Jaime Paz Zamora - The UDP in Power and Paz As Vice-President (1982-85)

The UDP in Power and Paz As Vice-President (1982-85)

Paz fled to exile, but returned in 1982, when the military's experiment had run its course and the Bolivian economy was on the verge of collapse. With the reputation of the armed forces badly damaged by the excesses of the 1980-82 dictatorship, the only way out was a hasty retreat. In October 1982 the results of the 1980 elections were upheld to save the country the expense of yet another vote, and Siles was sworn in, with the MIR's Jaime Paz as his Vice-President. The economic situation was dire indeed, and soon a galloping hyperinflationary process developed. Siles had great difficulty in controlling the situation. In all fairness, he received scant support from the political parties or members of congress, most of whom were eager to flex their newly-acquiered political muscles after so many years of authoritarianism. The unions, led by the old firebrand Juan Lechín paralyzed the government with constant strikes. At this point, the MIR (led by Paz) dissassociated itself from the regime (1984), deserting the sinking ship when Siles' popularity sank to an all-time low. The 1982-85 hyperinflation would end up being the fourth largest ever recorded in the world.