President Luis Arce’s career has mirrored Bolivia’s economic trajectory from boom to bust

The president of Bolivia, who was subject to an attempted coup Wednesday night, is a 60-year-old leftist whom many see as an opponent of neoliberal and free-market policies backed by Washington.

Luis Arce, who studied economics in London, was Minister of Economy during the presidency of Evo Morales, whose term from 2006 to 2019 made him an icon of the Latin American left.

After Morales left office, Arce assumed the presidency in November 2020, following the brief term of Jeanine Añez.

Bolivian television showed Arce confronting the apparent leader of the rebellion, the army commander general, in the hallway of the government palace on Wednesday night.

“I am your captain and I order you to withdraw your soldiers and I will not allow this insubordination,” Arce said.

Arce’s career has mirrored Bolivia’s economic trajectory from boom to bust. He worked at the Central Bank from 1987 to 2006 and worked for Morales managing a bonanza in metals and hydrocarbon prices that became known as the “Bolivian Miracle.”

But by the time Arce took office, Bolivia had been severely affected by the COVID-19 pandemic and social tensions sparked by Morales’ ouster in 2019 following street protests and extreme pressure from the military.

Neoliberal reforms of the 1990s helped Bolivia become a major energy producer and move from a low-income nation to a middle-income one, according to the World Bank. The percentage of people in extreme poverty fell to 15%, the state built roads and cable cars and cities grew.

But revenue began to decline in 2014.

Upon assuming the presidency, Arce described his country’s recession as the worst in 40 years.

He recently said that gasoline and diesel production no longer covered national consumption, and that the country had to import 86% of its diesel and 56% of its gasoline due to lack of exploration and production.

Households have also been forced to deal with high food prices.

Meanwhile, tensions between Morales and his party continued to increase.

In November, Arce criticized his opponents and said they “dreamed of new coups.”