"The Bishop of the Poor": Paraguay's New President Fernando Lugo Ends 62
Years of Conservative Rule

A former priest known as the "Bishop of the Poor," Fernando Lugo is the
first Paraguayan president since 1946 not to be from the conservative
Colorado Party. He has pledged to give land to the landless and fight
corruption. We speak to Greg Grandin, professor of Latin American history at
NYU. [includes rush transcript]

*AMY GOODMAN:* In one of his first acts in office, *Paraguayan President
Fernando Lugo has appointed an Indian woman to be minister of indigenous
affairs. Margarita Mbywangi is a forty-six-year-old Ache tribal chief who
was captured in the jungle as a girl and sold into forced labor several
times with the families of large landowners. She spent the early part of her
career as an activist defending her people's land. Her appointment makes her
the first indigenous person to oversee ethnic Indian affairs in Paraguay*.
President Fernando Lugo formally named her to his Cabinet Monday as he began
setting up his government following his inauguration on Friday.

A former priest known as the "Bishop of the Poor," Lugo is the first
Paraguayan president since 1946 not to be from the conservative Colorado
Party. *He has pledged to give land to the landless* and fight corruption.

*He is also the first bishop ever to become president of a country.* *Lugo
says he was influenced by the liberation theology of the '60s.* Both
Paraguay and the Vatican ban clergy from seeking political office, so Lugo
resigned in December of 2006. He said he would not marry during his
five-year mandate. His sister will therefore act as the country's first
lady.

On Saturday, Lugo traveled to San Pedro, the province where he spent eleven
years as bishop. He was accompanied by the Venezuelan President Hugo Chavez,
who has promised to provide Paraguay with a steady supply of fuel. Appearing
on stage together, Chavez gave Lugo a replica of South American independence
hero Simon Bolivar's sword. Brandishing the sword in his hand, Lugo pledged
to fight for justice and end corruption.

*PRESIDENT FERNANDO LUGO: *[translated] This was used by Bolivar. We, too,
will use it. And I say this very seriously. We will use it against
corruption, bribes and those that stole from the country. They deserve
justice, and this is the sword of justice. Bolivar's sword is something
symbolic and emblematic.

*AMY GOODMAN: *Greg Grandin is a professor of Latin American history at New
York University and author of *Empire's Workshop: Latin America, the United
States, and the Rise of the New Imperialism*, joining us now in our
firehouse studio.

Welcome to *Democracy Now!*

*GREG GRANDIN: *Hi, Amy.

*AMY GOODMAN: *Greg, talk about the significance of Fernando Lugo becoming
president of Paraguay.

*GREG GRANDIN: *Oh, it's enormously significant. I mean, just think of Latin
America. In some ways, Lugo completes the set. Latin America is governed by
a series of leftist or center-left presidents, that in—each one representing
different currents within the Latin American left. You have indigenous
rights organizers. You have social democrats. You have trade unionists. You
have nationalist military populists. And now you have a liberation
theologian. In some ways, he completes the ascension of the return of the
Latin American left.

*AMY GOODMAN: *Talk about his history, his biography, Lugo.

*GREG GRANDIN: *Well, he was born in 1951, and in some ways his life spans
two different very distinct periods in Latin American history. He came of
age when liberation theology was spreading across the continent. He became a
priest in 1977. But he was becoming—entering into maturity in the late '60s,
when the Catholic Church, Christian-based communities, particularly in
Brazil—Brazil was a big center of liberation theology—was affirming a
commitment with the poor, developing a critique of international capital,
understanding exploitation and poverty as what liberation theologians called
social sin. And then he became politically active in Paraguay in the 1980s
and 1990s, when the moment when these new social—it's particularly peasant
movements in Paraguay were emerging and taking the lead, emerging as the
vanguard and the opposition to the Colorado Party.

*AMY GOODMAN: *Talk about the Colorado Party. How did it start?

*GREG GRANDIN: *Well, the Colorado Party is one of the historic Paraguayan
parties. Its roots go back decades, in some ways, and it's been in power for
sixty-one years, since the late 1940s. And you could think of its rule
divided into two periods. The first period was dominated by Alfredo
Stroessner between 1950—he ruled between '54 and '89, a classic Cold War
dictator, very much involved in setting up Operation Condor with other Latin
American anti-communist dictators and terrorist states.

*AMY GOODMAN: *Which was—Operation Condor?

*GREG GRANDIN: *Operation Condor, you can think of as a consortium of death
squad intelligence apparatus in one country after another. It basically
brought together all of these distinct death squad units in Chile, in
Paraguay, in Argentina, in Uruguay.

