As Protests Roil Bolivia, We Sit Down With the President

Summary

Podcast Summary: "As Protests Roil Bolivia, We Sit Down With the President"

Podcast: Big Take by Bloomberg and iHeartPodcasts
Host: David Gura
Date: June 4, 2026

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Overview

This episode takes listeners into the heart of Bolivia’s political and economic upheaval following the election of centrist President Rodrigo Paz. Amid nationwide protests spurred by the removal of fuel subsidies and deepening economic distress, host David Gura travels to Bolivia to capture the tension firsthand, culminating in an exclusive interview with President Paz. The episode investigates Bolivia’s struggle to attract foreign investment, capitalize on lithium reserves, and deliver on demands for both economic modernization and social justice.

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Key Discussion Points & Insights

I. Bolivia at a Crossroads: The Shift from Socialism to Centrism

• After almost two decades under socialist rule, Bolivia’s November election brought Rodrigo Paz to power as the country’s first non-socialist president in 20 years.
• Paz’s platform: national unity, reduction of hatred and division, and a more market-friendly approach with an emphasis on foreign investment, particularly in Bolivia’s vast mineral (especially lithium) reserves.
• Immediate challenges: Soaring inflation (14%), massive public debt, and ongoing shortages of US dollars (01:40-03:30).

II. The Lithium Opportunity—and Its Discontents

• Bolivia’s Salar de Uyuni holds some of the world’s largest lithium reserves, seen as key to boosting the country’s fortunes in the global battery supply chain (04:50-05:18).
• Local voices, such as tour guide Jose David Valda Belen, express concerns about the environmental impact, especially the extensive water usage for lithium extraction.
  • “So that means, like, these dry areas can get more dry, you know, so that will be a big problem for these people.” – Jose David Valda Belen (06:25)
  • Tourism contributes $800 million annually to the economy; locals fear large-scale mining could destroy the natural landscape in the coming decades (06:47-07:00).
• Longstanding distrust that ordinary Bolivians will not benefit from resource extraction, echoing colonial history (07:00-08:13).

III. Investor and Legal Hurdles: Bolivia Isn’t Truly ‘Closed,’ But There’s Fear

• Lawyer Jorge Inchowste explains foreign investor wariness:
  • “Foreign investors are a little weary and concerned. Right. That their rights won't be respected... If the government had too much of a say... that gives everyone pause.” (08:42-09:15)
• Bolivia’s constitution enshrines state control over minerals, but skepticism about equitable sharing and unpredictable governance remain significant barriers (08:13-09:15).

IV. The Legacy of Evo Morales and Current Protests

• Former president Evo Morales’ movement towards socialism centralized state power across economic and civil institutions. Current protests are, in part, a backlash against both Paz’s reforms and Morales’ legacy (09:15-10:24).
• Union and social groups, led by leaders opposing Paz, have formed alliances to demand his resignation – “They made an alliance to fight together and not negotiate with the government from their own side, but fight together until Rodrigo Paz resigned.” – Sergio Mendoza (10:24)

V. Blockades: Bolivia’s Unique and Enduring Protest Tactic

• Blockades (“blockaos”) are deeply ingrained in Bolivia’s protest culture—over 200 occurred last year, shutting down roads, cities, and international commerce (10:47-11:53).
• The current blockades are notably longer, more strategic, and have led to shortages of essentials, rising pressure on the government (11:57).

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VI. The Interview with President Rodrigo Paz

Context: The face-to-face interview was postponed due to protests, but a follow-up virtual interview took place a week later, with the country still gripped by unrest (15:03).

Major Themes in the Interview

• Refusal to Resign

  • “In five years from now. When we conclude our administration, Bolivia will be an advanced nation...”
  • Paz envisions institutional reform, anti-corruption, fiscal responsibility, and pluralistic governance (15:27-16:15).

