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Rodrigo Paz Wins Brazil Pres. Runoff   10/20 08:02

   

   LA PAZ, Bolivia (AP) -- Rodrigo Paz, a centrist senator, will be Bolivia's 
next president, preliminary results showed on Sunday, paving the way for a 
major political transformation after almost 20 years of rule by the Movement 
Toward Socialism party and during the nation's worst economic crisis in decades.

   "The trend is irreversible," 0scar Hassenteufel, the president of the 
Supreme Electoral Tribunal, said of Paz's lead over his rival, former 
right-wing President Jorge "Tuto" Quiroga. Paz won 54.5% of the votes, early 
results showed, versus Quiroga's 45.5%.

   Paz and his popular running mate, ex-police Capt. Edman Lara, galvanized 
working-class and rural voters outraged over record inflation and an acute 
dollar shortage that has sapped food and fuel supplies.

   But for all their disillusionment with the Movement Toward Socialism, or 
MAS, party, Bolivian voters seemed skeptical of Quiroga's radical 180-degree 
turn away from the MAS-style social protections and toward an International 
Monetary Fund bailout.

   "A lot of people are wary of (Quiroga's) shock measures. Paz's appeal is 
strong in rural areas and among some older voters -- the kinds of people who 
might have supported MAS if it had fielded a real candidate," said Gustavo 
Flores-Macas, dean of the School of Public Policy at the University of 
Maryland.

   Riven by internal divisions and battered by public anger over the economic 
crisis, MAS suffered a historic defeat in the Aug. 17 elections that propelled 
Quiroga and Paz to the runoff.

   Paz's victory sets this South American nation of 12 million on a sharply 
uncertain path as he seeks to enact major change for the first time since the 
2005 election of Evo Morales, the founder of MAS and Bolivia's first Indigenous 
president.

   Although Paz's Christian Democratic Party has the cushion of a slight 
majority in Congress, he'll still need to compromise to push through an 
ambitious overhaul.

   Paz plans to end Bolivia's fixed exchange rate, phase out generous fuel 
subsidies and reduce hefty public investment, redrawing much of the MAS 
economic model that has dominated Bolivia for two decades.

   But he says he'll take a gradual approach to free-market reforms, in hopes 
of avoiding a sharp recession or jump in inflation that would enrage the masses 
-- as has happened before in Bolivia. Morales' effort to lift fuel subsidies in 
2011 lasted less than a week as protests engulfed the country.

   Paz basks in victory, for a moment

   Paz's supporters erupted into raucous cheers and ran into the streets of La 
Paz, Bolivia's capital, setting off fireworks and honking car horns. Crowds 
descended around the downtown hotel where Paz declared victory. Some shouted, 
"The people, united, will never be defeated!"

   "Today, Bolivia can be certain that this will be a government that will 
bring solutions," Paz said, flanked by his wife and four adult children. 
"Bolivia breathes winds of change and renewal to move forward."

   Shortly after the results came in, Quiroga conceded to Paz.

   "I've called Rodrigo Paz and wished him congratulations," he said in a 
somber speech, prompting jeers and cries of fraud from the audience. But 
Quiroga urged calm, saying that a refusal to recognize the results would "leave 
the country hanging."

   "We'd just exacerbate the problems of people suffering from the crisis," he 
said. "We need a mature attitude right now."

   For the first time in years, the U.S. State Department congratulated the 
Bolivian president-elect and said it was looking forward to working with 
Bolivia to "restore economic stability, expand private-sector growth and 
strengthen security."

   Tensions have simmered between the nations ever since Morales expelled the 
U.S. ambassador in 2008 and the Drug Enforcement Administration in 2009. Paz 
has vowed to rebuild Bolivia's relations with Washington.

   Paz inherits an economy in shambles

   Behind the celebrations, Bolivia faces an uphill battle. To make it through 
even his first months, Paz must replenish the country's meager foreign currency 
reserves and get fuel imports flowing.

   Since 2023, the Andean nation has been crippled by a shortage of U.S. 
dollars that has locked Bolivians out of their own savings. Year-on-year 
inflation soared to 23% last month, the highest rate since 1991. Fuel shortages 
paralyze the country, with motorists often waiting days in line to fill up 
their tanks.

   Vowing to avoid the IMF, Paz has pledged to scrape together the necessary 
cash by fighting corruption, reducing wasteful spending and restoring enough 
confidence in the country's currency to lure U.S. dollar savings out from under 
Bolivians' mattresses and into the banking system.

   But Paz's stated reluctance to slam on the fiscal brakes -- with promises of 
cash handouts for the poor to cushion the blow of subsidy cuts -- has led to 
criticism.

   "It's just so vague, I feel like he's saying these things to please voters 
when fiscally it doesn't add up," said 48-year-old Rodrigo Tribeo, who voted 
for Quiroga on Sunday. "We needed a real change."

   An outsider with political experience

   Although Paz, the son of former President Jaime Paz Zamora, who was in 
office from 1989 to 1993, has spent more than two decades in politics as a 
lawmaker and mayor, he appeared in this race as a political unknown -- shooting 
unexpectedly from the bottom of the polls to a first-place finish in the August 
vote.

   His party swept six of nine regional departments in the country, including 
the Andean highlands of western Bolivia and the large, coca-producing region of 
Cochabamba, winning over key swaths of Indigenous Bolivians that once comprised 
Morales' base.

   Paz's slogan of "capitalism for all" appealed to merchants and entrepreneurs 
who flourished in Morales' heyday of booming natural gas exports but later 
chafed against his high taxes and regulation as the coffers ran dry.

   "We're all so tired of this crisis. We just want things to go back to how 
they were in the first years of Morales, when we had money -- but for the 
better this time," said Wendy Cornejo, 38, a former Morales supporter selling 
crackers in downtown La Paz.

   Quiroga, by contrast, carried the wealthier eastern lowlands of Santa Cruz, 
known as the country's agricultural engine.

   "There's a very clear class difference. For Quiroga, you have people who've 
been in politics and in the economic elite for a long time -- businesspeople, 
agro-industrialists," said Vernica Rocha, a Bolivian political analyst. "With 
Paz, it's the opposite."

   An ex-cop shakes up the race

   The race looked to be a staid affair until Paz surprised everyone by picking 
Lara as his running mate. The charismatic young ex-policeman had zero political 
experience but gained fame on TikTok after being fired from the police for 
denouncing corruption in viral videos.

   Unemployed for months, Lara scraped by selling second-hand clothes and 
worked as a lawyer helping Bolivians come forward to expose corruption. His 
humble origins and fiery promises of universal income for women and higher 
pensions for retirees resonated with many former MAS supporters. But they also 
frequently forced Paz into damage control, causing tension on the campaign 
trail.

   Lara didn't accompany Paz to the campaign headquarters in La Paz late 
Sunday, surprising many supporters. But he struck an unusually conciliatory 
tone in his remarks after learning of their victory.

   "It's time to unite, it's time to reconcile," Lara said. "Political 
divisions are over."

   Paz takes office on Nov. 8.

 
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