Luis Arce
Luis Alberto Arce Catacora, often referred to as Lucho, is a Bolivian former politician, banker, and economist who served as the 67th president of Bolivia from 2020 to 2025. A member of the Movement for Socialism, he previously served as minister of finance—later minister of economy and public finance—from 2006 to 2017, and in 2019.
Born in La Paz, Arce graduated as an economist at the University of Warwick. His lifelong career in banking and accounting at the Central Bank of Bolivia prompted President Evo Morales to appoint him as minister of finance in 2006. For over ten years as Morales' longest-serving minister, Arce was hailed as the architect behind Bolivia's economic transformation, overseeing the nationalization of the country's hydrocarbons industry, the rapid expansion of GDP, and the reduction of poverty. His tenure was only brought to an end by a diagnosis of kidney cancer, which forced him to leave office to seek treatment abroad. Upon his recovery, Arce was reappointed to his position in January 2019 but resigned from office within the year amid the social unrest within the country following the disputed 2019 election that culminated in Morales' resignation. During the interim government of President Jeanine Áñez, Arce sought asylum in Mexico and Argentina, where Morales—barred from running again—nominated him as the Movement for Socialism's presidential candidate in new elections scheduled for 2020. Arce characterized himself as a moderating force, a proponent of his party's socialist ideals and won with 55% of the popular vote, defeating former president Carlos Mesa.
Inaugurated in November 2020, Arce's presidency brought Bolivia back in line domestically and internationally with its positions under MAS leadership and away from the rightward shift of Jeanine Áñez's government. Domestically, Arce's first year in office saw success in combating the COVID-19 pandemic and stabilizing the economy during the pandemic's outbreak. His government spearheaded an international call for the pharmaceutical industry to waive its patents on vaccines and medications in order to provide greater access to them by low-income countries. The initial successes of Arce's government were eventually overshadowed by a socioeconomic crisis in Bolivia upon a shortage of foreign currency reserves beginning in 2023, exacerbated by decreased exports of natural gas and high inflation.
Arce's presidency also saw him break with former president Morales, leading to a power struggle between both leaders for party influence and candidacy in the 2025 elections, leading to deadlock in the MAS-majority legislative assembly. In July 2024, an attempted coup against Arce took place in Plaza Murillo, with Morales accusing Arce of staging a self-coup due to declining popular support, followed by an assassination attempt against Morales in October 2024 that Morales claimed was orchestrated by the government, which Arce denied. Upon threats by Morales allies against family members of Supreme Electoral Court members and a bomb threat against the court, Arce's government has signaled intentions to prosecute Morales on charges of terrorism.
Despite Morales stepping down as party leader of the MAS and Arce ultimately becoming the MAS nominee for re-election, unfavorable polling prompted Arce to renounce his bid for re-election in May and Eduardo del Castillo taking over the MAS ticket. Upon its fragmentation, the MAS would go on to have its worst electoral performance in history with del Castillo receiving only 3% of the vote, losing all seats in the Senate, and going from seventy-five to two seats in the Chamber of Deputies. Arce was succeeded by Rodrigo Paz in November 2025 and was expelled by the MAS upon leaving office.
Early life and career
Luis Alberto Arce Catacora was born on 28 September 1963 in La Paz. He is the son of Carlos Arce Gonzales and Olga Catacora, both teachers. Arce grew up in a middle-class family, beginning his school studies in 1968 and graduating from high school in La Paz in 1980. He studied at the Institute of Banking Education in La Paz, initially graduating as an accountant in 1984. In 1991, he received a bachelor's degree in economics from the Higher University of San Andrés before completing his studies abroad at the University of Warwick at Coventry, United Kingdom, where he graduated in 1997 with a master's in economics. He also holds an honorary doctorate from the University of los Andes and the Franz Tamayo Private University in Bolivia.Arce spent most of his working life as a public official, beginning in 1987 at the Central Bank of Bolivia, where he spent much of his professional career. From 1992 to 2005, he worked in the International Operations Management of the Central Bank of Bolivia as Deputy Manager of Reserves. Between 1994 and 1995, he was promoted to head of the Department of Information and Publications, of the Research and Analysis Sub-management, under the Management of Economic Studies of the Central Bank of Bolivia.
Arce also started working in academia as an undergraduate and postgraduate professor at various Bolivian public and private universities. He has given lectures at universities in Europe, North America, and South America, including Columbia University in New York, the University of Buenos Aires, and Harvard University.
Minister of Economy
On 23 January 2006, President Evo Morales appointed Arce minister of finance. Three years later, he assumed command of the new Ministry of Economy and Public Finance. Some Bolivian media called Arce the mastermind of Bolivia's economic resurgence. He oversaw Bolivia's nationalization of hydrocarbon, telecommunications, and mining companies, as well as the creation of BancoSur. He oversaw the rapid expansion of the Bolivian economy, with GDP increasing by 344% and extreme poverty reduced from 38% to 15%.In 2011, the American Economy Magazine ranked Arce the region's 8th-best minister of the economy out of 18.
