Luis Arce
Luis Alberto Arce Catacora | |
|---|---|
| Born | Luis Alberto Arce Catacora September 28, 1963 La Paz, Bolivia |
| Other names | Lucho |
| Occupation(s) | Economist, banker, politician |
| Years active | 1987–present |
| Known for | 67th president of Bolivia, Minister of Economy and Public Finance |
| Notable work | Economic overhaul and nationalization policies in Bolivia |
Luis Alberto Arce Catacora (born 28 September 1963), commonly known as Lucho, is a Bolivian economist, banker, and politician currently serving as the 67th president of Bolivia since 2020. Affiliated with the Movement for Socialism (MAS), he previously held the positions of minister of finance and later minister of economy and public finance from 2006 to 2017, returning briefly in 2019.
Originating from La Paz, Arce earned his economics degree at the University of Warwick. His long-standing experience in banking and accounting at the Central Bank of Bolivia prompted President Evo Morales to appoint him as finance minister in 2006. Recognized as Morales' longest-serving cabinet member, Arce was regarded as the principal architect behind Bolivia's economic overhaul, guiding the nationalization of hydrocarbons, fostering rapid GDP expansion, and reducing poverty levels. His initial term concluded due to treatment for kidney cancer abroad. Upon recovery, he resumed office in January 2019 but resigned amid the 2019 Bolivian protests and Morales' ousting following allegations of electoral fraud. During the interim administration led by Jeanine Áñez, Arce sought refuge overseas. Morales selected him as the MAS candidate for the 2020 presidential election, where Arce campaigned as a moderate advocate of socialist principles and secured victory with 55% of votes, defeating former president Carlos Mesa.
Sworn in November 2020, Arce reinstated Bolivia’s alignment with MAS policies both domestically and internationally, reversing the previous government's right-leaning trajectory. His government effectively addressed the COVID-19 pandemic in Bolivia and maintained economic stability during its early stages. Additionally, it spearheaded an international initiative urging pharmaceutical companies to waive patents on vaccines and medicines to enhance access for low-income nations. Nonetheless, starting in 2023, Bolivia encountered a socioeconomic crisis characterized by shortages of foreign currency, a decline in natural gas exports, rising inflation, and escalating political conflicts between Arce and Morales regarding party leadership and candidacy for the 2025 Bolivian general election.
In July 2024, an attempted coup unfolded at Plaza Murillo, with Morales accusing Arce of orchestrating a self-coup amid waning support. Following Morales’ resignation as MAS leader and Arce’s confirmation as the party’s nominee—despite Morales being barred by term limits—poor polling results led Arce to withdraw his re-election campaign in May 2025, endorsing Eduardo del Castillo as his replacement. He cited preventing fragmentation of the leftist vote or enabling a "fascist right-wing project" as motivations. After threats targeted at electoral officials linked to Morales supporters and a bomb threat against the Supreme Electoral Court, Arce’s administration announced intentions to prosecute Morales on terrorism charges.
Early life and career
Luis Alberto Arce Catacora was born on 28 September 1963 in La Paz. He is the son of Carlos Arce Gonzales and Olga Catacora, both educators. Raised in a middle-class household, he began schooling in 1968 and completed high school in La Paz by 1980. In 1984, he obtained an accounting degree from the Institute of Banking Education in La Paz, followed by a bachelor's degree in economics from the Higher University of San Andrés in 1991. He pursued a master's degree in economics at the University of Warwick in the United Kingdom, graduating in 1997. Furthermore, he has received honorary doctorates from Bolivia’s University of Los Andes (UNANDES) and Franz Tamayo Private University (UNIFRANZ).
Arce’s professional life has largely been dedicated to public service, beginning in 1987 at the Central Bank of Bolivia, where he devoted much of his career. From 1992 until 2005, he was Deputy Manager of Reserves within the Central Bank's International Operations Management unit. Between 1994 and 1995, he led the Department of Information and Publications under the Research and Analysis Sub-management for Economic Studies at the Central Bank.
In addition to his public sector roles, Arce has taught undergraduate and postgraduate courses at various universities across Bolivia and has lectured internationally at institutions including Columbia University in New York, the University of Buenos Aires, and Harvard University.
