Brazil sets the agenda; Paraguay caves to its every demand. Public pressure may change that
WHEN BRAZILIAN soldiers invaded Paraguay in 1865, after banding together with Argentina and Uruguay, the country lost a quarter of its territory and as much as 90% of its male population. A century later Brazil sent soldiers to a disputed border region, and withdrew only after the two countries agreed to build the world’s largest hydroelectric dam, with Paraguay selling its unused energy to Brazil below market value.
The agreement became public in July, when the head of ANDE, Pedro Ferreira, refused to sign it, resigned and accused Mr Abdo Benítez of “high treason”. He and Paraguay’s minister of foreign relations—who also resigned, along with three other high-ranking officials—told prosecutors that a “parallel negotiation” was under way to sell power exclusively to a Brazilian energy company, Léros.
News of the secret deal prompted thousands of people to take to the streets, calling for Mr Abdo Benítez to be impeached. On August 1st Mr Bolsonaro agreed to scrap the secret deal. Proceedings against Mr Abdo Benítez in Paraguay’s congress, which had the support of some of the president’s allies, were dropped. But it is too late to stop the outcry about energy policy in Paraguay. In 2023 the $2bn loan taken out to build the dam will finally be paid off.
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