Background and Context
Luis Arce, the 61-year-old economist and current president of Bolivia, announced on Tuesday that he would not seek reelection in the upcoming August elections. His decision comes as his popularity plummeted due to an ongoing economic crisis and widespread protests.
Arce’s Political Background
Arce served as Bolivia’s Minister of Economy for most of Evo Morales’ tenure (2006-2019). Morales, now Arce’s primary political adversary, accuses Arce of orchestrating a judicial persecution against him to prevent his candidacy in the August elections. A recent court ruling confirmed that no individual can hold the presidency for more than two terms.
Economic Challenges and Public Opinion
Arce took office in November 2020, winning 55% of the votes. His administration was initially praised for Bolivia’s economic prosperity during his nearly 12 years as Minister of Economy. During that period, the country’s internal production tripled, and poverty rates dropped from 38% to 15%
However, after Arce became president, the decline in natural gas production destabilized the economy. The government resorted to dipping into its international reserves to import gasoline and diesel, which were then sold at subsidized prices. This led to a severe shortage of dollars and an inflation rate of 15% in April, the highest since 2008.
Public Opinion Polls
Arce faced dwindling support in public opinion polls. A survey conducted by the consulting firm Captura at the end of March gave him only 1% of electoral preferences.
Arce’s Withdrawal and Its Implications
In a televised message, Arce declared his decision to decline the presidential reelection candidacy with “absolute firmness.” He called for unity among the left to present a single candidate against the right-wing opposition.
With Arce out of the race, the competition for leadership on the left will now be between Morales and Andrónico Rodríguez, the current President of the Senate. Rodríguez recently broke away from Morales, announcing his intention to participate in the August elections.
Key Questions and Answers
- Who is Luis Arce? Luis Arce is a 61-year-old economist who served as Bolivia’s Minister of Economy for most of Evo Morales’ tenure (2006-2019) and became president in November 2020.
- Why did Arce withdraw his reelection bid? Arce withdrew due to an impending electoral failure caused by his unpopular administration and the ongoing economic crisis.
- What is the current state of Bolivia’s economy? The economy has been destabilized by a decline in natural gas production, leading to shortages of gasoline and diesel, high inflation rates, and a severe dollar shortage.
- Who are Arce’s primary political adversaries? Evo Morales, Bolivia’s former president, is Arce’s main political opponent. Morales accuses Arce of orchestrating a judicial persecution against him.
- What are the implications of Arce’s withdrawal from the presidential race? With Arce out, the left must now unite behind a single candidate to compete against the right-wing opposition, led by Evo Morales and Andrónico Rodríguez.