Minister of Economy
On 23 January 2006, President Evo Morales appointed Arce as the finance minister. Three years afterward, he became the head of the newly established Ministry of Economy and Public Finance. Bolivian press credited him as the principal strategist behind Bolivia's economic recovery. He oversaw the nationalization efforts in the hydrocarbon, telecommunications, and mining industries and played a key role in founding BancoSur. During his tenure, Bolivia’s GDP expanded by 344%, while the rate of extreme poverty declined from 38% to 15%.
In 2011, American Economy Magazine ranked Arce as the eighth-best economy minister in Latin America among 18 contenders.
Throughout his time as minister, Arce maintained a discreet public presence. Christopher Sabatini from Chatham House described him as "one of the few technocrats within MAS," highlighting his "calm demeanor" and avoidance of provocative language. Bolivian outlets praised him for steering consistent economic growth, largely fueled by increased gas exports that contributed significantly to poverty reduction.
On 24 June 2017, Arce temporarily left office to undergo surgery for kidney cancer in Brazil. He returned to his ministerial duties on 23 January 2019 after recovering.
Reappointment
In late 2019, Bolivia experienced widespread protests sparked by accusations of fraud in the presidential election. Amid this unrest, Arce announced the suspension of social programs such as pensions for retirees and school vouchers due to ongoing strikes, road blockades, and occupation of tax offices. He estimated that economic losses reached US$12 million daily, amounting to US$167 million by early November. On 10 November, Arce resigned, blaming the "irresponsible performance of the Plurinational Electoral Organ" and stating his departure aimed to "restore peace in the country." Morales resigned just hours later.
Following his resignation, Arce sought refuge at the Mexican Embassy in La Paz and was granted safe passage by interim president Jeanine Áñez because of his health condition. Despite facing police intimidation at El Alto International Airport, he left Bolivia and arrived in Mexico on 6 December, joining Morales and other exiled officials.
2020 presidential campaign
After Morales’ ousting, the transitional government called for early general elections but prohibited candidates who had served in the previous two terms—including Morales—from running again. Consequently, MAS nominated a new presidential candidate while in Argentina, where Morales was granted asylum. On 19 January 2020, party delegates selected Luis Arce as MAS’s presidential nominee with former foreign minister David Choquehuanca as his vice-presidential running mate. Morales emphasized this "blend of urban and rural colleagues" as key to continuing their political project.
Campaign
Arce returned from exile on 28 January and was immediately summoned to provide testimony regarding alleged financial misconduct related to his tenure on the Indigenous Fund board. Although this investigation was indefinitely halted, Arce condemned it as "political persecution and judicial harassment." Some opponents accused him of being a proxy for Morales, a charge he rejected. During the campaign, Arce distanced himself from Morales by asserting that Morales would not participate in his administration but would remain party leader.
Polls placed Arce ahead but indicated a potential runoff was likely. Right-wing candidates united behind former president Carlos Mesa after others withdrew. Initial counts favored Mesa; however, rapid tallies showed Arce securing 52.4%, enough for an outright victory. Both Arce and interim president Áñez recognized his win promptly. Mesa conceded defeat, acknowledging Arce's clear triumph. The official results confirmed Arce with 55.1% against Mesa’s 28.8%.
Bolivian media characterized Arce’s victory as decisive and overwhelming, noting his conciliatory approach but also pointing out the difficulty in managing MAS’s more radical elements. Analysts attributed his success to strong rural MAS support, a weak campaign from Mesa, Arce’s moderate platform, and opposition vote splitting caused by Luis Fernando Camacho’s candidacy dividing anti-MAS voters.
Presidential transition
Following the official tally and declaration by the TSE, Arce was confirmed as Bolivia’s president-elect on 23 October 2020.
On 5 November, Sebastián Michel, spokesperson for MAS, disclosed that Arce’s campaign office in La Paz was targeted with a dynamite blast. Although Arce was safe, Michel underscored that he had yet to be granted state security protection.