*AMY GOODMAN: *Radiating from Pinochet?

*GREG GRANDIN: *Yeah, Pinochet and radiating, yeah, through Chile. It
started in 1975, and they began to coordinate their work in order to
confront what they imagined to be an international opposition, not just
terrorize the democrats and reformists and nationalists within countries and
opposition leaders within countries and activists, but also anywhere.
Operation Condor famously conducted operations in Europe, in the United
States and elsewhere. It was really a transnational terror operations. In
some ways it was also facilitated through the CIA and through the United
States military providing information through bases in Panama and elsewhere.


And then the second period of Colorado rule was a very fitful and corrupt
democratization process after 1989, with the—that corresponded to the end of
the Cold War up until the election in April of Lugo. It's marked by violence
and corruption and an ongoing, ongoing political turmoil, and again, the
emergence of these new social movements, which became the main, the most
vital opposition movement to the Colorado Party rule.

*AMY GOODMAN: *So he runs for president. He's bishop.

*GREG GRANDIN: *Right.

*AMY GOODMAN: *What did that mean? And what does it mean to—well, he can no
longer—he has to resign as bishop.

*GREG GRANDIN: *Yes, he resigned as bishop, and he tried to resign from the
Catholic Church. And for a while, the Catholic Church rejected his
resignation as a priest, and then they worked out some kind of accord in
which he could run. And for a while, opponents in Paraguay were trying to
rule his candidacy as unconstitutional, because he was a—because he remained
a Catholic priest.

It was enormously important, *because he was able to unite movements.* His
coalition, it's a very broad coalition, comprising something—ten political
parties including the more conservative and establishment opposition party
to the Colorados, the Authentic Radical Liberals, which is another historic
Paraguayan party, *but then also a broad array of smaller leftist party, but
also twenty social movements*.

*And the heart of that is in some ways the peasant movement, the campesino
movement*, which he was very much involved in during his—he was the bishop
of the province of San Pedro, which is to the northeast of Asuncion, the
capital of Paraguay. *And that's where the heart of a lot of the soybean
production, a lot of the worst of the dispossessions that happened since
the—well, the dispossession, land dispossessions, really start in two
periods. One is under Stroessner, the dictatorship, in which he hands out
vast tracts of land under a so-called land reform to military cronies.* *And
then, with the rise of soybeans and agro-industry, it really fuses with
corporate agro-industry and continues into the 1980s and 1990s an enormous
dispossession of something like 300,000-400,000 landless peasants in
Paraguay.*

*AMY GOODMAN: *And what did—what was the platform that Lugo ran on?

*GREG GRANDIN: *He ran on three basic points. One—two of them had broad
support throughout the political class in Paraguay. One was governability,
ending corruption, ending the Colorado—sixty years of Colorado rule, trying
to reform the government and make the Paraguayan government a more
functionable—in which he was able to provide services to the majority of
Paraguayans, institute a social welfare state to some degree.

Second one had to do with hydroelectricity. Paraguay doesn't have oil. It
doesn't have natural gas. What it does have is enormous amounts of
hydroelectricity, basically two dams that were built in the 1970s, and under
the—one in a joint agreement with Brazil and the other one with Argentina.
Under the terms of the construction of those dams, Brazil and Argentina get
the surplus of whatever hydroelectricity Paraguay doesn't use at below cost.
This is an enormous diversion of wealth that could be sold on the
international market. Paraguay produces 70 billion kilowatt hours of
electricity. It uses six billion. So that means Brazil and Argentina get the
rest at almost cost. And so, he ran on what could be called
"hydronationalism," an attempt to renegotiate those contracts and those
arrangements with Brazil and Argentina. Those two things had broad support
among the political opposition in Paraguay.

*The third plank was land reform, and this is much more contentious, and
this is where—this is the issue that I think is going to make or break his
presidency.*

*AMY GOODMAN: *Explain further.

*GREG GRANDIN: *Well, as I said, *his social base is these campesino
movements, these [inaudible] social movements, civil society movements
around land issue, 300,000 peasants without land, landless peasants, many of
them displaced either directly by paramilitaries or the military in the '80s
and '90s, others by the widespread use of pesticides and other toxic
agricultural inputs, which have just poisoned livestock and human beings and
water and drove people off land.* *And so, what you see in Paraguay is a
kind of coalition between the old tradition oligarchy, landed oligarchy, and
these new corporate agribusinesses, a lot of them from the United
States—Archer Daniels—ADM, Cargill, DuPont—but also a number of
agro-industries from Brazil. In some ways, Paraguay is within Brazil's
sphere of influence, and so there's going to be—so, attempting to reverse
that is going to be the key difficulty and challenge for his presidency.*

*AMY GOODMAN: *I want to talk about Venezuela and Paraguay. Of course, Hugo
Chavez went to Lugo's inauguration. This is the two of them in Asuncion, the
capital of Paraguay, singing together at a noisy concert.

