Archive for May 2012

Occu.Py: Mass protests in Paraguay against Corruption

UPDATE: Paraguay's Senate caves to citizen pressure and overwhelmingly votes against the proposed budget increase that would have used $15 million to create 10,000 political hires merely months before a presidential and congressional election.



Paraguayans Protesting Government Corruption on Friday, May 26 (h/t: ABC Color)


Thousands of Paraguayans from all walks of life are massing in Asunción to protest against corruption in a swift, sudden swell of public anger whose intensity has caught the political establishment by surprise.

Recently, the House of Deputies (the lower house in congress) voted to approve an additional $50 million for the Electoral Commission (TSJE, its acronym in Spanish). These are basically new political hires just before an election year and there's been an immediate public backlash against cronyism. Thousands are gathering today and tomorrow, when the Senate is scheduled to vote on the measure. Paraguay's President Lugo has promised to veto the measure. (Just for a bit of perspective on what $50 million means in Paraguay: Paraguay's population is about 6 million and the average income is about $1200 annually.)

"Senate: We are watching... If you reschedule the vote, we'll be there, too. Revolution."
Paraguayans are enraged that money is being spent on what is effectively vote-buying, rather than on health or education or job creation.

And the protests are fascinating: graffiti on buildings near the capital, Facebook campaigns that are drawing thousands to march in front of the National Congress building. The political pressure is so great that the established political parties (who voted for the $50 million) are now telling their members to not challenge President Lugo's veto.


"What Would You Do With $50 Million?"


But the groundswell is not just about this particular measure, but rather about widespread fatigue with a government apparatus that misuses public dollars and has enriched the elite for decades. According to Transparency International, Paraguay is the western hemisphere's 3rd most corrupt country; according to many dismayed Paraguayans I have met, it's the 1st.

"Silbaba and the 45 Thieves," A clever list of all the Deputies who approved the $50 million increase. (h/t: Última Hora)

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Oil Boom in Paraguay? Bumps Ahead: Exploration and Navigating the Paraguayan Government

UPDATE: For more recent news on Oil in Paraguay, here.



Region of Oil/Gas Exploration Circled

Paraguay's Chaco region borders Argentina's and Bolivia's petroleum and natural gas zones and for many years there's been speculation that there might be oil and gas in northwest Paraguay. Amerisur Resources (UK-based) has just received permission from the Paraguayan government to explore the Piriti-Pilar Basin for oil and natural gas.

Another company, Texas-based Crescent Group, has held a concession for the Piriti Basin since 2008, but it's hit a few legal road bumps which have recently been resolved in drafting a new agreement.

These developments are interesting for a few reasons. First, none of the potential petro stuff is new news--every few years there are announcements that exploration and drilling in the Chaco are set to start. But what is interesting is where the authority over oil and gas lies within the Paraguayan government: the Ministry of Public Works and Communication. And this might be why there's so much confusion with the Crescent Group (and why Paraguay's public learned of the Amerisur developments via the London Stock Exchange rather than any government announcement in Paraguay). Rather than creating a separate energy ministry (which is how Brazil's government is organized) to administer the hydroelectric and now potentially hydrocarbon resources, there is a Vice-Ministry of Mines and Energy under Public Works. 

The Vice-Ministry has been traditionally focused on Paraguay's vast hydroelectric resources and so the oil-gas concerns are but a side note. Currently it's headed by leftist Mercedes Canese, the daughter of well-known Itaipú-dam activist Ricardo Canese who has been involved with pressuring Brazil to renegotiate the amount of money Paraguay receives for its Itaipú energy sold on the Brazilian market. The Vice Minister is from the part of the President Lugo coalition that is most leery of foreign investment (and certainly of private firms) and that most admires the way Morales has steered Bolivia's energy policy in a nationalistic and social re-investment direction.

Thus, the Vice-Ministry's posture and the little institutional development for how to administer oil and gas resources (e.g., the person in charge of hydrocarbons within the Vice-Ministry has a background in biology and ecology but not in energy) imply that there will likely be more road bumps ahead.

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[Argentina vs UK Update]: HMS Talent sent to Falklands/Malvinas for anniversary of surrender

Yet another incident in the spat between Argentina and the United Kingdom over the sovereignty of the Falkland Islands/Las Malvinas.

Screen Grab of The Sun's article from Sunday May 20, 2012

HMS Talent, a nuclear submarine, has been deployed by the Royal Navy to arrive in the South Atlantic on June 14, the 30th anniversary of the Argentine surrender in the Falklands/Malvinas war. The Sun's taunt--"England v Argentina... we bring on the sub"--predictably, has resulted in a flurry of anxious articles in the Argentine press over the capacity of this "hunter killer" submarine.

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Cool Graphic: Argentina's subway vs New York's

From Argentina's La Nación (which in turn got the data from the excellent Fake Is The New Real) comes a fun infographic that compares the Subte (Argentina's subway lines) with those of other cities throughout the world.

Here's a screen grab of Buenos Aires vs New York City.


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