In an attempt to reverse the cycle of instability that has erupted in the Andean states of South America and that continues to intensify, U.S. Secretary of Defense Donald Rumsfeld visited Paraguay and Peru on August 16-18.
...Washington, which has accused Caracas and Havana of lending support to Morales, fears that populist movements opposed to its strategic aims now have a genuine chance to come to power in the Andean states and institute socialist economic models in place of neo-liberal capitalist free trade
...After his talks with Rumsfeld, Duarte made it clear that "no world power is going to install any military base in Paraguay." He added that "Latin America has to integrate, form a power bloc without any kind of prejudices or exclusionary visions."
Washington's efforts to reverse the cycle of instability in the Andes and the attendant rise of populist movements, and to form a coalition to isolate Caracas, met with failure in Asuncion and Lima, where economic demands trumped strategic concerns. [See: "Cycle of Instability in the Andes: Bolivia, Ecuador and Peru"]
Look for Washington to face increasing difficulties in achieving its strategic aims in South America, as even governments that are willing to cooperate with the U.S. raise the economic price for strategic support and are drawn closer to emerging power blocs in the region that compete with Washington. Given domestic pressures in the U.S., Washington will not have the ability to pay the price demanded by states that it has deemed its potential allies.
http://www.pinr.com/report.php?ac=view_report&report
_id=351&language_id=1
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