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Bolivia’s right-wing government eliminates diesel subsidy

“Nothing in life is free,” goes an old Latin American saying, and Bolivia’s right-wing President Rodrigo Paz has proven this once again. The International Monetary Fund confirmed that it will disburse $1.9 billion to Bolivia, which will naturally have to repay the loan.

A few hours later, as part of the agreement with the neoliberal-leaning international financial institution, Paz announced that he would eliminate the subsidy on diesel, the fuel typically used by transporters and farmers for production. According to reports from La Paz, the price will increase by 100% (for now), as it will be adjusted to international market rates.

Several experts assert that the government’s decision will lead to an imminent increase in the price of food, mining, and transportation, thereby negatively impacting the country’s working population, which constitutes the vast majority.

While the government claims that these types of neoliberal measures will help control inflation, economist Fernando Romero argues that eliminating the diesel subsidy could cause inflation – which was projected to reach 14% by the end of the year – to rise to 20% by December 2026.

But this seems to matter little to a government whose primary goal – whether its own or one set by international financial institutions for the Third World – is to reduce the fiscal deficit at all costs.

“You [Bolivians] elected me to solve problems … If [the IMF] is lending us funds to revive the country, I cannot buy diesel at a high price and sell it cheaply … That is why we have decided that diesel will cost the same as it costs us to buy it abroad, and that price will be the same for everyone,” Paz said in an address to the entire country.

Just a few months in office, many protests

The truth is that this is not the first time Paz has sought to meet the IMF’s demands. In December of last year, just a few weeks after being sworn in as president, Paz raised the price of diesel and gasoline, sparking protests across the country.

A few months later, between May and June, thousands and thousands of Bolivians took to the streets to protest the government’s plan to allow land to be seized to settle debts, which was followed by demands from the Bolivian Workers’ Confederation (COB) and various peasant groups for higher wages and improved fuel supplies, among other things. Following harsh repression, the protests quickly escalated into demands for the president’s resignation, which led to increased tensions and clashes between law enforcement and thousands of workers who blocked major highways across the country. These protests left 14 dead and nearly 400 people detained.

It now appears that Paz will not back down from his policy, despite the fact that in less than a year he has faced significant protests against him that have gradually eroded his public image. According to some polls, Paz’s approval rating barely reaches 32%.

But Paz has also prepared for possible demonstrations. The Bolivian Congress, which supports Paz, has just extended the state of emergency – which had been declared last June – by 90 days. According to Interior Minister Marco Oviedo, there are: “threats of renewed and coordinated blockades, marches, and strikes, as well as early warnings regarding calls to action, escalations, ultimatums, and the mobilization of social groups [in the coming days].”

Announcement of protests

Indeed, several agricultural workers and truck drivers have announced that they will mobilize all their members unless the government reverses its plan to eliminate the diesel subsidy. “The increase in the price of diesel spells the end for all our productive sectors; that is why we have united to defend our livelihoods and our daily work, because right now, not only is there no diesel, but we are being forced to buy it at double the price,” the main leaders of these workers said at a press conference.

And while the bulk of those likely to protest against Paz will be the poorest workers, it should not be overlooked that a significant portion of industries, mining companies, and various other businesses rely on diesel to power their machinery. This suggests that discontent will arise not only among the poorest but also among the middle class and various business owners who foresee rising production costs without any real affordable alternatives.

Similarly, transportation unions have stated that if the price of fuel doubles, they will be forced to double the cost of fares. In fact, transport operators traveling between departments have already raised fares by between 50% and 100%.

Consequently, the rising costs of food, supplies, diesel, production, transportation, and so on lead several experts to predict that Paz’s decision (while it may please the IMF) will spark demonstrations and a new cycle of protests against the administration.

However, given the extension of the state of emergency, it does not appear that Paz is very interested in curbing the protests, but rather in resisting them and cementing the elimination of the subsidy in the long term, thereby bolstering the neoliberal program, which he calls “Bolivia’s new path.”

Read more: Bolivian president consolidates power as protests continue to grow

Whether Bolivian workers (who have a long tradition of resistance and popular mobilization) will succeed in thwarting the intentions of Paz and his international allies remains to be seen.

