Paz sworn in as Bolivia's president, promises 'capitalism for all'

Rodrigo Paz was sworn in as Bolivia's president on Saturday, marking the end of nearly two decades of leftist rule.

"God, family and fatherland, yes, I swear," the 58-year-old said during his oath of office.

"Today, a new era of independence begins, in the service of the people," he said. "This is the new Bolivia, opening itself to the world."

Paz, previously a senator with the centrist Christian Democratic Party, won last month's run-off against conservative Jorge Quiroga, who served as president in 2001–02.

Outgoing president Evo Morales, a prominent figure in Latin America's left, was barred by the constitution from running again.

Paz inherits big challenges, including a deep economic crisis marked by high inflation, shortages of fuel and food, and an acute lack of medicines.

Bolivia, a landlocked country with around 12 million inhabitants, is one of South America's poorest nations.

At the inauguration, attended by several South American leaders including Argentina's President Javier Milei and Chile's President Gabriel Boric, Paz promised a policy of "capitalism for all."

He outlined plans for a gradual transition to a market-oriented economy, targeted subsidy cuts and improved foreign relations, including a cautious rapprochement with the United States after years of frosty ties under Bolivia's previous left-wing administrations.

Bolivia holds the world's largest lithium reserves, a key component for batteries and electric vehicles. Exploitation of the resource has advanced slowly, and the new government is seen as potentially opening opportunities for foreign investment.