Bolivia's Rodrigo Paz defends economic plan

Bolivian President Rodrigo Paz defended his economic recovery plan Thursday in his first address to the nation since taking office nine months ago, after protests against the country's worst economic crisis in decades.

Speaking from Sucre on Bolivia's independence day, Paz said his government was leading the country out of economic difficulty and blamed his leftist predecessors for leaving a “devastated, dying homeland.”

Paz defended economic policies he called “unpopular” but “necessary.” His decision to scrap long-running fuel subsidies that had drained the Treasury's international dollar reserves caused prices to double and triggered widespread anger.

Deteriorating living conditions sparked protests that grew into a movement blocking roads nationwide and causing severe food, medical and fuel shortages in several cities. Paz quelled the months-long demonstrations by declaring a state of emergency in June, allowing the army to be deployed and public gatherings to be outlawed.

His government accuses socialist former leader Evo Morales of fomenting the protests. Prosecutors issued a warrant for Morales's arrest last week.

“We have just overcome 53 days of resistance from the past that refuses to accept that a new Bolivia is being born,” Paz said, while highlighting what he described as Bolivia's diplomatic and economic opening.

Paz also cited government efforts against corruption and drug trafficking, including the expulsion of “17 leaders of criminal organizations who were living in Bolivia with protection and complete impunity.”