There are entrenched interests to contend with, and the risk of backlash from those who benefited under the previous regime. And while bond investors may be bullish for now, global markets are notoriously fickle—one misstep could send confidence tumbling again.
Still, the mood in La Paz is one of cautious optimism. “Free countries tend to stick together, and having Bolivia in that camp means they’re not in the authoritarian camp,” The Daily Signal asserts. It’s a sentiment echoed by many in the business community, who see the Paz administration as a chance to finally break the cycle of boom and bust that has defined Bolivia’s modern history.
As Bolivia steps into this new chapter, all eyes are on President Paz and his government. Will they deliver on their promises of reform and renewal? Will the U.S. seize the opportunity to forge a closer partnership with this pivotal South American nation? Only time will tell, but for now, the winds of change are blowing through Bolivia—and the world is watching, with interest and anticipation.
