Sucre, Bolivia – In a decisive move to contain the worsening economic and social crisis, Bolivian President Rodrigo Paz declared a national state of emergency on Saturday, after 50 consecutive days of road closures and protests that have brought the country to a near standstill and severely damaged the economy.
“No hostages”
In a post on the X platform, President Paz explained his decision, saying, “I have ordered a state of emergency to open the roads. Bolivians cannot remain hostages to roadblocks that prevent them from working, studying, receiving medical care, and obtaining supplies.” Paz emphasized that this measure is not intended to restrict movement, but rather to restore “normal life,” while also stressing that the doors to dialogue remain open to those willing to work in good faith.
This decision comes hours after the government signed an agreement with the National Workers’ Union (COB) to end the roadblocks that have caused severe shortages of food and medicine. Despite this agreement, other groups, most notably the La Paz farmers’ union Tupac Catari and supporters of former President Evo Morales, continued to block roads, prompting the government to take this exceptional measure.
Heavy economic losses
The National Chamber of Industry revealed alarming figures regarding the extent of the damage, with economic losses from the protests reaching approximately $3 billion, equivalent to roughly 6% of Bolivia’s annual GDP. These disturbances come at a time when President Paz, 58, is attempting to consolidate his “capitalism for all” program following his victory in last October’s elections, which ended two decades of socialist rule.
Since taking office, Baz has initiated sweeping structural changes, including reducing fuel subsidies and liberalizing the foreign exchange market. These policies have been welcomed by global bond investors, but have faced fierce opposition from large segments of farmers, miners, and indigenous people, who have yet to see the benefits of these transformations, especially in light of the wave of inflation that has swept the country.
In an effort to bolster the country’s stability, Paz signed legislation last week facilitating the imposition of emergency measures, and his administration is working to finalize a $3 billion financing program with the International Monetary Fund. On the humanitarian front, the U.S. government has begun providing emergency food aid and logistical support to assist populations affected by shortages of essential supplies. President Paz maintains that this period represents a true test of Bolivia’s success in transitioning to a democracy open to the global economy.