Inauguration
An ancestral ceremony intended to reaffirm MAS's indigenous heritage at the Tiwanaku archaeological site was initially scheduled but ultimately canceled due to budget constraints and concerns related to the pandemic.[1] Instead, on 6 November, Arce and Choquehuanca conducted a private, symbolic event at Tiwanaku where they received traditional staffs of authority during indigenous rites.[2]
The formal inauguration occurred on 8 November in La Paz. Evo Morales was originally invited but later excluded to prevent political friction.[3] Outgoing president Jeanine Áñez departed from La Paz ahead of the event.[4] Former president Carlos Mesa attended but exited prematurely in protest against modifications to legislative procedures.[5] Eduardo Rodríguez Veltzé was the sole former president who remained for the entire ceremony.[6]
Among foreign guests were presidents Alberto Fernández (Argentina), Iván Duque (Colombia), Mario Abdo Benítez (Paraguay), and Spain’s King Felipe VI.[7] The Chilean president declined to attend personally; instead, Chile’s foreign minister represented the country.[8] Nicolás Maduro of Venezuela was not invited due to the interim government’s refusal to recognize his administration.[9]
Arce took office as Bolivia’s sixty-seventh president before the Plurinational Legislative Assembly, committing to an inclusive administration focused on managing the pandemic and revitalizing the economy. He criticized the interim Áñez government for economic mismanagement and fostering internal divisions against the populace.[10] Arce stressed his intent to lead with inclusivity while restoring hope and social equity.
Coca production
One of the principal challenges faced by Arce’s government involved establishing a definitive stance on coca cultivation, considering contrasting policies from previous administrations. Under Morales, coca growing was acknowledged as a legitimate source of livelihood, with a "community coca control" initiative collaborating with cocaleros to oversee legal production. Conversely, after Morales’ resignation, the Áñez administration adopted a stringent approach aimed at eliminating drug trafficking. Journalist Parker Asmann highlighted Arce’s need to reconcile support for traditional coca uses alongside efforts to reduce illicit drug manufacture.
The primary coca-producing regions are the highland Yungas and lowland Chapare. Experts estimate that approximately 30% of coca from Yungas is diverted toward cocaine production, compared with roughly 90% from Chapare. Morales’ 2017 legalization of cultivation in Chapare was met with criticism from Yungas farmers who perceived it as excess supply. Under Arce’s leadership, new commercial applications for coca have been encouraged; notably, in January 2022, authorities announced plans to develop toothpaste derived from coca leaves, utilizing alkaloids known for cavity prevention.
In June, Arce established the Public Productive Company for the Industrialization of the Bolivian Coca Leaf (KOKABOL) to manufacture and distribute products based on coca. This state-owned company is headquartered in Sacaba with intentions to expand nationally and received an initial investment of about US$8.9 million from the Ministry of Economy.
COVID-19 pandemic
On 30 December 2020, President Arce and the Russian Direct Investment Fund finalized an agreement to deliver 5.2 million doses of the Sputnik V vaccine to Bolivia, enough to vaccinate approximately 2.6 million individuals. Emergency authorization was granted on 6 January 2021, with initial shipments arriving later that same month. Vaccination efforts for citizens over fifty years old commenced on 13 May; President Arce publicly received his first dose on 24 May and completed his second dose on 22 October, aiming to bolster public trust in the immunization campaign.
The Arce administration also secured a contract with the Serum Institute of India for five million AstraZeneca doses, facilitating comprehensive vaccination coverage for Bolivia's eligible population. Furthermore, an agreement with Sinopharm provided 400,000 doses along with an additional donation of 100,000 doses.
During the Ibero-American Summit held in Andorra, Arce urged both the World Trade Organization (WTO) and the World Intellectual Property Organization (WIPO) to waive patents related to COVID-19 vaccines and treatments, criticizing pharmaceutical companies for limiting access. Bolivia, in collaboration with the United Nations Development Programme (UNDP), organized a forum advocating for the suspension of intellectual property rights on vaccines. Arce also initiated WTO legal proceedings against Johnson & Johnson to compel the waiver of its vaccine patent, enabling Canadian company Biolyse Pharma to manufacture 15 million doses of the Janssen vaccine.
To protect public health, Law N° 1359 (Health Emergency Law) was enacted by Arce on 17 February 2021 despite opposition from health sector groups, who condemned its restrictions on protest rights and launched an indefinite strike. In response to ongoing demonstrations, Supreme Decree N° 4542 issued in July imposed penalties for disrupting health services, which further fueled resistance from unions.
To increase vaccination uptake, Supreme Decree N° 4641 was issued in December mandating presentation of vaccination proof or a negative PCR test to access most public institutions starting January 2022. This measure caused daily vaccinations to surge from around 2,000 to nearly 100,000 but sparked backlash from pro-government unions. Following protests and confrontations, the mandate was first temporarily suspended and then permanently revoked in January. Regional authorities opposed to the government criticized this reversal and continued enforcing their own vaccine passport requirements. Analysts viewed the rapid government withdrawal as indicative of its susceptibility to unrest within its political support base.
