LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

January 2, 2026

Will Paz’s Reforms Pay Off for Bolivians and the Economy?

Newly inaugurated Bolivian President Rodrigo Paz last month announced several economic reforms, including the elimination of longstanding fuel subsidies. // File Photo: Argentine Government.

Q

A

V. Ximena Velasco Guachalla, lecturer in the Department of Government at the University of Essex: “Undoubtedly, the most significant component of the government’s current economic plan is the elimination of fuel subsidies—a policy that has shaped Bolivia’s economy in recent decades. While the ongoing economic crisis provides a rationale for ending these subsidies, it also complicates their removal, especially for the most vulnerable segments of society. Some sectors anticipated and even supported the removal of the subsidies; however, its abrupt implementation surprised many, as it…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Merike Blofield
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Devry Boughner Vorwerk
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