World May 19, 2026 05:39 PM

U.S. Raises Alarm as Nationwide Protests Rock Bolivia Over Austerity Measures

Deputy Secretary of State presses regional partners to reject what he calls a coup as banks close branches amid escalating unrest

By Jordan Park

U.S. Deputy Secretary of State Christopher Landau said he spoke with Bolivian President Rodrigo Paz and expressed deep concern about widespread protests that began with strikes in early May and have expanded into a national movement. Demonstrations involving unions, miners, transport workers and rural groups are demanding a rollback of austerity measures and relief from rising living costs, with some protesters calling for Paz's resignation. Landau characterized the unrest as a coup financed by a regional alliance between politics and organized crime and urged other South American nations to repudiate it. Several banks in La Paz temporarily closed branches citing security concerns.

U.S. Raises Alarm as Nationwide Protests Rock Bolivia Over Austerity Measures

Key Points

  • Nationwide protests in Bolivia began as strikes in early May and now involve labor unions, miners, transport workers and rural groups - impacts sectors including labor, transport and mining.
  • Protesters demand a rollback of austerity measures and relief from rising living costs; some call for President Rodrigo Paz's resignation - political sector and consumer-facing markets may be affected.
  • Several banks in La Paz temporarily closed branches over security concerns amid the unrest - the banking and financial services sector is directly impacted.

U.S. Deputy Secretary of State Christopher Landau said on Tuesday that he had spoken with Bolivian President Rodrigo Paz and is highly concerned about growing instability in Bolivia, where widespread protests against government austerity measures have intensified.

What began earlier in May as strikes has swelled into a nationwide movement that now includes labor unions, miners, transport workers and rural groups. Protesters are pressing the government to reverse austerity policies and to take steps to blunt rising costs of living. Some demonstrators have also called for President Paz to step down.

Addressing the Americas Society/Council of the Americas, Landau expressed his expectation that other South American countries would join in rejecting what he described as a coup that could put democratically elected governments at risk. He said he hopes regional partners will repudiate the forces he sees behind the unrest.

"I am very concerned about Bolivia," Landau said, recounting his conversation with Paz. "I mean, it cannot be that, you know, you have a democratic process where he was elected overwhelmingly by the Bolivian people less than a year ago and now you have violent demonstrators blockading the streets."

"Make no mistake about it. This is a coup that’s being financed by this unholy alliance between politics and organized crime throughout the region," he added.

Landau further stated that the Trump administration was working to prevent anti-government, anti-institutional forces from prevailing. "I would hate to see, you know, this very promising opening go down the drain," he said, later adding, "It’s bad for all the countries in the Americas to see this kind of incivility."

Amid the escalating unrest, several Bolivian banks temporarily closed branches in La Paz on Tuesday, citing security concerns. The closures occurred as demonstrations continued to target the administration that took office in November, ending nearly two decades of leftist rule.

The situation remains fluid as broad-based social actors sustain pressure on the government over austerity and economic conditions. U.S. officials are publicly voicing concern and calling for regional responses to what they describe as a threat to democratic governance.

Risks

  • Escalating demonstrations and street blockades risk further disruptions to economic activity and public services in Bolivia - potential implications for banking, transport and mining sectors.
  • U.S. officials characterize the unrest as a coup financed by an alliance between politics and organized crime, raising concerns about threats to democratically elected governments in the region - political risk with possible regional spillovers.
  • Temporary closure of bank branches in La Paz underscores security-related operational risks for financial institutions operating amid the protests.

More from World

Banks Shut Branches as Protests Disrupt La Paz; Diplomats Urge Restraint May 19, 2026 U.S. Justice Department to Announce Miami Action Tied to 1996 Cuban Airstrike May 19, 2026 U.S. Plans to Reduce Forces Allocated to NATO Crisis Pool, Officials Say May 19, 2026 Rubio to Attend NATO Foreign Ministers Meeting in Sweden Before a Multi-City India Visit May 19, 2026 NATO Says No Operational Plans Yet for Strait of Hormuz; Political Mandate Needed First May 19, 2026