But, as seen in other countries such as Ecuador, neoliberal governments have opted for a strategy of wearing down popular protests. For example, Lenin Moreno’s government raised fuel prices only to back down in the face of massive social protests. Years later, Guillermo Lasso and Daniel Noboa did the same, until the protesters grew weary and they finally succeeded in eliminating the subsidy on certain fuels.

For now, it seems that Bolivian workers are not willing to back down, although all signs indicate that neither will the Paz administration nor future neoliberal politicians. Whoever emerges victorious will do so by sheer resistance and the ability to remain united.

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Afro-Indigenous community in Honduras resists forced evictions

Spanish reality show “Survivor” (Supervivientes) has been filming on the land of the Afro-Indigenous Garífuna peoples in Honduras since 2006. The filming of “Supervivientes,” as well as other versions of the “Survivor” show, have sparked intense local protests over land, human rights, restrictions to fishing access, and forced evictions.

In 2025, the Inter-American Court of Human Rights (IACHR) found that the filming of the reality show violated several rights of the members of the Garífuna community. But it wasn’t the first time the Honduran government has been found in violation for its treatment of the Afro-Indigenous people of Central America. In total, the Inter-American Court has issued warnings four times regarding the mistreatment suffered by this community.

This story, though not entirely recent, has resurfaced in recent weeks when, on July 6, nearly two hundred police officers arrived in San Juan to evict several community members, claiming they were on property that did not belong to them.

However, the Garífuna assert that these lands belong to the community, and therefore an eviction order cannot be issued for communal lands that, in essence, are being targeted for privatization in favor of private interests (particularly those of the Rosenthal family, one of the wealthiest and most powerful families in Honduras). The dispute led to the arrest and prosecution of five community members by the Honduran judicial system. Those detained are Deinor Mejía, Irbin López, Carlos Fernández, Onil Hernández, and Sara Acosta.

Protests against evictions

Following this, several members of the Honduran Black Fraternal Organization (OFRANEH) arrived in the capital, Tegucigalpa, to protest in front of the Supreme Court against what they consider to be unfair treatment. They set up the “Viva Berta” Camp and plan to remain there until the proceedings against the five defendants are concluded and the court stops treating the matter as if it were a criminal case.

Furthermore, OFRANEH has rejected the intentions of Supreme Court President Wagner Vallecillo to establish dialogue forums to resolve the conflict, as the organization defending the rights of Black Hondurans asserts that this would imply recognizing that these territories do not belong to the peoples settled there – a fact already established several years ago by international courts and specifically recognized in 2023 by the Inter-American Court of Human Rights, which ruled that the territories of San Juan belonged to the communities settled there.

Thus, while the government promotes negotiations, the Garifuna people continue to resist what they see as an onslaught by private interests that are using the Honduran government to their advantage in order to strip them of something that – despite the racist rhetoric of certain media outlets – is rightfully theirs by virtue of hard-won rights.

Isolated incident or state policy?

However, in the Honduras of right-wing President Nasry Asfura, a law known as the Agroindustrial Law, the Employment and Economic Development Zones (ZEDE), was recently passed. This law authorizes law enforcement to act as they did on the day of the eviction, even though it contradicts the rulings of the IACHR, which could lead to another case against the Honduran state. 

OFRANEH asserts that this is part of a long-standing pattern of the Honduran state’s actions against Indigenous peoples. For two decades, various institutions have promoted the dispossession of lands in favor of private interests, they stated. In one such example, the National Agrarian Institute reportedly failed to recognize more than 172 hectares for the Garifuna people but did recognize them for the company Promotur, a firm linked to Jaime Rosenthal Oliva, a prominent Honduran banker and politician who died in 2019. 

This organization has also denounced the clear ties between the Rosenthals and the Supreme Court of Justice, which could jeopardize fair treatment and recognition of the territories in favor of Indigenous peoples.

For their part, several United Nations special rapporteurs have called on the Honduran government not to carry out more than 1,000 eviction orders that would affect tens of thousands of peasant, Indigenous, and Afro-descendant families. These orders would jeopardize not only territorial rights but also the food security of thousands of people, as these families rely primarily on working the land for their livelihoods.

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Brazil’s presidential campaign heats up

On October 4, nearly 160 million Brazilians will go to the polls to elect their next president, vice president, members of Congress, governors, and state legislators from the country’s various states. If no presidential candidate receives more than 50% of the valid votes, a runoff election will be held on October 25.

