Bolivia's Turbulent Times: Unrest And Political Chaos

Bolivia has been through a tumultuous period, with a coup d'état in 2019, economic turmoil, and a failed coup attempt in 2024. The country has also faced social and political unrest, with protests and strikes over election results and government policies. The interim government has been accused of repression and implementing neoliberal policies. Bolivia's politics are complex and deeply divisive, with strong support and opposition for former President Evo Morales and his Movement to Socialism (MAS) party. The country's recent history has been marked by the discovery of vast natural gas reserves and lithium resources, as well as ongoing debates about indigenous rights and social justice.

Bolivia's president Luis Arce denies attempted coup

On 26 June 2024, Bolivian President Luis Arce claimed that an attempted coup was underway after troops seized control of a central square in La Paz, which houses government buildings. The troops were led by General Juan José Zúñiga, who was removed from his post on the eve of the turmoil.

In a video message, President Arce urged citizens to take to the streets to defend the country's democracy:

> We need the Bolivian people to mobilise and organise themselves against this coup d’état and in favour of democracy. We cannot allow, once again, attempted coups to claim Bolivian lives.

The president confronted Zúñiga as he entered the palace and was filmed instructing the general to stand his troops down: "I am your captain. Obey my orders."

By the end of the day, Arce had named a new military high command and reports suggested that the rebellion had failed. Zúñiga was detained on suspicion of terrorism and armed uprising at the entrance to the general staff headquarters in La Paz.

The attempted coup occurred against a backdrop of political fights between Arce and his former ally, ex-president Evo Morales, over control of the ruling party, as well as a severe economic crisis. Tensions have also been building ahead of the 2025 general elections, in which Morales plans to run against Arce.

Economic turmoil in Bolivia

Bolivia has been in a state of political and economic turmoil since the coup d'état of 2019, which saw the removal of President Evo Morales. The interim government, led by Jeanine Áñez, implemented neoliberal economic policies and persecuted members of Morales' Movement for Socialism (MAS) party. This period of instability, coupled with the COVID-19 pandemic, had a detrimental effect on the country's economy, which has historically been dependent on the export of natural resources.

The discovery of new natural gas reserves in 2024 has been touted as a potential boon for the country, but it is yet to be seen if this will have a significant impact on Bolivia's economic woes. In the meantime, the country is facing a shortage of US dollars, causing prices to surge and creating long lines at supply-strapped gas stations.

The economic turmoil has fuelled distrust in the government, with many Bolivians more concerned about pressing economic issues than the alleged coup attempt that made headlines in 2024. This period of economic hardship comes after a period of relative economic success under the Morales administration, which nationalised hydrocarbon production and saw a reduction in poverty and illiteracy, as well as improvements in hygiene and life expectancy.

The current economic situation in Bolivia is a complex issue with deep historical roots. The country's dependence on natural resource exports, particularly to the United States, has made it vulnerable to market fluctuations and external political pressures. Additionally, the COVID-19 pandemic and recent political instability have exacerbated existing economic challenges.

Bolivia's opposition leader in prison

Bolivias opposition leader in prison

Bolivia's opposition leader, Luis Fernando Camacho, has been in pre-trial detention since 30 December 2022 on charges of sedition and terrorism. Camacho, the governor of Bolivia's most prosperous region, Santa Cruz, has vehemently denied the allegations and characterised his detention as a "kidnapping".

Camacho's arrest is connected to the toppling of former leftist president Evo Morales in 2019. An October 2022 arrest warrant accused him of "terrorism" without giving further details. Camacho, often seen in protests with a Bible in his hand and a rosary around his neck, led some of the demonstrations demanding that Morales leave power that year.

Camacho's health has deteriorated during his time in prison. In September 2023, he was briefly allowed to leave his high-security prison cell to undergo medical tests in hospital. His lawyer protested that Camacho had not been allowed to receive all the tests ordered by a medical board, and said they would request the cessation of preventive detention as his life was at risk.

International human rights experts have stated that Camacho's imprisonment, despite him not being convicted of a crime, demonstrates how Bolivia's justice system is often used for political purposes. The independence of the judiciary in Bolivia is openly questioned, and the country has a high rate of pre-trial detention.

Camacho's detention sparked protests and road blockades in his native Santa Cruz that lasted for weeks. His supporters set fire to the prosecutor's office and assembled in the streets, with some waving the region's flag and throwing firecrackers.

Camacho has long been at odds with the leftist government of President Luis Arce and has advocated for a federal model of governance. Santa Cruz, a wealthy agricultural region, has frequently clashed with La Paz and sought a greater share of tax revenues.

Camacho is the second high-profile political figure linked to Morales' ousting to be detained. Ex-president Jeanine Áñez was jailed in 2022 after being found guilty of orchestrating a "coup".

Bolivia's natural gas discovery

On July 15, 2024, Bolivian President Luis Arce announced the discovery of a 1.7 trillion-cubic-foot (TCF) natural gas reserve, located north of the country's administrative capital, La Paz. This discovery is the largest in the country since 2005 and has been named the Mayaya Centro-X1 IE field.

The landlocked South American nation has faced an energy crunch linked to years of declining oil and gas production, which has impacted the country's currency reserves. The state energy firm, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), has been exploring ways to overcome recent fuel shortages. The new natural gas field is expected to add to Bolivia's existing gas reserves, which stood at 8.7 trillion cubic meters in 2019, according to YPFB.

The Mayaya Centro-X1 field is estimated to be the country's third-best-producing field and is expected to revive the gas industry, which was a key driver of economic growth in the early 2000s. President Arce described the discovery as "a new chapter" for the northern region, offering hope for Bolivia to maintain its status as a significant gas exporter. The discovery is also expected to contribute to economic recovery and a new era of oil and gas production in the country.

The $50 million investment in the drilling project by YPFB is a significant step towards addressing the country's energy challenges and reversing the decline in natural gas production. Bolivia, once a top-ten natural gas producer, had become a net importer of hydrocarbons, spending $2.9 billion on diesel imports while earning only $2 billion from natural gas exports. The new discovery is expected to boost the country's foreign exchange reserves and help alleviate the fuel shortage crisis.

Bolivia's beleaguered president

Arce's predecessor, Evo Morales, served as Bolivia's president for over thirteen years before resigning in 2019 amid a coup d'état. During his time in office, Morales nationalised the country's considerable hydrocarbon reserves and implemented policies that improved social indicators, such as reducing poverty and increasing life expectancy. However, his expulsion of the US Agency for International Development and suspension of the US Drug Enforcement Agency's military eradication programme against coca drew disapproval from the US.

In the aftermath of Morales' resignation, an interim government led by Jeanine Áñez took power. This administration was characterised by repression against the Movement to Socialism (MAS) and social movements, with 36 people losing their lives. It also pursued neoliberal economic and political policies and engaged in symbolic and reactionary acts of violence, such as the denigration of the Wiphala flag, which represents the diversity of Bolivia's indigenous people.

The interim government's actions led to widespread discontent, and in 2020, presidential and legislative elections were held, resulting in Arce's victory. As Bolivia's 67th president, Arce has struggled to revive the country's economy and address the fuel and foreign currency shortages. However, the recent discovery of a vast natural gas field, named Mayaya X-1, just north of the capital, La Paz, may provide some relief. This field is estimated to hold 1.7 trillion cubic meters of gas, with a market value of $6.8 billion, and could be a significant boost to the country's gas industry and exports.

Despite this promising discovery, Arce continues to face challenges, including ongoing economic difficulties and the lingering political turmoil following the 2019 coup.

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