President Fernando Lugo on "the Winds of Democratic Change" in Paraguay

Just over a month after assuming office, Paraguay’s President Fernando Lugo delivered a speech at the Americas Society/Council of the Americas in which he described how his presidency marked an important democratic shift in Paraguay. “This new government that I head is an unequivocal response to the numerous demands and lost opportunities during all these last decades,” said the president. Lugo was joined by Finance Minister Dionisio Borda and Minister of Foreign Relations Alejandro Hamed Franco.

• Watch a video of the president's remarks.
• Listen to an audio podcast of the event.
• Read President Lugo's prepared remarks (en español).

Inaugurated in August, the former priest stands as the country’s first leader outside of the Colorado Party in more than six decades. “The citizens of Paraguay spoke at the polls this year, expressing a greater wish for social justice, a wish to stop massive deterioration and destruction of their environment, fighting corruption, fighting the lack of formality and the arbitrariness of a weak and opportunistic state that for years has neglected to design a sustainable and inclusive development policy,” remarked Lugo.

The president also emphasized that Paraguay “will cease to be a country that makes negative headlines” and emphasized that his administration will seek to fight corruption and piracy. He listed as goals annual growth of 5 to 6 percent and a decrease of extreme poverty from 19 to 10 percent, noting that Paraguay offers investors a highly agricultural society with a young labor force, a low tax burden, and hydroelectric power. “Paraguay has changed and we are inviting you all to be part of this new enterprise,” he said at the conclusion of his speech.

During a question-an-answer session and a press conference following the luncheon, the president and two ministers fielded questions on topic ranging from international affairs to the economy. Hamed noted that, in the past, Paraguay was a country with a limited international presence and only 30 diplomatic missions around the world. “We would like to get closer to other countries and explore new markets,” said the minister.

In response to other questions, Lugo described the role of the Union of South American Nations (UNASUR) in helping to prevent a civil war in Bolivia and he noted that the newly minted multilateral organization still had to carve out a more defined role. Lugo also outlined negotiations with Brazil over shared contracts related to energy and the hydroelectric Itaipu Dam.

Borda emphasized the importance of public-private partnerships in the fields of infrastructure development and entrepreneurship and stressed the importance of increasing tax revenues. He explained that Paraguayan corporate taxes run at approximately 11 percent while personal taxes are practically nonexistent. By increasing taxes—which the administration plans to do in 2009—the government should be able to increase revenue in essential fields such as education and poverty reduction.

During the week of the UN General Assembly, AS/COA hosts several presidents. Click here to learn more about these programs.