Description: Conservative centrist presidential candidate Rodrigo Paz triumphed in Bolivia’s presidential runoff elections gathering 54.6% of the votes as opposed to his opponent, Jorge Quiroga’s 45.5%. Paz’s triumph marked the end of the leftist and socialist rule in the country for over 20 years and the definitive end of the Movimiento al Socialismo (MAS) political party which managed to secure only 3.6% of the votes. Paz would face an uphill battle in reforming the country’s economy which is struggling with the highest levels of inflation in the past 40 years, surging cost of living expenses and extreme fuel shortages. Bolivia’s main industrial branch, export of natural gas, has also been struggling in the past years, with the country also experiencing severe shortages in its social programs. Paz promised to deliver gradual economic reforms and tax incentives for the small business while also pledging increases in the regional fiscal autonomy. On the foreign policy front, he is expected to abandon long – term ties to China and Russia and devise closer ties with the US. Paz is expected to be inaugurated on 08 Nov, however, failing to secure the majority he would have to negotiate to secure a coalition partner in order to govern unopposed.
Impact: Paz’s victory signals drastic shifts in Bolivia’s domestic and foreign policies and economic reforms which would open the market for foreign companies and investors. Paz’s initial challenge would be to rapidly resolve the fuel shortage crisis which is causing disruption of public services and suffocates the economic bloodstream in the country. Bolivia managed to secure an emergency fuel shipment from Russia earlier this year, however, the country’s new strategic outlook would reorient its purchases most probably towards US – based companies. The ailing natural gas industry would have to be rescucitated in order for the country to secure its major streamline of national revenue and ensure independent sustainable economic flow on a national level considering the new President’s pledges to open the market to foreign investors, the gas market in the country could be the primary investment point. The negotiations for forming a coalition are part of the new President’s portfolio of challenges and would have to be expedient since Paz aims at addressing more pressing issues such as the issues with the national economy.