Lugo Takes A Firmer Hand

BMI View: Paraguayan President Fernando Lugo has stepped up efforts to quell insurgent activity in the country, introducing emergency security measures in five regions along the borders with Bolivia and Brazil. We believe that a successful campaign to clamp down on guerrilla groups in these areas could boost the President's waning popularity, but caution that a prolonged period of elevated insecurity would likely see Lugo come under heavy international and domestic pressure to introduce further tough security policies.

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