Interesting things are happening in Paraguay, and many of them have to do with Brazil.
Take land reform.Brazilian farmers who have settled in Paraguayan territory have asked the government of Brazil to mediate in the tension, which in some cases has escalated into confrontations with local groups of campesinos.
The Lugo administration’s response was that it will seek the best solution, within a framework of respect for the rule of law. Through negotiations, a first agreement was arrived at between the campesino Coordinating Committee for the Defence of Sovereignty and Agrarian Reform, and a group of Brazilian landowners.
The Brazilian farmers agreed to sell 22,000 hectares to the Paraguayan state, which will pay for the land using part of the revenues from the Paraguayan-Brazilian Itaipú hydroelectric dam that are set aside for social spending.
Balbuena stressed that resistance against the Brazilian soybean farmers is growing because the spraying of their crops hurts campesino communities and their crops and livestock. "This dispute is not about occupations of land, but about the problems associated with the use of toxic agrochemicals," he said.
The boom in soybean monoculture in eastern Paraguay in the last few years is at the root of the present conflicts.
In seven years, the area under soybean crops in Paraguay doubled, reaching 2.4 million hectares by 2007, equivalent to 25 percent of all cultivated land in the country. And all of it is genetically modified (GM) soy, according to the International Service for the Acquisition of Agri-biotech Applications (ISAAA).
Paraguay is now seventh in the global ranking for the area under transgenic crops, and has no legislation on the use of GM seeds. It is also the world's fourth largest exporter of soybeans.
There are 81,000 Brazilians living in this country, not counting their Paraguayan-born descendants. Most of them live along the Brazilian border.
"Between 1992 and 2002, the number of people describing themselves as Brazilian nationals fell. However, there are many more Portuguese-speakers," Fabricio Vázquez, a researcher at the National University's Faculty of Agrarian Sciences, told IPS.
Vázquez said that Brazilian immigrants should be regarded as a social group undergoing a process of integration.
"Rural immigrants (Brazilians, Canadians, Russians, and so on) settled a long time ago in border areas that were neglected by the Paraguayan state. The issue is not whether they are many or few, but that they are a group of producers who have a large socioeconomic impact," he said.
The catastrophic
War of the Triple Alliance saw Paraguay radically depopulated in the 1860s by the armies of the Empire of Brazil, and subsequently saw Paraguay--like Uruguay and Bolivia--become a buffer state between Brazil and Argentina. In the 1950s, Paraguay's dictator Stroessner decided to move closer to Brazil and away from Argentina, eventually
falling into a Brazilian sphere of influence. Kacowicz
argues that the whole of the Southern Cone is part of a Brazil-defined zone of influence as expressed most recently through
Mercosur, but the greatest imbalance within the Common Market of the Southern Cone is arguably between an industrialized Brazil of 190 million people and a poor landlocked Paraguay home to less than ten million. Naturally, there are fears of Brazilian domination. The
electricity produced by the joint Brazilian-Paraguayan
Itaipu Dam is another sticking point, since Paraguay wants to renegotiate the terms of the deal to give Paraguay a larger share of the revenues. So far, Paraguay has managed to avoid falling into the same trap of somewhat self-destructive nationalism that characterizes
modern-day Bolivia owing to the greater maturity of Paraguay's political culture and the relatively minor nature of ethnic cleavages, but Paraguay's Brazilian connections may yet prove to be especially controversial.