Bolivia’s Political Landscape Transforms as Economic Crisis Shapes Historic 2025 Election
A Nation at a Crossroads
Bolivia is experiencing significant political and economic turmoil, with mounting public dissatisfaction towards the ruling Movement for Socialism (MAS) party, which has dominated the country’s politics since 2006.
Economic Challenges
The country is facing its highest inflation rate in over three decades at 24%, while economic concerns have overtaken political ones for most Bolivians. The crisis is marked by a shortage of US dollars and scarce fuel, with daily protests and highway blockades in the countryside exacerbating the shortages.
The dollar shortage has severely impacted imports, worsening inflation for basic goods, including medicines. The fixed exchange rate maintained by the current administration has become unsustainable, leading to the emergence of a black market dollar rate for the first time in 40 years. Currently, the dollar trades at around 14 bolivianos on the black market compared to 6.96 bolivianos through official channels. The situation has become so severe that depositors cannot withdraw dollars from their accounts.
Political Transformation
A decisive shift occurred in recent elections, with right-wing lawmakers sweeping into the legislature, and the presidential contest advancing to an October 19 runoff between a centrist and a right-wing candidate.
The conservative candidate, Jorge Quiroga, advocates for dramatically reducing government’s role in the economy and its spending. He supports an IMF rescue package and stricter austerity measures. His platform includes plans to digitalize government for improved efficiency and transparency, along with a proposal to give every adult a ‘popular property title’ worth $1,500 as a symbolic share of the country’s natural resources.
Future Outlook
Regardless of the election outcome, the next president will face the challenging task of implementing painful reforms. These include addressing a persistent fiscal deficit, potentially tripling domestic fuel prices, and negotiating with international lenders to secure the dollars needed to stabilize the economy and foreign trade.
Both candidates have pledged to open the country’s lithium sector, which is significant given that Bolivia possesses the world’s largest known reserves of this critical mineral, though little has been mined so far due to heavy state control.