• Competing with Resource-Rich Neighbors

  • Paz draws comparisons, highlighting Bolivia’s missed economic potential:
    • “Peru generates $50 billion annually. Chile generates $65 billion annually... Bolivia possesses the highest concentration of minerals of the three, yet we generate only $6 billion per year. The question is, why do we choose to be poor?” (16:42)

• US Support and the Trump Connection

  • Paz confirms US backing, stating: “I met with President Trump... Bolivia's vision is very clear. Pragmatic is everything that is functional for the development of our economy...” (17:13)

• Investor Guarantees & Needed Trust

  • Lawyer Jorge Inchowste: “We need to build that trust... We need an adequate framework to start off with, but then we need to build the trust and we also need, I think, to have clear policies that will stand the test of time, right? ...as soon as you start seeing three or four companies that are being successful, all of a sudden we're going to have many more.” (17:45-18:50)

• Message to Foreign Investors

  • Paz, on the state of the economy and attracting investors:
    • “Twenty years later, they have left behind a shattered economy. Stripped of the natural resources... without the security required to ensure that those wishing to invest in Bolivia find clear rules and laws during this transition, laws that would foster an investment safe environment in Bolivia.” (19:32-20:15)

Notable Quote

• “The question is, why do we choose to be poor?” – President Rodrigo Paz (16:42)
• “We have been blockaded always, almost... over 200 blockades in one year, almost one per day.” – Sergio Mendoza (10:54)

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VII. The Outlook: Stalled Reforms and Rising Tension

• International steps: Bolivia completed its first dollar bond sale in four years and is negotiating a $3 billion package with the IMF (18:50).
• Popular unrest may force Paz’s government to further delay reforms; he’s pushing for new legislation allowing military intervention against protests and has not ruled out a state of emergency (20:15).

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Timestamps for Key Segments

• Bolivia’s economic and political context: 01:40-03:30
• The lithium debate and local fears: 05:18-07:00
• Investor skepticism: 08:13-09:15
• The legacy of socialism and current protests: 09:15-10:24
• Blockades and protest tactics: 10:47-11:53
• Virtual interview with President Paz begins: 15:03
• Paz on “choosing to be poor”: 16:42
• Paz on US relations and investment: 17:13-17:36
• Legal and investor framework advice: 17:45-18:50
• Economic data and IMF negotiations: 18:50
• Paz’s closing argument to investors: 19:32-20:15
• Prospect of military intervention and state of emergency: 20:15

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Memorable Moments & Quotes

• On the promise and peril of natural resources:
  • “Because if they mine a lot, this will be destroyed later on, not now, you know, not even in 10 years, maybe 50 or 60 years in the future, it will destroy.” – Jose David Valda Belen (06:47)
• On blockades as an enduring protest weapon:
  • “It's a historically practiced and very efficient practice... they organize to blockade the roads... they put stones, they put different objects... soon as a sector starts to blockade, the government pays attention to them.” – Sergio Mendoza (11:13)
• President Paz’s vision:
  • “A frontal assault on corruption, a controlled fiscal deficit, and a clear path towards growth within an open economy governed by clear laws.” – President Rodrigo Paz (15:27)

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Tone and Language

• The tone throughout the episode balances analytical rigor with personal insights—David Gura shares both expert interviews and on-the-ground perspectives.
• Speakers range from hopeful (Paz, about transformation) to skeptical (locals and union leaders fearing broken promises), capturing the nation’s uncertainty.

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Conclusion

This episode immerses listeners in Bolivia’s fraught transition toward open-market reforms under President Paz. Economic crises, social unrest, and the legacy of resource extraction combine, raising the stakes for protests and foreign investment alike. The episode’s central question—can Bolivia become “open for business” in a way that benefits its people—remains unresolved, hinging on Paz’s political survival and ability to execute reforms amid street blockades and mounting opposition.

