Bolivia’s Paz Rejects Resignation as 67 Roadblocks Cripple Trade
Key Facts
—The crisis: Bolivia is facing 67 roadblock points across the country and a “March for Life to Save Bolivia” caravan moving from Caracollo to La Paz, with the Bolivian Workers’ Confederation (COB), teachers, peasants, cooperative miners and Evo Morales-aligned groups demanding the resignation of conservative President Rodrigo Paz Pereira, who took office in November 2025.
—The Paz response: Paz publicly rejected resignation demands on May 13, framed protests as a destabilization attempt, abrogated Law 1720 on land that had been a principal Amazonian-indigenous grievance, and called for dialogue while insisting that “blockaders are the ones causing unemployment, increases in the family basket and the rise in product prices.”
—The macro backdrop: Bolivia faces its worst economic crisis in four decades, with interannual inflation at 14% as of April (the highest in 17 years), severe scarcity of fuel and dollars, and the country’s central bank former president Edwin Rojas held in pretrial detention since early May on charges tied to gold-reserve management; the boliviano trades at 10.05/10.10 on the parallel market versus the official 10.10/10.31.
—The evismo factor: The Morales-aligned movement launched the “March for Life” from Caracollo in Oruro department; dirigente Teodoro Catari told radio Kawsachun Coca that all nine Bolivian departments should join, while Evo Morales himself faces an active arrest warrant on alleged trafficking-of-a-minor charges tied to a daughter he had as president.
—The reform agenda: Paz Pereira’s six-month government has cut fuel subsidies, raised the minimum wage 20%, authorized banks to return dollar deposits frozen since 2023, joined Trump’s “Escudo de las Américas” defense framework, and convened a May 9 “Encuentro por el país” in Cochabamba with former presidents Jorge Quiroga and Luis Fernando Camacho to coordinate a partial constitutional-reform agenda.
The destabilization crisis tests whether the post-MAS political realignment is durable: Paz Pereira inherited a 14%-inflation, dollar-scarce economy and is trying to impose orthodox stabilization while a still-mobilized leftist opposition argues the entire reform direction is illegitimate, with both sides treating the May 13 confrontation as a structural rather than tactical fight.
What is happening on the ground?
For two weeks, multiple Bolivian sectors have escalated pressure on the Paz government. The Central Obrera Boliviana, the country’s main union confederation, launched a national strike. Cooperative miners and heavy-transport drivers complain about fuel scarcity and quality. Rural teachers protest outside the Ministry of Labor in La Paz. Peasant groups demanding the resignation of Paz blocked main roads connecting La Paz to the rest of the country and to the Peru and Chile borders. Authorities count 67 separate blockade points as of May 13.
The “March for Life to Save Bolivia,” launched May 12 from Caracollo in Oruro department, is the most politically charged movement. The march is led by groups aligned with former president Evo Morales (2006-2019), who himself remains under arrest warrant on alleged trafficking-of-a-minor charges. The dirigente Teodoro Catari called for all nine departments to join. The march presents itself as defending the family basket, rejecting constitutional reforms, and demanding an end to processes against Morales, per RPP.
How is the Paz government responding?
Paz Pereira combined three responses on May 13. First, he formally rejected resignation as an option, framing protests as a destabilization effort against the broader reform program. “The economy is recovering and others want to brake it; that generates unemployment, increases in the family basket — these blockaders are the ones who increase product prices and generate unemployment,” he said. Second, he abrogated Law 1720 on land, which had been the principal Amazonian-indigenous grievance: “What does the word abrogation mean? Elimination. It no longer exists. That law is finished.”
| Indicator | Status May 13, 2026 |
|---|---|
| Roadblocks active | 67 separate points |
| Interannual inflation (April) | 14% (17-year high) |
| Boliviano (official BCB) | Bs 10.10 / 10.31 per USD |
| Boliviano (parallel) | Bs 10.05 / 10.10 per USD |
| Paz government age (months) | 6 months in office |
| Minimum wage hike (Paz era) | +20% (one-time) |
| Fuel subsidy | Eliminated |
Source: Banco Central de Bolivia daily quote May 13; INE inflation April release; press coverage May 12-13, 2026.
Third, Paz called for dialogue. The COB initially rejected dialogue offers (“Already we don’t want dialogue,” said dirigente Jaime Condori), but partial offers have been received from some sectoral leaders. The Federation of Drivers of La Paz confirmed joining the protests but explicitly stated the federation is not demanding Paz’s resignation, only addressing fuel supply, transport conditions and economic impact. Fiscal General Róger Mariaca said criminal and civil processes will begin against those promoting measures threatening social peace.
What is the Cochabamba accord setup?
On May 9, four days before the visible crisis peak, Paz convened in Cochabamba the “Encuentro por el país — Acuerdo nacional para la estabilidad y las reformas.” The meeting brought together former presidential candidates including Jorge “Tuto” Quiroga (Libre), Samuel Doria Medina (Unidad), and Luis Fernando Camacho (Creemos), along with most departmental governors and major-city mayors. The framework objective is to coordinate a partial constitutional-reform agenda, fiscal consolidation, and a unified center-right governance structure capable of completing the Paz term.