Culture
Upon assuming office, Arce restored the Wiphala—the flag representing the Andean indigenous communities—to the presidential sash, reversing its removal by Áñez, although she had retained it as an official State emblem according to the Constitution. Nevertheless, Arce attracted criticism for discontinuing use of the flag of the Patujú flower—a symbol associated with eastern indigenous populations—as a co-official flag alongside both the Wiphala and national tricolor, a status upheld by his predecessor. The Constitution officially recognizes only the Patujú flower itself as a patriotic emblem, not its flag.
On 9 November 2020, Arce committed to reinstating the Ministry of Cultures, which Áñez had dissolved in June as a cost-saving measure. The ministry was reestablished through Supreme Decree N° 4393 on 13 November, with Sabina Orellana appointed as minister on 20 November.
On 13 January 2021, Arce introduced a new official government logo featuring the Chakana cross, replacing Áñez's design that had been in place for one year. This emblem incorporates twenty-four different fabrics and textile patterns symbolizing Bolivia's regional diversity. Arce emphasized that embodying "the identity of each Bolivian" is essential for fostering national unity and advancing progress.
Economy
To counteract the pandemic's effects and stimulate internal markets, Arce introduced the "Bonus against Hunger," which provided Bs1,000 to nearly four million unemployed Bolivians between the ages of 18 and 60. This initiative was financed through a US$504 million loan from the World Bank and the Inter-American Development Bank, with disbursements starting in December 2020 and continuing until May 2021. Throughout the program, more than 4 million recipients collectively received Bs4,305 million.
At the outset of his administration, Arce sought to reverse the transitional government's policies by announcing the end of the neoliberal framework and predicting an economic rebound in 2021. On 28 December 2020, he enacted Law N° 1357, establishing a permanent wealth tax targeting individuals holding assets exceeding US$4.3 million, with rates ranging from 1.4% to 2.4%. Initially projected to generate Bs100 million (US$14.3 million) from 152 taxpayers, revenue surpassed projections by mid-2021, reaching Bs240.1 million collected from 206 contributors.
In February 2021, Arce instructed the Central Bank to settle a US$327 million loan from the IMF secured by the previous administration, citing concerns over national sovereignty linked to loan conditions. This repayment incurred an additional US$24 million in interest and fees. The IMF denied imposing any conditions on the loan. Critics argued that this action was politically driven to undermine former officials; subsequently, a former vice minister was detained during investigations related to this loan. Interestingly, Bolivia accepted a nearly identical IMF loan of US$326.4 million in August 2021, which drew criticism from opposition groups.
By late 2021, Arce's economic measures contributed to Bolivia achieving a 9.4% GDP growth rate, reversing the prior year's contraction of 8.8%. In January 2022, Arce emphasized Bolivia’s position as South America’s third fastest-growing economy with an inflation rate of just 0.9%, a trade surplus after seven years of deficits, and an unprecedented 20% decline in wealth inequality. Analyst Marcelo Arequipa observed that while economic stabilization was accomplished in 2021, surpassing pre-pandemic growth levels remained a primary objective for 2022.
In April 2022, Arce engaged in negotiations with the Bolivian Workers' Center (COB) regarding wage adjustments. The COB requested a minimum wage increase of 10%, while the government proposed a 1.5% raise. They ultimately agreed on a 4% hike, raising the minimum wage from approximately US$311 to US$327; health and education sector workers received a separate 3% increase. The government encouraged other sectors to use this agreement as a reference point for their own negotiations. On Labor Day (1 May), Arce formalized these wage increases into law along with decrees granting paid leave for family bereavement, marriage, or birthdays.
Arrest and trials of former leaders
The former rival president Áñez was detained and charged for her alleged involvement in the 2019 coup d'état, a move condemned by opposition figures as political persecution. Her nearly fifteen-month pretrial detention significantly affected her health and was criticized by her family as abusive treatment. On 10 June 2022, La Paz’s First Sentencing Court found Áñez guilty of dereliction of duties and issuing unconstitutional resolutions, sentencing her to ten years imprisonment. Both defense attorneys and prosecutors filed appeals; prosecutors sought an increased sentence. International organizations such as the European Union and the U.S. State Department regard Áñez as a political prisoner and have demanded her release along with dismissal of charges they deem politically motivated.
