Government of Germán Busch, 1937–39

Germán Busch with various cabinet members and collaborators including Víctor Paz Estenssoro, Wálter Guevara, and Fernando Pou Mont

Having secured the resignation of President David Toro on 13 July 1937, Germán Busch entered the Palacio Quemado and established his first cabinet. The government was a mixture of leftist military officers and members of the United Socialist Party (PSU) which had collaborated with the Toro regime.[3] One of the leaders of the PSU, Enrique Baldivieso, was appointed Foreign Minister, a position he had previously held during the Toro administration.[4] The office of Secretary General under Gabriel Gosálvez was created during the formation of this cabinet. Federico Gutiérrez Granier, who was appointed Minister of Finance, was a member of the influential Gutiérrez family of former president José Gutiérrez Guerra.[5]

The cabinet was renewed on 23 November 1937. Three ministerial positions were changed: Federico Gutiérrez Granier with Eduardo Belmont Baldivia as Minister of Finance, Angel Ayoroa with Alfredo Peñaranda as Minister of Industry, with Peñaranda's former position as Minister of Education being filled by Héctor Ormachea Zalles. The following month on 14 December, Chancellor Enrique Baldivieso was exchanged with Eduardo Díez de Medina who had served in the position once before.[6]

During this period starting on 23 May, the National Convention of 1938 would be held and charged with rewriting the constitution.[7] On 27 May, the National Convention would proclaim Busch constitutional president with Enrique Baldivieso as Vice President.[8] Both would be inaugurated the following day.

Busch's third cabinet was formed on 12 August 1938.[9] Gabriel Gosálvez would be appointed Minister of Government and Justice as well as Propaganda which had previously been under the purview of the Foreign Ministry. No Secretary General was appointed to replace him. Multiple health related ministries would be established as part of this cabinet. Upon the formation of the cabinet on 12 August, the new Minister of Labor Alberto Zelada would also be appointed to the position of Minister of Sanitation. Ten days later on 22 August, a dedicated Ministry of Health and Hygiene would be established with Alfredo Mollinedo appointed to head the position.[10]

During this period on 30 October, the National Convention would promulgate the new constitution.[11] While the constitution would remain in effect until 1945, Busch would dismiss the national assembly on 24 April 1939 and declare himself dictator.[12] Busch's presidency would come to an end four months later when he committed suicide. General Carlos Quintanilla would take hold of the presidency in the interim period and the majority of the Busch cabinet, save for Minister of Health Alfredo Mollinedo and Minister of Government Vicente Leyton, would be dismissed.