Bolivia's Bread Roll Crisis: A Political and Economic Challenge

Bolivia faces a shortage of state-subsidized marraqueta bread rolls, testing President Rodrigo Paz's efforts to reform the economy without upsetting accustomed citizens. Shortages stem from dwindling wheat supply and rising costs, highlighting political risks. The crisis underscores challenges in balancing state subsidies with reform initiatives.

Bolivia is grappling with a shortage of its beloved marraqueta bread rolls, posing an immediate challenge for the newly elected President Rodrigo Paz. The issue arises as dwindling wheat supplies and rising costs affect bakers, raising questions over Paz's strategy to reform Bolivia's economy by reducing heavy state subsidies without causing public discontent.

The country's reliance on imports, with about 75% of wheat coming from Argentina, exacerbates the bread shortage. Consumers are particularly frustrated, noting that marraqueta bread, traditionally sold for the equivalent of 8 U.S. cents, has decreased in size over recent years. Meanwhile, bakers struggle with delays in government-imported flour, driving some vendors to switch to more profitable alternatives or cease bread sales entirely.

Bolivia's predicament reflects years of state-led economic policies, deterring foreign investment and stretching public finances. President Paz, sworn in on November 8, aims to gradually eliminate subsidies covering essentials like energy and transport. However, the economic complexities and potential political fallout create a delicate balancing act for his administration.

(With inputs from agencies.)