Víctor Paz Estenssoro
Encyclopedia
Ángel Víctor Paz Estenssoro (2 October 1907 – 7 June 2001) was a politician and president of Bolivia
. He ran for president 8 times (1947, 1951, 1960, 1964, 1978, 1979, 1980, and 1985), winning in 1951, 1960, 1964, and 1985.
and others) the Movimiento Nacionalista Revolucionario (English: Revolutionary Nationalist Movement
, MNR), originally a reformist revolutionary movement and later a centrist party. Paz became an influential member in the cabinet of Colonel Gualberto Villarroel
(1943–46), but was forced out of that government as a result of pressure emanating from Washington. The United States was at the time involved in World War II, and suspected some members of the MNR leadership of harboring pro-fascist sympathies. Paz Estenssoro nonetheless ran for president in 1947, earning 3rd place, and again in 1951, when the MNR surprisingly won the electoral contest, despite the fact that the laws of that time confined the vote to a small, propertied stratum of the citizenry. The elections, however, were unilaterally annulled by the ultra-conservative government of Mamerto Urriolagoitia
, and the MNR at that point went underground.
. Paz became the first President in the new government (in recognition of his 1951 electoral victory) and served his first four-year term from 1952 until 1956.
, PRI). The crucial difference between the MNR and PRI was the decidedly de-centralised structure of the country's new military power (i.e., armed workers and peasants), which was largely overseen by the left-wing minority bloc in the MNR, headed by COB leader, Juan Lechin.
was elected, serving as President from 1956 until 1960. During the Hernán Siles
administration, the MNR began to polarize and fragment, with a conservative wing led by Wálter Guevara
and an increasingly assertive left-leaning faction commanded by the charismatic leader of the Central Obrera Boliviana (English: Bolivian Workers' Central, COB), Juan Lechín . To prevent the fracturing of his party, Paz returned from London (where he had been serving as Bolivian ambassador) and ran for re-election in 1960, winning with an ample majority of the votes. His choice as vice-presidential running mate was the increasingly hard to manage Juan Lechín, an action that prompted the defection from the MNR of Walter Guevara
, who felt he had been stepped over.
, increasingly leaned on the "new" armed forces for support. This produced the inevitable final rift, and Lechín was expelled from the party prior to the 1964 elections.
Increasingly unable to control events, and considering himself the only man who could keep the MNR coalition together, in 1964 Paz decided to amend the constitution to allow himself to run for re-election. Traditionally, attempts such as these (known as "prorroguismo") have been strongly condemned by the Bolivian political elites, many of whose members may have been waiting for their turn to occupy the presidential palace for years. This was no exception, and Paz's move ended up being his undoing. To symbolize Paz's steady rightward drift, he chose the charismatic commander of the Bolivian Air Force, General René Barrientos
, as his running mate. To be fair, Paz's increased reliance on the armed forces was to some extent influenced by Washington's constant demands that the military be fully reconstituted and equipped to fight possible Cuban-style Communist insurgencies. In any case, the René Barrientos
choice was a final act of folly, as Paz did not seem to have noticed the deep resentment of the outwardly loyal commanders of the "new, revolutionary" military toward the MNR's manipulation of the armed forces for political ends.
and Alfredo Ovando, commander of the army, with the aid of CIA. Paz flew to a long exile abroad, bitter toward René Barrientos
' betrayal and unhappy that the "Revolution" had taken such a sad turn. It was not until 1982 (with minor and very temporary exceptions) that military rule ended. By this time Paz and Siles
had split, with Siles
supporting more leftist policies. Guevara
, for his part, had supported René Barrientos
and served in his administration. In 1969 René Barrientos
died and new, populist military governments of progressive bend gained power in Bolivia (1971–72).
military government (1970–71) became unbearable to most civilian elites of centrist and conservative persuasion, Torres was overthrown in a bloody coup d'état led by then-Colonel Hugo Banzer
with full support of the largest political party in the country, Paz's MNR. This too was a move that would cost Paz and his party dearly in the years to come, especially in future elections. Paz was apparently under the impression that Hugo Banzer
would rule for a year or two and then call elections (which he, of course, would win); none of this happened, as in 1974 the wily general broke with the MNR, exiled Paz, and proceeded to rule only with military support until 1978.
