Government representatives stated that during this period in office, they have managed to phase-out of fuel subsidies, stabilize the exchange rate, control inflation, and reactivate the private sector.
January closed with Bolivia’s participation in the World Economic Forum in Davos and the International Economic Forum for Latin America and the Caribbean, organized by CAF in Panama. At both events, the Government showcased that the country has embarked on an accelerated economic shift and that this change is already being recognized by the main international financial institutions as part of the broader Bolivian economic reform process.
In fact, this past week in Panama, the administration of President Rodrigo Paz welcomed recent signals from the International Monetary Fund (IMF), which highlighted the speed with which the first steps toward structural adjustments were executed.
The Minister of Economy, José Gabriel Espinoza, stated that the IMF had initially expected the adjustment and stabilization process to take up to two years, but Bolivia managed to implement key measures “in just 11 weeks,” which is the amount of time the Paz administration has been in office.
Espinoza participated in Davos, where he held meetings with IMF authorities, and later reinforced those discussions in Panama, where he accompanied President Rodrigo Paz at the CAF-organized forum.
“We are doing things that the Fund believed could be done in one to two years, in barely two months,” the minister said. Among these measures, he mentioned the removal of fuel subsidies, exchange rate stabilization, inflation control, and the reactivation of the private sector, all without major social unrest. These actions, he emphasized, form the backbone of the Bolivian economic reform process currently underway.
That assessment was shared in Davos by IMF Managing Director Kristalina Georgieva, who described the Bolivian government’s efforts as “impressive” and confirmed that the institution will support the process “at every stage.”
For the Executive Branch, this statement carries particular political weight, since during the 20 years of MAS rule, the IMF was excluded from the economic debate and portrayed as incompatible with the statist model applied in the country.
Re-engagement with the international community
The Paz administration interprets this support as a sign that Bolivia is beginning to emerge from the international isolation that, according to the president himself, characterized the country in recent years.
This perception was reinforced by Foreign Minister Fernando Aramayo, who was tasked with reactivating channels of engagement that, in his view, had been neglected due to the ideological approach of the previous government.
“We have brought Bolivia back to the world in this space. And a no less important aspect is the set of bilateral meetings that have taken place,” Aramayo noted.
Assessments
The absence of neighboring heads of state at the Bicentennial events in August 2025 is cited by the Executive as a symbolic example of that political and diplomatic distancing.
Against this backdrop, Davos and Panama were used as platforms to reposition the country. Espinoza summarized that journey with a phrase rich in political symbolism: “from Davos to Potosí, from Potosí to Panama,” he emphasized.
The reference to Potosí points to a key domestic decision: the return of dollars to the financial system and to depositors, a measure aimed at restoring confidence after the currency crisis.
Confidence, markets, and country risk
The Government argues that the speed of the adjustments has already begun to be reflected in financial indicators. Espinoza stated that country risk has fallen below 600 basis points, a level not seen since the onset of the so-called financial “corralito.”
Beyond the technical data, the Executive presents this as a political signal: markets are once again paying attention to Bolivia after years of distrust.
“The key word is confidence,” the minister insisted, explaining that the goal is to reduce risk perception in order to attract foreign investment and reactivate domestic investment. This renewed credibility, he added, strengthens the Bolivian economic reform process in the eyes of global investors.
In his assessment, Bolivia is becoming relevant again not only because of its natural resources—minerals, gas, and agribusiness—but also due to its strategic location at the heart of South America, with the potential to connect logistical chains between the Pacific and Atlantic oceans.
More financing
Another political pillar of the official message is the redefinition of the State’s role. After a period in which the public sector came to control nearly 80% of economic activity, the Government now proposes a State that facilitates and catalyzes private investment.
Espinoza emphasized that the resources announced by CAF and the Inter-American Development Bank (IDB) should not be understood as traditional debt, but rather as financing aimed at public-private partnerships and strengthening the private sector.
In Panama, the minister also introduced the concept of a “country portfolio,” an approach designed to move beyond the sector-based logic of the past and integrate mining, energy, infrastructure, and agribusiness into a unified strategy to link Bolivia to global value chains.
A message to the past and the future
The political reading the Government draws from its participation in Davos and Panama is straightforward: Bolivia is seeking to distance itself from the MAS economic model and demonstrate that the country can implement deep adjustments within unprecedented timeframes.
IMF backing, emphasizing the speed of the process—11 weeks instead of two years—thus becomes one of the Executive’s main arguments to claim that the country is at a turning point.
The challenge, the Government admits, will be sustaining this pace through legislative reforms, political stability, and tangible results. The message Bolivia delivered to the world is clear: the adjustment has already begun, it has been swift, and according to the IMF, it is moving faster than expected.