Writing December 18, 2025

Bolivia’s Fuel Subsidy Shock: Necessary, Risky, and Politically Exposed

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About this work

Jonathan Fortun argues that removing Bolivia’s fuel subsidies was economically necessary but politically exposed. He examines how higher fuel prices can spread through transport, food costs, exchange rate expectations and household behavior. The essay assesses targeted income support, social conflict and political coordination as conditions for turning an emergency decree into a durable stabilization program.

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