Femicide
The arrest of Richard Choque, a serial perpetrator linked to around seventy-seven femicides, revealed significant flaws within the judicial system. Although Choque had been sentenced to thirty years in prison in 2013, he was placed under house arrest in 2019 by Magistrate Rafael Alcón, citing good behavior and health issues. After his release, Choque committed further femicides and engaged in trafficking before being apprehended again. Alcón was subsequently removed from his position and detained for granting Choque freedom "without the right to pardon," as stated by Justice Minister Iván Lima. This incident triggered widespread public outrage; on 31 January 2022, women in La Paz organized protests demanding justice and condemning judges and prosecutors accused of freeing suspects involved in femicide or sexual assault.
In response to the public outcry, President Arce announced on 1 February the establishment of the Rape and Femicide Case Review Commission, charged with reassessing relevant cases within a 120-day timeframe. The commission initially consisted predominantly of MAS party members and faced criticism for lacking independent voices—drawing concern from organizations such as Mujeres Creando and legal experts including Juan del Granado. Allegations of political bias emerged, with opposition senator Andrea Barrientos pointing out the commission's male majority, having only one woman member. Former Supreme Court president Eduardo Rodríguez Veltzé advised Arce to pursue broader consensus-driven judicial reforms rather than relying solely on commissions.
Following these critiques, Arce expanded the commission by adding six additional women and appointed María Nela Prada as its chairperson. By the end of its mandate, the commission had resulted in the removal of ten judges and eight prosecutors, alongside the issuance of fifty arrest warrants leading to twenty-one re-arrests of individuals who had been unlawfully released.
Subsequently, President Arce enacted the Law for the Protection of Victims of Femicide, Infanticide, and Rape, which strengthened punishments by imposing up to twenty years' imprisonment for corrupt judges and ten years for prosecutors or police officers acting against victims’ interests. The legislation abolished house arrest for those accused of rape and prohibited judicial delays from preventing preventative detention. To address lengthy judicial processes that often extend over years, the law allows parties to request accelerated proceedings within ten days; courts failing to comply may face criminal prosecution for obstructing justice.
Judicial reform
During the opening ceremony for the judicial and constitutional year on 3 January 2022, President Arce committed to overhauling the judiciary, describing it as "obsolete ... discriminatory, insensitive, and exclusive." He emphasized that only forty-six percent of cases had been resolved within two years and highlighted that sixty-five percent of detainees—approximately 11,000 individuals—were held in preventative detention without sentencing. Additionally, he pointed out that sixty-two percent of courts were located in urban areas, leaving about 1.3 million citizens without access to justice services. Arce pledged to tackle these challenges at a justice summit scheduled for March, with the goal of positioning Bolivia as a "model of justice in Latin America."
Between 15 and 22 February, Bolivia hosted Diego García-Sayán, the UN special rapporteur on judicial independence. During his visit, he engaged with political leaders and judicial officials before concluding with a meeting with President Arce. García-Sayán criticized Bolivia’s prison system for failing to comply with the UN Mandela Rules and highlighted serious deficiencies within the judiciary, particularly regarding women's access to justice. He remarked that "in Bolivia, justice is far from the people" and accelerated the release of his official report from 2023 to June 2022 due to the critical nature of ongoing reforms.
Security
Although Luis Arce secured a decisive electoral win in October 2020, by September 2021 his administration was perceived as vulnerable. While he retained strong backing from lower-income groups such as peasants and miners, he encountered significant resistance from urban middle and upper-class segments. Opposition forces encompassed much of Bolivia's entrenched power structure, including economic elites, religious institutions, universities, professional organizations, and mainstream media outlets.
Responding to a United Nations request, Arce’s government pledged to intensify efforts against terrorism and its financial support networks. On 2 July 2021, Arce introduced a legislative proposal aimed at combating illicit profits, terrorism financing, and arms proliferation. This bill incorporated anti-money laundering measures inspired by European frameworks. The Chamber of Deputies passed the bill unanimously on 17 September, with Senate approval anticipated soon thereafter.
However, the proposed law sparked controversy due to its expansive investigative authorities granted to government bodies, raising fears of political misuse. Critics pointed to ambiguous provisions that permitted asset investigations based merely on suspicion. Trade unions and business groups vocally opposed the measure, branding it "cursed," particularly given that roughly 80% of Bolivia’s economy functions outside formal financial channels.
