Bolivia: President Paz fires his Economy Minister under pressure from Congress

Bolivian President Rodrigo Paz dismissed his Economy Minister, Jose Gabriel Espinoza, on Friday after Congress censured him. This move marks a reversal for an administration already weakened by a persistent social crisis.

The decision was published Friday in the Bolivian government's official gazette. Oscar Mario Justiniano Pinto has been appointed interim Minister of Economy, pending the appointment of a permanent minister, the timeline for which has not been set.

On Tuesday, Congress voted to censure Espinoza after he refused to appear before parliamentarians to answer their questions about the country's economic situation. The Bolivian Constitution stipulates that censure automatically leads to the dismissal of the minister in question. Initially, the Paz administration announced its intention to challenge this decision in court. Friday's decree signifies that the president has finally abandoned this confrontation.

The opposition welcomed this change of course. Congressman Roland Pacheco saw it as a sign that Paz "was demonstrating a certain humility and respecting the Constitution." The move is also interpreted as a gesture of goodwill toward Congress, whose support Paz is actively seeking to pass a series of economic reforms and secure a financing program from the International Monetary Fund.

Bolivia is going through a period of deep turbulence. Elected last October, Paz had promised to restore stability to a country that had seen its natural gas production collapse, its foreign exchange reserves dry up, and more than 37% of its population fall below the national poverty line by 2024. His coming to power had ended nearly two decades of governance by the Movement for Socialism (MAS).

His first decisions quickly met with resistance. The elimination of fuel subsidies in December sparked protests. An agrarian reform signed in April provoked a new wave of anger among rural and Indigenous voters, who feared a weakening of protections for small landowners. Paz finally reversed course on the reform in May, but May and June were marked by roadblocks, marches, and calls for his resignation. The president declared a state of emergency in June, and Congress authorized the use of the military to clear the blockades.

Former president Evo Morales continues to fuel opposition to the government. A Bolivian court issued an arrest warrant against him in July, accusing him of inciting his supporters to participate in an "armed uprising" in June. He also faces a second warrant for the rape of a minor. On social media, Morales has accused the government of persecuting him "to conceal the real tragedy facing Bolivia: a deep economic and social crisis... a model that has abandoned the people and protects corruption."