On Saturday, November 8, 2025, Bolivia witnessed a historic political shift as conservative politician Rodrigo Paz was sworn in as the nation’s new president. The ceremony, held in the capital city of La Paz, marked the end of nearly 20 years of one-party rule under the Movement Toward Socialism party, founded by former President Evo Morales. For many Bolivians, the event signaled not just a change in leadership but a potential turning point for a country grappling with its worst economic and cost of living crisis in four decades.
Paz, age 58, took the oath of office before a packed chamber of lawmakers, foreign dignitaries, and regional leaders, raising his right hand before a Bible and a cross. As he received the presidential sash and medals, he declared, “God, country, and family, I do swear.” The moment was watched closely by a nation weary from chronic fuel shortages, soaring food prices, and a sense of economic malaise that has defined daily life for many households.
According to BBC and Reuters, Paz’s inauguration generated anticipation and hope among Bolivians who have grown frustrated with the scarcity of US dollars, empty markets, and seemingly endless lines for basic necessities. The economic situation, widely described as the worst in 40 years, has left the country “morally and materially indebted,” as Paz put it in his first speech as president. “The country we inherited is devastated … morally and materially indebted, with endless lines for fuel and empty markets,” he said, painting a stark picture of the challenges ahead.
Paz’s victory in the October 20, 2025, presidential runoff came as a surprise to many observers. He managed to beat his far more prominent right-wing opponent, former President Jorge “Tuto” Quiroga, signaling a clear desire among voters for stability and measured reform rather than abrupt change. While Quiroga had campaigned on a platform of fiscal shock and an International Monetary Fund (IMF) bailout, Paz promised major reforms but at a more gradual pace—an approach that resonated with a population exhausted by upheaval and uncertainty.
The new president inherits an economy in shambles. The Movement Toward Socialism party, which dominated Bolivian politics for two decades, once thrived during the commodities boom of the early 2000s. However, as natural gas exports sputtered and the government’s statist economic model—built on generous subsidies and a fixed exchange rate—collapsed, the country found itself facing chronic shortages and mounting debt. According to Associated Press, the collapse of this model has been a key factor in the current crisis, leaving Bolivia with few easy solutions.
In his inaugural address, Paz set out a vision for a new era in Bolivian politics. “Bolivia is rejoining the world, never again isolated. Never again will the country be held hostage by an ideology; ideology doesn’t put food on the table,” he told the assembled crowd, making it clear that his administration would prioritize pragmatism over dogma. The statement drew applause from supporters and was seen as a direct rebuke of the previous government’s policies.
The inauguration was attended by several regional leaders, including the presidents of Argentina (Javier Milei), Chile (Gabriel Boric), Ecuador (Daniel Noboa), Uruguay (Yamandú Orsi), and Paraguay (Santiago Peña), underlining the significance of the transition. Their presence in La Paz was widely interpreted as a show of support for the new administration and a signal of Bolivia’s renewed engagement with its neighbors.
One of Paz’s first moves as president has been to distance Bolivia from the ALBA bloc—a leftist alliance that includes Cuba, Nicaragua, and Venezuela—and to move closer to the United States. Relations between Bolivia and the US had soured dramatically after the expulsion of the American ambassador in 2008 during Morales’ administration, but Paz has made it clear that he intends to restore diplomatic and economic ties. “We haven’t been handed a throne, but a task,” he said, emphasizing the seriousness of the challenges ahead and his commitment to “true democracy and respect for the law.”
Paz’s efforts to re-engage with the international community extend to economic matters as well. He has already reached an initial agreement with the Andean Development Corporation for a $3.1 billion (€2.68 billion) loan aimed at supporting economic recovery over the next several years. According to El País, this deal is seen as a crucial step toward stabilizing the country’s finances, attracting much-needed investment, and rebuilding public trust.
In addition to economic reforms, Paz announced after the election that his government would cooperate with all international organizations on security matters—including the US Drug Enforcement Administration (DEA), which was expelled from Bolivia in 2008. The move marks a significant departure from the policies of the previous administration and is intended to address concerns about organized crime and drug trafficking, both of which have contributed to the country’s instability.
Despite the optimism surrounding Paz’s presidency, he faces significant political hurdles at home. His Christian Democratic Party controls only 39% of the 166-seat Legislative Assembly, meaning he will need to build alliances across the political spectrum to pass critical legislation. Analysts say this fragmented political landscape could either foster a spirit of compromise or lead to legislative gridlock, depending on how Paz navigates the months ahead.
Observers note that Paz’s gradualist approach to reform may help him avoid some of the pitfalls that have plagued previous administrations. By seeking consensus and working with international partners, he hopes to chart a course that balances economic recovery with social stability. However, the scale of the crisis means that expectations are high, and the patience of the Bolivian people may be limited if tangible improvements are not seen soon.
For now, many Bolivians are watching closely, hopeful that the new president can deliver on his promises and steer the country out of its current malaise. As Paz himself put it during his inauguration, “This is the time for true democracy and respect for the law; no one is above the law. We will overcome that disgraceful and shameful past.”
With the eyes of the region and the world upon him, Rodrigo Paz’s presidency begins at a moment of both deep crisis and fragile hope. Whether he can live up to the expectations of a nation hungry for change remains to be seen, but for now, Bolivia stands at the threshold of a new chapter—one defined by both daunting challenges and the promise of renewal.
