Arce, 57, took the oath of office at a ceremony in La Paz attended by the heads of state of Argentina, Paraguay, Colombia and Spain, among others, as well as senior officials from Chile, Iran and the Government of Nicolás Maduro of Venezuela.
The modest former minister of Economics, recognized as the architect of Bolivia’s rapid growth under Morales’ management, began to rule thinking of alleviating a divided nation, which is still reeling from the political crisis and the coronavirus pandemic.
“We have before us the great challenge of rebuilding our economy, of generating certainty, of generating growth (…) reducing economic and social inequalities,” Arce said to the Bolivian Congress.
Protests in cities such as La Paz, Santa Cruz or Cochabamba showed Sunday that the level of political tension remains high.
The changes made by congress – controlled by the Socialists – to reduce the majority needed to pass new laws and Morales’ planned return from exile in Argentina, where he has lived since he left Bolivia in 2019, are some of the main aspects rejected by the opposition.
Morales, who led the country for nearly 14 years as the first indigenous president, provoked a widespread reaction at the end of 2019 by proclaiming himself the winner of an election that the opposition deemed fraudulent.
The indigenous leader was forced to resign after widespread protests and lose the support of the police and military. He fled the country to Mexico and then to Argentina.
Arce, who was personally elected by Morales and is a close ally, has said that the former president will play no role in his government. Morales is expected to cross back to Bolivia on Monday before heading to his rural strong point in Chapare.
As Economy Minister, Arce promoted the strategic nationalization of sectors such as hydrocarbons and energy and encouraged production and trade with public investment, subsidies and bonds, helping Bolivia grow at one of Latin America’s highest rates.
Ronald MacLean, a local analyst, said Arce will now face a tougher era in Bolivia and that his party, the Socialism Movement (MAS), needs a more “liberal” socialism.
“The new generation of MAS and Luis Arce know that the previous model gives no more and must change the economic model according to the new circumstances,” he said. “You must invent the socialism of the 21st century.”