dictatorship, Hernán Siles
was turning steadily to the left and gaining adherents at Paz's expense. When at long last elections were called in 1978, it was apparently Hernán Siles
who won it (there were vast irregularities and the elections were annulled), with Paz getting only third place. It was a major decline from what the MNR
had been used to obtaining in the 1950s and early 1960s. Elections were re-scheduled for 1979, and when they took place Hernán Siles
won again but this time Paz got second place. The elections again proved inconclusive, however, in as much as none of the candidates polled the required 50% of the vote to win direct election, and thus the outcome was to be decided by Congress. Partisan intransigences prevailed and the latter could not agree on any of the candidates, eventually settling on naming as provisionl President the head of the senate, Wálter Guevara
, then in alliance with Paz's MNR
. He was charged with calling elections again in 1980. Those elections reconfirmed Hernán Siles
' victory and Paz's second place, but the military intervened rather than allow Hernán Siles
(now associated with parties deemed to be from the "far left") to take office. General Luis García Meza grabbed the reins of power in the bloody coup d'état of July 17, 1980, and Paz once more flew to exile. In 1982, the beleaguered military finally left the Palacio Quemado
and confirmed the results of the 1980 elections, making Hernán Siles
president.
Paz's MNR
opposed Hernán Siles
on every front, as his administration plunged the country into a hyperinflationary spiral. In fact, this was Bolivia
's most serious economic crisis in its history, one largely prompted by the collapse of international tin prices and the onset of the Latin American debt crisis
. The gravity of the situation prompted Congreso Nacional (National Congress
) to prevail upon Hernán Siles
to call early elections in 1985. Paz again came second (this time to former dictator Hugo Banzer
) but was elected president by Congreso Nacional (National Congress
) since, as usual, none of the parties had attained the 50% threshold for direct election. It was in fact the first time an opposition party gained power peacefully in a free election, even though there had long been multi-party competition in elections.
important economic reforms designed to curb galloping hyperinflation
(inherited from Hernán Siles
) were instituted, the troublesome labor unions were repressed in order to reestablish government authority, and 30,000 miners were expunged from state payrolls (read: fired) to reduce the size of the government. The painful readjustment policies—conducted to a large extent by Paz Estenssoro's vigorous Minister of Planning, Gonzalo Sánchez de Lozada
, who was later to serve as President of Bolivia
-- came to be known as the New Economic Policy (NEP). The latter restructured the bulk of the hitherto-statist Bolivian economy and transformed it into a neo-liberal
, privatization-oriented one. However, Bolivia
remained the poorest country in South America
and anti neo-liberal
forces began to grow as a result of his liberal economic policies leading to the election of socialist Evo Morales
in 2005.
Paz finished his term and finally retired from politics upon leaving office in 1989. He died on June 7, 2001.
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
. He ran for president 8 times (1947, 1951, 1960, 1964, 1978, 1979, 1980, and 1985), winning in 1951, 1960, 1964, and 1985.
Founding of the MNR and early political years (1941-52)
In 1941 Víctor Paz Estenssoro co-founded (along with Hernán SilesHernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
and others) the Movimiento Nacionalista Revolucionario (English: Revolutionary Nationalist Movement
Revolutionary Nationalist Movement
The Revolutionary Nationalist Movement is a Bolivian political party, perhaps the most important in the country during the 20th century. At the legislative elections in 2002, the party won, in an alliance with the Free Bolivia Movement, 26.9% of the popular vote and 36 out of 130 seats in the...
, MNR), originally a reformist revolutionary movement and later a centrist party. Paz became an influential member in the cabinet of Colonel Gualberto Villarroel
Gualberto Villarroel
Gualberto Villarroel López was the head of state of Bolivia from December 20, 1943 to July 21, 1946. A reformist, he is nonetheless remembered for his alleged fascist sympathies, and is sometimes compared with Argentina's Juan Domingo Perón...
