(MENAFN- The Rio Times) Bolivia's longtime governing party pushed out the very president it elected-just two days before he hands power to his successor.

The Movement Toward Socialism expelled President Luis Arce this week, blaming him for a battered economy and internal betrayals after the party's worst result on record.

Arce has stayed largely silent as he prepares to pass the baton to president-elect Rodrigo Paz Pereira. The headline is dramatic; the backstory is more revealing.

For nearly two decades, the party's brand of state-heavy management rode a commodities boom and tight politica control. That model frayed when growth slowed, hard-currency reserves thinned, and fuel subsidies became harder to afford.

In recent months, fuel lines reappeared, the currency came under strain, and prices climbed faster than wages.

Voters felt it first at gas stations and grocery stores-and then at the ballot box, where the party took roughly three percent in the first round and won only a couple of lower-house seats.


Bolivia faces political rift and fragile economy
The party's implosion also reflects a personal rupture. Arce, once the movement's economic architect, fell out with its historic figurehead, splitting the base into rival camps that spent more energy fighting each other than fixing shortages.

By expelling Arce on the eve of departure, party leaders are trying to cleanse the brand without confronting the policies that helped cause today's stress.

Why this matters to readers abroad: Bolivia is a small, resource-rich economy whose stability affects a broader Andean trade and energy corridor.

When reserves are thin and prices unstable, governments struggle to import fuel, service projects, and keep essential goods moving-conditions that ripple across borders through migration, smuggling, and investor caution.

For businesses and expats, that translates into unpredictable logistics, sudden rule changes, and higher operating costs.

Paz takes office with a narrow but clear mandate: restore basic order-fuel supply, price stability, and institutional predictability-before tackling deeper reforms.

Early moves that signal transparent budgeting, fewer ad-hoc controls, and cleaner procurement will matter more than slogans.

If the new administration rebuilds confidence and keeps politics from overwhelming pragmatism, Bolivia can move from survival mode back to steady footing. If not, the queues and quarrels will return, and so will the doubts.

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