By Ernesto Estremadoiro, El Deber:

End of MAS Era Leaves 1.9 Million People in Extreme Poverty in Bolivia

Fin del ciclo del MAS deja a 1,9 millones de personas en pobreza extrema en el país

The scene reflects a reality that affected 16.7% of Bolivians: 1.9 million people fell into extreme poverty, according to the INE | Fuad Landívar

The end of 2025, the final year of MAS government, shows a sharp deterioration in social conditions: extreme poverty rose by 3.9 percentage points, while poverty reached 44.7% of the population. On the streets, some people search through garbage or survive on the charity of passersby

Early in the morning, as Santa Cruz de la Sierra begins to wake up amid the noise of cars and the voices of vendors and shoppers, Lidia Villavicencio is already looking for something to take home.

She is 60 years old and comes from Plan 4.000 to the area around the former Abasto Market. She is not there to shop. She searches through garbage containers for something that might still be useful to feed the seven grandchildren under her care.

“There isn’t enough money,” she repeats.

The phrase is harsh, and it reflects an economy in which food and transportation prices are rising every day, while incomes are no longer enough to cover them—or, in some cases, no longer exist at all.

Lidia stopped working because she has to take care of her grandchildren. The children’s father died and their mother is ill, she explains. She has no permanent family support. Last year, she began searching for food among the waste at the former Abasto Market.

Lidia’s situation is backed by official figures.

The 2025 Household Survey conducted by the National Statistics Institute (INE), recently published, reveals that 1.9 million people, equivalent to 16.7% of the population, were living in extreme poverty. Extreme poverty stood at 12.8% in 2024. The increase was 3.9 percentage points.

On the street, the number is not seen as a statistical table. It is seen in a woman searching through garbage for food.

Fin del ciclo del MAS deja a 1,9 millones de personas en pobreza extrema en el país

At the old Abasto Market, people search through garbage for something to eat and take home. The scene has become commonplace in this area | Fuad Landívar

The 2025 picture takes on a political dimension because it corresponds to the end of the MAS governments’ cycle.

The 2025 result was stark: 44.7% of the population was living in poverty, while 16.7% was living in extreme poverty.

Extreme poverty also measures more than simply the number of people below the poverty line. The INE also calculates the poverty gap, which shows how far people’s incomes are from that threshold. In 2025, the average gap was approximately 5.8%.

Poverty Has a Face

Lidia says that she used to receive help more frequently. Now she has to travel farther to find something she can take home to her grandchildren. Even getting to the market costs money.

The fare from Plan 4.000 rose from Bs 2 to Bs 3.50. And every coin counts when the family budget is not enough to cover basic needs.

The survey defines extreme poverty based on income. In other words, a person is considered to be in that condition when their household’s per-capita income falls below the cost of a basic food basket calculated by the INE. In 2025, the threshold was approximately Bs 660 per person per month.

This figure helps explain the daily reality of this woman, who must divide her scarce resources among food, transportation, and the needs of seven children.

On Cumavi Avenue, a few kilometers from Abasto, Luis Fernando Sánchez also values every coin. He has spent 32 years singing on the streets. An accident caused him to lose his sight and brought an end to his career as a folk-music performer. Since then, he has turned his voice into a means of survival.

He now mainly performs Christian music. His stage is the street. His audience is made up of passersby, and his income depends on their generosity.

Luis Fernando has five children, all grown up, but he still feels responsible for helping them whenever he can. For decades, he managed to put food on the table by singing in the streets.

But now everything has changed. “Things are difficult,” he says when asked about his economic situation.

He does not need to see to know that prices have risen. He senses it in the coins he receives and in what he can buy with them.

He also sees the impact of the dollar. If imported products become more expensive, he says, the effect eventually reaches the prices people pay. His explanation does not come from an economics textbook, but from three decades of working on the streets.

