Argentina's river communities are concerned that Javier Millay's plan to privatize the operation of a vital waterway could cause environmental damage and destroy their way of life.
Since taking office nearly a year ago, the self-proclaimed “anarcho-capitalist” president has promised to privatize many state assets. The latest is the Paraguay-Parana Waterway, a strategically important transport route for Argentina and its neighboring countries.
Ministers announced the decision on Tuesday Guillermo Francos Argentina said it would no longer be involved in the management and maintenance of the waterway. He said the 30-year concessions would include “large-scale modernization of waterway management”, which would “progressively boost international trade”.
of waterwayAt more than 3,400 km (2,100 miles) in length, it provides sea access to the interiors of Paraguay, Bolivia, and southern Brazil. It is essential for shipping soybeans and grains overseas, and almost 80% of Argentina's foreign trade passes through it.
“This milestone will enable 80% of foreign trade to be carried out more efficiently and with lower logistics charges,” he said. Luis ZubizarretaChairman of the Private Chamber of Commerce and Ports.
Juan Carlos García, 68, a Paraná Delta native and descendant of the indigenous Guaraní tribe, said he felt “a great pain” when he heard the news. “We will struggle,” he said. “The environmental damage will be terrible.”
The Paraná River Delta is home to a rich variety of flora and fauna and is also a migratory route for birds. Its wetlands also regulate the climate, store water, and act as carbon sinks. Garcia worries that more ships will lead to increased pollution and dredging activity, destroying habitat.
Diego Dominguez, a 50-year-old teacher, also said he was concerned about the “exploitation of rivers,” adding that “privatization of natural resources involves violence against lives for the benefit of a few.” The waterway was privatized in the 1990s but returned to state control several years ago.
Carlos Veron, 73, who has been a river captain for 44 years, said he believed the bid was in the “monopolistic interests” of multinational companies. “They're doing this at a time when more than 50 percent of the population lives below the poverty line,” he said.
Over the past five years, the waterway has also become a major route for drug traffickers. Drug traffickers export cocaine from Peru and Bolivia to Africa and Europe via ports such as the inland city of Rosario. In a statement, President Franco said the government would introduce radar and satellite systems for ship-trafficking and strengthen measures to combat “drug trafficking and terrorism.”
Millais took office last December vowing to put a chainsaw into the national budget, crushing the country's dire budget deficit and reining in triple-digit inflation. He has recently been embroiled in disputes over other privatizations, including the national airline. argentina airlines and the main national freight company in the railway sector; Trenes Argentinos Calgas.
But Marcelo J. García, director of the Americas for New York-based geopolitical consultancy Horizon Engage, called the Paraguay Paraná proposal “the largest and most important privatization ever undertaken by the Millais government.” He said that.
“There will also be geopolitical implications for how the process goes,” he said. “This will be a major test of the Millais government's ability to reform and improve the competitiveness of Argentina's economy.”
