LA PAZ, May 18 (Reuters) - Supporters of Bolivia's former leftist president Evo Morales marched through La Paz on Monday, widening unrest that has blocked roads for nearly two weeks and triggered shortages of food, fuel and medical supplies across the country.
The disruptions have stranded trucks on highways and left patients unable to reach hospitals, authorities said. Argentina has sent a military aircraft with food supplies at Bolivia’s request.
WHAT IS DRIVING THE PROTESTS?
Demonstrations that began with strikes in early May have grown into a nationwide movement involving labour unions, miners, transport workers and rural groups. Protesters are pressing President Rodrigo Paz’s government to roll back austerity measures and address rising living costs, with some calling for his resignation.
Analysts say the unrest has broadened from local grievances to wider anti-government sentiment over the country’s economic direction.
WHAT ARE THE MAIN GRIEVANCES?
The protests center on rising economic pressures. Teachers are demanding higher pay and more funding, while transport unions have launched open-ended strikes amid fuel shortages and supply concerns. Indigenous and rural groups oppose agrarian reforms they say favour larger landowners.
Despite the government repealing a controversial agrarian law this month, protests have continued.
HOW HAS THE GOVERNMENT RESPONDED?
Paz, who took office in November and inherited an economy in turmoil, has defended spending cuts and fuel subsidy reductions as necessary to stabilize public finances.
He is preparing a reform package for Congress that includes gradually lifting fuel price controls and measures to boost domestic energy production and investment.
The government has sought to ease tensions through negotiations and wage increases while deploying around 3,500 security forces to clear roadblocks. Authorities said about 57 people have been arrested.
Officials have blamed the opposition and Morales allies for encouraging the blockades, which they say have contributed to at least three deaths, including patients unable to reach hospitals.
WHAT ROLE IS EVO MORALES PLAYING?
Morales, who governed Bolivia from 2006 to 2019, has backed the protests, describing them as a response to economic hardship and political persecution.
Thousands of his supporters have rallied after a judge held him in contempt earlier this month for failing to appear in court in a trafficking case. Morales denies wrongdoing.
“As long as the structural demands such as fuel, food, and inflation are not addressed, the uprising will not be halted,” he wrote on X.
ARE INVESTORS CONCERNED?
So far, market reaction has been muted, in part because Bolivia’s sovereign bonds are generally thinly traded. The premium that investors demand for holding Bolivian debt over comparable U.S. Treasuries narrowed in May to its tightest since at least 2020, LSEG data shows.
However, analysts warn of growing risks.
“Bolivia is in a period of social and political stress, as an escalating national strike converges with mass protests and widespread roadblocks,” JPMorgan said in a client note.
IS THIS UNUSUAL FOR BOLIVIA?
Road blockades have long been a common tactic used by demonstrators. Under former left-wing president Luis Arce, similar disruptions led by factions loyal to Morales as well as mining and rural groups, at times paralyzed key transport routes and caused billions in losses.
Analysts say Paz faces the challenge of stabilizing the economy while building new political and social alliances in a highly polarized environment.
“There are no easy or quick solutions in sight," said economist Gonzalo Chavez.
(Reporting by Daniel Ramos and Lucinda Elliott. Additional reporting by Rodrigo Campos. Editing by Sanjeev Miglani)
