A failed military coup took place in Bolivia last month, leading to concerns. According to multiple sources including the BBC and CNN, the military coup led by the dismissed army chief General Zúñiga took place with the aim of restoring democracy and addressing social discontent in Bolivia, where there has been political instability for years and almost 40 attempted or successful coups have taken place in several decades, driven by political unrest, power struggle and other causes. The failed coup against President Luis Arce’s government—no matter whether it was a real or staged self-coup attempt— immediately led to the arrest of the dismissed military chief and was widely condemned by the Bolivian government and international leaders.
The latest coup attempt in Bolivia has some significance in economic, political and other terms. It is notable that the coup attempt was made at a time when many were unhappy with the economic front. The landlocked South American country of some 12 million people struggles with a spiraling economic crisis and rising cost of living and has been wracked by dwindling foreign currency reserves, along with mounting debt and failures to produce crucial products like gas. Additionally, a high degree of political polarization, tensions regarding the potential presidential candidacy of Evo Morales in the 2025 elections and weak government institutions have undermined the democratic governance of Bolivia. Among others, many are politically repressed in Bolivia including former leader Jeanine Áñez, who was the interim leader during 2019-20.
The government of Arce, who was elected in a re-run of a disputed election in 2020 that ended with Morales’s fleeing Bolivia amid violent protests, has made policy-based and other measures to address economic and other concerns. While the government has made attempts to industrialize and invest in new economics including tourism and the world’s biggest stores of lithium, it has continued subsidies on gas and oil imports and taken some immediate actions including the publication of the Official Gazette of the “Law for the Purchase of Gold” in 2023, that aims to strengthen Bolivia’s foreign currency reserves, to address diverse problems including the shortages of dollars and gasoline, which probably helped fight the growing financial crisis somewhat.
But there are diverse flaws in the steps taken by the government of Bolivia — the Latin American country that prepares for the 2025 general elections. The steps are inadequate to address rising living costs and the growing dollar crisis, which has been affecting the economy of the country heavily. Among others, the government steps are almost absent to address the mismanagement of the economy, take and ensure crucial support from international lending organizations to address financial crises and strengthen government institutions. Consequently, the government’s failure to address the economic crisis and resulting social discontent has fueled the waves of protests and strikes in recent months in Bolivia.
Steps are vital to address the economic crisis and other concerns in Bolivia. But an increased focus on addressing the balance of payment problem, rising living costs and other economic concerns including pressure on the Boliviano, the Bolivian currency, by the government may help reduce the economic crisis and resultant sky-high social tensions in the country. Strengthening government institutions is also vital to help them make effective economic and other decisions and address the economic challenges of the country. But the Bolivian government also needs to end its political repression.
Amir M Sayem
Chief Editor
Dhaka Opinion Magazine