Roxana Telles also learned about economics without attending university. From a very young age, she has sold candy to support herself. But for the past 15 years, she has used a wheelchair because of lupus, an autoimmune disease that attacked her body and left her confined to that kind of prison made of wheels and metal.

She has no family who can support her financially. She relies on a person whom she considers a “sister in Christ,” who helps her whenever she can.

Her sales stand is also her means of survival. Roxana sees the crisis from another perspective: that of someone who must generate money every day to cover her medical expenses.

“I have no other choice,” she says when explaining why she continues working despite her condition.

Fin del ciclo del MAS deja a 1,9 millones de personas en pobreza extrema en el país

Adversity does not stop Roxana, who sells candy from her wheelchair | Fuad Landívar

The phrase sums up one of the defining characteristics of poverty: for those living on the edge, stopping work and losing an income is not always an option.

End of an Era

The result is one of the main signs of the social deterioration with which Bolivia closed 2025, a year that also marked the end of the cycle of MAS governments that began with Evo Morales in 2006 and continued under Luis Arce Catacora.

The period cannot be assessed solely on the basis of the 2025 figures.

During the first years of the MAS cycle, Bolivia recorded a reduction in poverty. According to INE data, extreme poverty fell from 38.2% in 2005 to 15.2% in 2018—a reduction of more than 23 percentage points.

Moderate poverty also declined during that period, from 60.6% in 2005 to 34.6% in 2018.

That was one of the period’s main bright spots: millions of Bolivians moved out of conditions of extreme poverty during the years of strong economic growth and rising incomes.

The international context was also favorable. The commodities boom allowed the State to collect greater revenues from gas and mineral exports, while public spending, investment, and social transfers played an important role in the economy.

The main shadow appears when looking at what happened afterward.

The reduction in poverty was neither linear nor permanent. The country began facing a different scenario after the boom period: lower hydrocarbon revenues, weaker economic momentum, a fiscal deficit, declining gas production, and growing pressure on international reserves.

The pandemic aggravated the problem and, afterward, Bolivia entered a period marked by a shortage of foreign currency, difficulties importing goods, and strong inflation.

The 2025 Household Survey shows the social outcome of this process of decline.

Overall poverty reached 44.7% of the population, compared with 37.6% in 2024. That represents an increase of 7.1 percentage points in a single year.

Therefore, it was not only the number of people living in extreme poverty that increased. The overall population whose income is insufficient to cover the cost of the total basic basket also grew significantly.

Another significant figure is that accumulated inflation during 2025 reached 20.4%, far above the growth in nominal labor income.

Economist Carlos Aranda said the figure reflects deterioration that goes beyond statistics and directly affects families’ ability to buy food, pay for services, and cover their daily expenses. “We are talking about a very brutal impact on families’ purchasing power,” he said.

According to his assessment, the situation is forcing households to cut back on their spending, while the Government faces the challenge of containing inflation and, at the same time, restoring production and employment.

Fiscal Deterioration

Minister of Economy and Finance Christian Morales argues that the situation is the result of a process of deterioration in public finances accumulated over the past two decades.

“We come from 20 years of a policy that, in the end, has drained the State’s coffers,” Morales says, explaining the economic situation facing the current administration.

The minister said that, following the elimination of fuel subsidies, the Government created the PEPE program to support sectors considered vulnerable. He insists that the fundamental solution is to rebuild public finances, restore international reserves, and create conditions for the private sector to resume investing with confidence.

Morales maintains that the administration of Rodrigo Paz has not stopped supporting these sectors and will continue evaluating mechanisms of assistance “when the time is right.”

But for Lidia, Luis Fernando, and Roxana, the crisis is not another figure from the INE: it is the food missing from their homes, the coins that are not enough, and the work that cannot stop.

And while the country seeks to recover, they continue surviving among garbage containers, with a song, or by selling candy. For them, recovery will only have meaning when it allows them to return home with something more than uncertainty and a few coins.

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