Bolivia has entered a new political era as Rodrigo Paz was sworn in as the country’s president on November 8, 2025, ending nearly two decades of rule by the Movement for Socialism (MAS) party. According to Kazinform News Agency, Paz’s inauguration at the nation’s legislative seat was attended by representatives from more than 70 countries, signaling a turning point for the South American nation. In his oath, the 58-year-old Christian Democrat and son of a former Bolivian president declared, “God, family and country: yes, I take the oath of office.”
Paz assumes the presidency at a time of acute economic turmoil. Annual inflation has soared above 20%, with widespread shortages of both fuel and U.S. dollars. The previous administration, led by Luis Arce, had depleted much of Bolivia’s foreign reserves to prop up fuel subsidies and maintain a fixed exchange rate. These measures, while temporarily cushioning the population, have left the new government with a daunting fiscal challenge.
In his inaugural address, Paz made it clear that his government intends to chart a new course. “Bolivia is open to the world again,” he said, emphasizing a break from the country’s recent left-wing governance. Outlining a vision he dubbed “capitalism for all,” Paz promised to blend fiscal discipline, decentralization, and lower taxes with a continued commitment to social programs. Economists have noted that balancing these ambitions with the urgent need to stabilize the economy will be a formidable task for the new administration.
Just a day after his inauguration, Paz announced his first cabinet—a streamlined group of fourteen ministers (eleven men and three women), a reduction from the previous government’s eighteen. This move, according to Nova News, was in line with Paz’s campaign promise of greater efficiency. The new ministers are expected to implement a mission that many anticipated: moving away from the “ideological” era of “neo-socialist” governments and steering Bolivia toward a market-oriented economy with renewed Western alliances.
Foreign Minister Fernando Hugo Aramayo Carrasco, a 51-year-old economist and former United Nations Development Programme (UNDP) coordinator, is tasked with reopening diplomatic relations with the United States. These ties were severed in 2009 by then-president Evo Morales. Aramayo, known for his commitment to “digital diplomacy,” brings a reputation for innovation and public policy expertise.
Economic stewardship falls to José Gabriel Espinoza Yanez, a 46-year-old economist and former Central Bank director during Jeanine Anez’s interim government. Espinoza, a vocal critic of the statist policies of MAS, faces a daunting landscape: Bolivia’s GDP shrank by 2.4% in the first half of 2025, and inflation reached 18.3% by September. Many are watching to see if Espinoza will revise the managed exchange rate with the U.S. dollar—a policy widely seen as a root cause of Bolivia’s dwindling international reserves and difficulties in fuel imports.
The hydrocarbons and mining sectors, critical to Bolivia’s economic future, are now under the stewardship of Mauricio Medinacelli Monroy. Medinacelli, who holds a master’s degree from Georgetown University and previously led the Hydrocarbons Ministry briefly in 2006, faces the challenge of reversing declining oil and gas production. According to BNamericas, Medinacelli’s dual role also includes interim oversight of mining, a sector under the spotlight due to pending legislation on major lithium projects involving Russian and Chinese companies—both bills are expected to be rejected by Parliament.
On November 9, President Paz swore in Yussef Akly Flores as the new president of state-owned Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) and Margot Ayala Lino as executive director of the National Hydrocarbons Agency (ANH). Akly, with over 18 years of experience in the energy sector, is an industrial engineer with a master’s in oil and natural gas. Until recently, he was the executive director of the Bolivian Chamber of Hydrocarbons and Energy and serves as president of the Society of Petroleum Engineers (SPE) – Bolivia Chapter. Margot Ayala, recognized for her visionary leadership and nearly a decade of experience in natural resource management, has been instrumental in projects promoting risk management, environmental sustainability, and community participation. Her appointment marks a significant step for female leadership in Bolivia’s energy sector.
The Ministry of Planning and Development now falls to Ferdinand Romero, who previously led the Association of Oilseed and Grain Producers (Anapo). Romero is known for championing productivity and legal certainty in agriculture. Other key cabinet members include Mauricio Zamora Liebers (Public Works), Oscar Maio Justiniano (Productive Development), and José Luis Lupo Flores (Presidency). Lupo, a seasoned public administrator with stints at the Andean Development Corporation and Inter-American Development Bank, is expected to play a pivotal role in coordinating policy and government communications.
Political stability, however, remains fragile. Marco Antonio Oviedo Huerta, the new Government Minister, is charged with maintaining public order amid ongoing protests linked to the judicial prosecution of former president Morales—a flashpoint for indigenous and peasant communities. These demonstrations could intensify as the government moves to cut fuel subsidies, a step seen as necessary for fiscal recovery but fraught with social risk. Freddy Vidovic Falch, the new Minister of Justice and Culture, brings expertise in criminal law and a commitment to reforming the justice sector, while Raul Marcelo Salinas Gamarra, a lawyer with no military background, takes over as Minister of Defense.
Other notable appointments include Marcela Tatiana Flores Zambrana as Minister of Health, Beatrice Garcia as Minister of Education, and Cinthya Martha Yanez Eid as Minister of Tourism and Sports without portfolio. Each brings specialized experience aimed at addressing Bolivia’s pressing social needs.
At the core of the new administration’s mandate is the revival of the economy through market reforms, increased domestic competition, and the rekindling of international investment. The appointments of Akly and Ayala, in particular, underscore a renewed focus on transparent, efficient management and sustainable development in the vital energy sector. As Minister Medinacelli put it, their task is to work “under the guidelines of the new national energy policy, within the framework of the powers established by current regulations.”
Bolivia’s new government faces a steep uphill battle—balancing fiscal discipline with social commitments, restoring international relationships, and navigating a volatile political landscape. Yet, with a cabinet drawn from both technocratic and entrepreneurial backgrounds, and a clear intention to move beyond ideological divides, Paz’s administration is poised to redefine Bolivia’s trajectory at a critical historical juncture.
