icon caret-left icon caret-right instagram pinterest linkedin facebook twitter goodreads question-circle facebook circle twitter circle linkedin circle instagram circle goodreads circle pinterest circle

Articles

Why is Obama Wary of Dilma Rousseff and Brazil?

My big piece about up and coming power Brazil and what's behind the story in terms of big power rivalry with the U.S. To read the article, click here.

Be the first to comment

In Light of WikiLeaks Documents, U.S. Diplomats May See Opportunity in Chávez’s Illness

With a big question mark hanging over the health of Venezuelan president Hugo Chávez, many in Washington may see opportunity.  Though Chávez initially claimed that he was merely suffering from a "pelvic abscess," the firebrand leader subsequently conceded that he had cancer.  In a shock to the nation, Chávez announced that he had a tumor removed during a sojourn in Cuba, and that he would "continue battling."

 

Reporting over the past several weeks suggests that Chávez might be in worse shape than has been commonly let on.  Though he returned to Venezuela after his operation in Cuba, Chávez recently announced that he would pay yet another visit to Cuba in order to undergo chemotherapy.  The firebrand leader, however, still refuses to reveal what kind of cancer he has or its severity.  Ominously, one medical source reported to Reuters that Chávez's cancer had spread to the rest of his body and was in an advanced stage.

 

It's unclear how the president's shaky health might factor in the nation's upcoming 2012 election.  The populist leader, who has closely identified himself with the so-called "Bolivarian Revolution," has never shown much interest in grooming a successor within his own United Socialist Party of Venezuela or PSUV, and so if Chávez should falter it is easy to imagine a scenario in which much of his political project could unravel or be derailed by the right.

 

The Caracas Cables

 

Judging from U.S. State Department cables recently declassified by whistle-blowing outfit WikiLeaks, many American diplomats, including former ambassador in Caracas Charles Shapiro, would view this outcome as highly desirable.  In 2004, two years after the Bush administration aided the rightist opposition in its short-lived coup attempt against Chávez, Shapiro sat down with Alí Rodríguez, the head of Venezuela's state-run oil company PdVSA.      

 

In light of Washington's meddling, Rodríguez might have assumed a bellicose attitude but according to correspondence the Venezuelan was courteous and unassuming.  Seeking to calm tensions, he urged a "dose of pragmatism."  Shapiro, however, shot back and complained of Chávez's alleged authoritarian streak as well as the president's verbal attacks against Bush and threats to suspend oil shipments to the U.S. Two months later, a "troubled" Shapiro warned his superiors that PdVSA, which had been involved in Chávez social programs, was in danger of becoming a "social welfare agency."

 

If another 2006 cable is any indication, there was no love lost between the U.S. embassy and Chávez.  In a lengthy rant, one diplomat noted "We have to maintain our careful restraint to the rhetorical provocations as well as a steady public diplomacy effort to offset Chávez' insidious effort to teach Venezuelans to hate us." 

 

A full three years later, by now in the Obama era, U.S. officials openly complained of harassment.  The Venezuelans, claimed one diplomat, had called for new procedures which compromised the ability of embassy staff to receive classified escorted diplomatic pouches.  Things got so bad that at one point Venezuelan officials denied an embassy officer access to a classified diplomatic pouch at the airport. 

 

The Americans responded hotly that "we were no longer in the 18th century and diplomatic correspondence required machines such as computers that would be compromised if they were at any time out of the control of our diplomatic personnel."  The Venezuelans countered that "the US did not extend privileges such as planeside access to foreign diplomatic couriers in the U.S." After a tense "standoff," the Venezuelans finally agreed to return the pouch uninspected. 

 

The Kirchner Connection

 

Elsewhere in South America, U.S. diplomats monitored Venezuelan influence with relentless zeal.  "Chávez's outsized ambition," noted one official, "backed by petrodollars makes Venezuela an active and intractable U.S. competitor in the region."  In 2007, the Americans openly fretted that Chávez might upstage an upcoming Bush visit to Brazil, Uruguay and Colombia.  The Venezuelan, it was feared, could stir up anti-American sentiment by flying to Buenos Aires where he could count on sympathetic allies.

 

"Venezuela's embassies abroad actively promote, fund, and guide left-wing Bolivarian circles of persons sympathetic to Chávez' anti-American foreign policy," noted one diplomat, adding that "Chávez has almost certainly asked Venezuelan embassies in the region to generate protests against the President's visit, just as his government organizes such protests at home." According to "sensitive reporting," the Caracas embassy believed that Chávez was "providing direct support to organize anti-American protests in Buenos Aires."

