Bolivia’s president repeals law that unleashed nationwide wave of protests

RIO DE JANEIRO, BRAZIL – “We have decided to repeal the law so there will be no more pretexts to continue paralyzing the economy,” Arce said Friday night in a message to the country, surrounded by pro-government union leaders.

Trade unions, entrepreneurs and transportation companies rejected the law on illegal profits and the fight against terrorism, considering it confiscatory.

The law was passed in August as part of Bolivia’s international commitments. It imposed strict controls and penalties to prevent illegal money from smuggling and drug trafficking from flowing into the financial system through the informal sectors that dominate just over 70% of the economy.

The opposition rejected the law fearing that the government would use it to persecute opponents in the absence of an independent judiciary, accusing the government of “manipulating Justice” to persecute and punish dissidence.

Friday was again marked by street violence in popular neighborhoods of the city of Santa Cruz, an opposition stronghold. The police clashed with opposing sides of supporters and opponents. Dozens of tractors and trucks were used in the protest to demand the repeal of the law. The main riots have been staged in the departments of Potosi, in the southwest, and Santa Cruz, in the east, but demonstrations have been held nationwide.

Arce celebrated his first year in government last Monday amid social unrest and discontent due to the crisis aggravated by the pandemic and strong tensions stemming from the 2019 political crisis that prompted the resignation of then-President Evo Morales over suspicions of electoral fraud.

Last Thursday, at an event in the central coca-growing region of Chapare, Evo’s political stronghold, the president declared that he did not intend to backtrack, since the Bolivian people had decided at the polls in 2019 “that we must govern.”

This is the second law that Arce repeals due to popular pressure.