The question as to why no public servants had been paid for so long was easily answered: the government had run out of money, and if they simply printed more banknotes, as South American governments had in the past, they would fuel inflation and cut off the IMF and International banks as potential donors for further hard currency loans. ‘You will have noticed how many of the waterpipes in the streets of Asunción are broken,’ Gabriella had remarked. I had noticed. There were leaks everywhere, spilling out into the streets, flooding the pavements, a side effect of which was vigorous tree, shrub and weed growth beside the roads, among the cracked pavements, and even in the potholes of the lesser used streets. Asunción had been hacked out of sub-tropical jungle, and given half a chance the jungle would reclaim it again.
‘The water company, State-owned, borrowed US$10 million for repairs from a US based international agency,’ she continued. ‘The construction company that got the contract was owned by the head of the water company’s brother. A $10 million hole was dug in the ground, achieving nothing. No leaks were repaired. The hole was abandoned. Obras inconcluidas – “abandoned works” – should be the Paraguayan national motto. The $10 million disappeared abroad into offshore bank accounts. The water company officials have not been paid for more than a year. Now we have a large, useless hole, a $10 million debt, and a leaking water system. About a third of all the water is lost through leaks and broken pipes. Scientific tests have shown that the water is seriously contaminated – cholera and typhoid among other infections are in the system.’ Before Stroessner there had been no piped water at all, just as there had been no airport, or paved, metalled roads. People had their own wells, or depended on water sellers who toured the capital with mule-drawn tanks. Now there were frequent electricity blackouts, and the petrol stations regularly ran out of fuel. Those who could afford them had emergency electricity generators. In spite of the fleets of stolen luxury cars, Asunción more closely resembled a decaying African city, falling apart after the European colonials left, than anywhere in Europe. Stroessner had attracted immigrants and capital because he accepted gangsters on the run, fraudsters, conmen, Nazi war criminals with stolen loot, and because he offered a stable, authoritarian government which built roads, created infrastructure, and limited corruption to himself and his cronies. Now he was gone what he built up was in no way maintained or replaced. Paraguayans had not paid for these things, foreigners had. They felt, like colonial peoples newly liberated, no debt to the past, no sense of possession. His successors were bent purely on looting the country and fleeing abroad with what wealth they could steal. According to a report in Ultima Hora, the only income the Paraguayan government now had was the monthly US$16 million from Brazil for hydroelectrical power Paraguay exported across the border. Without this sum the government would be completely bankrupt. Yet it was not enough to pay even the civil servants. There had been a plaintive letter published in the papers from Paraguay’s ambassadors abroad. They, too, had not been paid for a year, and the rents on their embassies and residencies were in default. Unless money was forthcoming, embassies and residencies could soon be repossessed. This was all a minor nuisance for the few very rich in Paraguay, with their money abroad in offshore havens, their houses with tall walls built round them manned by armed guards, or sequestered on 200,000-hectare ranches. For the great majority of the country, it made life a grinding misery. Paraguay was potentially a very rich country, fertile and replete with mineral resources, yet so badly was it managed, and so feebly was it cultivated that it imported even basic foodstuffs. The supermarkets were full of goods brought in from Brazil, Argentina and Europe that could easily have been grown domestically.
‘You cannot fire public servants in Paraguay,’ Gabriella had told me. ‘Once appointed, it is a job for life. Under Stroessner, the administration of the city of Asunción was carried out by 400 civil servants, who worked from 8.30am to lunchtime, then finished. They were all members of the Colorado Party. Although they worked slowly, and very easy hours, they did actually turn up and did actually work. Everything was kept in good repair, and new roads were laid, parks maintained and basic services ensured. Then, after Stroessner was ousted, the Radical Liberal Party managed to get into power in the Asunción local government. They could not fire the 400 Colorado Party civil servants, but they could hire 1,000 new civil servants – all Radical Liberal Party members. These are known as “gnocchis”. There is a tradition in the River Plate countries, Uruguay, Paraguay and Argentina, that civil servants eat gnocchi, the Italian potato-based pasta, on pay day every month, usually the 29th of the month. It’s an old tradition. In time, the civil servant who is purely a political appointee and merely turns up every month to collect his salary, became known as a gnocchi. This is how the political parties fund themselves – they reward their followers with civil service jobs when they are elected on the understanding that the party gets a kickback of between 50% and 90% of the placeman’s salary. The gnocchi can have several jobs of this sort as all they have to do is turn up once a month to get the salary. Well, the Colorado civil servants naturally didn’t turn up for work any more – they couldn’t be fired, and Stroessner didn’t frighten them now he was in exile. And the Radical Liberals didn’t turn up because they were gnocchi and paying much of their salary back to the Party. So there was no civic administration and nothing got done and things started to fall apart. The disgusted citizens of Asunción voted out the Radical Liberals after this happened, and voted in a minor party who immediately appointed 1,000 of their own members on the same gnocchi principle. The local government now has 2,400 employees, none of whom turn up except to get their salaries. And none of them can be fired. As a result no maintenance work is done, no local taxes collected, and the infrastructure of the city is falling apart. And as there are no taxes collected, none of the civil servants have been paid for at least a year, sometimes longer.’ The logic of all this, I had to admit, was inescapable.
A wave of nostalgia was now spreading for the ‘good old days’ of Stroessner when the firm hand had meant a degree of order and efficiency, and a level of corruption that now seemed positively moderate. ‘Ya seria feliz y no sabia’ I had seen as a printed car rear-window sticker all over the city – ‘then we were happy and we didn’t know it’. Liberalization brought street crime, robberies, rapid inflation and a collapse of the infrastructure as well as the banks. Diphtheria, cholera, malaria, yellow fever, dengue and leprosy were all on the increase. There was no foreign exchange to import necessary drugs and medicines. Even the water supplies in the hospitals were polluted. ‘Will you stay in Paraguay or go abroad again?’ I asked Gabriella. She thought for a long time and gazed away from me into the middle distance. ‘I don’t know. We’d like to stay. It’s much easier here than Europe. But if the chaos grows … I don’t know.’ ‘Easier’ meant cheaper, with servants, in a pleasant climate. ‘Where would you live if you could?’ I asked. ‘Miami,’ she replied without hesitation. ‘It’s a terrific city – culturally Hispanic but run by Anglo-Saxons, so everything runs properly. And so safe.’
Everything is relative. In England, Miami is a byword for violent crime, drugs, gangs and disorder. But from the perspective of Asunción it seemed as appealing as Switzerland. ‘We need a government