 

Argentina, under the stewardship of President Néstor Kirchner, was of particular concern to the Americans.  Though Kirchner had sought out a "more independent line," the peronist politician nevertheless followed an economic strategy that envisioned closer commercial and financial ties to Chávez.  Also worrying was Kirchner's growing military collaboration with Chávez, with Venezuelan officers having a "presence" in the Argentine Army and Air War Colleges.  What is more, the Venezuelans even briefed the Argentines on the concept of "asymmetric warfare."

 

Southern Cone Conundrum

 

Over in neighboring Brazil, the Americans were also paranoid about Chávez's rising influence.  In response to a detailed questionnaire sent by the State Department, U.S. ambassador to Brazil John Danilovich warned his superiors that Luiz Inácio "Lula" da Silva's Workers' Party had organized a "Simon Bolívar Action Group" in solidarity with Venezuela.  Moreover, members of Brazil's landless movement, known by the Portuguese acronym MST, traveled to Venezuela where they reportedly met with Chávez personally. 

 

In addition, Danilovich and his associates were concerned about the Venezuelan ambassador in Brazil, a diplomat who was involved in drumming up support for Chávez's Bolivarian Revolution.  In 2003, Danilovich devoted considerable time in tracking the Venezuelan's movements and activities in and around Brasilia.  The paranoia over Chávez was so pronounced that Danilovich even saw fit to draw his superiors' attention to a University of São Paulo conference which discussed the Bolivarian Revolution.

 

Chávez however faced a very different political reception elsewhere in the Southern Cone.  In theory, noted U.S. diplomats, Chilean socialist president Michele Bachelet had "a certain ideological sympathy" for Chávez, but on the other hand she was "also a pragmatist who recognizes that Chile's successful free market economic policies and stable democratic political model is preferable to what Chávez offers."  In 2007, U.S. diplomats reported that Chilean Army Intelligence was actively monitoring the Venezuelan Embassy in Santiago and keeping tabs on Chávez's funding of Bolivarian and leftist groups.

 

In Chile, however, the Americans were worried about Venezuelan influence.  They were in fact so concerned that they followed the arrival in Santiago of one Aram Aharonian, the executive vice president of TV channel Telesur.  In 2005 Aharonian [who I discuss in more detail in my book] traveled to Chile to promote his station, which had received funding from the Venezuelan government.  In other cables, U.S. officials clearly saw themselves in a media and propaganda war with Chávez who they viewed as an ideological threat.

 

Even in tiny Uruguay, U.S. diplomats intently monitored what Chávez was up to.  Though Venezuela's influence was "not yet great," officials fretted that Chávez "shouldn't be underestimated.  Money talks [and] democratic institutions in the region are still weak and free market economics have yet to provide consistent solutions to the Southern Cones social and political ills."  In a paranoid aside designed no doubt to raise the red flag in Washington, the Americans noted that President Tabaré Vázquez's security detail was run by his brother Jorge, himself a former guerrilla fighter who allegedly recruited leftists from a local labor union.  The service agents were then trained in Caracas or Havana.

 

Diplomats added that "it is clear we need more (and more flexible) resources and tools to counter Chávez's efforts to assume greater dominion over Latin America at the expense of U.S. leadership and interests."  Though Uruguayan president Tabaré Vázquez was a centrist, Chávez was poised to make political inroads in the country because Uruguay had a heavy debt burden and no known hydrocarbon deposits.  "As such," diplomats explained, "Venezuelan oil and money could prove tempting as part of a bid to boost the economy." 

 

Glossy Propaganda Tools

 

Even as Danilovich and his colleagues sought to monitor Chávez in the Southern Cone, other American diplomats were following suit.  Take, for example, U.S. ambassador in Lima Curtis Struble, who went so far as to request a one-on-one meeting with Peru's Foreign Minister in order "to discuss the Venezuelan government's involvement with violent, extremist Peruvian organizations."  In a cable dating from 2005, perhaps the high point of Chávez's regional popularity, Struble had grown concerned about the activities of the Venezuelan ambassador to Lima.

 

In dealing with the Alejandro Toledo regime, Struble could count on a much more sympathetic audience than he would have encountered in, say, Argentina or Brazil.  Speaking to government officials, Struble claimed that Venezuela had sought to organize Bolivarian sympathizers amongst radical groups.  The Peruvian Foreign Minister said he was aware of the issue, and had already consulted with the Ministry of Interior about the Venezuelan threat.     