Camacho’s intervention at the encuentro was the most direct: “A new cycle requires a new legal scaffolding,” he said, defending federalism, open economy and agro-industry rules. He also reminded Paz that “in the face of attempts to bring you down, you have Santa Cruz to govern,” a structural reference to the Camacho-led eastern region’s economic and political weight. The accord’s framework will determine whether the Paz government has the political durability to absorb the May 13 confrontation or whether it becomes the first tier of a longer-running governability crisis.
Why is the economy so fragile?
Bolivia inherits structural problems that predate Paz. The country has been running down its gas-export revenue base since 2019 as fields decline and new investment lagged. The previous MAS-aligned administration of Luis Arce sustained fuel subsidies and dollar peg through 2024 by drawing on hard-currency reserves, which collapsed by late 2025. The new Paz administration has accepted policy adjustments that the MAS would not: subsidies cut, minimum wage raised (a partial offset), and bank dollar deposits unfrozen.
The Edwin Rojas case has compounded the crisis. The former Bolivian central bank president was placed under pretrial detention earlier in May on charges related to gold-reserve management decisions. His case raises questions about prior administration policy execution and threatens to spread to other senior MAS-era officials. Sovereign bonds traded near 60 cents on the dollar before the crisis; the Rojas case and the May 13 confrontation have pushed quotes toward 55 cents.
What should investors and analysts watch next?
- March-to-La Paz arrival: The Evismo “Marcha por la Vida” caravan from Caracollo aims to reach the seat of government within 5-7 days. Arrival in La Paz with mass mobilization would be the most charged confrontation since November 2019. Watch for departmental joins beyond Oruro.
- Sovereign bond price floor: Bolivian sovereign bonds traded near 60 cents before the crisis; quotes near 55 indicate escalation pricing. A break below 50 cents would signal markets expect either restructuring or escalating governability collapse.
- Boliviano parallel/official gap: The current 10.05 parallel vs 10.10-10.31 official spread is narrow. Widening above Bs 11 parallel would indicate fresh dollar shortage and trigger fuel and food price pass-through.
- Quiroga-Camacho coordination depth: The May 9 Cochabamba accord brings together rivals who were competing in 2025. Whether Quiroga and Camacho consolidate the framework or split over individual reform components determines Paz’s congressional path.
- Treasury and IMF engagement: Bolivia has not had an active IMF program. Paz administration moves toward formal IMF discussions in the next 60 days would mark a major structural shift; absence would signal the government still expects to manage with existing tools.
Frequently Asked Questions
Who is Rodrigo Paz Pereira?
Paz Pereira is a centrist Bolivian politician who won the October 2025 presidential second round with 54.96% against Jorge “Tuto” Quiroga’s 45.04%. He took office in November 2025, ending 20 years of MAS hegemony. His father, Jaime Paz Zamora, was president from 1989 to 1993. Paz Pereira had been senator for Tarija department and ran with an austere center-right platform; his first-round surprise reading came on a low-budget campaign that capitalized on the MAS internal fracture and the economic collapse.
What is the COB?
The Central Obrera Boliviana is the country’s main labor confederation, with roots in the 1952 revolution. The COB has historically been the lead organization for general strikes and is structurally affiliated with miners, teachers, peasants and urban workers. The COB’s role has shifted across administrations; under the MAS, it was largely aligned with the government. Under Paz Pereira, it has returned to its more historical confrontational role, demanding wage compensation aligned with cost-of-living movements.
Why is the boliviano under pressure?
The boliviano was pegged at Bs 6.96 per dollar from 2011 through 2025, an unusually long peg defended through declining hard-currency reserves. By late 2025, parallel-market rates had moved sharply above the peg. The Paz administration has allowed gradual depreciation and partial dollar deposit unfreezing. The current 10.05-10.31 range reflects an effective managed depreciation; sustained spreads above Bs 11 would indicate the management is failing and a more severe adjustment is coming.
What is Law 1720?
Law 1720 was a land-titling and forest-management framework that Amazonian and indigenous groups argued favored agroindustrial expansion over communal land rights. Paz abrogated the law on May 13 as a concession to the protesting sectors. The abrogation moves the regulatory framework back to its pre-2024 condition pending negotiations on a replacement. The move addresses one of the protest grievances but does not directly address the broader fuel-subsidy and dollar-scarcity demands.
Could Paz Pereira actually be forced out?
The Bolivian constitution provides for impeachment through the Legislative Assembly, where Paz’s coalition holds a working majority. Forced resignation outside that framework would require either widespread military withdrawal of support (no signal of that) or the type of mass mobilization that produced the 2019 Morales departure (the current scale, while substantial, is below that threshold). The most likely scenario is sustained pressure, partial concessions on individual demands, and a prolonged governability crisis rather than a sudden government collapse.
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Published: 2026-05-14T07:15:00-03:00 · Updated: 2026-05-14T07:15:00-03:00 · Dateline: LA PAZ
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