(1943–46), but was forced out of that government as a result of pressure emanating from Washington. The United States was at the time involved in World War II, and suspected some members of the MNR leadership of harboring pro-fascist sympathies. Paz Estenssoro nonetheless ran for president in 1947, earning 3rd place, and again in 1951, when the MNR surprisingly won the electoral contest, despite the fact that the laws of that time confined the vote to a small, propertied stratum of the citizenry. The elections, however, were unilaterally annulled by the ultra-conservative government of Mamerto Urriolagoitia
Mamerto Urriolagoitia
Mamerto Urriolagoitía Harriague was President of Bolivia, from 1949 to 1951. Of privileged background, he studied in France and later joined the Bolivian diplomatic service. In 1947, Urriolagoitia was elected Vice-President to Dr...
, and the MNR at that point went underground.
The 1952 Revolution
In April 1952, the MNR led a revolution which toppled the conservative (indeed, oligarchic) order that had prevailed practically since the country's inception. This "National Revolution" http://www.latinamericanstudies.org/bolivian-revolution.htm (considered one of the most far-reaching in the history of Latin America) is seen as the single most important political event in 20th century BoliviaBolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
. Paz became the first President in the new government (in recognition of his 1951 electoral victory) and served his first four-year term from 1952 until 1956.
First Paz Estenssoro government (1952-56)
Among the many important structural reforms adopted by the popular Paz Estenssoro government was the extension of universal suffrage to all adult citizens (natives and illiterates included), the nationalization of the largest tin-mining concerns, and an extensive program of land distribution (agrarian reform). Much of the military, which had served so well the interests of the economic elites prior to the Revolution, was dismantled and re-organized as a virtual arm of the MNR party. Clearly, the idea was to fashion a hegemonic party in the image of Mexico's Partido Revolucionario Institucional (English: Institutional Revolutionary PartyInstitutional Revolutionary Party
The Institutional Revolutionary Party is a Mexican political party that held power in the country—under a succession of names—for more than 70 years. The PRI is a member of the Socialist International, as is the rival Party of the Democratic Revolution , making Mexico one of the few...
, PRI). The crucial difference between the MNR and PRI was the decidedly de-centralised structure of the country's new military power (i.e., armed workers and peasants), which was largely overseen by the left-wing minority bloc in the MNR, headed by COB leader, Juan Lechin.
Paz Estenssoro's temporary retirement and polarization of the MNR (1956-60)
Paz was not allowed to run for another consecutive term, and Hernán SilesHernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
was elected, serving as President from 1956 until 1960. During the Hernán Siles
Hernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
administration, the MNR began to polarize and fragment, with a conservative wing led by Wálter Guevara
Wálter Guevara
Wálter Guevara Arze was a Bolivian statesman, cabinet minister, writer, diplomat, and, rather briefly, president .-Background and earlier career:...
and an increasingly assertive left-leaning faction commanded by the charismatic leader of the Central Obrera Boliviana (English: Bolivian Workers' Central, COB), Juan Lechín . To prevent the fracturing of his party, Paz returned from London (where he had been serving as Bolivian ambassador) and ran for re-election in 1960, winning with an ample majority of the votes. His choice as vice-presidential running mate was the increasingly hard to manage Juan Lechín, an action that prompted the defection from the MNR of Walter Guevara
Wálter Guevara
Wálter Guevara Arze was a Bolivian statesman, cabinet minister, writer, diplomat, and, rather briefly, president .-Background and earlier career:...
, who felt he had been stepped over.
Second and third Paz Estenssoro governments, 1960-64
The second Paz Estenssoro administration was plagued by violence, dissent, and continued hemorraghing of the original leadership. Of great importance during this period was the thorny issue of disarming the miners and workers' militias who had combatted in the 1952 Revolution and who had been for the most allowed to keep their weapons since. They had served as a useful counterbalance to the possibility of a conservative or military reassertion against the Revolution, but by 1960 were serving the interests of the party's radical left vice-president Lechín. Of Marxist political persuasion, the latter opposed the disarming of the militias and the reconstitution of the traditional military, urged the passing of more far-reaching reforms. Paz Estenssoro disagreed and, continuing the policies started by SilesHernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
, increasingly leaned on the "new" armed forces for support. This produced the inevitable final rift, and Lechín was expelled from the party prior to the 1964 elections.