 

According to him, Venezuela had sent a "5-6 person advance team" to Peru in advance of a South American summit.  In the city of Ayacucho, the Venezuelans had met with a group called Patria Roja and provided their collaborators with money to print anti-Toledo and pro-Chávez placards.  Even more worryingly, the Foreign Minister believed Chávez might be trying to stir things up in the dirt-poor provincial department of Puno. 

 

So obsessed was Struble that shortly after his meeting with the Peruvians the diplomat sent a cable to Washington dealing with pro-Chávez publications.  Recently, Struble noted, a leftist magazine entitled Wankar [or "Song of the People" in the indigenous language of Quechua] had surfaced in Lima.  Struble went into great detail about the magazine, noting that the first issue had "a slick paper cover with a dramatic color photo of Chávez sporting his commando cap, his fist raised in the air.  The masthead of the magazine as well as the subjects and/or authors of most of the articles are members of the Peruvian Communist Party-Patria Roja (PCP-PR)."  Struble believed that the glossy publication must have relied on outside financing. 

 

Three years later, in the twilight of the Bush administration, diplomats were still frantically monitoring supposed Chávez subversion in Peru.  During a general strike held in the city of Cusco, the Americans analyzed protest leaders' ties to Venezuela.  One strike leader, U.S. officials claimed, was linked to Chávez's so-called ALBA initiative designed to promote reciprocity and barter exchanges amongst Latin American nations.  In Cusco, diplomats noted, several "ALBA houses" coordinated a Venezuelan program called "Misión Milagro" to provide eye surgeries to poor people.

 

Across the border from Puno in Bolivia, the United States had perhaps more to be worried about.  There, Washington could not count on sympathetic allies and indigenous president Evo Morales openly courted Chávez as a friend and ally.  In 2007, American diplomats fretted that "at least one hundred if not several hundred Venezuelan military advisors and intelligence operators" might have been scattered throughout Bolivia.  Raising the alarm bell, the Americans added that Chávez's military personnel were thought to be "conducting intelligence and counterintelligence activities in La Paz and Santa Cruz in coordination with Cuban intelligence agents."

 

Paraguay Paranoia

 

One would think that the U.S. would not view Paraguay, a poor and tiny South American nation, as worthy of too much political attention.  Yet WikiLeaks cables show that even here, Washington was paranoid about Chávez infiltration and devoted significant time and resources toward monitoring Venezuelan activities.  This, despite the fact that Paraguayan President Óscar Nicanor Duarte maintained "lukewarm" relations with Chávez during the Bush years.

 

In late 2005 the U.S. embassy in Asunción cabled Washington, warning that its "sensitive reporting" had uncovered links between Venezuela and several Paraguayan social, political and religious organizations.  Even more seriously, diplomats added, it was possible that Bolivarian groups were "behind the spread of blatantly false rumors of U.S. plans to build a base in Paraguay, deploy 400 troops to Paraguay to protect oil and natural gas reserves in Bolivia, and steal the region's fresh water supplies from the Guarani Aquifer."

 

Two years later, in the midst of leftist Fernando Lugo's bid for the presidency, U.S. officials sought out local municipal officials who claimed that Venezuela had provided leadership training to peasant leaders.  And, still unable to break free of their broken record, the Americans honed in on "Misión Milagro" once again, noting that hundreds of poor Paraguayans had flown to Cuba and Venezuela in what appeared to be an effort at "winning converts at the mass levels while the elites are increasingly nervous."  Meanwhile, the Bush administration suspected that Venezuela had offered material support to leftist groups along the Paraguayan-Bolivian border which had raised tensions.  Ridiculously, diplomats then noted that "there is a Venezuelan student at the Paraguayan War College. It is unclear what his status or activities are at this point."

 

Lugo's win at the polls seems to have further alarmed the U.S. embassy in Asunción, and in 2008 diplomats sent a lengthy cable to Washington analyzing the Misión Milagro program.  In truth, the Americans suspected that the initiative was secretly a propaganda tool.  "Many, perhaps a majority, of the program's participants," U.S. diplomats explained, "…are students who do not need eye surgeries but rather travel to Venezuela for long-term training to expand the 'Bolivarian Revolution.'"

