The Central Obrera Boliviana (COB)—a powerful labor federation previously aligned with the Movement for Socialism (MAS) governments—leads multi-sector protests including miners, teachers, campesinos, and cocaleros. Since late December 2025, over 50 strategic roadblocks have immobilized key transportation corridors, severely disrupting commerce and incurring estimated losses of approximately $60 million per day. The government acknowledges the right to protest but condemns violent disruptions, including the use of explosives to obstruct roads and confrontations with police.
Political fissures have widened within the ruling coalition, with Vice President Edmand Lara openly opposing the decree and positioning himself as a “constructive” opposition figure, intensifying governmental instability. President Paz’s recent decree (5515) establishing virtual presidential authority during his absence counters constitutional norms regarding succession and is seen as sidelining Lara.
In parallel to economic reforms, Paz has initiated a broad anti-corruption campaign targeting former MAS officials. Multiple high-profile arrests on corruption charges, including ex-minister Edgar Montaño, underscore the administration’s drive to recover fiscal integrity, blaming MAS for economic deterioration including a drastic fall in international reserves.
Negotiations between the government and COB continue, with promises to amend 35 articles of the decree while maintaining subsidy removal. The government announced plans for a new decree to replace 5503’s most contentious provisions and maintain increased salaries and social benefits introduced concurrently. The outcome of this evolving dialogue will be critical in calibrating Bolivia’s economic reforms against growing social unrest ahead of the March 2026 subnational elections, which are expected to further fragment Bolivia’s political landscape.
The decree also streamlines investment approvals in strategic sectors such as mining, hydrocarbons, and lithium, bypassing normal legislative oversight, a move criticized for reducing environmental and community consultations. Expansion of foreign capital participation in natural resource exploitation sparks fears of privatization among unions.
Bolivia’s fuel sector reform signals a decisive shift from the subsidy-dependent model embraced during MAS administrations to market-aligned pricing aimed at fiscal stabilization and attracting foreign investment, albeit amid profound social resistance and political tension.
This article was curated and published as part of our South American energy market coverage.
