Published On 21 Aug 2026
Boliabriel Espinoza from his post after the minister was censured by the country’s Congress
The cabinet shake-up is likely to be perceived as a concession by Paz, who has faced public anger about the country’s ongoing cost-of-living crisis
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The announcement came in a decree published on Friday in the government’s official gazette
It names Oscar Mario Justiniano Pinto as interim economy minister and explains he will serve in the role until a permanent candidate is appointed. The decree does not, however, offer a prospective timeline for the eventual replacement
The decision to fire Espinoza, however, marks a reversal for the Paz government
On Tuesday, the Boliear before the legislature to answer questions about the economy. Under the country’s constitution, a censure tees up a subsequent dismissal
The right-wing Paz administration initially said it would fight that decision as a tribunal reviewed the dispute. But Friday’s decree suggests the president changed course
Boli Paz, a senator at the time, was elected last October after pledging to bring stability back to the South American nation
His inauguration the following month marked an end to nearly two decades of governance by the Movement Toward Socialism (MAS). Paz, by contrast, ran on a campaign of “capitalism for all”
His victory was fuelled by concerns about Boliountry had seen a decline in its natural gas production, with mismanagement, depleted reserves and a lack of new exploration cited among the reasons
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With a shortfall in outside revenue, Boli leading to further instability
But Paz has struggled to address Boli, more than 37 percent of the population fell below the national poverty line
Last December, Paz’s government nixed longstanding fuel subsidies, prompting protest
A land reform policy signed in April likewise spurred an outburst of public unrest, with rural and Indigenous voters fearing it would weaken protections for small-property owners
Paz ultimately reversed course on the policy the following month, but throughout much of May and June, the country was gripped by roadblocks, marches and other public demonstrations, with some protesters calling for Paz’s resignation
The president declared a state of emergency in June, and the country’s Congress approved the use of the military to clear the blockages
The decision to fire Espinoza comes at a key juncture for the Paz administration
Paz is currently seeking congressional support for a series of economic reforms, along with a financing programme from the International Monetary Fund (IMF)
News of Espinoza’s departure was greeted as a sign of cooperation with Congress. Through the decision, Paz was “showing a measure of humility and complying with the Constitution”, according to opposition lawmaker Roland Pacheco
But Paz’s government continues to face domestic backlash. Supporters of former President Evo Morales continue to oppose the new administration, and the left-wing leader continues to play an outsized role in the country’s politics
Morales has encouraged resistance to Paz’s austerity measures. A court in Boli him of encouraging his supporters to take part in an “armed uprising” in June. He also faces a separate warrant for statutory rape
In a social media post, Morales accused the government of persecuting him “to conceal the true drama Boli that has abandoned the people and protects corruption”