 

Moving From the Venezuelan to Brazilian Threat

 

Though it's no secret that the Bush administration was an implacable foe of the Chávez regime, WikiLeaks cables reveal the true extent of U.S. paranoia.  Though Chávez was arguably more of a nationalist politician than a true revolutionary, Washington was nonetheless fearful of leftist contagion and, in an insufferable waste of U.S. taxpayer money, made sure to monitor Venezuelan activities throughout the region, even in remote and economically disadvantaged countries. 

 

Now that Chávez finds himself in a state of ailing health, some within the U.S. State Department may heave a sigh of relief.  At the very least, they will not have to absurdly chase after Venezuelan military students at the Paraguayan War College, tail the head of the Uruguayan President's security detail in search of Chávez infiltrators, analyze Quechua-inspired publications in Peru, or shadow the movements of journalists associated with South American news network Telesur.

 

Yet, no sooner than Venezuela fades from the political scene, U.S. diplomats will no doubt find other "bogeymen" to report on.  Most likely, the next focal point of State Department attention will be rising star Brazil.  Though the South American juggernaut hasn't been nearly as confrontational toward Washington as Venezuela, WikiLeaks cables reveal U.S. diplomats' fearful concerns. 

 

Take, for example, American ambassador to Lima Curtis Struble, who, as early as 2005, warned his superiors that Washington was now embroiled "in an undeclared contest" with Brazil to see which country could preserve the most influence in Peru.  "We are winning on most issues that count," Struble explained, "but the government of Brazil is still very much in the game."

 

If they are not doing so by now already, American diplomats are probably monitoring Brazil in an effort to preserve U.S. hegemony in the wider region.  In the not too distant future, State Department officials may believe it is imperative to sit down with their counterparts in Peru, Bolivia, or Paraguay in an effort to thwart not Caracas but Brasilia, and thus the Machiavellian game will start all over again.

Be the first to comment

In South America, Bush Has Nowhere to Turn: Bush’s Paraguayan Fiasco

The tiny, land locked nation of Paraguay has not been blessed with political good fortune. For decades, anti-Communist General Alfredo Stroessner, who “disappeared” and tortured thousands of dissidents, ruled over this country of some 7 million people. Stroessner was dislodged by his military subordinates in 1989 and later died in exile in Brazil at the age of 93.

However, the Colorado Party, which backed Stroessner during his 35-year dictatorship, maintained a tight lock on political power while enriching itself and the wealthy at the expense of ordinary Paraguayans. Under Colarado rule, Paraguay became renowned as a haven for fugitive Nazis, smugglers and drug traffickers.

For years, the U.S. backed repressive military rule in Paraguay in an effort to keep a lid on progressive social change. For Washington, Stroessner, a strong anti-communist, could do no wrong. A willing U.S. ally during the Cold War, Stroessner supported Lyndon Johnson’s invasion of the Dominican Republic in 1965 and even offered to help send troops to Vietnam.

Even in Paraguay’s darkest hours, while Stroessner harbored Nazi war criminals, crushed non communist peaceful opposition and persecuted the indigenous population (including forcibly assimilating the Ache population, a policy which ended in bloodshed, sexual slavery and servitude), the U.S. continued to back the General. It wasn’t until the late 1970s, with the arrival of Jimmy Carter in the White House, that the U.S. withdrew its support.

From Dictatorship to Kleptocracy

Despite the passing of Stroessner, most Paraguayans are even worse off today than under the dictatorship. Encouraged by Washington, Paraguay instituted a program of neo-liberal economic reform and privatization which thrust tens of thousands out of work. Paraguayan exiles once fled their country for political reasons. But today, it’s economic misery which has driven many Paraguayans to travel abroad. Currently some two million people live abroad in Argentina, Spain, and the United States.

The legacy of corrupt Colorado rule is evident for all to see. Currently, almost 50 percent of the country’s population lives on less than $2 a day and 38 percent of the citizenry is either unemployed or under-employed. In 2007, GDP per capita stood at roughly $4,000 while 32% of the population lived below the poverty line.

Land ownership is concentrated in the hands of a few large companies which are resorting to more and more soya farming. Amidst the concentration in land ownership, hundreds of thousands of landless farmers have been pushed to the cities by hunger.

The Power of Liberation Theology

On the other hand, today’s presidential election, which has brought Fernando Lugo to power, stands to shake up Paraguay’s politics and could even exert an impact upon the course of wider hemispheric integration. In light of the fact that Lugo has never held any elective office, his ouster of the Colorado Party is truly remarkable. When you consider that kleptocratic Colorado had managed to hold on to power for more than sixty years, Lugo’s accomplishment is even more striking.

