Paraguay's Pena will struggle to build on drug success

Significance

This was the largest drugs seizure in the history of Paraguay, valued at around USD240mn. In response, President Santiago Pena stressed that Paraguay was not a drug-producing country and was only used as a transit route because of its geographical location.

Impacts

• The seizure will boost the lacklustre presidency of Pena, who completes one year in office on August 15.
• Concerns over institutional corruption will hamper efforts to boost international cooperation to tackle Paraguay’s trafficking problem.
• Corruption and organised crime concerns will represent obstacles to Paraguay’s economic expansion and growth.
• Paraguayan authorities will lack the will and resources to combat trafficking organisations such as the PCC.