Bolivian President Rodrigo Paz Dismisses Economy Minister Following Congressional Censure and Unrest

Bolivian President Rodrigo Paz has removed Economic Minister Jose Gabriel Espinoza from his post following a congressional censure, in a move seen as a concession amid mounting public frustration over the nation's severe cost-of-living crisis.

The official decree, published Friday in the government gazette, names Oscar Mario Justiniano Pinto as the interim economy minister until a permanent successor is selected, though no timeline was provided for the permanent appointment.

The dismissal represents a shift for the administration of President Rodrigo Paz. Earlier in the week, the Bolivian Congress voted to censure Jose Gabriel Espinoza after he failed to appear before the legislature to address economic inquiries. Although the right-wing administration initially planned to challenge the decision legally, Friday's decree indicates a change in strategy.

Bolivia has experienced prolonged economic and political instability. President Rodrigo Paz assumed power last October after winning an election on a platform of economic stability, ending nearly two decades of rule by the Movement Toward Socialism (MAS). Running under the banner of "capitalism for all," President Rodrigo Paz capitalized on public anxiety regarding declining natural gas production, depleted foreign currency reserves, and general economic mismanagement.

However, governing has proved challenging. By 2024, more than 37 percent of Bolivia's population lived below the national poverty line. Recent policy shifts, including the elimination of fuel subsidies in December and a brief land reform policy introduced in April, triggered widespread protests, roadblocks, and calls for the resignation of President Rodrigo Paz. Though the land reform policy was reversed, the resulting unrest prompted the president to declare a state of emergency in June and deploy the military to clear roads.

The removal of Jose Gabriel Espinoza arrives at a crucial moment as President Rodrigo Paz seeks legislative approval for critical economic reforms and a financing program with the International Monetary Fund (IMF). Opposition lawmaker Roland Pacheco noted that the decision demonstrates a willingness to comply with the constitution and cooperate with Congress.

Despite this concession, the government continues to face fierce political opposition, notably from supporters of former President Evo Morales. The left-wing leader has actively opposed austerity measures. A Bolivian court issued an arrest warrant for Evo Morales in July over allegations of inciting an "armed uprising" in June, alongside a separate warrant for statutory rape. Responding on social media, Evo Morales criticized the administration of President Rodrigo Paz, accusing it of political persecution to distract from the country's deep economic and social crisis.