File:Minister of Finance of Bolivia addressing the Conference.jpg|thumb|Arce delivers the keynote address at the opening of the 10th UNCTAD Debt Management Conference, 23 November 2015.|260x260px
As the minister of economy, Arce maintained a relatively low profile. Christopher Sabatini, a senior researcher fellow for Latin America at Chatham House and founder of Americas Quarterly, called Arce "one of the few technocrats in MAS". "He's level headed" and "doesn't engage in inflammatory rhetoric", Sabatini wrote. Bolivian media often credited Arce with steering the nation through a period of economic growth. His policies were salient in slashing Bolivia's poverty rate during his terms and facilitating large amounts of economic growth as a result of rising gas exports.
On 24 June 2017, Arce was forced to give up his position and travel to Brazil to undergo surgery to treat severe kidney cancer. He remained there for a mandated recovery period before returning to his post as minister of economy on 23 January 2019.
Reappointment
In late 2019, Bolivia was engulfed by a series of increasingly fierce demonstrations, marches, and protests stemming from allegations of electoral fraud in that year's presidential election. During this period of political instability, Arce was forced to announce the government's suspension of various social benefits in some regions, including retiree pensions and school vouchers, due to the ongoing strikes and blockades and the seizure of national tax and customs offices. He estimated that the economic damage of the crisis after fourteen days of strikes was costing the government US$12 million per day, totaling US$167 million by 6 November. Four days later, on 10 November, Arce delivered his irrevocable resignation to the president, justifying that the "irresponsible work of the Plurinational Electoral Organ" made it necessary for him to step down in order to "pacify the country". Morales himself announced his decision to resign a few hours later.Soon after resigning, Arce took refuge in the Mexican Embassy in La Paz, where he was granted asylum by the Mexican government. Given his medical history, the interim government of Jeanine Áñez granted him and his wife safe-conduct to leave the country. Nonetheless, Arce denounced that he had received harassment from police while attempting to board his flight at the El Alto International Airport. On 6 December, after a brief layover in Lima, Arce arrived in Mexico, where he joined other exiled authorities, including Morales.
2020 presidential campaign
Within two weeks of Morales' removal, the transitional government issued the call for snap general elections. The legislation precluded individuals elected in the last two constitutional terms from presenting their candidacies, a clause that explicitly barred Morales from returning to the presidency. As a result, the MAS was tasked with selecting a new presidential candidate from among its ranks, a process that took place in Argentina, where Morales took asylum from Mexico. On 19 January 2020, a majority of the over fifty party delegates elected Arce as the MAS' presidential candidate from a list of four pre-candidates. Of the runner-ups, former foreign minister David Choquehuanca was chosen as Arce's running mate. Morales assured that the "combination between colleagues from the city and colleagues from the countryside continue this process of change".Campaign
A week after the announcement of his candidacy, Arce made his return from exile, arriving at the El Alto International Airport on 28 January. Though the Áñez government assured that he would be allowed to conduct his campaign "in tranquility", Arce was immediately met with a summons to testify before the Prosecutor's Office for alleged irregular financial acts authorized by him while he was on the board of directors of the Indigenous Fund. Though the process was ultimately suspended indefinitely, Arce nonetheless denounced the case as "political persecution and judicial harassment".Some MAS opponents accused Arce of being a puppet of Morales, a point Arce denied. During the campaign, Arce distanced himself from Morales, with David Apaza, a MAS leader from El Alto, stating that "categorically, Evo will not interfere in the government of brother Luis Arce... believe our comrade should rest, while brother Luis Arce takes the lead". Arce stated that Morales "will not have any role in our government" but will still be the president of the party.
Most public opinion polls showed Arce with a lead, but not one big enough to avoid a November runoff. By election night, the divided candidates of the right had managed to partially consolidate around former president Carlos Mesa as Áñez and former president Jorge Quiroga dropped out. Early results favored Mesa, but polling firm Ciesmori's quick-count of the vote on the morning of 19 October indicated that Arce had won 52.4% of the vote, enough to win the election outright without a runoff. Arce and his party declared victory, which Áñez soon confirmed on Twitter. Carlos Mesa, Arce's primary opponent, conceded the election at a news conference, saying that initial counts showed a "strong and clear" win for Arce. The final tally gave Arce 55.1% of the vote and Mesa 28.8%.
Bolivian newspaper El Deber called Arce's victory "clear and crushing" and praised him for his conciliatory statements after the result, while also stating that the new president will have to appease MAS's radical wing. Writing on Los Tiempos, Oscar Díaz Arnau attributed Arce's victory to MAS's strong support in rural areas, the weakness of Mesa's candidacy, Arce's moderation, lack of connection between the opposition and rural inhabitants and the candidacy of Luis Fernando Camacho splitting anti-MAS voters and weakening the opposition.