Several months ago, Paraguay embarked on an historic change of power to elect Fernando Lugo to become president of the country. The election marked the end of 60 years of rule by the Colorado Party and renewed the hopes of the Paraguayan people that real change might bring them the jobs and prosperity that they had hoped to gain from their democratic transition.
This week, another historic event occurred in Paraguay when the largest gathering of business leaders ever seen in the country came together to create a private sector vision for Paraguay’s future. Over 600 business leaders met in Asunción as well as the leaders of over 55 business associations to debate key reform topics and reach consensus on the most important points. This vision will soon be consolidated and published and presented to the incoming Lugo government.
Hopes are that President-elect Lugo will implement the kinds of changes that the country needs to catch up with growth experienced in other parts of the hemisphere. However, there are forces at work that could delay or derail that process. Groups from the far left have been staging kidnappings and private property occupations to force the government’s hand toward a more left leaning agenda. In addition, the president elect has chosen to meet with the presidents of Bolivia and Venezuela on his second day in office. While this is not an optimistic signal about the kinds of friend Mr. Lugo intends to keep, he has chosen strong ministers for leading the economy at the outset of his administration. He has also cultivated relations with the presidents of Brazil and Chile, who represent a more moderate and successful vision from the center left.
It remains to be seen what direction President-elect Lugo will finally take, but he will do well to pay ample attention to the groundbreaking work now being conducted by the private sector on its own initiative.
Published Date: August 11, 2008