In 2000, the ties between Washington and Asuncion continued as a US airbase in Estigarribia was built with a capacity to host 16,000 North American troops. Further construction of US military bases has also been discussed. However, most Paraguayans have become critical of their country’s ties to the White House.
Similarly, people have asked that their government revise its hydroelectric contracts with Brazil and Argentina. Established under Stroessner’s rule, hydroelectric plants in Itaipú and Yacyretá provide Brazil with cheap energy below market prices.
Once in office, Lugo aims to increase the cost of energy to Brazil while also carrying out a land reform program since 2.5 per cent of the population owns 70 per cent of productive lands. Roughly 50 per cent of Paraguayans live below the poverty line - 35 per cent in abject poverty.
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With the Colorado Party controlling vast sectors of the state apparatus though, Lugo as President will require substantial political courage to carry out his popular mandate. Support from other leftist governments in the region will be vital.
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