ABSTRACT
This chapter focuses on the 'rise and fall' of Fernando Lugo and the multifaceted advances of conservative forces thereafter, it starts from the premise that the role of the class struggle cannot be viewed in historical isolation. It begins with a brief reflection of the historical foundations of contemporary Paraguay, charting the dynamics of repression and co-option during the dictatorship of Alfredo Stroessner, as well as the more recent shift in the country's agrarian economy towards agro-extractivism. The chapter examines the most important social classes in the country: landed oligarchy, the peasantry, and forces of imperialism. In the absence of a significant industrial proletariat, the campesino movement has long been – by far – the most important and strongest social movement challenging the state and political elite. All in all, the Paraguayan experience is a powerful reminder of how fragile the prospects for redistributive land reform continue to be in the post-authoritarian and post-neo-liberal period of Latin American politics.
