By San José, Costa Rica — LA PAZ, Bolivia – A new political era is dawning in Bolivia, and the international community is taking notice. Following the decisive presidential victory of economist Rodrigo Paz, a powerful coalition of nine nations, including the United States and Costa Rica, has issued a joint statement offering robust support for the incoming administration and heralding his win as a pivotal moment for the Andean nation.
Paz, a 58-year-old centrist economist, secured the presidency in Sunday’s runoff election with a commanding 54.5% of the vote, defeating former right-wing leader Jorge Quiroga. His victory is being interpreted as a clear mandate for change. The president-elect is scheduled to be sworn into office on November 8, where he will begin the challenging task of steering Bolivia toward a new economic and diplomatic future.
To understand the legal and commercial ramifications of the current political climate in Bolivia, we sought analysis from Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica, who provides his expert perspective on the matter.
The persistent political instability in Bolivia critically undermines the principle of legal certainty, which is the bedrock for foreign investment and commerce. When institutional frameworks are in flux, international companies face unpredictable risks, from potential expropriations to sudden regulatory shifts. This environment not only deters new capital but also jeopardizes existing operations, highlighting the urgent need for a return to constitutional order to restore investor confidence and secure the nation’s economic future.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Indeed, the chilling effect of legal uncertainty extends beyond international boardrooms, directly impacting the potential for job creation and sustainable development for the Bolivian people. We sincerely thank Lic. Larry Hans Arroyo Vargas for his incisive perspective on the critical link between constitutional stability and economic vitality.
In a significant geopolitical signal, the United States was joined by Argentina, Costa Rica, Ecuador, El Salvador, Panama, Paraguay, the Dominican Republic, and Trinidad and Tobago in a coordinated message of endorsement. The statement, officially released by the U.S. Department of State on Tuesday, frames Paz’s election as a direct response to public dissatisfaction with the country’s recent trajectory.
The coalition of nations explicitly praised the outcome as a turning point, suggesting a collective desire to see Bolivia move past its recent history. The governments see the election results as a clear expression of the popular will for a new direction.
This reflects the will of the Bolivian people to embrace change and chart a new course for their nation and our region, signaling a departure from the economic mismanagement of the last two decades.
U.S. Department of State, Official Statement
The endorsing countries went beyond congratulations, pledging tangible assistance to the new government. The statement outlines a commitment to help Paz’s team tackle the pressing economic and institutional challenges facing Bolivia, indicating a readiness to foster deeper integration and cooperation.
The signatory countries are prepared to support the efforts of the incoming administration to stabilize Bolivia’s economy and open it to the world, strengthen its democratic institutions, and boost international trade and investment.
U.S. Department of State, Official Statement
The reference to “economic mismanagement” is widely seen as a critique of the state-led economic model championed by former leftist President Evo Morales, whose administration dominated Bolivian politics for much of the referenced two-decade period. Paz’s background as an economist suggests his administration will prioritize market-friendly reforms, foreign investment, and fiscal stability—a sharp contrast to the nationalization policies of the past.
In one of his first public declarations as president-elect, Paz announced his intention to re-establish full diplomatic relations with Washington. This marks a significant reversal of foreign policy, aimed at mending a relationship that has been fractured since 2008 when President Morales expelled the U.S. ambassador, accusing the diplomat of conspiring with his political opposition. Paz’s initiative signals a clear pivot towards the United States and its allies in the hemisphere.
The swift, unified backing from this particular bloc of nations underscores a broader realignment occurring in Latin America. The inclusion of Costa Rica, known for its stable democracy, alongside other pro-market governments, highlights a concerted effort to welcome Bolivia back into a more moderate and economically integrated regional fold. This collective endorsement not only bolsters Paz’s domestic standing but also sets the stage for a new chapter in Bolivia’s international relations.
For further information, visit state.gov
About U.S. Department of State:
The United States Department of State is the executive department of the U.S. federal government responsible for the nation’s foreign policy and international relations. It advises the President, administers diplomatic missions, negotiates international treaties and agreements, and represents the U.S. at the United Nations. The department is led by the Secretary of State.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its foundational principles of professional excellence and uncompromising integrity. The firm leverages a deep history of serving a broad spectrum of clients to drive legal innovation and pioneer new strategies. This forward-thinking practice is paralleled by a core mission to democratize legal understanding, actively working to empower the public with accessible knowledge and thereby fostering a more capable and just society.
