By Francisco T. Sobrino
BUENOS AIRES — Paraguay, as a result of long periods of political turbulence and war, has remained socially and economically backward. Only 1% of the population of 5 million owns 80% of the land. Nearly 10 million hectares — half the arable land in the country — are owned by some 350 landowners.
In the '70s treaties with Brazil and Argentina set up two huge bi-national enterprises for the construction and operation of three hydro-electric plants, aggregating at least 17,000 Mw. The construction of the dams resulted in a rapid expansion of the Paraguayan construction industry. This enabled the industrial output to grow by over 7% a year in the '70s. Paraguay exports substantial amounts of electricity to Brazil.
During the '70s there was also a rapid expansion of land cultivation. Cotton and soybean account for half of registered commodity exports. Thanks to a 300% increase in the international prices of these products, income from exports boomed, stimulating further expansion of agriculture. This benefited mainly the foreign-owned big companies and the traditional landowning oligarchy.
Indiscriminate deforestation in that process led to land erosion and productivity decline, as has happened on a larger scale in Brazil.
The debt crisis in the '80s and the decrease of raw material prices on the world market undermined economic and political stability. Migration to towns and neighbouring countries increased. In the last 20, years rural population has decreased from 51% to 37%.
Urban workers began to fight against the Stroessner dictatorship, in power since 1954. In 1989 General Stroessner was ousted by another general, Andres Rodriguez, who promised to restore democracy. In 1993 elections, widespread fraud made Rodriguez's candidate, Wasmosy, the first civilian president in 50 years.
Since then, the economic crisis has deepened. Only four big enterprises control as much as 60% of cotton storage and decide prices to be paid to farmers.
Today, these prices do not cover the cost of harvesting. Peasant protests have been sweeping the whole country. Hundreds of thousands of landless peasants have mobilised with their own demands for land. On February 3, thousands of peasants in the Concepcion district took possession of private and public land, and barricaded roads. They confronted the police, who had to use up their gas stock. Wasmosy had to give in and to admit that the peasants complaints were fair.
The Catholic Church supported the peasants' struggle. The cotton cartel replied that prices could not be increased and lobbied intensely.
Wasmosy is being overwhelmed by political and economic problems. At a meeting with labour leaders, he commented, "I don't know what to do to satisfy the peasants' complaints".
On February 25 the three labour confederations organised a tumultuous rally in the capital, Asuncion. Once again, the government had to give in partially. The president promised to halt the repression and removed legal regulations on the cotton trade that had benefited the cartel.
These measures strengthened the people's activity. The peasants' organisations prepared a national rally on March 15. People came from everywhere to Asuncion. The most important demands were: "freedom to imprisoned peasants", "agrarian reform", "down with starvation by neo-liberalism", "cotton price according to crop costs", "dismiss the home affairs minister", "legal recognition for seized lands".
Despite police and the military efforts to prevent it, more than 25,000 marchers took the streets. At the same time there thousands of protesters barricaded roads across the country. Industrial workers and students joined the march, cheered by residents.
What began as a complaint about cotton prices has built up to a mass mobilisation with a political and democratic program that is generating a growing political crisis. A general strike is scheduled on May 2, the first in 36 years.
Due to the repression in past years and to the political backwardness of the population, the socialist and leftist parties are tiny. But now the left has a great opportunity if it can work out a program which puts the masses' essential needs.