Bolivia's President on the Brink as Crisis Deepens

Jakarta, CNBC Indonesia - Bolivia has descended into political and social crisis following a month-long wave of protests over economic turmoil, leading to shortages of food, fuel, and medicine. President Rodrigo Paz has warned the country is at a ‘critical point’ amid intense pressure for him to step down.

The political capital La Paz is surrounded by thousands of low-income workers and indigenous groups, with road blockades paralysing logistics and causing shortages across regions.

‘Our country needs order and has reached a critical point,’ Paz said in a public address in La Paz recently. He called for dialogue with protesters but also hinted at tougher measures, stating, ‘If they do not want dialogue… there is no other option,’ and insisted that deaths resulting from blockades must be held accountable.

This situation is a major blow to Paz’s six-month-old administration, which initially brought hope after decades of socialist rule and the worst economic crisis in generations. However, optimism quickly faded as fuel subsidy removal drove energy prices up nearly 90%, with citizens complaining about poor-quality fuel damaging vehicles.

Paz attempted to quell unrest by raising the minimum wage by 20%, providing cash aid to vulnerable families, and revoking a controversial land bill, but these measures have failed to calm public and union anger.

‘He wasn’t suddenly asked to resign; he has time to address these issues,’ said protest leader Mirian Huarina, according to local media.

The blockade of La Paz has severe consequences as the city relies heavily on mountain roads for supplies. Thousands of trucks carrying food, medical supplies, including hospital oxygen, are stranded on highways. Supermarket shelves are emptying of beef, eggs, and fruits, with the government even airlifting subsidised chickens via military aircraft.

The government reports at least four deaths due to delayed medical care. Hospitals remain operational but are rationing supplies and prioritising critical patients.

Parliamentary pressure has also mounted, with Bolivia’s Congress lifting restrictions on military involvement in civil unrest, enabling a 60-day state of emergency. However, Paz stated military deployment would be a ‘last resort’.

Amid the chaos, former President Evo Morales has re-emerged calling for early elections, warning Paz faces only two choices: ‘militarisation’ or elections within 90 days. Paz’s government has accused Morales’ supporters of funding protests, a claim denied by the ex-president’s camp.

The crisis has also sparked geopolitical tensions in Latin America. US President Donald Trump’s allies support Paz and condemn protests as destabilisation efforts, while Colombian President Gustavo Petro defended the demonstrations as a ‘struggle for Latin American dignity’, prompting Bolivia to expel Colombia’s ambassador.