Luis Arce

Luis Arce
Born	Luis Alberto Arce Catacora 28 9, 1963
Birthplace	La Paz, Bolivia
Nationality	Bolivian
Occupation	Economist, politician, banker
Title	President of Bolivia (2020–2025)
Known for	67th President of Bolivia, architect of Bolivia's economic transformation under Evo Morales
Education	University of Warwick (economics)
Website	[luchoxbolivia.org Official site]

Luis Alberto Arce Catacora (born 28 September 1963), commonly known as Lucho, is a Bolivian economist, banker, and former politician who served as the 67th President of Bolivia from November 2020 to November 2025. A lifelong member of the Movement for Socialism (MAS), Arce rose to national and international prominence as Evo Morales' longest-serving cabinet minister, overseeing Bolivia's economy during a period of significant GDP expansion, the nationalization of the country's hydrocarbons industry, and a substantial reduction in poverty. His stewardship of economic policy from 2006 to 2017, and again briefly in 2019, earned him recognition as the principal architect of what observers termed Bolivia's economic transformation. Arce entered the 2020 presidential race as the MAS candidate after Morales was barred from running again, winning with approximately 55 percent of the popular vote and defeating former president Carlos Mesa. His presidency was marked by initial successes in combating the COVID-19 pandemic and stabilizing the Bolivian economy, but later confronted a severe socioeconomic crisis driven by a shortage of foreign currency reserves and declining natural gas exports beginning in 2023. His term was also defined by a dramatic rupture with Morales that paralyzed the MAS-controlled legislature and culminated in an attempted coup in July 2024.

Early Life

Luis Alberto Arce Catacora was born on 28 September 1963 in La Paz, the administrative capital of Bolivia. Details about his family background and childhood remain limited in publicly available sources. Arce grew up in La Paz during a period of considerable political and economic instability in Bolivia, which experienced a series of military governments and democratic transitions throughout the 1960s, 1970s, and 1980s.

Arce developed an interest in economics from an early age, an interest that would eventually shape both his academic career and his long trajectory in public service. According to a profile published by France 24, Arce was characterized as someone who rose through technical expertise rather than political charisma, a trait that would distinguish him from other figures in Bolivian politics.

Before entering government, Arce built a career in banking and accounting at the Central Bank of Bolivia, where he held various positions over a number of years. His expertise in macroeconomic policy and public finance at the Central Bank provided him with a deep understanding of Bolivia's monetary system and fiscal framework, experience that would prove central to his later appointment as minister of finance under President Evo Morales.

A 2018 article in the Bolivian newspaper Página Siete described Arce as having been an atheist for much of his life, but noted that his battle with kidney cancer had led him to a belief in the power of prayer and spiritual energy, marking a personal transformation that accompanied his recovery from the illness.

Education

Arce pursued his higher education in economics at the University of Warwick in the United Kingdom, where he completed his degree in the field. The University of Warwick's economics program is one of the leading departments in the United Kingdom, and Arce's training there provided him with a grounding in both classical and heterodox economic theory.

His academic background distinguished him within Bolivian politics, where he was one of relatively few senior officials to have received advanced training in economics at a prominent international institution. Arce's formal education informed his approach to economic policy, which combined state interventionism and resource nationalism with attention to macroeconomic stability—a combination that would later define his tenure as minister of finance and economy.

Career

Central Bank of Bolivia

Before his entry into government, Arce spent a significant portion of his professional life at the Central Bank of Bolivia, where he worked in banking and accounting. His tenure at the central bank gave him firsthand experience with Bolivia's monetary policy, currency management, and the broader challenges facing the country's financial system. It was this technical background that brought him to the attention of Evo Morales, who was seeking competent technocrats to manage the economic dimensions of his ambitious reform agenda upon taking office in 2006.

Minister of Finance and Economy (2006–2017)

In January 2006, newly inaugurated President Evo Morales appointed Arce as Bolivia's Minister of Finance. The position was later renamed Minister of Economy and Public Finance, and Arce held the role continuously for over eleven years, making him the longest-serving minister in the Morales cabinet.

Arce's tenure as minister coincided with a period of significant economic growth and social transformation in Bolivia. He oversaw the nationalization of the country's hydrocarbons industry, a central policy of the Morales government that brought revenue from Bolivia's natural gas and oil reserves under state control. The nationalization policy, implemented beginning in May 2006, resulted in a dramatic increase in government revenues, which Arce directed toward social spending programs aimed at reducing poverty and inequality.

Under Arce's management, Bolivia experienced rapid GDP expansion. The country's economy grew at rates that outpaced many of its South American neighbors, and extreme poverty was significantly reduced. According to data cited by La Razón, Bolivia achieved one of the largest reductions in extreme poverty in the region during this period. Arce's approach combined resource nationalism—channeling hydrocarbon revenues into public investment—with orthodox fiscal management, maintaining budget discipline and accumulating international reserves.

