[4] Álvarez Paz defeated COPEI party leader Eduardo Fernández, resigning his position as governor in order to run.

[5] In the campaign Paz supported privatization and foreign investment, and said he aimed for Venezuela to join the North American Free Trade Agreement; he identified the contemporary political figure he admired most as Ronald Reagan.

In May 2005 Alvarez Paz created a new party called "Alianza Popular" (Popular Alliance), organization that, as it states in its by-laws, defends and promotes freedom, democracy State of Law and human rights, as well as the promotion and protection of private property, the contribution to poverty eradication and the disappearing of corruption.

[citation needed] On 22 March 2010, Oswaldo Alvarez Paz was arrested for remarks made during a broadcast of the Globovisión talkshow Aló Ciudadano ("Hello Citizen").

"[citation needed] He was charged with conspiracy, and with spreading false information and publicly inciting violation of the law, and was sentenced to serve two years in prison.