Widespread dissatisfaction ignited large-scale protests beginning 11 October 2021, featuring blockades in cities such as Cochabamba, La Paz, and Santa Cruz. Arce accused opposition factions of fomenting a coup attempt but maintained that he retained popular legitimacy. By 14 October, social and labor organizations mobilized over 300,000 participants in nationwide strikes. Under mounting pressure to prevent escalation, Arce withdrew the bill from Senate consideration and promised not to reintroduce it before his term concludes in 2025.
Despite the withdrawal of the comprehensive bill, unease lingered over a related "mother law" enacted in August that outlined national policies targeting illicit gains and terrorism financing. Various social sectors demanded its repeal alongside other contentious regulations. Arce defended these laws as essential protections for the most vulnerable populations. His first-year anniversary in office was overshadowed by an indefinite strike initiated by influential trade unions amid sharply divided legislative debates. Police responded with force to suppress unrest, detaining more than 125 protesters; punitive measures were also applied to healthcare workers who joined strikes during the pandemic’s fourth wave. Ultimately, on 13 November, Arce repealed the second law to alleviate economic standstill.
Toward the end of 2022, the pro-autonomy Civic Committee of Santa Cruz along with Governor Luis Fernando Camacho orchestrated strikes pressing for an early population census aimed at recalibrating parliamentary representation according to demographic changes. The movement also advocated for greater regional self-governance. The resulting blockades inflicted estimated economic damages of approximately $1 billion and provoked violent confrontations leading to at least four fatalities and over 170 injuries. The United Nations condemned these violent episodes, which included racist attacks against indigenous Ayoreo women protesting in eastern Bolivia, gang rapes, and assaults on pro-government social organizations.
Foreign policy
Arce’s foreign policy sought to restore Bolivia’s diplomatic posture prior to Evo Morales’ tenure. Early actions included reestablishing ties with Iran and reaffirming recognition of Nicolás Maduro’s administration in Venezuela, reversing the previous government’s recognition of Juan Guaidó. On 11 November 2020, ambassadors from Iran and Venezuela formally presented their credentials to Arce. By 20 November, Bolivia had rejoined regional blocs such as the Bolivarian Alliance for the Peoples of Our America (ALBA), the Community of Latin American and Caribbean States (CELAC), and the Union of South American Nations (UNASUR). Arce highlighted CELAC’s importance for Latin American unity and advocated for revitalizing UNASUR as a continental organization. In 2023, he publicly condemned Israeli military operations during the Gaza conflict and in June 2025 criticized Israeli airstrikes targeting Iran.
Argentina
On 11 March 2022, Arce met with Argentine President Alberto Fernández in Viña del Mar to outline a collaborative framework centered on joint scientific and technological initiatives. During this meeting, they progressed in discussions regarding a Bolivian natural gas supply agreement and consented to investigate the possibility of electrical interconnection between Yaguacuá (Tarija) and Tartagal (Salta).
Subsequently, on 7 April, during Arce's official visit to Buenos Aires, both leaders concluded an agreement for Bolivia to provide Argentina with fourteen million cubic meters (m³) of natural gas daily throughout the winter months. Argentina committed to paying between US$8 and US$9 million for the initial ten million m³, with the price rising to US$18 million for the additional four million m³. Although this pricing surpassed that of 2021, it remained considerably lower than the expense associated with importing liquefied natural gas by maritime transport. Furthermore, Bolivia agreed to prioritize supplying Argentina with an extra four million m³ at US$18 million should Brazil’s consumption decline.
Chile
In his speech on Día del Mar, Arce reiterated Bolivia’s maritime claim as an ongoing and unresolved matter, introducing a nine-point plan aimed at negotiating sovereign access to the Pacific Ocean with Chile. This blueprint emphasized restarting bilateral talks, nurturing peace and mutual trust, ensuring free transit rights, diminishing trade obstacles at Chilean ports, and considering alternate routes such as the Paraguay-Paraná waterway. Additionally, it proposed expanding Bolivia’s involvement in free ports like Ilo, Peru to enhance trade facilitation.
Responding to these proposals, Chilean Foreign Minister Andrés Allamand expressed Chile’s openness to resume dialogue but maintained that sovereign sea access had been conclusively settled by the International Court of Justice in 2018, which ruled that Chile was not obligated to negotiate further. On 7 May 2021, both nations consented to reopen diplomatic communication for the first time since 2010 with the objective of restoring relations suspended since 1978; notably, Bolivia’s maritime claim was deliberately omitted from this agenda.
