Weekly Report - 21 October 2003

Quotes of the week...

Postscript 24 April 2007 Modified: 21 October 2003 409 views

`We have discovered that we are poor, but also that we won't get anywhere on our own.'

Lula da Silva, President of Brazil, outlining his `strategic alliance' scheme to the Argentine congress.


`The US and our neighbours are worried that there might appear [in Bolivia] a narco-terrorist state.'

Gonzalo Sánchez de Lozada, President of Bolivia, the day before he was persuaded to resign.


`In the next congress we are going to have more former military men than ever. They come from the ranks, from the parties of the landowners and the Bourgeoisie.'

Tom Koenigs, head of Minugua, the UN verification mission in Guatemala.


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In this report we look at the political problems confronting the government. It has decided to push for a reform in the electricity industry, but it is far from clear that congress will support it. The biggest party in congress, the PRI, has a powerful nationalist wing which does not want to see any changes to the state-dominated electricity industry. Low politics also come into the PRI's calculations. It wants Fox and his government to pay a political price for their temerity in depriving the PRI of the presidency in 2000. We also look at the increasingly troubled state of the economy and analyse its vulnerability to falling oil prices.

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