Fix the State, Save the Republic | Arreglar el Estado, Salvar la República

By Bolivian Thoughts:

Rebuilding Bolivia’s Republic: A Functional State, Not a Bigger One

Bolivia’s current collapse is not accidental. It stems from decades of institutional decay, overdependence on informal markets and subsidies, and the systematic replacement of merit with political loyalty. Today’s state employs over 600,000 public workers—more than double what it did before MAS came to power—yet services are worse, justice is politicized, corruption is endemic, and we face a shortage of dollars that blocks trade, erodes household savings, and paralyzes decision-making. Meanwhile, unsustainable fuel subsidies, smuggling, and state inefficiency drain what little capacity remains.

The roots of the crisis trace back to the post-1985 stabilization period. Thousands of laid-off miners moved to the Chapare, where coca cultivation and the cocaine economy expanded. From that vacuum emerged Evo Morales, who transformed the coca unions into a political apparatus. When MAS took power in 2006, it inherited a functional but modest state—and dismantled it. Meritocracy gave way to patronage; laws to discretion.

To rebuild, we must move beyond debates about more or less government. As Harvard’s Katerina Linos argues, what matters is how government performs. In Bolivia, performance has collapsed. The path forward is institutional, not ideological: the state must do fewer things—but do them competently, transparently, and fairly. Five urgent priorities require discipline and clarity.

First, reprofessionalize the civil service. A strict hiring freeze on political appointments is essential. A transitional Civil Service Authority, with international and civic oversight, must audit ministries and phase out roles without technical justification. Technical institutes and universities must feed into a structured public service track, with exams, internships, and merit-based promotions. Competence—not loyalty—must define public employment.

Second, reconstitute the judiciary. Judges must no longer be elected by popular vote—a failed experiment. All current appointments should undergo review, supervised by international observers. An autonomous Judicial Performance Evaluation Unit must track delays, sentence quality, and integrity. Judges should be competitively selected and held accountable by an independent council.

Third, realign fiscal priorities. Fuel subsidies drain resources and encourage contraband. A phased, conditional removal—offset by direct transfers to the poorest—must be launched. The savings should fund essential services: health, education, and infrastructure. This transition must be regionally balanced, data-driven, and transparent.

Fourth, restore territorial legitimacy. A New Municipal Pact must empower local governments with performance-based funding tied to measurable outcomes—school attendance, clean water, clinic coverage. Budgets and project tracking must be public. Citizen oversight by churches, universities, and neighborhood boards must be formalized to prevent it’s capture by current politicking.

Fifth, and above all, the next administration must be transitional and non-permanent. Its task is to rebuild the Republic’s foundation. This includes repealing indefinite re-election, restoring equal rights under the law, and guaranteeing electoral independence. A new Constitutional Convention must be convened—with a clear mandate and deadline—to draft a renewed, republican framework that reestablishes checks and balances, depoliticizes institutions, and ensures long-term democratic legitimacy.

These are not abstract ideals. They’ve worked elsewhere: in Eastern Europe after communism, in Chile after Pinochet, in Colombia’s post-conflict transitions. Bolivia is not beyond repair—but time is short.

We don’t need slogans or rupture. We need disciplined reconstruction: fewer ministries, but better ones; fewer employees, but trained; fewer judges, but independent; fewer promises, but fulfilled. Bolivia doesn’t need a bigger state. It needs a state that works. That is how we recover our Republic.

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