LA PAZ — Rodrigo Paz was inaugurated as Bolivia's president on Sunday, formally ending nearly 20 years of dominance by the Movement for Socialism party at a ceremony in the Plurinational Legislative Assembly. Paz took the oath of office before lawmakers and visiting heads of state.

Paz, a senator and son of former president Jaime Paz Zamora, defeated conservative rival Jorge Quiroga in Bolivia's October 2025 runoff. His victory marked the collapse of the political project built by Evo Morales and continued under outgoing president Luis Arce, whose government presided over a deepening fuel and dollar shortage.

In his inaugural address, Paz pledged to stabilise the economy, restore access to hard currency, and repair relations with international lenders including the International Monetary Fund. He inherits dwindling foreign reserves, chronic fuel scarcity, and a fiscal deficit that has strained subsidies underpinning Bolivian household budgets.

Regional leaders attended the transfer of power, and diplomats from Washington and Brasília signalled interest in renewed engagement with a more market-friendly La Paz. Political analysts expect Paz to move quickly on subsidy reform, a politically dangerous step that risks provoking protests from MAS-aligned unions and coca-growing federations.

The transition closes a turbulent chapter that included Morales's disputed 2019 resignation, an interim government, and Arce's fractured final term. Paz assumes office with a fragmented Congress that will test his ability to legislate.

"Bolivia is exhausted by scarcity and division," Paz told legislators. "This government will govern for all Bolivians, not for a single party."