Arce's economic model drew attention from international observers. RFI described the period as a "milagro económico" (economic miracle) for Bolivia, noting the country's sustained growth rates and poverty reduction achievements. The World Bank recognized Arce as a key economic policymaker in the region. Arce also participated in international economic forums, including sessions organized by the United Nations Economic Commission for Latin America and the Caribbean (CEPAL).

Despite the general narrative of economic success, Arce also faced challenges during his ministerial tenure. By 2017, Bolivia's economy had begun to experience a deceleration, in part due to declining global commodity prices that affected the country's natural gas export revenues. La Razón reported on Arce's acknowledgment of a "desaceleración profunda" (deep deceleration) in the economy during this period.

Arce's tenure as minister came to an end in June 2017, not due to political disagreements or policy failures, but because of a diagnosis of kidney cancer. He was forced to leave office to seek medical treatment abroad. His departure was widely noted in Bolivian media, given his central role in the Morales government's economic agenda.

Return to Government and Departure (2019)

Following his recovery from cancer, Arce was reappointed as Minister of Economy and Public Finance by President Morales in January 2019, succeeding Mario Guillén, who had held the post during Arce's absence. His return to the ministry was brief, however, as Bolivia entered a period of severe political crisis later that year.

The 2019 Bolivian political crisis erupted following the disputed October 2019 general elections, in which Morales sought an unprecedented fourth term. Allegations of electoral fraud led to widespread social unrest, and the Organization of American States issued a preliminary report raising concerns about irregularities in the vote count. The crisis culminated in Morales' resignation on 10 November 2019, under pressure from the military and amid escalating protests. Arce resigned from his ministerial position as part of the broader collapse of the Morales government.

During the subsequent interim government of President Jeanine Áñez, Arce left Bolivia. He sought asylum first in Mexico and then in Argentina, joining Morales and other MAS officials in exile. It was during this period that Arce emerged as the MAS party's candidate for the rescheduled 2020 presidential elections, after Morales himself was barred from running again.

2020 Presidential Election

Arce's candidacy for the 2020 presidential election was initially seen as that of a proxy for Morales, with some observers describing him as a "delfín" (protégé) of the former president. However, Arce sought to establish his own political identity during the campaign. He characterized himself as a moderating force within MAS, a proponent of the party's socialist ideals who was not subservient to Morales personally. In an exclusive interview with Reuters, Arce stated that he would not be Morales' "puppet" if elected, signaling a degree of independence from the party's founder.

His running mate was David Choquehuanca, a former foreign minister and prominent Aymara leader, a pairing intended to unite the technocratic and indigenous wings of the MAS party.

The election took place on 18 October 2020, after being postponed multiple times due to the COVID-19 pandemic. Arce won a decisive victory, receiving approximately 55 percent of the popular vote, far ahead of his nearest rival, former president Carlos Mesa, who received around 29 percent. The margin of victory was sufficient to avoid a runoff election.

Time magazine covered the election as a significant moment in Latin American politics, noting that Arce's victory represented a return of the left to power in Bolivia after the tumultuous events of 2019. NPR similarly reported the election as a major development, noting Arce's background as an economist and his pledge to restore the economic policies of the Morales era.

Presidency (2020–2025)

Inauguration and Early Priorities

Luis Arce was inaugurated as the 67th President of Bolivia on 8 November 2020, with David Choquehuanca as his vice president. He succeeded interim president Jeanine Áñez, whose government had represented a rightward shift in Bolivian politics following the ouster of Morales. Arce's inauguration marked a return to MAS governance and, with it, a realignment of Bolivia's domestic and international positions toward the left-leaning orientation that had characterized the Morales era.

COVID-19 Pandemic Response

Arce's first year in office was dominated by the COVID-19 pandemic, which had severely affected Bolivia under the Áñez government. Arce's administration undertook efforts to combat the pandemic and stabilize the Bolivian economy during the outbreak. His government led an international campaign calling on the pharmaceutical industry to waive its patents on COVID-19 vaccines and medications, arguing that such waivers were necessary to provide greater access to life-saving treatments for low-income countries. This position aligned Bolivia with other developing nations advocating for equitable global access to pandemic resources.

Economic Crisis

The initial successes of the Arce government in pandemic management and economic stabilization gave way to a severe socioeconomic crisis beginning in 2023. Bolivia faced a critical shortage of foreign currency reserves, driven in large part by decreased exports of natural gas—the country's primary source of export revenue—as production declined and global market conditions shifted. The shortage of foreign currency led to difficulties in importing essential goods and fueled high inflation, placing significant strain on ordinary Bolivians.

The crisis exposed vulnerabilities in the economic model that Arce himself had helped build during his time as minister. The heavy reliance on hydrocarbon revenues, which had funded the social spending and poverty reduction programs of the Morales and early Arce years, proved unsustainable as gas production declined and new investment in the sector lagged. The erosion of international reserves, which had been accumulated during the boom years, accelerated under the pressures of declining exports and continued public spending.