Like his counterpart Rafael Correa in Ecuador, who once taught math to poor Indians while working with the Catholic Salesian Order, Lugo also comes from a religious background. Born into a middle-class family of political activists, his three brothers and uncle were forced into exile under the Stroessner dictatorship. In 1977 he was ordained a priest and enjoyed stints as a schoolteacher and missionary.

The following year Lugo left for Ecuador where he lived with indigenous communities and peasants. The young priest became a believer in so-called Liberation Theology, a school of thought which took shape in Latin America in the 1960s. Recognizing the pressing need for social justice, Liberation Theology challenged the Church to defend the oppressed and the poor.

Falling Afoul of Stroessner

Returning to Paraguay in the early 1980s, Lugo became a rural bishop known for both his political activism and conciliatory skills. It wasn’t long before he ran afoul of Stroessner’s military intelligence. Concerned for his own well being, he departed for Rome to study social science.

Five years later however he was back in Paraguay. This time he was chosen bishop of San Pedro, a diocese which lay in the poorest area of the country. The bishop learned Guaraní, an indigenous language spoken by peasants and urban poor who make up the majority of the Paraguayan population.

Working amongst the flock in San Pedro, Lugo began to take up the cause of landless peasants and earned a reputation as “the bishop of the poor.” Lugo’s advocacy, however, landed him in trouble with local landowners who accused him of protecting guerrilla fighters and supporting kidnappers.

The Road to the Presidency

In 2004, incensed by the social injustice that he witnessed all around him, Lugo resigned his position in the Church to pursue his political ambitions. Shortly afterwards he was the main speaker at a huge anti-Colorado demonstration in Asunción. Unionized workers, as well as leftist and indigenous organizations, began to rally behind Lugo. The ex-Bishop helped to form the Patriotic Front for Change, a grouping of some 20 Indian, farm peasant and union organizations.

Lugo is the first former Bishop to be elected president of a country (the Vatican refused to accept his resignation as Bishop, but experts believe that the church will grudgingly accept a Lugo Presidency rather than break off diplomatic relations with Paraguay) and frequently invoked the Bible while on the campaign trail. During one rally outside Asunción, he told 2,000 Indian peasants that he felt like a "Paraguayan David fighting the monstrous Goliath." The disenfranchised majority in Paraguay views Lugo as “The Bishop of the Poor.”

The former Bishop, heavyset, bespectacled and sporting a salt-and-pepper beard and priestly sandals, focused on social inequality during his campaign, questioning why “there are so many differences between the 500 families who live with a first-world standard of living while the great majority live in a poverty that borders on misery.” Lugo, who says that he has some affinity with socialism, wants to institute land reform and to re-establish Paraguay’s energy sovereignty.

As a politician and orator, Lugo would seem to differ somewhat from firebrand Hugo Chávez or Rafael Correa of Ecuador. The former Bishop stresses cooperation and dialogue rather than confrontation and a cult of personality. He reportedly has an uncanny ability to bring people together who don’t trust one another.

Lugo and Chávez

During a recent trip to Washington, Lugo assured the State Department that he was not like Hugo Chávez because he, unlike the Venezuelan leader, was a religious man. The future Paraguayan President remarked, “I am not of the left, nor of the right. I’m in the middle as a candidate sought by my people.”

The Paraguayan moreover criticized Chávez’s decision not to renew the broadcast license of Radio Caracas Television, a station which served as a hotbed of the Venezuelan opposition. In an interview, Lugo remarked that in Venezuela, there were “elements conspiring to attack the strengthening of public freedoms.” Under Chávez, Lugo added, Venezuela had pursued a political model which was “dangerous for a real democracy,” and “totally at the service of one person.”

On the campaign trail, Lugo was dogged by relentless accusations that he was receiving money from Chávez, a charge he has vehemently denied. "It’s part of a dirty campaign against me. None of this is true", he insisted.

Despite his close affinity with Paraguay’s Guaraní Indians, Lugo has likewise sought to distance himself from Bolivia’s indigenous President Evo Morales. “Individual leaders,” he has said, “can cause polarization, as I believe is happening in Bolivia. I don’t believe in creating a polarized society.” “I will not be a Paraguayan Morales,” he adds. “Paraguay will have to pursue its own political destiny.”