Transcript

[David Gura]

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[David Gura]

Bolivia, the political winds have shifted. After almost two decades of socialist rule, the South American country recently elected a centrist President Rodrigo Paz. Paz celebrated his victory as a win for the whole country. He called for an end to hatred, racism and division and a new national unity. The Trump administration welcomed the win, and in President Paz's first seven months in office, Paz has pledged to make the country more attractive to outside investors who have long been interested in Bolivia's natural resources, including rare earths and lithium. But Paz has gotten off to a bad start with many Bolivians who are struggling to make ends meet. Inflation is hovering around 14%, Bolivia has a massive debt load and US dollars are scarce. I decided to go to Bolivia because I wanted to see firsthand the changes President Paz is trying to implement. I lived in Bolivia in 2005 when Evo Morales and his movement towards socialism came to power. I set up an interview with President Paz a few weeks ago. We were going to sit down in Bolivia's presidential palace to talk about his agenda. But that morning, our plans were disrupted. Protests engulfed La Paz and demonstrators had blocked highways across the country. As the day wore on, a group of teachers attacked the education ministry and mine workers threw dynamite on the city streets. What kicked off these protests was a decision Paz made a few months earlier to get rid of fuel subsidies. The price of gasoline rose sharply and what really rankled many Bolivians is the government state owned supplier provided what came to be called trash. Gasoline watered down fuel that damaged vehicles. After that, frustration built with Paz and with his inability to improve the country's economy faster. On that afternoon in mid May, police blocked the entrances to the plaza where the presidential palace is located. It took a while, but eventually we got the go ahead to climb through barricades. We were told to wait in an empty cafe for a call from one of the President's advisors. As the hours ticked by, we heard demonstrators just a few blocks away and explosions. Tear gas hung in the air along with this central question President Paz is facing. Can he convince investors Bolivia is open for business and Bolivians that business will be good for them? I'm David Gura and this is the big take from Bloomberg News today on the show Bolivia at a Crossroads. Can the country's first non socialist president in two decades deliver on his promises to open up his country to the world? Or will mass protests push him out? To transform Bolivia's economy, President Rodrigo Paz wants to harness his country's rich mineral wealth. And the President talks a lot, in particular about lithium, an essential component of batteries used for everything from cell phones to electric cars. Bolivia has one of the largest lithium reserves in the world. And a lot of it is located beneath the sprawling Salar de Uyuni. It's a salt flat on a 2 mile high plateau that is so vast it's visible from space.

[Jose David Valda Belen]

We are at 3650 meters above sea level, my friend.

[David Gura]

Very high, very high, very high.

[Jose David Valda Belen]

It's the largest salt flats on the world, you know.

[David Gura]

Jose David Valda Belen is a tour guide based in a uni.

[Jose David Valda Belen]

These are the east or the west? North and south. So the lithium mining just down on the south part of the Salar.

[David Gura]

President Paz says that if the country can develop these reserves, it'll improve the economic fortunes of some 12 million Bolivians. But like others who live in this area, Jose is worried about the impact of lithium mining and production. Getting the lithium from underneath this salt flat to a usable form takes a lot of water. Beneath this, there's a Layer of water.

[Jose David Valda Belen]

A layer of water, yeah. So what they do, it's like they build a big pots, you know, huge pots. They pump the salty water and that and displaces and then evaporate it.

[David Gura]

Okay.

[Jose David Valda Belen]

But then. Then they need a lot of sweet water or fresh water clean to wash the mineral.

[David Gura]

Jose says farmers worry they'll lose access to the water they need.

[Jose David Valda Belen]

So that means, like, these dry areas can get more dry, you know, so that will be a big problem for these people.

[David Gura]

Jose also says people here worry about how mining would impact this singularly beautiful place, which attracts visitors from around the world. More than a million people came to Bolivia last year, and they contributed more than $800 million to the country's economy.

[Jose David Valda Belen]

Because if they mine a lot, this will be destroyed later on, not now, you know, not even in 10 years, maybe 50 or 60 years in the future, it will destroy.

[David Gura]

This wasn't the first time I'd been to these salt flats. I studied abroad in Bolivia for six months in 2005, and I'd heard similar complaints about who benefits from Bolivia's natural resources back then. Some politicians were also pushing to mine the country's lithium and harness other natural resources like zinc and natural gas. But of course, this is a story that goes back centuries. Spain tapped the country's rich reserves for hundreds of years when Bolivia was a Spanish colony. And just as old is this distrust among Bolivians that they won't share in the country's mining riches, even though the country's constitution establishes state ownership of all mineral resources for the benefit of the people. Andres Paez Rodriguez, the executive secretary of Bolivia's Federation of Mining Workers, says the country's current mining laws, quote, do what they have always done. They've always been alienating and stripping away lands for a very long time, since well before colonial times, through the colony, independence, and the republic. All of that. State ownership of mines and deep skepticism mean projects haven't really gotten off the ground.

