Confused DEA moves raise governance fears in Paraguay

Significance The surprise suspension, subsequently attributed to a purely administrative error, has raised further governance concerns about the administration of President Santiago Pena, in particular the lack of clarity over responsibility for policy-making in the crucially important area of combating narcotics trafficking and money laundering. Impacts The embarrassing affair will likely galvanise opposition inside and outside the Colorado Party to the power exercised by Cartes over Pena. Ties with the incoming Trump administration may prove far more fractious than the government had hoped. Concerns over policy-making and widespread corruption allegations may hamper efforts to attract foreign investment.