On the other hand, some of Lugo’s other comments may have raised eyebrows in Washington. He has praised the Venezuelan “experiment” for its positive social accomplishments, as well as “the better distribution of wealth for the benefit of the poor majority.” Furthermore, Lugo supports Chávez’s land reform program and calls the Venezuelan leader’s 21st-century socialism “interesting,” and “very stimulating.”

Lugo believes the U.S. should keep its distance from the political transformation now sweeping through South America. "I don’t think the United States has any choice but to accept these changes," he has said.

Lugo’s Paraguay: What Impact on South American Integration?

Hoping to undercut Chávez and his appeal, the U.S. has sought to cut free trade deals with individual South American countries. Unfortunately for Washington, Lugo has already stated that he has no intention of signing on to such an agreement as President. Historically, Paraguay has not played a very significant role in regional affairs. In the midst of South America’s Pink Tide and shift towards the left however, the country has taken on new geopolitical importance.

In an era of reduced U.S. influence, it’s now Brazil and Venezuela that are vying for the allegiance of smaller countries like Paraguay. Traditionally, Paraguay has formed part of Brazil’s geopolitical orbit but the relationship has recently come under strain.

Some of the friction has to do with Mercosur, a South American trade bloc. Paraguay has been a long time member of the group, while Brazil constitutues the most important economic hub. However, Paraguayans have been chafing under Brazilian influence. They charge that Brazil has bullied them by slapping crippling export restrictions upon Paraguay. As a result, Paraguay’s trade deficit has skyrocketed.

Lugo has said that he would keep Paraguay within Mercosur, but he sees the bloc as “inadequate” because it lacks a firm commitment to social and economic equity. Mercosur is unfair, he adds, because Brazil has registered greater economic growth than smaller countries.

Though the debate may sound Byzantine or obscure, it strikes at the heart of dramatic geopolitical currents shaping South America today. At stake is nothing less than the contours of future hemispheric integration and the social and economic future for millions of the region’s poor.

Venezuela’s Chávez says that Mercosur is a backward and ossified model for economic development. However, he has sought to bring Venezuela into Mercosur and hopes to subvert the bloc from within, presumably by shifting the entity’s focus from free trade to more equitable, reciprocal trade. However, Venezuela’s bid to join Mercosur has still not been ratified by Brazil, a country which has a more market-based vision of the future than the avowedly socialist Chávez.

Paraguay too has failed up until now to ratify Venezuela’s bid. Lugo has been coy about his intentions towards the issue, but he could play a key role now in helping Venezuela join the trade bloc. With a left of center government in power in Asunción, the center of political gravity within Mercosur could tilt a little towards Chávez.

The Politics of Hydro-Power

In other key respects, a Lugo presidency could shift geopolitical momentum away from Brazil and towards Venezuela. One issue which has rankled relations between tiny Paraguay and Brazil has been hydropower. To the chagrin of Brasilia, Lugo seems determined to follow in the footsteps of Hugo Chávez by pursuing a policy of resource nationalism.

Under Stroessner, Paraguay built the largest hydroelectric power plant in the world located in Itaipu. Though Itaipu, as well as the subsequently built Yacyretá Dam displaced tens of thousands of Paraguayans from their homes without any restitution, it greatly increased economic growth.

Itaipu, which is operated jointly with Brazil, is now at the center of a political firestorm in Paraguay. The dam is hugely important within the region, providing a full 20% of Brazil’s electrical power. But Lugo has declared that the contract agreed to between his country and Brazil is unfair. Currently, Paraguay is obliged to sell Brazil its surplus electricity from Itaipu at prices far below those set by the market. Lugo wants Brazil to pay more.

The Paraguayan President also wants a greater energy surplus from the dam. Currently Paraguay uses much less than half the energy from the dam while Brazil takes the rest. Paraguay would like to trade more energy so as to generate much needed income. To the dismay of President Lula in Brasilia, Lugo has said that he would like to alter the current energy accord. Such a move however would surely result in a great shortage of energy distribution to the Brazilian south and southeast.

When he talks about hydropower, Lugo strikes a nationalist chord: under his leadership, the President elect has said, Paraguay won’t “fall into submission to any other bigger country.” Lugo says that he is even prepared to take Brazil to the World Court in The Hague if necessary.

Paraguay, which historically has not had much of a political voice on the South American stage, now has a unique opportunity to tip the geopolitical scale towards Venezuela. Up until recently the international media ignored Paraguay. That could change now however with the rise of the country’s new Bishop President.

Be the first to comment