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FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC IMMEDIATE 7432
INFO RUCNMER/MERCOSUR COLLECTIVE PRIORITY
RUEABND/DEA HQS WASHDC
RUEAWJB/DEPT OF HHS WASHDC
RUEAWJB/DEPT OF JUSTICE WASHDC
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UNCLAS ASUNCION 000815 
 
SENSITIVE 
SIPDIS 
 
FOR WHA/BSC MDASCHBACH, BFRIEDMAN, MDRUCKER 
 
E.O. 12958: N/A 
TAGS: PGOV ECON PREL PA
SUBJECT: LUGO'S FIRST 100 DAYS IN OFFICE 
 
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SUMMARY 
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¶1. (SBU) President Fernando Lugo publicly reviewed November 25 his 
administration's progress in its first 100 days.  Lugo emphasized a 
frontal fight against corruption and said he is trying to impose a 
new style of government, while humbly assuming responsibility for 
his errors to date as president.  Lugo pointed out that many members 
of the Colorado Party augured his administration would fail, 
dispelling their predictions that the public institutions would 
collapse and that there would be a witch-hunt of the public 
employees affiliated with the Colorados.  Lugo stated a central 
priority of his administration is agrarian reform.  In national 
polls published November 23-4, Lugo's popularity rating was a very 
respectable 60 percent, with 63 percent approving his 
administration's anti-corruption efforts.  Lugo also publicly 
recognized that his greatest challenges -- increased social and 
economic inclusion of the rural population, rising crime, and 
judicial and land reform -- require more time and effort, but he 
pointed out that structural problems have slowed his government's 
work.  Due to high expectations for change, Lugo's almost 
non-existent honeymoon has ended, but he is off to a solid start. 
END SUMMARY. 
 
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LUGO'S PROGRESS 
----------------- 
 
¶2. (SBU) President Fernando Lugo held a press conference November 25 
to summarize his administration's progress in its first 100 days. 
The president pointed out that 100 days are not sufficient to 
produce meaningful changes to the corrupt and inefficient structure 
which past Colorado administrations left behind.  Lugo said that 
more time is needed to fix the chaos generated during 61 years of 
Colorado Party rule.  He asserted that his administration has been 
working to optimize and strengthen state entities. 
 
¶3. (SBU) Lugo emphasized a frontal fight against corruption and said 
he is trying to impose a new style of government, humbly assuming 
responsibility for his errors to date as president. The President 
said that the Paraguayan people expressed their wish for meaningful 
and sustainable changes in the way the country is administered and 
to develop and promote democratic transformation.  Lugo stated that 
there is no threat on the horizon that will stop the process of 
changes and the transformation of the way the government administers 
the country. 
 
¶4. (SBU) President Lugo pointed out that many members of the 
Colorado Party augured his administration would fail, dispelling 
their predictions that the public institutions would collapse, and 
that there would be a witch-hunt of public employees affiliated with 
the Colorado Party.  Lugo contended that the majority of public 
institutions have improved their performance under his 
administration.  The President also pointed out that no witch-hunt 
has taken place; to the contrary, public employees are valued and 
are being retrained or moved to positions more in line with their 
skills to make the government more efficient. 
 
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FIGHTING CORRUPTION 
-------------------- 
 
¶5. (SBU) Lugo emphasized that during his short term in office, he 
demonstrated his commitment to combating the chronic corruption in 
all public institutions and reorganizing the way the public 
administration works. Lugo stated that all effort is concentrated in 
disarticulating the scandalous mafia-type structure set up in the 
public entities to rob the country's coffers.  He pointed out that 
major mafia-type organizations were found in many of the public 
entities.  He cited the successes as: a criminal investigation of 
the national police administration headquarters and the replacement 
of the police commissioner; removal and criminal prosecution of all 
13 public ports administrators; investigations into the national 
military academy, military hospital, and the military cooperative, 
with changes in military leadership (septel); and several criminal 
and administrative investigations in the bi-national energy 
enterprises, Itaipu and Yacyreta dams. 
 
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SOCIAL PROGRAMS 
---------------- 
 
 
¶6. (SBU) President Lugo stated a central priority of his 
administration is agrarian reform.  He created a roundtable to 
discuss land reform, which he said is fundamental to achieving 
economic development and social equity.  The President also cited 
other social programs promoted by his administration, such as free 
and universal medical care in the national hospitals; the "one 
laptop per child program;" the promotion of women in the work force; 
education for the indigenous population; promotion of artisan work 
and an initiative which would subsidize electricity for the poor. 
The leadership of the Minister of Health in improving efficiency and 
delivery of services has already been felt by the public making her 
the most popular member of the cabinet. 
 
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HIGH APPROVAL RATINGS 
---------------------- 
 
¶7. (SBU) In national polls published November 23-4, 60 percent 
approved President Lugo's first 100 days in office, while 31 percent 
disapproved of his work.  While 63 percent approved Lugo's 
anti-corruption efforts, 59 percent believe that the government is 
doing a bad job on land reform, 69 percent think that the government 
is performing poorly on citizens' security and anti-crime, and 60 
percent think that the government is poorly managing the economy. In 
the same poll, 57.7 percent approved of Vice-President Federico 
Franco's work; 29 percent criticized Franco's performance. 
 
¶8. (SBU) President Lugo recognized that his greatest challenges -- 
increased social and economic inclusion of Paraguay's rural 
population, crime, and judicial and land reform -- require more time 
and effort, but he pointed out that there were structural problems 
that slow the government's work.  He cited the old state structure, 
budget limitations, and the justice system as the major obstacles, 
but pointed out that the law will be applied and justice will be 
imparted equally to all. 
 
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COMMENT 
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¶9. (SBU) High expectations for change have cut President Lugo's 
almost non-existent honeymoon short. The president faces some 
serious challenges: No majority in Congress (much less a political 
party of his own), a weak and corrupt judiciary, bloated (and 
politicized) government institutions, and sporadic social unrest. 
Some poor and indigenous sectors of society are disappointed with 
his progress; politicians criticize his deliberate leadership style 
(claiming that he creates a vacuum when he fails to quickly make 
decisions) and lack of a strategic plan for governing.  And a few 
political vultures are circling, waiting for him to make his first 
big blunder.  But in his first 100 days, President Lugo has 
expressed the political will to reform Paraguay, and has had several 
high-profile successes, particularly against corruption.  He has 
assembled his team and is working out some normal, inter-agency 
kinks.  Lugo has chosen his battles carefully, aware that excessive 
reform attempts could upset the country's balance during this 
important transition.  Despite criticism that he has not 
communicated sufficiently with Congress, Lugo has held together his 
loose political coalition and is ramping up political dialogue with 
the opposition.  While Lugo lowered tensions on land reform by 
calling for a national dialogue, he will have to do more than 
grapple with land (and judicial) reform in coming months.  After 61 
years of Colorado Party rule, he will need more than 100 days to 
make real inroads into reforms, and continued U.S. assistance will 
be critical to his success.  But all in all, he is off to a solid 
start.  END COMMENT. 
 
AYALDE