Rupture with Evo Morales

A defining feature of Arce's presidency was his increasingly bitter conflict with former president Evo Morales. What had begun as a political partnership—Morales had nominated Arce as the MAS presidential candidate in 2020—deteriorated into an open power struggle for control of the party and the right to stand as its candidate in the 2025 presidential elections.

The rift between Arce and Morales paralyzed the MAS-majority Plurinational Legislative Assembly, as legislators aligned with one or the other faction blocked initiatives from the opposing camp. The deadlock hampered the government's ability to respond effectively to the economic crisis and eroded public confidence in both leaders.

Attempted Coup of July 2024

On a day in July 2024, Bolivia experienced an attempted coup d'état when military units led by General Juan José Zúñiga occupied Plaza Murillo in central La Paz, the seat of the Bolivian government. The attempt was swiftly defeated, and Arce appeared publicly to condemn the action and assert civilian control over the military.

The episode, however, became a source of further political controversy. Morales publicly accused Arce of staging a "self-coup"—an allegation that Arce had orchestrated the military action himself in order to generate a rally-around-the-flag effect amid declining popular support. Arce and his government denied these accusations.

Assassination Attempt Against Morales (October 2024)

In October 2024, an assassination attempt was carried out against Evo Morales. Morales survived the attack and subsequently claimed that the Arce government had orchestrated the attempt on his life. The Arce administration denied any involvement. The incident further deepened the division within MAS and raised alarms among international observers about political violence in Bolivia.

End of Presidency

Arce's presidential term concluded on 8 November 2025. He was succeeded by Rodrigo Paz. By the end of his tenure, Arce's presidency was assessed by observers as one that began with significant promise—returning democratic governance after the 2019 crisis and managing the early phases of the pandemic—but was ultimately consumed by economic difficulties and intraparty conflict.

Personal Life

Luis Arce was married to Jéssica Mosqueira; the couple later divorced. Limited additional information about Arce's personal life is available in public sources.

Arce's personal life was profoundly affected by his diagnosis of kidney cancer, which was first made public in 2017 when he was forced to step down from his position as minister of economy to seek treatment abroad. His recovery from the disease was a significant personal milestone, and Arce has spoken publicly about the impact the experience had on his worldview. According to a 2018 profile in Página Siete, Arce, who had been an atheist for much of his life, came to believe in the power of prayer and spiritual energy during his battle with cancer.

Arce is commonly referred to by his nickname "Lucho" in Bolivian media and by the public. His 2020 presidential campaign used the slogan and branding associated with this nickname, including the campaign website luchoxbolivia.org.

Recognition

Arce received significant recognition for his management of Bolivia's economy during his time as minister of finance and economy. International financial institutions and economic bodies acknowledged his role in overseeing the country's period of sustained growth and poverty reduction. The World Bank listed Arce as a notable economic expert and policymaker. He participated in sessions of the United Nations Economic Commission for Latin America and the Caribbean (CEPAL), reflecting his standing within the region's economic policy community.

The French international broadcaster RFI characterized Bolivia's economic performance under Arce's stewardship as an "economic miracle," noting the combination of high growth rates and poverty reduction that the country achieved between 2006 and the mid-2010s.

His 2020 electoral victory was covered extensively by international media outlets, including The Guardian, Reuters, NPR, Time, and Deutsche Welle, reflecting the global significance attributed to Bolivia's return to MAS governance after the political crisis of 2019.

Legacy

Luis Arce's legacy in Bolivian politics is shaped by two distinct phases of his career. As minister of economy and public finance from 2006 to 2017, he was instrumental in implementing the economic program of the Morales government, which combined the nationalization of hydrocarbons with increased social spending and fiscal discipline. The results of this program—sustained economic growth, a significant reduction in extreme poverty, and the accumulation of international reserves—represented one of the most notable periods of economic performance in Bolivia's modern history.

As president, Arce's legacy is more contested. His administration's early achievements in managing the COVID-19 pandemic and restoring democratic governance were offset by the economic crisis that began in 2023 and by the political turmoil generated by his conflict with Morales. The attempted coup of July 2024 and the assassination attempt against Morales in October 2024 underscored the depth of the political divisions that characterized his presidency.

Arce's trajectory also highlighted tensions within the MAS between its technocratic and populist wings. His assertion of independence from Morales—first articulated during the 2020 campaign and later enacted through his governance decisions—represented an attempt to establish a political identity distinct from the party's founding leader. Whether this effort succeeded or merely fragmented the party remains a subject of analysis among Bolivian political observers.

The economic model that Arce helped construct during the Morales years, based on state control of natural resources and redistribution of revenues through social programs, continued to shape debate about development policy in Bolivia and the broader Latin American region. The subsequent decline in natural gas production and the depletion of reserves under his presidency, however, also served as a case study in the risks of commodity-dependent economic strategies.