Bolivia’s Decree Closes Two Ministries — and Quietly Drops the Tourism Agency Paz Promised

President Rodrigo Paz announced on August 3rd that he was reducing Bolivia's cabinet from 14 ministries to 12. However, the decree closing two of those ministries, including the Tourism Agency promised by Paz, did not appear until August 13th. This discrepancy highlights the country's political structure and how changes are implemented.

The decree, DS 5675, came into effect on August 13th, but the two ministries it abolished - the Ministry of Productive Development, Rural Affairs and Water, and the Ministry of Tourism, Folklore and Gastronomy - remained open and staffed. This is because a president can announce a cabinet cut, but cannot close a ministry without a legal instrument.

Tourism had two projects funding through international organizations until the end of the year, including a project with the Inter-American Development Bank and one with CAF. Despite the closure, these projects continued. The decree creates a Vice-Ministry of Sustainable Tourism and Cultures within the Ministry of Foreign Affairs, but this does not fulfill Paz's original promise of a standalone tourism agency.

The decree also restructures several ministries, for instance, the Ministry of Productive Development, Rural Affairs and Water is now known as Sustainable Production, Environment and Water, with a new vice-ministry focusing on environment, climate change, forestry and biodiversity. However, the real change lies in the creation of a category of presidential delegates who coordinate, follow up and evaluate policies needing specialised representation.

Despite these changes, the overall size of the government has decreased from 15 to 12 ministries in less than ten months. The decree also allows the President to run Bolivia's affairs through digital means while abroad, a measure that adds a layer of centralisation to the government structure.

The practical implications of these changes are significant, particularly in the areas of tourism licensing, cultural permits, public investment approval, and environmental permitting. These functions are now handled by different ministries, marking a shift in the country's governance. The decree's credibility is tested by whether the promised savings materialize, a point that will be closely watched by Bolivia's international partners.