Bolivia has been convulsed by weeks of protests that have shut highways, closed banks and strained public services. Demonstrators in La Paz have detonated small charges of dynamite and stormed public buildings; police have used tear gas to disperse crowds. Blockades have caused fuel and food shortages and left some hospitals short of oxygen cylinders. Economists warn the unrest is driving the country deeper into crisis, and the US State Department has labeled the events an “attempted coup.”
Roots of the crisis
The unrest stems from economic stress that built up long before the current demonstrations. A weak export sector and chronic shortages of foreign currency have constrained Bolivia’s ability to import fuel and other essentials. After nearly two decades of left‑wing rule under Evo Morales and Luis Arce, Bolivians voted for change in 2025. The runoff pitted two right‑leaning candidates who promised economic reform; Jorge Quiroga campaigned openly for an IMF program, while Rodrigo Paz, a center‑right lawmaker from the Christian Democratic PDC, won the presidency on a platform of state reform without outside conditionality.
Paz’s PDC holds a parliamentary majority but the party lacks ideological cohesion and disciplined support, raising questions from the start about how effectively the president could govern.
Economic shocks and policy moves
Bolivia’s debt level has risen to about 95% of GDP amid years of import dependence. In late 2025 President Paz moved to consolidate public finances by abolishing petrol subsidies, a step that nearly doubled fuel prices. Observers described the subsidy cut as fiscally understandable but politically and socially painful; the change pushed up prices and, together with external pressures such as regional supply shocks linked to conflict abroad, accelerated inflation. By April the government reported purchasing power had fallen about 14% year on year, hitting poor households hardest.
Who is protesting and why
The protests began as demands over wages and the reinstatement of fuel subsidies. Trade unions called for higher pay to offset inflation, and a broad, heterogeneous coalition — farmers, miners, teachers, other workers and Indigenous groups — coalesced around those economic grievances. A separate flashpoint came when the government briefly passed a law allowing landowners to pledge small plots as bank collateral; protesters feared this could lead to dispossession of smallholders. The law was repealed, but tensions persisted and protests hardened into calls for President Paz’s resignation.
Bolivia’s largest trade union, the Central Workers Union (COB), organized mass actions. Authorities issued an arrest warrant for the COB leader Mario Argollo on terrorism and incitement charges. Supporters of former President Morales also called for protest actions, and government officials have accused “subversive” forces and political agents of fomenting unrest — accusations the government has not substantiated publicly.
Government response and international reactions
Paz responded with a cabinet reshuffle and proposals to increase consultation, including creating an economic and social council to give protest groups a role in decision‑making. At the same time he declared he would not negotiate with what he described as “vandals.”
Internationally, the US publicly backed the Paz government and condemned destabilizing attempts. Peru, Chile, Argentina, Paraguay and several Central American countries also expressed support for the government. The EU and several European embassies urged all actors to enter dialogue and seek peaceful solutions.
Economic options and outlook
Facing an immediate political crisis, the Paz administration is also pursuing financing to ease social pain and stabilize the economy. Negotiations and agreements include a $200 million World Bank operation to offset inflation’s worst effects, a pledged $4.5 billion from the Inter‑American Development Bank to expand fiscal space, and ongoing talks about a potential $3.3 billion International Monetary Fund program.
Longer term, analysts say Bolivia must address structural weaknesses: diversify exports, reduce import dependency, rebuild foreign‑currency reserves and design social protections that shield the poorest from reform shocks. How the government uses incoming loans — whether to cushion citizens from price shocks, invest in productive capacity, or simply cover shortfalls — will shape political fallout.
Possible scenarios
A negotiated settlement that restores subsidies or secures wage relief while phasing reforms could defuse tensions. Alternatively, a heavy‑handed security response or deeper political polarization could prolong disruptions, further straining supply chains and public services. External mediators and the stance of influential actors, notably Evo Morales and his supporters, will affect whether the crisis escalates or is channeled into compromise.
For now, the immediate humanitarian impacts — shortages, closed banks, hospitals under strain — are mounting pressure on both protesters and the government. The trajectory will depend on whether dialogue can produce tangible relief and whether economic measures and international financing create enough breathing room to pursue longer‑term reforms without provoking further unrest.