Bolivia’s President Rodrigo Paz fires economy minister amid unrest

Bolivian President Rodrigo Paz has dismissed Economy Minister Jose Gabriel Espinoza, days after the legislature censured him amid widespread unrest over economic reforms. The move is seen as a concession by Paz, who faces public anger over the nation's persistent cost-of-living crisis.

The announcement was made via a decree published in the official gazette, naming Oscar Mario Justiniano Pinto as interim minister. Pinto will serve until a permanent successor is appointed, though the decree offers no timeline for this.

Espinoza's dismissal marks a reversal for Paz's administration. Congress voted to censure Espinoza on Tuesday for failing to appear and answer questions about the economy. Under the constitution, a censure vote can lead to dismissal. The Paz government initially intended to contest the decision, but the president ultimately changed course.

Bolivia has endured years of economic and political instability. Paz, elected last October on a platform of "capitalism for all," pledged to restore stability after nearly two decades of MAS governance. His victory was fueled by concerns over the declining natural gas production, mismanagement, and a lack of new exploration, which have impacted foreign currency reserves and overall economic health.

Despite efforts, Paz has struggled to stabilize the economy, with over 37 percent of the population living below the national poverty line in 2024. Previous measures, such as the nixing of fuel subsidies in December and a land reform policy in April, have also sparked protests and unrest. Although Paz reversed the land reform policy, the country experienced significant demonstrations, including roadblocks and marches, throughout May and June, with some demanding his resignation. In response, Paz declared a state of emergency in June.