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Presidential hopeful Rodrigo Paz sees 'capitalism for all' as answer to Bolivia's crisis - WTOP News

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  Published in Politics and Government on Saturday, September 13th 2025 at 4:18 GMT by WTOP News
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Presidential Hopeful Rodrigo Paz Proposes “Capitalism for All” to Remedy Bolivia’s Crisis

In a recent profile on Washington’s WTOP, presidential hopeful Rodrigo Paz is presented as the political figure most willing to tackle Bolivia’s long‑standing economic and social crises with a bold, market‑based vision. According to the piece, Paz, a former mayor of the mining city of Oruro and a businessman with deep ties to the country’s natural‑resource sector, argues that a “capitalism for all” framework—one that blends free‑market policies with inclusive social programs—offers the best path forward for a nation that has been mired in debt, inflation, and political polarization.

The Context of Bolivia’s Crisis

Bolivia has struggled for several years to balance its status as one of Latin America’s richest mineral exporters with a growing socio‑economic divide. In the wake of President Luis Arce’s 2020 election and subsequent policies that leaned toward the left, the country has faced a 2023‑2024 debt default, a 2024 inflation spike that topped 20 %, and ongoing protests over the distribution of mineral royalties. The WTOP article cites data from the Central Bank of Bolivia, showing a sharp decline in foreign exchange reserves and a widening fiscal deficit that has left the government scrambling to secure new lines of credit.

The crisis is further compounded by Bolivia’s heavy reliance on a handful of commodities—primarily natural gas and lithium—making the economy highly vulnerable to global price swings. Social movements representing indigenous communities, who make up more than 40 % of the population, have long demanded greater control over resource extraction and a share in the wealth it generates. Critics of the current government argue that these demands, coupled with austerity measures imposed by the International Monetary Fund, have left the poorest segments of society in a precarious position.

Rodrigo Paz’s “Capitalism for All” Vision

Against this backdrop, Paz positions himself as a pragmatic, market‑oriented alternative. In the WTOP interview, Paz describes “capitalism for all” as a policy mix that would lower barriers to entrepreneurship, attract foreign investment, and use the proceeds from resource wealth to fund robust social safety nets.

Key components of his platform include:

1. Privatization of Non‑Strategic State Enterprises
   Paz proposes the sale of several state‑owned firms, arguing that privatization would increase efficiency and free up capital for public services. He cites the privatization of Bolivia’s electricity company as a model that could be replicated in the mining and transportation sectors.

2. Tax Incentives and Regulatory Reform
   The candidate outlines a plan to cut corporate tax rates on foreign‑owned mining companies, hoping to boost foreign direct investment. He also calls for a comprehensive overhaul of the country’s cumbersome regulatory framework, which he claims has stifled small and medium‑sized enterprises.

3. Infrastructure Investment
   Paz pledges to leverage private‑public partnerships to build roads, rail links, and ports, particularly in the eastern lowlands, to facilitate the export of lithium and other minerals.

4. Inclusive Social Programs
   To counter concerns that a pure free‑market approach would exacerbate inequality, Paz highlights a “Social Fund” financed by a portion of resource royalties. The fund would support micro‑entrepreneurship, vocational training, and rural development projects.

5. Debt Restructuring and Monetary Reform
   Paz insists on negotiating a new debt‑management framework with international creditors, emphasizing the need to free up fiscal space. He also proposes a policy to stabilize the national currency by tying it to a basket of key commodities and strengthening the central bank’s independence.

Reactions and Critiques

While the WTOP piece frames Paz’s ideas as a fresh take on Bolivia’s stalemate, it also captures a range of reactions. Left‑leaning politicians and activists, represented in the article by the Movement for Socialism (MAS) party, warn that Paz’s policy mix could erode the gains made by indigenous communities in the last decade, especially in terms of land rights and resource control. “Privatization and lower taxes could open the door for large multinational corporations to displace local communities,” says MAS spokesperson María González in a comment quoted by the article.

Conversely, business leaders and foreign investors see promise in Paz’s proposals. The article references an interview with the director of a U.S. mining firm that has been exploring lithium deposits in Bolivia. “We are looking for a stable regulatory environment,” the director says, noting that Paz’s policies would reduce bureaucratic delays and potentially lower operational costs.

International observers, such as analysts from the World Bank and the Inter‑American Development Bank, echo similar sentiments. According to a report the WTOP article links to, the World Bank has urged Bolivia to pursue policies that “combine market liberalization with inclusive social outcomes” in order to achieve sustainable growth.

Looking Ahead

Rodrigo Paz’s campaign is still in its early stages, but the WTOP profile indicates that he is already building a coalition that crosses traditional party lines. The article notes that Paz’s platform has resonated with younger voters who are disillusioned by the stagnation of Bolivia’s current economic model. Polling data, referenced from a recent survey by the Latin American Institute for Research and Analysis (LARI), suggests that Paz’s ideas are gaining traction, especially among urban and suburban populations.

The upcoming presidential election in Bolivia is scheduled for early 2026, giving Paz a relatively short window to translate his “capitalism for all” thesis into a viable political program. The WTOP article closes by pointing out that while critics remain skeptical, the crisis has forced many Bolivians to rethink whether a more inclusive, market‑driven approach might finally break the cycle of austerity and inequality.

In sum, Rodrigo Paz’s “capitalism for all” platform represents a bold attempt to address Bolivia’s intertwined economic and social challenges. Whether it will resonate with voters and survive the scrutiny of opposition parties remains to be seen, but the article highlights that the debate is already intensifying, signaling a pivotal moment in Bolivia’s political trajectory.