Tag: bolivia

Bolivia’s Energy Crisis Deepens As Natural Gas Reserves Run Dry

Years of underinvestment in Bolivia’s gas industry have left the South American country facing a severe fuel shortage, as energy prices rise ever higher owing to the ongoing war in Iran. The energy shortages and economic crisis follow years of poor decision-making by the government.

In 2006, then-president Evo Morales took control of Bolivia’s fossil fuel industry, renegotiating contracts with international oil and gas companies and benefiting from the revenue. Much of the country’s newfound wealth was invested in public spending programs, expensive fuel subsidies, and the maintenance of a fixed currency exchange rate pegged to the U.S. dollar. Fossil fuel revenues contributed heavily to Bolivia’s economy for several years, supporting GDP expansion and the development of social programs that helped halve poverty rates.

For many years, Bolivian’s were led to believe that they had more extensive gas supplies than they actually did. However, in recent years, Bolivia’s fossil fuel sector has suffered as reserves have dwindled and no successful gas discoveries have occurred. As of April, Bolivia has an estimated 3.7 trillion cubic feet of proven reserves. The fall in gas production led exports to fall by almost 60 percent over the last decade. Bolivia continues to rely heavily on natural gas, which accounts for around 70 percent of its electricity mix.

Meanwhile, little progress has been made in developing the country’s green energy sector, leaving it facing severe energy shortages. The fall in gas revenues has left the economy suffering terribly, as inflation soars and the price of imported goods becomes ever more unaffordable. Luis Fernando Romero, the former head of an association of economists in southern Bolivia, stated, “We failed to take advantage of a historic opportunity that brought in immense revenue.”

This situation is not uncommon, with many other oil-rich states having had similar experiences. Several Middle Eastern states have long depended on oil and gas revenues for economic growth, and most have only recently announced plans to diversify their economies to reduce reliance on fossil fuels. Several countries across the MENA region announced new economic strategies following greater talk of a global green transition, which could leave them missing out on vital oil revenues if they don’t take moves to diversify and invest in value-added sectors.

The lack of investment in Bolivia’s other domestic sectors has left it struggling to stay afloat as it runs out of fuel and is forced to pay high fuel import costs. President Rodrigo Paz warned that “International prices are forcing us to make complex choices.”

In September, Bolivia’s Congress approved a $1.9 billion loan from the International Monetary Fund (IMF), even though the terms of the deal require the government to impose strict austerity measures that could fuel social unrest. The loan received approval from the IMF’s Executive Board on October 2, and the government will now be required to cut its fuel subsidies and significantly reduce public spending. It has already increased fuel prices and is expected to scrap further gasoline subsidies from the beginning of next year. The loan is expected to unlock up to $4 billion more in financing from the World Bank and other lenders.

However, there are major concerns that the new financial plan will significantly increase the cost of living for households already struggling. Last December, the government reduced fuel subsidies, leaving little support for the most vulnerable Bolivians. This led to widespread protests as people called for President Paz’s resignation. In February, there was further social unrest after the distribution of poor-quality gasoline ruined thousands of vehicles. Then, in June and July, several weeks of road blockades by protesters occurred.

Meanwhile, to tackle the ongoing fuel shortages, Bolivia’s government announced plans in September to triple the fund financing refined fuel purchases, following similar announcements by Peru and Ecuador. This is expected to help mitigate diesel shortages and rising prices. Both Peru and Ecuador have increased fuel subsidies in recent months and are focusing on increasing production at state oil refineries to alleviate the price pressure of expensive fuel imports.

In July, Bolivia’s Energy Minister Marcelo Blanco announced that the government had authorized the private sector to import and sell refined fuels to mitigate severe shortages. Then, in September, the government said that the state hydrocarbons firm plans to focus on exploration, extraction, and refining to continue developing Bolivia’s gas resources. However, experts warn that Bolivia could become a net fossil gas importer by around 2030.

As Bolivia continues to battle fuel shortages and seeks to support economic recovery by borrowing from international organizations, the government must focus on diversifying the economy by developing other value-added sectors to sustain long-term growth. In addition, the government must also develop Bolivia’s renewable energy sources to reduce dependence on expensive fuel imports and ensure the country’s energy security.

Keep reading

Evo Morales Claims Plot to Capture or Kill Him as Bolivian Justice Closes In on Former Leader

Former Bolivian president Evo Morales has once again placed himself at the center of political controversy after publishing a lengthy social media statement claiming that an international operation is allegedly being prepared to capture—or even kill—him.

According to Morales, the United States ordered the Bolivian government to carry out a military operation against him with support from the DEA, U.S. Southern Command, and several units of Bolivia’s armed forces.

