On 23 January 2006, Arce was appointed by President Evo Morales to be Minister of Finance. Three years later, in 2009 he assumed command of the new Ministry of Economics and Public Finance. Some media in Bolivia described Arce as the mastermind behind Bolivia's economic resurgence.[5] Arce oversaw the nationalization of hydrocarbon, telecommunications, and mining companies in Bolivia, as well as the creation of the Bank of the South.[6] He oversaw the rapid expansion of the Bolivian economy, with GDP increasing by 344% and extreme poverty reduced from 38% to 15%.[7][8]