Political polarization intensified both between the governing Movement Toward Socialism and the right-wing opposition and within the governing party itself, where supporters of President Luis Arce and former President Evo Morales increasingly competed for influence. The separation of powers has significantly weakened, particularly in judicial independence. Conflicting interpretations of the 2019 elections continue to divide society, and the failed coup attempt in June 2024 led by General Juan José Zúñiga deepened mistrust after he claimed the incident had been coordinated with President Arce.
Bolivia remains in a severe economic crisis marked by declining natural gas exports, shrinking international reserves and persistent fiscal and external deficits. The country reached its pre-pandemic level of gross domestic product only in early 2023. Falling gas revenues triggered a balance-of-payments crisis, leading to fuel and currency shortages, rising inflation and growing dependence on external borrowing, casting doubt on the sustainability of the government’s neo-developmentalist strategy.
Governance is constrained by polarization and institutional fragmentation. Economic weakness further limits the government’s ability to implement coherent reforms.
