On 23rd January 2006, Luis Alberto Arce Catacora was appointed as the minister of finance by President Evo Morales. This marked the beginning of his tenure as a key figure in Bolivia's economic policies.

On 24th June 2017, Luis Alberto Arce Catacora traveled to Brazil to undergo surgery to treat severe kidney cancer. This forced him to give up his position as minister of economy for a recovery period.

On 23rd January 2019, after recovering from kidney cancer, Luis Alberto Arce Catacora was reappointed to his position as minister of economy, resuming his role in shaping Bolivia's economic policies.

Luis Alberto Arce Catacora was inaugurated as the 67th president of Bolivia on 8th November 2020. His presidency marked a return to Bolivia's traditional position under Morales and a shift away from the previous interim government's policies.

President Arce realigned the country's foreign policy by restoring relations with Iran, recognizing the administration of Nicolás Maduro as the legitimate government of Venezuela, and resuming Bolivia's membership in various regional alliances.

On 28 December 2020, President Arce enacted a permanent yearly wealth tax on individuals with a personal wealth above US$4.3 million, aiming to collect taxes from high net worth individuals both residing in Bolivia and abroad. The law established a gradual increase in tax collection based on the individual's wealth range.

On December 30, 2020, President Arce reached an agreement with the Russian Direct Investment Fund to supply Bolivia with 5.2 million doses of the Russian Sputnik V vaccine, aiming to immunize 2.6 million people with two doses.

On January 6, 2021, the Bolivian government granted emergency approval for the Russian Sputnik V vaccine, with the first shipments arriving later that month.

On 18 February 2021, President Arce ordered the Central Bank to return a previously granted IMF loan totaling US$327 million, citing defense of Bolivia's national sovereignty as the reason. This decision incurred additional costs for the country and sparked controversy regarding the acceptance of similar loans in the future.

At the invitation of Mexican President Andrés Manuel López Obrador, Arce made his first foreign visit to Mexico to discuss the resumption of bilateral relations, expansion of access to medicines and vaccines, and other topics.

On May 13, 2021, immunization for individuals over fifty years of age against COVID-19 began in Bolivia.

On May 24, 2021, President Arce received his first dose of the Sputnik V vaccine at a hospital in El Alto, aiming to set an example for the population.

At the behest of the United Nations, the Arce administration introduced a draft bill aimed at combating terrorism and its financing. The bill focused on combating money laundering and was approved by the Chamber of Deputies on 17 September 2021.

The Chamber of Deputies approved the draft bill against the legitimation of illicit profits, financing of terrorism, and the proliferation of weapons of mass destruction. The bill faced backlash from the opposition due to concerns about extraordinary powers given to government agencies.

Discontent with the legislation led to major protests, with trade unions and other groups demanding the repeal of the law instituting blockades on transit routes in major cities. President Arce accused the opposition of promoting a coup d'état.

President Arce withdrew the bill from the Senate following widespread opposition and protests, leading to its withdrawal for the remainder of his term.

On October 22, 2021, President Arce received his second dose of the Sputnik V vaccine at the La Paz Health School, emphasizing the importance of vaccination for Bolivians.

After weeks of protests, President Arce announced the repeal of the second law to address the paralyzing of the economy.

Arce issued an official apology on behalf of the Bolivian government for the 'abuses and multiple forms of aggression' inflicted by the previous administration during the Summit of ALBA Heads of State hosted in Havana.

On 6 March 2022, President Arce inaugurated the Center for Nuclear Medicine and Radiotherapy in El Alto, a project developed by Rosatom. The institute aims to provide cancer treatment within Bolivia, eliminating the need for citizens to travel abroad for medical care.

Arce met with Argentine president Alberto Fernández in the Chilean city of Viña del Mar to discuss cooperation in scientific and technological fields, as well as negotiations surrounding a Bolivian natural gas supply contract and electrical integration between Yaguacuá in Tarija and Tartagal in Salta.

Arce made an official visit to Buenos Aires, Argentina, where he held bilateral meetings with Fernández at the Casa Rosada primarily surrounding the sale of natural gas, with Bolivia agreeing to ship gas to Argentina during the winter months.

During his second visit to Cuba, Arce conveyed his government's goal to formally 'relaunch' bilateral relations with Cuba and discussed cooperation in developing pharmaceutical and biotechnology industries.

On 14 June 2022, President Arce visited Villamontes to commemorate the eighty-seventh anniversary of the Chaco War armistice between Bolivia and Paraguay. The event was attended by Paraguayan President Mario Abdo Benítez, with the two heads of state conducting bilateral talks throughout the day.