At this time, 13 presidential candidates are vying for the presidency in Brasília, although polls clearly point to two candidates vying for the presidency of Latin America’s most economically powerful country.

On one side is Brazil’s current president, the former union leader and progressive Luis Inácio Lula da Silva. Lula served as president from 2003 to 2011 with very high approval ratings, although following corruption allegations, he was imprisoned and sentenced to nine years.

However, after over 500 days in detention, a judge ordered his release, ruling that the proceedings were flawed. The Supreme Court of Justice called the incident a “historic error.” Following that, Lula faced off against then-far-right President Jair Bolsonaro and defeated him in the 2022 election. Now Lula hopes to be re-elected once again.

At the forefront is none other than Jair Bolsonaro’s son, Flávio Bolsonaro, who has leveraged his father’s reputation to boost his own. This is because Jair Bolsonaro was found guilty of several crimes that, according to the Brazilian justice system, were intended to prevent Lula’s inauguration and promote a coup d’état. Jair Bolsonaro is currently in house arrest for those crimes.

Consequently, a significant portion of Brazilian society, as well as international politicians such as Donald Trump, consider Bolsonaro’s imprisonment to be unjust. This explains how his son Flávio – a lawyer and businessman who currently serves as a senator – has managed to garner significant support in his bid to win the presidency on October 4.

Thus, two clearly distinct political and economic models are pitted against one another. Lula belongs to a political tradition that seeks to strengthen the state, reduce extreme poverty, invest in social programs, and diversify trade partners (such as China and India), all in line with a clearly pro-sovereignty discourse.

For his part, Flávio Bolsonaro promises to continue on his father’s path: economic neoliberalism, reducing the size of the state, building closer ties with the private sector, and – perhaps most importantly – placing Brazil once again under the influence of the Trump administration, which supports the far-right candidate.

Read more: Lula and Flávio Bolsonaro all set to face off this October in Brazil’s presidential election

Clearly, a victory for the far right – which is close to Washington – would represent a sharp shift in the region’s current economic and political course. Brazil accounts for nearly 50% of the region’s total GDP, so a victory for a Trump ally would drastically alter not only the political landscape but also the economic one. On the other hand, a victory for Lula would signal a “halt” (probably the most significant of all possible outcomes) to the wave of victories by the Latin American right and far right – allies and supporters of US hemispheric and military policy – that have swept the electoral landscape in recent years.

What do the polls say?

Since the start of the presidential race, Lula has maintained a lead over his political opponent. However, that lead has been narrowing as the weeks have gone by, raising the possibility that the runoff election, scheduled for October 25, will be a very close race. This is because, it appears, neither candidate will manage to secure more than 50% of the vote to win in a single round.

According to a poll by the MDA Pesquisa Institute, Lula holds a solid lead over Bolsonaro: 40.06% to 30.4%. Augusto Cury comes in third with 6% of the vote, while the remaining candidates trail behind this mark. According to this poll, in the event of a runoff, Lula would win with 47.3% against Bolsonaro’s likely 40%.

However, other polls paint a different picture, in which Lula remains in the lead but by a very narrow margin. This is according to an AtlasIntel poll, which shows Lula with 46% of the vote, while Bolsonaro would receive 44% in the first round. In the runoff, the gap would disappear, and both candidates would receive nearly 47% of the vote (a technical tie).

A corruption scandal that is shaking up the political landscape

However, everything could change in the wake of a scandal that has rocked Brazilian politics. In late 2025, the former owner of Banco Máster SA, Daniel Vorcaro, allegedly committed a serious case of bank fraud. Since his arrest in March 2026, his conversations, friendships, and connections have all been under close investigation.

One of the people who has come under scrutiny is Flávio Bolsonaro, who confirmed that he had asked the banker for money to make a film about his father called “Dark Horse”. The Federal Police are investigating this case to determine whether Bolsonaro participated in any illegal activity.

Meanwhile, Lula’s inner circle has also been affected. The judge who ordered Jair Bolsonaro’s arrest, Alexandre de Moraes, is alleged to have exchanged messages with Vorcaro. Moraes has been portrayed as a judge close to Lula and thus Bolsonaro and his supporters have seized on the revelation of the messages to call for Moraes’s removal and indirectly accuse the government of suspicious activities.

The debate has led to a serious crisis within the Brazilian judiciary because a decision to investigate Moraes was postponed, prompting accusations of political bias among the judges.

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