Increasingly unable to control events, and considering himself the only man who could keep the MNR coalition together, in 1964 Paz decided to amend the constitution to allow himself to run for re-election. Traditionally, attempts such as these (known as "prorroguismo") have been strongly condemned by the Bolivian political elites, many of whose members may have been waiting for their turn to occupy the presidential palace for years. This was no exception, and Paz's move ended up being his undoing. To symbolize Paz's steady rightward drift, he chose the charismatic commander of the Bolivian Air Force, General René Barrientos
René Barrientos
René Barrientos Ortuño was a Bolivian politician who served as his country's Vice President in 1964 and as its President from 1964 to 1969....
, as his running mate. To be fair, Paz's increased reliance on the armed forces was to some extent influenced by Washington's constant demands that the military be fully reconstituted and equipped to fight possible Cuban-style Communist insurgencies. In any case, the René Barrientos
René Barrientos
René Barrientos Ortuño was a Bolivian politician who served as his country's Vice President in 1964 and as its President from 1964 to 1969....
choice was a final act of folly, as Paz did not seem to have noticed the deep resentment of the outwardly loyal commanders of the "new, revolutionary" military toward the MNR's manipulation of the armed forces for political ends.
The 1964 coup d'etat and exile
On November 4, 1964, the MNR government was overthrown in a military coup led by vice-president René BarrientosRené Barrientos
René Barrientos Ortuño was a Bolivian politician who served as his country's Vice President in 1964 and as its President from 1964 to 1969....
and Alfredo Ovando, commander of the army, with the aid of CIA. Paz flew to a long exile abroad, bitter toward René Barrientos
René Barrientos
René Barrientos Ortuño was a Bolivian politician who served as his country's Vice President in 1964 and as its President from 1964 to 1969....
' betrayal and unhappy that the "Revolution" had taken such a sad turn. It was not until 1982 (with minor and very temporary exceptions) that military rule ended. By this time Paz and Siles
Hernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
had split, with Siles
Hernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
supporting more leftist policies. Guevara
Wálter Guevara
Wálter Guevara Arze was a Bolivian statesman, cabinet minister, writer, diplomat, and, rather briefly, president .-Background and earlier career:...
, for his part, had supported René Barrientos
René Barrientos
René Barrientos Ortuño was a Bolivian politician who served as his country's Vice President in 1964 and as its President from 1964 to 1969....
and served in his administration. In 1969 René Barrientos
René Barrientos
René Barrientos Ortuño was a Bolivian politician who served as his country's Vice President in 1964 and as its President from 1964 to 1969....
died and new, populist military governments of progressive bend gained power in Bolivia (1971–72).
Support for Banzer and erosion of support (1971-78)
When the "excesses" of the left-leaning TorresJuan José Torres
Juan José Torres González was a Bolivian socialist politician and military leader. He served as President of Bolivia from October 7, 1970 to August 21, 1971. He was popularly known as "J.J."...
military government (1970–71) became unbearable to most civilian elites of centrist and conservative persuasion, Torres was overthrown in a bloody coup d'état led by then-Colonel Hugo Banzer
Hugo Banzer
Hugo Banzer Suárez was a politician, military general, dictator and President of Bolivia. He held the Bolivian presidency twice: from August 22, 1971 to July 21, 1978, as a dictator; and then again from August 6, 1997 to August 7, 2001, as constitutional President.-Military and ideological...
with full support of the largest political party in the country, Paz's MNR. This too was a move that would cost Paz and his party dearly in the years to come, especially in future elections. Paz was apparently under the impression that Hugo Banzer
Hugo Banzer
Hugo Banzer Suárez was a politician, military general, dictator and President of Bolivia. He held the Bolivian presidency twice: from August 22, 1971 to July 21, 1978, as a dictator; and then again from August 6, 1997 to August 7, 2001, as constitutional President.-Military and ideological...
would rule for a year or two and then call elections (which he, of course, would win); none of this happened, as in 1974 the wily general broke with the MNR, exiled Paz, and proceeded to rule only with military support until 1978.
