Bolivia is on the cusp of a new era. After nearly two decades of socialist governance, voters have chosen Rodrigo Paz, a 58-year-old economist and senator, as their next president. Paz, who represents the center-right Christian Democratic Party, secured a decisive victory in the October 19, 2025, presidential run-off, taking 54.6% of the vote and defeating former interim president Jorge 'Tuto' Quiroga by a comfortable margin. According to the Supreme Electoral Tribunal, with nearly all ballots counted, his lead stood at nine points, signaling a clear mandate from the Bolivian people to chart a new course for the nation.
The election marks a significant shift in Bolivia's political and economic trajectory. As reported by Al Jazeera, Paz's triumph ends almost 20 years of rule by the Movement for Socialism (MAS) party, which had been weakened by internal disputes and the barring of its founder, Evo Morales, from running due to term limits and party affiliation technicalities. Outgoing president Luis Arce, who had fallen out with Morales, chose not to run, leaving MAS in disarray and opening the door for Paz's victory.
International recognition of Paz's win was swift and broad. On October 21, 2025, nine countries from the Americas—including the United States, Argentina, Costa Rica, Ecuador, El Salvador, Panama, Paraguay, the Dominican Republic, and Trinidad and Tobago—issued a joint statement expressing support for the president-elect. As Buenos Aires Times reported, the statement described the election as “a departure from the economic mismanagement of the past two decades.” The signatories also pledged to support Paz’s administration in efforts to stabilize Bolivia’s economy, strengthen democratic institutions, and boost international trade and investment.
Support also came from further afield. Indian Prime Minister Narendra Modi congratulated Paz on social media, highlighting the “close and friendly ties” between India and Bolivia and expressing hope for deepened cooperation in the years ahead. U.S. President Donald Trump and Secretary of State Marco Rubio sent their own messages, with Rubio stating, “After two decades of mismanagement, President-elect Paz’s election marks a transformative opportunity for both nations.”
Yet, the challenges facing Paz are formidable. Bolivia is in the midst of a severe economic crisis. Inflation stands at 23% year-on-year, and the country is grappling with chronic fuel shortages and a central bank depleted of reserves. According to El País, Paz will inherit an economy in recession, a staggering national debt of $40 billion, and the loss of $60 billion in foreign exchange over the last two decades. Fuel, once a reliable export and source of foreign currency, is no longer the windfall it used to be. The new president has pledged to address these hardships head-on, promising to solve the fuel shortage with help from neighboring countries and to overhaul economic management in a way that integrates Bolivia more fully into the global economy.
In a candid interview with El País, Paz described his political philosophy as centrist, emphasizing a “democratic, national-popular party, with a strong national connection, but a democratic one.” He rejected the neoliberal label often used by critics, stating, “I’m not a neoliberal. [Evo Morales] should go and give his speech to the palm trees and take responsibility for the damage he’s done.” Paz also acknowledged the need for consensus and unity, especially in a divided society. In his victory address, he declared that Bolivia was “reclaiming its place on the international stage.”
Paz’s economic vision is encapsulated in his campaign slogan: “capitalism for all.” He has promised tax cuts, tariff reductions, decentralization of government, and fiscal discipline, while also maintaining social spending. “In Bolivia, the formal economy is 15%, while 85% is informal,” he told El País. “Everyone wants to pay taxes, to import, to export, but they understand that this state, to sustain itself, is very expensive. In Bolivia, capital plays a fundamental role.” He pointed to the city of El Alto as an example, saying, “If you want to experience pure and simple capitalism, just go to El Alto.”
One of Paz’s first major policy announcements was his intention to restore diplomatic relations with the United States, which were severed in 2008 during Evo Morales’s presidency. Morales, a fierce leftist, expelled the U.S. ambassador, the DEA, and USAID, accusing them of conspiring with the opposition. Paz said, “We will resume relations,” but clarified that the return of the U.S. Embassy would come before any discussion about the DEA. He stressed the importance of cooperation and mutual work, noting that Bolivia’s exports to the U.S. had collapsed after relations were cut: “In 2008, Bolivia exported $500 million to the U.S. market from the city of El Alto and generated 40,000 jobs. Due to a political decision by [former president] Evo Morales, in 2009, we went from $550 million to $23 million in exports. That’s treason, and he’ll have to answer to justice.”
Paz’s approach to governance will require coalition-building. His party holds the most seats in parliament but lacks an outright majority, making consensus essential for effective rule. His vice-presidential running mate, Edmand Lara, called for “unity and reconciliation,” emphasizing the urgent need to stabilize fuel supplies, food prices, and root out corruption. “People are suffering,” Lara said. “We need to stabilise the prices of the basic food basket, and we must put an end to corruption.”
Despite his pro-business stance, Paz has sought to reassure those who benefited from previous social programs. He promised that vulnerable sectors would be protected as fuel prices adjust and that his cabinet would be chosen based on meritocracy and reflect Bolivia’s diversity. He also acknowledged the support he received from former MAS voters, stating, “Those are Bolivian votes, not MAS votes.”
Looking ahead, Paz’s administration, which will run until 2030, faces the daunting task of reviving Bolivia’s economy, restoring international trust, and healing deep political divisions. As he told El País, “The future is better than the past. But even if we overcome all the problems we’ve been left with, whatever we are able to do won’t be enough. I hope Bolivia returns to the world and the world returns to Bolivia. And I want to create an economy for the people. The economy isn’t there for the state or for a powerful few.”
With the world watching and expectations high, Rodrigo Paz’s presidency could prove a turning point for Bolivia—a nation striving to find its place anew on the global stage, while navigating the rough waters of economic recovery and political renewal.