   [clip of Presidents Lugo and Chavez singing]


*AMY GOODMAN: *Presidents Lugo and Hugo Chavez.

*GREG GRANDIN: *It looked like Peter from—Peter, Paul and Mary were there,
didn't it?

*AMY GOODMAN: *Well, here is Hugo Chavez saying he will give Paraguay all
the oil he needs. What about that?

*GREG GRANDIN: *Oh, well, oil is key, because, in many ways, the promise and
the expectation that you can receive a steady supply of oil without major
price hikes, depending on the global market, is key to any kind of
developmental project in planning, in economic planning. In many ways, the
oil spikes in the late 1970s are what destroyed the earlier model of
developmentalism, state developmentalism, paving the way for neoliberalism
and free market capitalism and financialization and ending all that state
developmentalism. So if a country can depend on a steady supply of oil and
knows what the price is going to be over a given period of time, it's
essential to economic planning. So this is the key thing. Chavez offered
him, I think, 25 million barrels a day, which I believe is what Paraguay
uses, so it would be 100 percent of its oil supply.

*AMY GOODMAN: And the significance of Margarita Mbywangi, the indigenous
affairs—the new indigenous affairs minister?
*

*GREG GRANDIN: Well, she is from an indigenous tribe of just a few hundred
people that are left in this indigenous tribe. And there's about 100,000
indigenous Paraguayans. Paraguayans are—most are self-identified mestizos;
95 percent, 96 percent identify as mestizos, a mix of European and
indigenous ancestry. But there's about 100,000—a little bit more than
100,000 indigenous people in Paraguay. And they're there on the bottom of
the social ladder in terms of state services, in terms of economics, in
terms of poverty. And she, herself, was sold into slavery.
*

I mean, when people talk about Latin America being feudal, Paraguay is
feudalism on steroids. It's controlled by maybe a few hundred families.
Three percent, two percent of the population owns or controls 90 percent of
the cultivatable land and cultivated land in Paraguay. *And she's an
incredible story. She was literally sold from one hacienda family to another
growing up. She managed to escape that and become an indigenous rights
activist and a land rights activist. And Lugo just appointed her as the
minister of indigenous affairs, which is highly symbolic*.

*AMY GOODMAN: *In April, a few days after Lugo won the presidential election
in Paraguay, *Democracy Now!* co-host Juan Gonzalez had a sit-down interview
with the president of Bolivia, Evo Morales. He asked Morales about the
significance of Lugo's election.

   *PRESIDENT EVO MORALES: *[translated] Well, first of all, I would like to
   tell my colleague, brother, President-Elect Fernando Lugo, welcome to the
   Axis of Evil. But I am so sure that it is an axis for humankind, liberating
   democracies that are not subjugated. They should continue to grow in Latin
   America. The next will certainly be in Peru and Colombia, that there be
   governments or presidents who are subordinated to their peoples and not to
   the empire. So I am very pleased at his election.


*AMY GOODMAN: *Bolivian President Morales: "Welcome to the Axis of Evil."

*GREG GRANDIN: *Yeah, well, again, think of Latin America. There's no other
region in the world in which the majority of governments are ruled by
governments—by politicians that expressly base their authority on advancing
a classic left agenda, ending inequality, advancing human dignity, advancing
national solidarity. It's amazing.

And there's been a lot of—there's been considerable attempt by political
scientists and government officials in this country to drive a wedge between
the so-called good left in the bad left. But it's been impossible to do,
because Latin Americans themselves don't buy that division. Certainly,
there's plenty of differences between Hugo Chavez-style populism and
somebody like Michelle Bachelet, social market reformism, but they share a
common agenda. And I think that Latin American—these politicians in Latin
America see that. So when Lugo equally praises Bachelet and equally praises
Chavez, he's not being disingenuous. He understands that they're coming out
of a same tradition. They face enormous challenges, specific challenges in
each country. *But they've remained relatively committed to this left
agenda.
*

*AMY GOODMAN: *Well, Greg Grandin, I want to thank you very much for being
with us. Greg Grandin, professor of Latin American history at New York
University, NYU, author of *Empire's Workshop: Latin America, the United
States, and the Rise of the New Imperialism*.

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