Bolivia’s new president takes over, inherits economic mess

After nearly 20 years of socialist administration, Rodrigo Paz, a pro-business conservative, assumed office as Bolivia’s president on Saturday, bringing with him severe economic problems.

As a torrential downpour descended outside the Bolivian chamber of congress, Paz, the 58-year-old son of a former president, received applause during the swearing-in ceremony.

“God, family and country: yes, I take the oath of office,” said Paz, who won a run-off election last month.

After 20 years of socialist administration, which many here hold responsible for Bolivia’s economic problems, he declared in his inauguration speech that Bolivia would now be different and open to the world.

Bolivia had a dramatic shift to the left under Evo Morales, who served from 2006 to 2019. He nationalized energy resources, severed ties with Washington, and formed partnerships with China, Russia, and other leftists in Cuba, Venezuela, and other Latin American countries.

In one of his first official actions, Paz mended the 17-year gap with the US by reestablishing ambassador-level diplomatic ties after Morales accused the former US envoy of being involved in a right-wing conspiracy.

“Never again an isolated Bolivia, bound by failed ideologies, or a Bolivia with its back turned to the world,” Paz said during a ceremony attended by delegations from more than 70 countries and local VIPs.

Paz will have to address Bolivia’s worst economic crisis in 40 years, with year-on-year inflation at more than 20 percent and a chronic shortage of fuel and dollars.

Long queues for motorists seeking to fill their tanks have become a way of life.

The outgoing government of Luis Arce exhausted almost all of Bolivia’s hard currency reserves to prop up gasoline and diesel subsidies.

On the campaign trail, the Christian Democrat Paz promised a “capitalism for all” approach to economic reform, with decentralization, lower taxes and fiscal discipline mixed with continued social spending.

He also promised to maintain social programs while stabilizing the economy, but economists have said the two things are not possible at the same time.