The recently inaugurated Rodrigo Paz has wasted no time in embarking on his project to neoliberalize the Andean country. According to the president, Paz proposes cutting public spending by almost 30% in 2026, equivalent to 4 points of GDP.
In addition, he has proposed eliminating a series of taxes, especially for the wealthiest. One of these is a special tax on large fortunes, which Paz has promised to eliminate. The special tax is levied on those with fortunes of more than USD 4 million (less than 1% of the population) in a country where the basic salary is less than USD 400.
hate hate hate hate hate hate
Paz has announced the creation of at least ten “Truth Commissions”, which, he says, will be responsible for uncovering acts of corruption in public institutions during previous administrations.
Few public companies have been left out of this sort of “new neoliberal inquisition.” State-owned oil, road, telecommunications, lithium, and other companies will be investigated for alleged irregularities. Even before the investigations begin, Paz has already claimed that the alleged damage to the state amounts to nearly USD 15 billion.
They're going to try to open up all these SOEs for US looting.
However, Paz will have to face an opposition that, despite losing the presidency, has not lost its significant capacity for mobilization and historical resistance to neoliberal measures. Furthermore, within his government, Paz has already experienced a recent rift with his vice president, Edman Lara, who called the president a “liar” and claimed that he is poorly advised in creating the “Truth Commissions”.
This, though, is a nice piece of info. VP and President at each other's throat before taking office while the movement behind MAS remains active reinforces my take I've been saying all year: Bolivia's right wing turn is not going to last even a single term.