The MAS party and Arce welcomed leftist leader Gabriel Boric’s triumph in the 2021 Chilean general election, regarding it as a positive development for democracy across Latin America. Boric declared his intention to "significantly enhance relations" and criticized Chile’s lack of an embassy in La Paz. Following the election, Boric and Arce engaged in two telephone conversations during which they agreed to advance their bilateral cooperation.
Arce attended Boric’s inauguration on 11 March 2022, where discussions covered visa arrangements for high-ranking officials, joint management of the Silala aquifer, and Bolivia’s maritime claim. Arce expressed confidence that Boric’s presidency would "fortify our bonds of brotherhood and build greater bridges for integration."
While Boric committed to restoring diplomatic ties, he underscored that "Chile does not negotiate its sovereignty," reaffirming a position consistent with previous Chilean administrations. In his later Día del Mar address, Arce described the maritime claim as a "permanent and non-negotiable goal" for Bolivia and stated that diplomatic relations with Chile could only be reestablished within a framework that resolves the territorial dispute.
Cuba
During his tenure, Arce conducted two formal visits to Cuba to participate in the Summit of ALBA Heads of State held in Havana. On 14 December 2021, he delivered an official apology on behalf of Bolivia for the "abuses and multiple forms of aggression" that occurred under the previous Áñez government, which had severed diplomatic ties and detained Cuban doctors residing in Bolivia, accused of involvement in protests. Following his inauguration, Arce prioritized restoring diplomatic relations. His second trip on 27 May 2022 focused on the official "relaunch" of bilateral cooperation. In discussions with Cuban President Miguel Díaz-Canel, they explored opportunities for collaboration in pharmaceutical and biotechnology sectors as well as expanding educational initiatives.
Mexico
Arce’s initial international visit took place on 23 March 2021, responding to an invitation from Mexican President Andrés Manuel López Obrador. The two presidents announced the restoration of diplomatic relations that had been suspended during Áñez’s administration after Mexico granted asylum to Morales. Arce expressed his satisfaction at returning "no longer as a refugee." Key topics addressed included increasing Latin America’s access to COVID-19 vaccines and medicines and promoting deeper regional integration through CELAC. They agreed to eliminate visa requirements for Bolivian citizens traveling to Mexico starting 24 May. López Obrador and Arce also highlighted the importance of establishing new frameworks for foreign debt relief targeting low-income nations by extending repayment terms and lowering interest rates. Additional discussions encompassed scientific collaboration, trade, investment, and cultural exchanges. Both leaders jointly urged the Organization of American States (OAS) to refrain from meddling in the domestic affairs of member countries, referencing the OAS’s contentious involvement during the 2019 political crisis that led to Morales’ resignation.
Paraguay
On 14 June 2022, Arce traveled to Villamontes to commemorate the eighty-seventh anniversary of the armistice ending the Chaco War with Paraguay. Paraguayan President Mario Abdo Benítez was present, and both presidents engaged in bilateral talks centered on the Bioceanic Corridor, a strategic infrastructure project connecting Brazil’s Port of Santos on the Atlantic coast with Chilean ports on the Pacific via Argentina and Paraguay. Abdo extended an invitation for Bolivia to join this initiative and participate in signing the contract for its concluding segment. Furthermore, he expressed interest in extending Bolivian gas pipelines into the Asuncion Metropolitan Area, aiming to strengthen economic integration between their nations.[11]
Russia
Under Arce’s leadership, Bolivia deepened its relationship with Russia. Russian Foreign Minister Sergey Lavrov acknowledged a marked improvement in bilateral ties, with frequent telephone communications between Arce and President Vladimir Putin since 2020. Collaborative efforts included acquiring Sputnik V vaccines and involvement by Russian firms such as Gazprom and Rosatom in Bolivian natural gas extraction and lithium mining projects, alongside expanding nuclear technology applications for healthcare and industrial purposes.[12] On 6 March 2022, Arce officially opened Rosatom’s Center for Nuclear Medicine and Radiotherapy located in El Alto, which has the capacity to treat approximately 36,000 cancer patients annually, representing a significant advancement toward Bolivia’s medical autonomy.[13]
Following Russia’s invasion of Ukraine in February 2022, Bolivia was among a small group of Latin American countries—including Cuba and Venezuela—that declined to condemn Russia’s actions. The Arce administration adopted a neutral stance, emphasizing Bolivia’s identity as a "pacifist state" and advocating for diplomatic conflict resolution. Bolivia abstained from voting on a United Nations resolution condemning Russia, a position that drew criticism from opposition leaders who argued it harmed Bolivia’s standing internationally.[14]
Arce subsequently explained that the conflict in Ukraine adversely affects global markets and defended Bolivia’s neutrality as necessary to shield the country from "galloping inflation [and] food shortages." He characterized this approach as an expression of national sovereignty, distancing Bolivia from what he described as "imperialist interests" responsible for instigating the war.[15]
United States
Following Arce's triumph in the 2020 elections, the United States extended congratulations, with the outgoing Trump administration signaling its willingness to collaborate with the incoming government. Arce underscored his intent to establish bilateral ties—including with the US—rooted in mutual respect for sovereignty and equality among nations, affirming, "No country is greater or lesser than another." During his inauguration, he expressed optimism that Joe Biden's presidency might foster improved Bolivia-US relations.