Morales claimed the alleged operation is taking place in the Cochabamba Tropics, a region that has served as his political and union stronghold for decades.

In his statement, Morales accused political figures tied to Bolivia’s past governments of helping orchestrate the supposed operation, including former minister Carlos Sánchez Berzaín, who served under former Bolivian president Gonzalo Sánchez de Lozada.

Keep reading

Bolivia sentences priests for concealing decades of child sex abuse

A Bolivian court sentenced two elderly Spanish Jesuit priests to a year each in prison on Tuesday for concealing decades of child sex abuse committed by their colleague in the church.

The convictions of the priests, Marcos Recolons, 81, and Ramon Alaix, 83, mark Bolivia’s first successful criminal prosecution against high-ranking members of the Catholic Jesuit order implicated in concealing abuse cases.

Prosecutors argued that Recolons and Alaix led the Jesuit order in Bolivia while the abuse occurred. They were aware of the allegations against a priest, Alfonso Pedrajas, but failed to report them to police, allowing him to continue contact with children, according to the prosecution.

The case came to light in 2023 with the publication of a diary belonging to Pedrajas, who died in 2009. In it, he wrote about abusing at least 85 minors between 1972 and 2000, many of whom were indigenous students on scholarships at a prominent boarding school.

The diary entries sparked international outrage and intensified the debate over the Catholic Church’s accountability in child sex abuse scandals across Latin America.

Keep reading

Controversial Bolivian Socialist President Arce Accused of Staging ‘Self Coup’ To Boost His Popularity

Five days ago, Latin America was shaken by what can only be described as one of the most incompetent attempts at a ‘coup d’état’ in history.

A few units of the Bolivian army, led by supposedlt rebelling Generals, converged upon the Presidential palace in La Paz and rammed their way in with an armored car, with the stated goal of deposing the controversial Socialist goon Luis Arce – only to receive no support from other army formations, and retreat in shame after just a few hours.

Upon his arrest, the leader of the coup, General Commander of the Army Juan José Zúñiga, declared that all the fuss was actually a fake plot led by Arce himself, in an attempt to boost his popularity with the Bolivian people.

Most observers took Zúñiga’s words as a cheap cope after his failed coup, but in a shocking turn of events, former President of Bolivia, the equally socialist Evo Morales – who was one of the voices that rose against the ‘coup’ – has now accused his political ally-turned-rival President Luis Arce of staging last week’s military stunt to earn political points among the electorate.

Keep reading

There’s Much More To Bolivia’s Failed Coup Than Another CIA Regime Change Attempt

Casually dismissing everything as a CIA plot overlooks the preexisting problems that preceded this dramatic event and oversimplifies complex dynamics.

Many X users described Bolivia’s failed coup on Wednesday as another CIA regime change attempt, mostly due to its history of meddling in this landlocked and lithium-rich South American nation, but there’s much more to it than just that. Casually dismissing everything as a CIA plot overlooks the preexisting problems that preceded this dramatic event and oversimplifies complex dynamics. The present piece will concisely clarify what happened, why, the reason that it failed, and what might follow.

General Juan Jose Zuniga was dismissed earlier in the week after threatening to arrest former President Evo Morales if he tries running for a fourth term like the latter said that he wants to do in 2025 despite the Constitutional Court ruling late last year that it would be unconstitutional. Bolivia’s 2019 military coup was set into motion upon Morales winning a contentious fourth term after a 2016 referendum on extending term limits failed but was overruled by the Constitutional Tribunal in 2017.   

For those who are interested in learning more about what happened back then, “Here’s How the Hybrid War on Bolivia Succeeded in Carrying Out Regime Change”, which was pretty much due to a significant share of the population already being preconditioned to consider his victory illegitimate. In parallel with that, the US once again co-opted its traditional allies in the armed forces there to get them to intervene against him, which led to a brief de facto dictatorship that was democratically overturned a year later.

Incumbent President Luis Arce from Morales’ “Movement for Socialism” (MAS) won a commanding victory with 55% of the vote compared to his next closest challenger who only scored 28%. The prior military-installed government folded due to the political impossibility of holding onto power under those circumstances, after which some of its members were held accountable before the law for their role in the coup. This included Jeanine Anez, who assumed the presidency during that period and is still in jail.

Over the past year, Arce and Morales had a nasty falling out over the run-up to 2025’s elections, which saw Arce being expelled from Morales’ MAS. Readers can learn more about this intra-leftist dispute here and here, but it basically boils down to personality differences, not any significant policy ones. As the ruling party’s infighting worsened, so too did the economy as its financial crisis began to climax, resulting in growing protests across the country in the immediate run-up to the failed coup.

Keep reading