The turmoil of 1978-85
While Paz had tarnished his image by associating himself with the reviled Hugo BanzerHugo Banzer
Hugo Banzer Suárez was a politician, military general, dictator and President of Bolivia. He held the Bolivian presidency twice: from August 22, 1971 to July 21, 1978, as a dictator; and then again from August 6, 1997 to August 7, 2001, as constitutional President.-Military and ideological...
dictatorship, Hernán Siles
Hernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
was turning steadily to the left and gaining adherents at Paz's expense. When at long last elections were called in 1978, it was apparently Hernán Siles
Hernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
who won it (there were vast irregularities and the elections were annulled), with Paz getting only third place. It was a major decline from what the MNR
Revolutionary Nationalist Movement
The Revolutionary Nationalist Movement is a Bolivian political party, perhaps the most important in the country during the 20th century. At the legislative elections in 2002, the party won, in an alliance with the Free Bolivia Movement, 26.9% of the popular vote and 36 out of 130 seats in the...
had been used to obtaining in the 1950s and early 1960s. Elections were re-scheduled for 1979, and when they took place Hernán Siles
Hernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
won again but this time Paz got second place. The elections again proved inconclusive, however, in as much as none of the candidates polled the required 50% of the vote to win direct election, and thus the outcome was to be decided by Congress. Partisan intransigences prevailed and the latter could not agree on any of the candidates, eventually settling on naming as provisionl President the head of the senate, Wálter Guevara
Wálter Guevara
Wálter Guevara Arze was a Bolivian statesman, cabinet minister, writer, diplomat, and, rather briefly, president .-Background and earlier career:...
, then in alliance with Paz's MNR
Revolutionary Nationalist Movement
The Revolutionary Nationalist Movement is a Bolivian political party, perhaps the most important in the country during the 20th century. At the legislative elections in 2002, the party won, in an alliance with the Free Bolivia Movement, 26.9% of the popular vote and 36 out of 130 seats in the...
. He was charged with calling elections again in 1980. Those elections reconfirmed Hernán Siles
Hernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
' victory and Paz's second place, but the military intervened rather than allow Hernán Siles
Hernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
(now associated with parties deemed to be from the "far left") to take office. General Luis García Meza grabbed the reins of power in the bloody coup d'état of July 17, 1980, and Paz once more flew to exile. In 1982, the beleaguered military finally left the Palacio Quemado
Palacio Quemado
The Palacio Quemado is a popular name to denote the Bolivian Palace of Government, located on Plaza Murillo in downtown La Paz. It is the building from which the Bolivian executive conducts its business.The building has had many incarnations...
and confirmed the results of the 1980 elections, making Hernán Siles
Hernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
president.
Paz's MNR
Revolutionary Nationalist Movement
The Revolutionary Nationalist Movement is a Bolivian political party, perhaps the most important in the country during the 20th century. At the legislative elections in 2002, the party won, in an alliance with the Free Bolivia Movement, 26.9% of the popular vote and 36 out of 130 seats in the...
opposed Hernán Siles
Hernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
on every front, as his administration plunged the country into a hyperinflationary spiral. In fact, this was Bolivia
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
's most serious economic crisis in its history, one largely prompted by the collapse of international tin prices and the onset of the Latin American debt crisis
Latin American debt crisis
The Latin American debt crisis was a financial crisis that occurred in the early 1980s , often known as the "lost decade", when Latin American countries reached a point where their foreign debt exceeded their earning power and they were not able to repay it.-Origins:In the 1960s and 1970s many...
. The gravity of the situation prompted Congreso Nacional (National Congress
National Congress of Bolivia
The Plurinational Legislative Assembly also known as the National Congress is the national legislature of Bolivia, based in the nation's de facto capital, La Paz....