Nonetheless, the Biden administration voiced concerns over what it described as "anti-democratic practices" under Arce’s leadership, particularly regarding the incarceration of former interim president Áñez. Secretary of State Antony Blinken urged her release, emphasizing issues related to due process. In its 2022 annual Country Reports on Human Rights Practices, the US Department of State criticized Arce’s government for prioritizing Áñez’s detention over ensuring a fair judicial process. Bolivia rejected these claims, labeling them as unwarranted interference in domestic matters.
Arce openly challenged the US approach towards the region, condemning the exclusion of "sister nations" from key initiatives. Notably, Bolivia was left out of the 2021 US-organized Summit for Democracy despite attendance by authoritarian governments. In 2022, Arce aligned with other Latin American leaders in boycotting the 9th Summit of the Americas should Cuba, Nicaragua, and Venezuela be excluded. Furthermore, in February 2021, he annulled a visa exemption decree from Áñez’s administration that allowed US and Israeli citizens visa-free entry, citing a lack of reciprocal treatment toward Bolivian nationals by those countries.
Withdrawal
On 14 May 2025, Arce declared his decision not to run for a second term in the 2025 Bolivian general election, aiming to prevent fragmentation of the popular vote and thereby facilitate a resurgence of right-wing and centrist political forces.
2024 Coup attempt
On 26 June 2024, following unusual military deployments in La Paz, armed forces stormed the Bolivian Presidential Palace in what appeared to be an attempted coup targeting Arce. This incident occurred one day after Arce dismissed Juan José Zúñiga from his position as commander general of the Bolivian Army. Amid intra-party tensions, Evo Morales accused Arce of orchestrating a self-coup to bolster his popular support—a narrative echoed by opposition figures and other regional political actors.
Personal life
Arce was first married to Jéssica Mosqueira; together they had three children: Luis Marcelo, Rafael Ernesto, and Camila Daniela. His current spouse is Lourdes Brigida Durán Romero, who became Bolivia’s first First Lady since 2006. Unlike Evo Morales—who was unmarried and had his sister Esther Morales act as First Lady—or Jeanine Áñez whose husband served as First Gentleman, Arce’s wife fulfills the traditional role of First Lady. He is proficient in English and Portuguese.
Electoral history
| Year | Office | Party | Votes | Result | Ref. | |||
|---|---|---|---|---|---|---|---|---|
| Total | % | P. | ||||||
| 2020 | President | Movement for Socialism | 3,393,978 | 55.10% | 1st | Template:Yes2 | [16] | |
| Source: Plurinational Electoral Organ | Electoral Atlas | ||||||||
Books
Articles
Official
- Official website . Archived from the original as of 25 October 2020.
- Curriculum vitae provided by the Ministry of Economy and Public Finance .
Additional
- CIDOB Biography (in Spanish)
- Ministerial profile from El Deber (in Spanish).
- 1963 births
- Living people
- 21st-century Bolivian politicians
- Alumni of the University of Warwick
- Bolivian bankers
- Bolivian economists
- Bolivian educators
- Candidates in the 2020 Bolivian presidential election
- Evo Morales administration cabinet members
- Finance ministers of Bolivia
- Higher University of San Andrés alumni
- Movimiento al Socialismo politicians
- People from La Paz
- Presidents of Bolivia