Leftist ex-bishop ends Paraguay one-party rule

Aims for warm ties with U.S.
As for the United States, Lugo has warned that Paraguay won't accept outside meddling in national affairs, but will try to maintain warm relations with Washington.

About the only power Lugo has under Paraguay's constitution to enact change without approval from Congress is the ability to impose a state of emergency. But that's something few expect from Lugo, a firm opponent of the long and brutal dictatorship of Alfredo Stroessner, whose rule from 1954 to 1989 was backed by the Colorados.

While Lugo's view of the world is rooted in leftist liberation theology, he's also known as a consensus-builder, skills that paid off this week when he persuaded the third-place finisher in the presidential race, right-wing retired general Lino Cesar Oviedo, to join his diverse coalition of leftists and conservatives and give him a majority in Congress.

This delicate coalition now gives Lugo's legislative agenda a chance.

Still, experts predict only limited progress on land reform, since wealthy landowners can count on the support of Colorado Party governors, mayors, lawmakers and judges, as well as lawmakers loyal to Oviedo.

Lugo doesn't have Silva's back-room bargaining credentials as a former labor leader, but his alliance with Oviedo shows he understands practical politics, said Michael Shifter, an analyst with the Washington-based Inter-American Dialogue think tank.

"He is realizing that sometimes you have to deal with the devil to govern," he said. "Lugo probably concluded he needed at least short-term marriage of convenience to get things done during the first 100 days that will be critical to get political traction and momentum."

Concessions to Brazil?
The one proposal all parties support — persuading Brazil to pay more for cheap electrical power from a massive dam straddling their border — depends on Brazil. Lugo is insisting on concessions, and Brazilian officials, while refusing to change the long-term energy contract, said they are ready to help their poorer neighbor with a loan for badly needed transmission lines.

In a move that suggests he won't manage the economy like Morales or Chavez, Lugo asked austerity-minded former economy minister Dionisio Borda to lead his economic team. Borda, who served from 2003-2006, "is a pretty conventional economist. He's going to be reassuring to investors and the international financial community," Shifter said.

The main question is whether Lugo can guide competing interests into achieving much of anything.

"The optimistic scenario is he won't accomplish much but he will be well regarded and respected by the people as a president who is not corrupt and does not take bribes," said Tatiana Rizova, a Paraguay expert who teaches political science at Christopher Newport University in Virginia.

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