Bolivia’s President Luis Arce announced plans for upcoming national referenda during his speech in Sucre, the nation’s historical capital. The referenda will address the removal of fuel subsidies and the constitutionality of presidential reelections, marking a significant step towards resolving Bolivia’s economic and political challenges. The lack of a specific date for the votes left some uncertainty, but Arce assured the public that the proposals were not driven by personal ambitions or electoral calculations but aimed at guiding the country as it approaches its bicentennial.
The proposal to eliminate fuel subsidies comes amid protests by truckers and other groups due to diesel scarcity. Bolivia heavily subsidizes fuel imports, leading to financial strain, with an estimated $10 million needed daily to sustain the current system. Without income from natural gas exports, Bolivia is depleting its foreign currency reserves, adding to the economic turmoil.
Arce also announced a referendum on former presidents’ eligibility for reelection, particularly addressing a dispute with ex-President Evo Morales. Morales, who previously served three terms despite legal limits, seeks another term in 2025, challenging Arce’s stance on presidential term restrictions. The ongoing power struggle between Morales and Arce has fueled political turmoil, impeding economic progress and foreign investments.
The persistence of economic challenges, legislative gridlock, and foreign currency shortages have exacerbated Bolivia’s crisis. President Arce highlighted these issues during his Independence Day speech, causing critics to accuse him of avoiding responsibility for the country’s troubles, such as the recent alleged coup attempt and fuel shortages despite Russian shipments.
While the promise of referenda offers a glimpse of potential solutions, some analysts remain skeptical about the outcome. Pointing to the complexities of Bolivia’s situation, political analyst José Luis Bedregal suggested that the proposed referenda might further complicate the political landscape rather than provide immediate resolution to the country’s deep-rooted problems.