) to prevail upon Hernán Siles
Hernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
to call early elections in 1985. Paz again came second (this time to former dictator Hugo Banzer
Hugo Banzer
Hugo Banzer Suárez was a politician, military general, dictator and President of Bolivia. He held the Bolivian presidency twice: from August 22, 1971 to July 21, 1978, as a dictator; and then again from August 6, 1997 to August 7, 2001, as constitutional President.-Military and ideological...
) but was elected president by Congreso Nacional (National Congress
National Congress of Bolivia
The Plurinational Legislative Assembly also known as the National Congress is the national legislature of Bolivia, based in the nation's de facto capital, La Paz....
) since, as usual, none of the parties had attained the 50% threshold for direct election. It was in fact the first time an opposition party gained power peacefully in a free election, even though there had long been multi-party competition in elections.
Fourth and last Paz Estenssoro presidency (1985-89)
The now-nearly octogenarian Paz began his fourth (and final) term as President in 1985. The economic situation was indeed dire, but Paz and his aides had a radical neo-liberal plan. Through Decree 21060Decree 21060
Supreme Decree 21060 , promulgated by Bolivian President Víctor Paz Estenssoro on 29 August 1985, was a legal instrument that imposed neoliberal economic policies in order to end Bolivia's twin crises of international debt and hyperinflation....
important economic reforms designed to curb galloping hyperinflation
Hyperinflation
In economics, hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases...
(inherited from Hernán Siles
Hernán Siles Zuazo
Hernán Siles Zuazo was a politician from Bolivia. He served as his country's constitutionally elected president twice, from 1956 to 1960 and again from 1982 to 1985....
) were instituted, the troublesome labor unions were repressed in order to reestablish government authority, and 30,000 miners were expunged from state payrolls (read: fired) to reduce the size of the government. The painful readjustment policies—conducted to a large extent by Paz Estenssoro's vigorous Minister of Planning, Gonzalo Sánchez de Lozada
Gonzalo Sánchez de Lozada
Gonzalo Sánchez de Lozada y Sánchez de Bustamante , familiarly known as "Goni", is a Bolivian politician, businessman, and former President of Bolivia. A lifelong member of the Movimiento Nacionalista Revolucionario , he is credited for using "shock therapy", the economic theory championed by then...
, who was later to serve as President of Bolivia
President of Bolivia
The President of Bolivia is head of state and head of government of Bolivia. According to the current Constitution, the president is elected by popular vote to a five year term, renewable once...
-- came to be known as the New Economic Policy (NEP). The latter restructured the bulk of the hitherto-statist Bolivian economy and transformed it into a neo-liberal
Neoliberalism
Neoliberalism is a market-driven approach to economic and social policy based on neoclassical theories of economics that emphasizes the efficiency of private enterprise, liberalized trade and relatively open markets, and therefore seeks to maximize the role of the private sector in determining the...
, privatization-oriented one. However, Bolivia
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...
remained the poorest country in South America
South America
South America is a continent situated in the Western Hemisphere, mostly in the Southern Hemisphere, with a relatively small portion in the Northern Hemisphere. The continent is also considered a subcontinent of the Americas. It is bordered on the west by the Pacific Ocean and on the north and east...
and anti neo-liberal
Neoliberalism
Neoliberalism is a market-driven approach to economic and social policy based on neoclassical theories of economics that emphasizes the efficiency of private enterprise, liberalized trade and relatively open markets, and therefore seeks to maximize the role of the private sector in determining the...
forces began to grow as a result of his liberal economic policies leading to the election of socialist Evo Morales
Evo Morales
Juan Evo Morales Ayma , popularly known as Evo , is a Bolivian politician and activist, currently serving as the 80th President of Bolivia, a position that he has held since 2006. He is also the leader of both the Movement for Socialism party and the cocalero trade union...
in 2005.
Paz finished his term and finally retired from politics upon leaving office in 1989. He died on June 7, 2001.