TEMPO.CO, Jakarta - Bolivia is currently on the brink of an economic crisis as a result of protests demanding the resignation of President Rodrigo Paz. The crisis was triggered by the privatization of agricultural land, removal of fuel subsidies, and demands for wage hikes for laborers.
According to a report from Anadolu on Tuesday, June 2, 2026, following five weeks of blockades crippling economic activities, President Paz relocated the government center to the Constitutional Capital of Sucre. This initiative was taken as anti-government demonstrators surrounded the government center in La Paz on May 25.
The blockades by demonstrators resulted in over 80 traffic congestion points, paralyzing the country's economy. This caused 5,000 cargo trucks to halt, leading to an estimated daily loss of around $50 million for Bolivia.
“We are standing on the precipice of a severe sanitary catastrophe,” said Bolivian observer Ricardo Paz Ballivian, as quoted by Anadolu.
The crisis has led to an accumulation of various problems, causing public distrust in the government. Last Monday, organizations affiliated with the Bolivian Workers' Union (COB) continued protests and blockades in various regions.
Neoliberal Policies
According to Bolivian political expert Valeria Duarte Galleguillos, as reported by Orinoco Tribune, they oppose Paz's neoliberal measures, including the efforts to privatize state assets and reduce funding for social programs.
In addition, Galleguillos added that the demonstrators' demands are no longer focused on repealing laws but on wanting Paz to step down from the presidency.
"The package of decrees and laws promoted by the executive branch—focused on the privatization of strategic resources, economic liberalization, and the reduction of the state’s role (DS5503)—combined with inflation, government mismanagement, broken promises, the attempt at agrarian reform, and the constant underestimation of the popular bloc as a political actor, has strained institutional stability to the breaking point," said Galleguillos.
Accumulating Crisis in Bolivia
According to a report from Americas Quarterly, the beginning of May marked a significant wave of protests in Bolivia. Various social movements, such as trade unions, teacher confederations, and farmer groups flooded La Paz to demand wage hikes amidst soaring staple prices.
During Evo Morales' leadership from the Movement for Socialism (MAS) party, the government often raised the minimum wage every Labor Day. However, this year, fiscal constraints led Paz to postpone structural wage increases.
Simultaneously, farmer groups took to the streets to protest agrarian reform policies. They viewed law 1720 as a threat to communal land rights.
Although the agrarian policies have been repealed and will be revised in the coming months, it did not quell protests across Bolivia.
Furthermore, the crisis worsened due to deteriorating fuel quality in February. The Bolivian drivers' union pressed for government accountability. However, Bolivian authorities claimed that the decline in fuel quality was due to sabotage involving a transnational smuggling network.
The entire population complained about the decrease in fuel quality, known as gasolina basura or "garbage gasoline." They rely on private vehicles to drive the daily economy.
The situation worsened when the elected president of Bolivia accused the demonstrators of being "vandals." Meanwhile, at the same time, calling for dialogue between the government and social groups to alleviate the crisis.
Stalemate in Crisis Management Efforts
Amid escalating protests, Bolivia's Vice President Edmand Lara canceled negotiations to end the crisis held on Sunday, May 31, 2026. The dialogue aimed at addressing the social and political crisis was called off because influential figures were unable to attend.
"The decision responds to the need to generate adequate conditions that allow for broad and effective participation of the different convened actors, also considering the suspension of the expanded meeting of the Bolivian Workers' Confederation (COB)," Lara said according to a report from Democrata.
In an official statement, Lara mentioned that the meeting has been indefinitely postponed. Subsequent negotiations will be communicated to government institutions, namely the Catholic Church through the Ombudsman Bolivia's Office.
These three government institutions have previously held two meetings that ended without a peace consensus.
The negotiations initiated by Bolivian authorities failed to reach a consensus due to the demand from social organizations to cancel the arrest warrants for terrorism charges against COB leader Mario Argollo and the leader of the Tupac Katari Federation Vicente Salazar.
The five-week protests have made life increasingly difficult for the Bolivian people. Demonstrators criticize Paz's right-wing policies and urge for his immediate resignation through massive blockades in several economic centers in Bolivia.
Read: Bolivia Coup Attempt Fails After Military Assault on Presidential Palace
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