IT ONLY TOOK 61 years, but Paraguay’s conservative Colorado Party finally lost an election. In last month’s presidential poll, a plurality of voters cast ballots for Fernando Lugo, a left-wing candidate who does not belong to an organized political party. Lugo focused his campaign on poverty, rural land reform, and energy policy. Now comes the more difficult task of actually governing. Will Lugo favor pragmatic, market-friendly initiatives designed to boost Paraguay’s economy and ensure stability? Or will he squander his historic opportunity by embracing populism? Unfortunately for Paraguayans, the answers are uncertain.

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