( Published in The Counter July 15.2008)
In his most famous literary and historical, "The Open Veins of Latin America, Eduardo Galeano speaks once of Paraguay, which in its first years of independence from the English Empire, was the only country in South America that really touch the wings of freedom real and effective and, therefore, was crushed in the name of this curious and hypocritical free trade so much like entrepreneurs, oligarchs and capitalists. Paraguay was not dominated by the scourge of foreign debt since the end of English colonization in 1811, the Paraguayan State protectionism practiced to form a protective bar to its domestic industry and domestic market. He became the most advanced state of Latin America, as the British Empire in 1986 instigated the War of the Triple Alliance articulated to Brazil, Argentina and Uruguay, in order to end the Paraguayan experience that threatened to spread the region, making profits that "free trade" provided him with the British. War is remembered as the cruellest of Latin American history, because, after five years of carnage, left with life is barely one-sixth of its population. What follows is a liturgy thousand times repeated, to Paraguay were imposed draconian economic sanctions, had to cede part of its territory to other countries of the Triple Alliance and, of course, pay the debts of the war. Then, a country that had developed during 60 years without recourse to external debt, began to repeat the tragic history of the continent. Le
ignoble legacy of that war epic has been perpetuated until today. According to the "National Human Development Report 2008 Paraguay: Equity for Development", the high concentration of land indicates that 1% of the population has 77% of the land and income and the richest 10% takes 40% of the country's wealth. It is so little attention to the different sign oligarchic governments have given the poorest, Paraguay has one of the lowest social spending in the region, rising to 9% according to UNDP, This contrasts with 20% average for the countries of the region. It is also a country with a highly regressive tax system, since the maximum income tax reaches 10% when Argentina is 35%, 28% in Brazil, and Uruguay is 40%. For its part, extreme poverty will reach 20% of the population and 2.5 billion live on less than two dollars per day, ie 42% of the population. Other figures are more raw and speak more than 50% of the population living below the poverty line and 35% in absolute poverty. Unemployment is about 11% of the economically active population, while informal employment comprises about one quarter of the workers.
As every Latin American country, Paraguay is a victim of transnational capital to utilize in natural resources energy. In particular, has been severely affected, in hydro-sovereignty by the agreements that led to contracts Yacyretá Itaipu, signed by the Stroessner dictatorship in Brazil and Peron's Argentina. Both treaties Paraguay significantly harmed. In the Itaipu treaty states that the energy produced will be shared equally by each country, but also ensures each country to acquire the energy not used by the partner for its internal use. Obviously, as Paraguay consumes only 5% of the energy produced by Itaipu, is forced to sell the surplus to Brazil and values \u200b\u200bfar below market prices. The Yacyretá agreement with Argentina is very similar and harmful to Paraguay. According to figures provided by Lamarque Rebellion, the income received by the holding Paraguay Itaipu, are only 7.5% of market value.
This is the country with which we start trying Fernando Lugo, former Catholic Bishop of San Pedro, one of the poorest regions of the country, on August 15 next when it comes formally to the presidency of Paraguay. There are few hindrances or challenges facing your administration, despite its voluminous close to 41% victory over the Colorado Party candidate Blanca Oviedo (31%) and the former general Lino Oviedo (22%). Failure to obtain an absolute majority in Paraguay does not preclude the presidential elections because in the first round are decided by simple majority. Their participation in politics is very recent, only in late 2006 left the priesthood to get involved in politics, after 100 thousand signatures ordered him to make that choice. Surprise and change have been very significant and instructive for the Latin American region because he managed to form a coalition called the Patriotic Alliance for Change (APC) that include groups rather radical left and the Authentic Radical Liberal Party (PLRA), passing across the political spectrum. The political gestures very Lugo style of freshness and vitality that has always shown the Latin American region, ending the hegemony of the Colorado Party, which ruled without counterweight or alterations for 61 years.
So far, things go Lugo icing on the cake. In fact and according to a survey of business opinion Studies Office (GEO), commissioned and published by the newspaper The Republic of Peru, 59.7% of Paraguayans believe that your government will be good. Moreover, 14.8% believed that Lugo administration will be "very good." However, the same study conducted between June 20 and July 3 last, also indicates that 56.3% of respondents considered Lugo "will have it tough." Clearly, this perception is wrong. On the one hand, must deal with conflicts and contradictions of his own coalition government, the Patriotic Alliance for Change, which by their nature may appear politically multifaceted before long his government. In this regard the challenge is to consolidate the changes in the direction of democratization, social justice, transparency of the public system, the distribution of land and wealth, without necessarily find resistance within the Liberal factions his coalition. It would be unfair to the poor and marginalized for ever and America Paraguay Latin for balance, inner-the government of President Lugo to line up close to economic policies that have been practiced in Chile the governments of the Concertación, which have been a blow to the hopes and casual betrayal of the will popular.
However, the most dangerous for the future of Paraguay is the strong opposition that will be installed, and is classic in our America, employers, landlords and right-wing politicians who see their interests threatened with the sole choice of a man who is not their ranks. Not having yet formally assumed the presidency, these sectors of the oligarchy and should be planning their strategies. So they have always done in Latin America also supported the U.S. classical. In Chile went so far as to assassinate the commander of the Army for refusing to ignore the election results that led to the presidency of Chile, Salvador Allende. So also in Paraguay, the Colorado Party and their constituents-the landowning oligarchy and establish business-fierce opposition to the changes that are intended in Paraguay's Fernando Lugo.
Nothing less can we expect if we think that within the main tenets of his government are, first, a comprehensive agrarian revolution must necessarily affect the property land and, secondly, an economic recovery program linked to greater social justice, which necessarily should happen to increase public spending, the tax burden of the wealthiest and greater state interference in the Paraguayan economy. None of this is or will be liked by the business and landowning oligarchy that, obviously, will do everything possible to shut out the changes and dismay the Paraguayan economy and society. Some would go to the always well prepared "cooperation" U.S. to "secure peace and freedom" in America.
is no less the hope that rises in Paraguay and throughout Latin America's arrival as President of Paraguay Fernando Lugo. No less does not face resistance by employers and landowners, which will not look at costs or aberrant behavior to stop. What they do, have done a thousand times and will continue as they have been very successful at it. What we do not know and will be a mystery, strength, clarity and political savvy of Lugo, his coalition and the Paraguayan people to withstand the political attacks to come.
For those who dream of a great and generous America that embraces all children born in their land, the process starts to live in Paraguay, is all a sign of progress and hope we are confident that, as I said Salvador Allende, the great values \u200b\u200bof humanity will end eventually prevailed.
Marcel Claude, an economist.
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