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Bolivian economic and constitutional reform initiatives

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2026-08-18 23:32 UTC → 2026-08-18 23:35 UTC · added ~~removed~~

Bolivia has initiated a series of structural reforms aimed at attracting investment in strategic economic sectors, specifically within the gas, mining, and energy industries. The government's efforts began with a proposed overhaul of the Hydrocarbons Law to restructure the state oil company, YPFB, and introduce more flexible contractual models. This included a draft Investment Law designed to provide safeguards against nationalization or expropriation by requiring congressional approval and full compensation for affected parties. Building on these economic measures, President Rodrigo Paz announced a package of at least 12 proposed regulations to be presented to the Plurinational Legislative Assembly, including the Investment Law scheduled for presentation on August 11. To complement these economic shifts and address institutional transparency, the government is creating a High Commissioner for Institutional Integrity and Justice. This new authority, representing the Executive branch, is intended to monitor corruption and assist in broader judicial reform as the administration moves from economic stabilization toward profound structural changes. The reform agenda has sparked an intensifying debate regarding the Political Constitution of the State (CPE). Political leaders such as Jorge “Tuto” Quiroga and Samuel Doria Medina have suggested partial constitutional reforms to improve legal certainty and enable international arbitration for dispute resolution. In contrast, Cochabamba Mayor Manfred Reyes Villa has advocated for a transition toward a federal state. These proposals have caused divisions in Parliament; while some legislators argue reforms are necessary for legal security, others, including Senator Claudia Mallon and Deputy Catherine Pinto, have warned of potential instability and the risks of modifying the constitution during periods of high social conflict. The draft Investment Law submitted by the Paz administration is now facing significant criticism regarding its constitutional feasibility.

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