PARAGUAY: The President of Paraguay, Mr Luis González Macchi, declared a state of emergency yesterday after 48 hours of civil unrest left two people dead and 50 injured, writes Michael McCaughan
The emergency measures allow the government to search homes and arrest citizens at will and suspends the right to peaceful protest.
Thousands of troops began clearing blockades after violent incidents occurred in 20 cities, notably Caaguazu, where 4,000 people blocked the international bridge linking Paraguay with Argentina.
The Colorado Party, which has ruled the country since 1947, has gradually seen its power base erode since the fall in 1989 of dictator Alfredo Stroessner, who ruled for 35 years.
Mr Macchi assumed office in 1999 after ex-president Mr Raúl Cubas fled the country, accused of ordering the killing of his own vice-president, Mr Luis María Argaña. The scandal also forced a former army general Mr Lino Oviedo, into exile as authorities accused him of being the power behind the ousted president.
The latest crisis began last month when peasant farmers led a mass mobilisation against the planned privatisation of telecommunications and water systems. The protests paralysed the nation and forced the government to perform a humiliating U-turn on its privatisation plans, the proceeds of which were expected to finance employment projects in advance of next year's elections.
The political climate heated up once more this weekend when Mr Lino Oviedo, a former general now living in exile in Brazil, threatened to return home and run for presidential office next year. In May 2000, Mr Macchi survived a coup attempt led by a group of civilians and military loyal to Mr Oviedo.
President Macchi yesterday ordered the detention of suspected Oviedo "activists" including legislators and trade unionists, a move which will spark further protest and more unrest.
There were repeated rumours President Macchi would resign his post this week, leaving congressional chief Mr Juan Carlos Galaverna in power.
Mr Oviedo led a failed coup attempt in 1996 and is widely believed to be sponsoring the latest protests from his exile hideout in Brazil.
Mr Oviedo left the ruling Colorado Party to form his own party, the National Union of Ethical Citizens (Unace), in 1998, the first party to offer a serious challenge to the liberal and Colorado parties, who dominate politics.
Mr Oviedo has promised a "democratic revolution" which would emulate the success of Venezuelan President Hugo Chavez, who led a military uprising before sweeping into power through the ballot in 1998. Mr Oviedo enjoys popular support across Paraguay's impoverished countryside, where over 80 per cent of people live in poverty. The riots are the most violent in a series of protests against free market policies in the poverty-stricken South American country, which has been hit by the economic crisis in neighbouring Argentina and Brazil's slumping economy.
Peru's government was also thrown into crisis last month after protests against the privatisation of two electrical companies. The protests resulted in the resignation of the Peru's interior minister, Mr Fernando Rospigliosi. The government postponed the sales, leaving it strapped for cash. Two people were killed and more than 100 others were injured in the unrest.