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Luis ArcePresident of Bolivia since November 8, 2020
Date of Birth: 28.09.1963
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Content:
- Birth and Education
- Career at the Central Bank of Bolivia
- Minister of Finance and Economy
- Economic Achievements as Minister
- Social Investments and Poverty Reduction
- Resignation and Return to Political Life
- Presidency
Birth and Education
Luis Arce Catacora was born into a family of professors. He completed his high school education in 1980. Arce continued his studies at the Institute of Banking Studies, graduating with a degree in accounting in 1984. He then enrolled in the Faculty of Economics at the University of San Andrés (UMSA) in 1986, earning a degree in Economics in 1991. From 1996 to 1997, Arce pursued a master's degree in Economics at the University of Warwick in Coventry, UK.
Career at the Central Bank of Bolivia
From 1987 onwards, Arce worked at the Central Bank of Bolivia for nearly 20 years. He rose through the ranks, starting as a market analysis specialist in the international finance department and eventually becoming head of the international operations department.
Minister of Finance and Economy
In 2006, Arce was appointed Minister of Finance in Evo Morales' first government, tasked with overseeing the external financing development program. Three years later, in 2009, he became Minister of Economy and Public Finance. Influential media outlets such as The Wall Street Journal hailed him as the "architect of Bolivia's economic renaissance."
Economic Achievements as Minister
Under Arce's leadership as Minister of Economy, Bolivia experienced significant economic growth. During his tenure from 2006 to 2019, the country's GDP increased by 343%, from $9,573 million to $42,401 million in just over a decade. This growth was recognized by international organizations such as the World Bank, the IMF, and the UN Economic Commission for Latin America and the Caribbean (ECLAC).
Key policies implemented by Arce that contributed to Bolivia's economic progress include stimulating the domestic market, maintaining exchange rate stability (resulting in a substantial increase in international reserves), and pursuing a natural resource nationalization policy integrated with long-term social development plans.
Social Investments and Poverty Reduction
Arce oversaw the nationalization of hydrocarbon, telecommunications, and mining companies in the country, as well as the creation of the Bank of the South. He established electricity tariffs in urban areas slightly above those in rural areas, benefiting the latter and leading to accelerated rural development. Arce also instituted annual wage increases above inflation levels, boosting the purchasing power of the population. He actively supported the passing of laws for public investments in social areas, particularly focusing on improving education and healthcare.
He also passed legislation providing subsidies for children and adolescents in public schools, pregnant women and mothers with children under two years of age, and elderly citizens over 60 who do not receive state pensions. Arce promoted financing for a program to mechanize agriculture, providing tractors to indigenous peasants. As a result of these measures, Bolivia significantly reduced its poverty rate from 38.2% to 15.2%, according to reports by the UN Development Program and ECLAC. In 2018, Bolivia registered an inflation rate of 1.51%, its lowest since 2009.
Resignation and Return to Political Life
Arce resigned from his post in 2017 due to health issues but was reappointed in January 2019. On November 10, 2019, he resigned along with President Evo Morales and other ministers. To ensure safety following the anti-government protests of October-November 2019, he sought refuge in the Mexican embassy and left the country on December 6. He resided in Mexico and later Argentina.
On January 19, 2020, Arce was nominated as the presidential candidate for the Movement Towards Socialism party (MAS) in the 2020 general elections. He was paired with David Choquehuanca Céspedes as the vice-presidential candidate. Arce won a resounding victory in the presidential election held on October 18, 2020, securing over 52.4% of the vote.
Presidency
As President, Arce has restored relations with the Venezuelan government led by Nicolás Maduro, snubbing Juan Guaidó. He has also reestablished ties with Iran. Additionally, he has reinstituted visa requirements for the US and Israel, which had been suspended by the government of Jeanine Áñez. Arce announced that Bolivia would resume its participation in 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), also discontinued by the Áñez government.
On December 30, 2020, Arce's government signed a contract with the Russian government to purchase 5.2 million doses of Russia's Sputnik V vaccine to vaccinate 2.6 million Bolivians against COVID-19. The total purchase amounted to $49.4 million, with each vaccine dose costing $9.5 per person. Arce emphasized that the vaccines would be provided free of charge to the entire Bolivian population. Acknowledging concerns and criticism of the vaccine, the government clarified that vaccination would be voluntary and not mandatory.
Arce's ancestors were heroes in the War of Independence of 1810-1826. He holds honorary doctorates from the University of San Andrés and the private Franz Tamayo University.