[Jorge Inchowste]

So, no, the country's never been closed for business, Right. There's always been foreign investors coming in, and there's always been the ability to do business.

[David Gura]

Jorge Inchowste is a senior partner at the law firm Dentons. He's based in La Paz, and Inchauste spends a lot of his time working with foreign investors on deals involving Bolivia's natural resources. Would you talk about the hesitancy that investors have had in the past? What gives them pause? Or what are the hurdles to getting foreign investors to come into Bolivia?

[Jorge Inchowste]

So foreign investors are a little weary and concerned. Right. That their rights won't be respected.

[David Gura]

Right.

[Jorge Inchowste]

And they won't be able to carry out the project in the terms that they. That they want. One of the main things in some strategic sectors was that you needed to be in an agreement with the government. If the government had too much of a say. Right. And you were not in a position to, you know, make your rights upheld, then of course, that gives everyone pause.

[David Gura]

President Paz, who was sworn in in November, offers investors a new and potentially friendlier face. For the past 20 years, Bolivia had been run by Evo Morales, movement towards socialism. He now lives in a remote compound, but many people here, including President Paz, hold him responsible for the current protests. That is an allegation union leaders have batted back. Sergio Mendoza, who covers Bolivia for Bloomberg, as Morales leadership has also shaped how Bolivians see the role of government.

[Sergio Mendoza]

He accumulated so much power with the mass party movement towards socialism that it became a government and a state that controlled or had a very important role in the economy, becoming practically the only actor in the economy, the only or the most important actor to give employment and to control different organizations, to control justice. Congress, of course, government and local governments too, and even different organizations.

[David Gura]

Sergio says that in the protests against the government now, unions are taking a hard line. They're not looking for talks, but demanding Paz's resignation.

[Sergio Mendoza]

So they made an alliance to fight together and not negotiate with the government from their own side, but fight together until Rodrigo Paz resigned. They say it's for us that this government is in power, we support them, and it's on us if they continue or not.

[David Gura]

And as I saw when I was in La Paz a few weeks ago, their most powerful means of protest is the blockade.

[Sergio Mendoza]

We have been blockaded always, almost. There were reports from private organizations that saying in one year, we had more than 200 blockades, you know, like almost one per day.

[David Gura]

Sergio says blockades, or blockaos, are a protest tactic that dates back centuries.

[Sergio Mendoza]

It's a historically practiced and very efficient practice and basically is that communities are very, very well organized under groups all over Bolivia. And they organize to blockade the roads that connect different departments, different cities, and even Bolivia to other countries or neighbors like Chile, Argentina, Brazil, Peru. So they blockade them. They are very well organized. They put stones, they put different objects, and yeah, it's very efficient because soon as a sector starts to blockade, the government, pay attention to them.

[David Gura]

But he says the protests that are happening now are in many ways unique.

[Sergio Mendoza]

It's different in that people are exhausted of this kind of measure and protest exhausted because also these groups that are protesting now and ad blockading are related with the previous administration, with Evo Morales, that also conducted the country to this economic crisis. It's different too, because we are seeing that these blockades are lasting a lot, like a long time. It's more than a month. I would say it's different in the way that the government is administrating this conflict. There are a lot of critiques. They are criticizing the government because apparently they are not doing anything. They are just calling for conversations and people are suffering, people are tired, people are dying on the roads. We are going to see in the next days probably if they are going to declare a state of emergency. But it's also different in the way that we don't know what exactly the government is going to do.

[David Gura]

Back in La Paz, I waited in the cafe with Sergio and our crew for that interview with President Paz. But just before midnight, one of the president's advisors told us he'd have to postpone talks with the mine workers were still going on and would continue in the coming days. So we packed up our gear and a few hours later we headed back to New York. But that wouldn't be the last we heard from President Paz. That is after the break.

