Gaston Brito Miserocchi/Getty Images News
Bolivia’s President Luis Arce has emerged victorious after a coup attempt against his socialist government failed, ahead of the general election next year and an ongoing economic crisis.
The coup attempt was led by Army General Juan Jose Zuniga, who vowed to “restore democracy.” Soldiers stormed the presidential palace on Wednesday, but Arce reasserted control and ordered Zuniga to withdraw the troops.
Arce then named commander general Jose Wilson Sanchez to replace Zuniga and the troops retreated. Zuniga, who was taken into custody, claimed Arce staged the events to boost his popularity, but did not provide any evidence.
Bolivia’s economy has been struggling as gas exports continue to fall on dwindling production, foreign currency reserves shrink, and food and fuel subsidies remain elevated.
“The state-led development strategy focused on import substitution, natural resource extraction, and public investment through state-owned enterprises has led to structurally high fiscal deficits, dwindling reserves, and a loss of access to international capital markets,” the World Bank said in April.
The country’s main export is natural gas, but it has struggled to meet its export commitments. State-owned Yacimientos Petroliferos Fiscales Bolivianos has a gas sales agreement with Argentina, but the country plans to end the contract this year. YPFB also has a contract with Brazil’s Petrobras (PBR), which ends in 2026 and talks are ongoing to extend the deal.