Santiago Pena, Paraguay’s New President, Faces Tricky Balancing Act

By Daniela Desantis and Lucinda Elliott

ASUNCION (Reuters) – Paraguay’s new president Santiago Pena takes workplace on Tuesday, a clean-cut economist for the conservative Colorado celebration who might want to juggle ties with Taiwan, strain from farmers, rising crime and a U.S. probe into his political mentor.

Pena, 44, scored a robust win in April elections in opposition to a center-left opposition challenger, and helped the Colorado Social gathering, the dominant political power for the final three-quarters of a century, safe a majority in each chambers of Congress.

However the political high-achiever should now maneuver a troublesome path forward.

His celebration’s diplomatic help for Taiwan has damage native farmers’ grains exports to China, which claims sovereignty over the self-governed island. Taiwan Vice President William Lai is in Paraguay for Pena’s inauguration.

Relations with the USA may even be in focus after the U.S. authorities accused Pena’s political backer, former President Horacio Cartes, of corruption.

“I am conscious I’ve no margin for error and we won’t construct one thing merely saying they gave me carte blanche,” Pena mentioned in an unique interview with Reuters final week forward of the handover. “We’re continuously going to be scrutinized in each determination.”

Pena within the interview mentioned he would push for a better police presence within the streets to move off rising issues about safety, look to tame costs to keep away from a cost-of-living disaster, guarantee entry to healthcare, and encourage personal enterprise.

“We have now a debt we owe to the folks,” he mentioned.

Pena additionally needs to create 500,000 new jobs in 5 years to spice up the South American nation’s farm-driven economic system, dominated by soybeans and beef.

Those that know Pena described him to Reuters as “first rate” and with “good concepts.” Others cite a up to date mindset and regular hand. Critics say he’s a member of the out-of-touch elite who lacks political expertise and is only a puppet for Cartes.

Pena, who married his childhood sweetheart and have become a father for the primary time at 17, studied economics in Asuncion and later public coverage at Columbia College in the USA.

He labored as an economist at Paraguay’s central financial institution after which with the IMF in Washington, earlier than returning to Asuncion to affix the central financial institution board. He grew to become finance minister in 2015.

“He matured in a short time, being a younger father… He grew to become an grownup in a short time,” a former colleague instructed Reuters. “Santi has lots of life expertise and is a pure negotiator.”

In 2016 his political profession took off when Cartes hand-picked Pena as his meant successor. At first there have been doubts from throughout the Colorado celebration, however 5 years later on the subsequent election he obtained the nod – and received.

“Santi,” as he’s usually identified, has pledged business-friendly insurance policies centered on job creation, low taxes and attracting international funding. He has withstood strain from farmers to stay with Paraguay’s decades-long diplomatic ties with Taiwan.

Talking on situation of anonymity, one businessman with investments in Paraguay who is aware of Pena personally mentioned the brand new president was not one to shake issues up unnecessarily, however would push regular change.

“He’s not a politician who needs a revolution, he needs evolution,” the businessman mentioned.

(Reporting by Daniela Desantis and Lucinda Elliott, Modifying by Rosalba O’Brien)

Copyright 2023 Thomson Reuters.