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[David Gura]

A week after my team left Bolivia, we had a chance to connect remotely with President Rodrigo Paz. He and I spoke as protests continued to snarl the country and blockades across Bolivia led to shortages of food and gas and medical supplies. Many of these protesters are calling on you to resign, to step down. And I'm wondering if there's a point at which that will become something that you would consider

[President Rodrigo Paz]

in five years from now. When we conclude our administration, Bolivia will be an advanced nation grounded in a modernity made necessary by new institutions, A frontal assault on corruption, a controlled fiscal deficit, and a clear path towards growth within an open economy governed by clear laws. Moreover, it will be a country where racial, regional and cultural differences are not exploited to fuel political conflict, where I hope I will leave behind a government characterized by pluralistic participation.

[David Gura]

The President told me he sees Bolivia as a country that can compete with its regional rivals and can replicate their successes.

[Jose David Valda Belen]

Peru.

[President Rodrigo Paz]

Peru, Bolivia and Chile collectively hold the largest concentration of minerals in the world. Peru generates $50 billion annually. Chile generates $65 billion annually.

[Jorge Inchowste]

Bolivia.

[President Rodrigo Paz]

Bolivia possesses the highest concentration of minerals of the three, yet we generate only $6 billion per year. The question is, why do we choose to be poor?

[David Gura]

I wanted to know more about the support he's gotten and continues to get from the United States. Trump administration officials have publicly backed him and they've embraced Paz's new vision for Bolivia. Recently, Bolivia and the US Signed a Memo of Understanding on critical minerals.

[President Rodrigo Paz]

I met with President Trump. There is a relationship regarding the geopolitical and geo economic vision on the continental level. Bolivia's vision is very clear. Pragmatic is everything that is functional for the development of our economy, of the economy of the people. We will be seated so that we can collaborate and be part of a global vision.

[David Gura]

I asked Jorge and Chaste, the lawyer in La Paz, what Bolivia has to do to compete to be, as the President has said, open for business.

[Jorge Inchowste]

So it's not an immediate thing. Chile, for instance, has a long track record, right? We don't. We have to build. That trust is not built in one day, right? So we need to build that trust. We need an adequate framework, and I think that government's working on that. So we need an adequate framework to start off with, but then we need to build the trust and we also need, I think, to have clear policies that will stand the test of time, right? So we have to move within the confines and the requirements of the Bolivian constitution. And the law. And we have to make sure that we're going with transparent, adequate processes. Right. Giving adequate guarantees to the foreign investors. So I think it's a process, right. And it's also one of those processes where one goes in and then that more will follow. And as soon as you start seeing three or four companies that are being successful, all of a sudden we're going to have many more.

[David Gura]

Bolivia just had its first dollar bond sale in four years. The country raised about a billion dollars and it's turned to the International Monetary Fund for help. Bolivia is in negotiations for a $3 billion aid package. But just six months into President Paz's five year term, Bolivians are running out of patience. I imagine there are investors outside the country who are watching what's unfolding in Bolivia and wondering how much has changed, if it's still status quo, that there are protests and demonstrations and overarching uncertainty. What would you say to those investors or those prospective investors about what Bolivia is like today and how welcoming Bolivia is of outside investment?

[President Rodrigo Paz]

We were promised 20 years of the possibility of becoming a Switzerland. That was the promise made 20 years ago. Twenty years later, they have left behind a shattered economy. Stripped of the natural resources, such as hydrocarbons that we would otherwise export. We possess abundant hydrocarbon reserves, yet they have left us without the necessary investments and without the security required to ensure that those wishing to invest in Bolivia find clear rules and laws during this transition, laws that would foster an investment, safe environment in Bolivia.

[David Gura]

But in the face of popular protests, Preston Paz has had to put those reforms on hold. He's pushing Bolivia's parliament to approve a new bill that would allow the country's military to quell protests. And the president hasn't ruled out declaring a state of emergency. This is the big take from Bloomberg News. I'm David Gura. To get more from the big take and unlimited access to all of bloomberg.com subscribe [e-mail] podcast offer. Thanks for listening. We'll be back tomorrow.

[Ryan Seacrest]

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[David Gura]

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