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For several years, the government of Paraguay has sought to address the issue of informality, both as a response to poverty reduction and a means to expand its tax base. While effort has been undertaken to describe informality, the government lacks the capacity and perhaps the will to analyze the phenomenon through a robust empirical lens. Hence, little is known about the informal economy beyond anecdotes, personal interactions, and description. This book is the first to comprehensively, rigorously, and empirically study the determinants of informality in Paraguay. This book is of vital interest to those studying the Paraguayan economy, development economics, Latin American economics, and informality.
Paraguay Investment and Business Guide - Strategic and Practical Information
Ranging from the 1840s through the early twenty-first century, this study of shared political, economic, and cultural histories fills significant gaps in our understanding of Paraguayan-U.S. relations. Frank O. Mora and Jerry W. Cooney tell how an initially rocky beginning between the two countries, marked by diplomatic posturing, shows of military force, and failed business schemes, gave way to a calmer period during which the United States backed Paraguay's territorial claims against its neighbors, prospects grew brighter for American entrepreneurs, and Paraguay embraced Pan-Americanism. It was not until the 1930s that the two countries engaged in earnest as the United States attempted to mediate the Chaco War between Paraguay and Bolivia. Then, as the authors write, "hemispheric solidarity in World War II, the cold war in Latin America, the 'balance of power' among states in the Río de la Plata, and the question of U.S. support for, or aid to, Latin American dictators" became matters of mutual interest. The dictatorship of Alfredo Stroessner (1954-89) spanned much of this era, and a shared attitude of realpolitik typified U.S.-Paraguayan relations during his rule. Post-Stroessner, the United States has stood by Paraguay during its transition to democracy, despite lingering concerns about such issues as drug trafficking and intellectual piracy. The countries should grow closer with time, the authors conclude, if Paraguay resists the continent's leftward political shift and remains a solid partner in U.S. antiterror initiatives in South America.
Paraguay is a landlocked country located in South America, bordered by Brazil, Argentina, and Bolivia. The country is home to about 7 million people, with the capital and largest city being Asunción. Despite being one of the smallest countries in South America, Paraguay is known for its rich history, diverse culture, and unique architecture. The official languages spoken in the country are Spanish and Guarani, with Spanish being the most commonly spoken language. The country's economy is mainly driven by agriculture, with soybeans being the largest export crop. Additionally, Paraguay is known for its large hydroelectric power plants, which provide a significant source of energy for the country and neighboring countries. Paraguay has a long and complex history, having been colonized by the Spanish in the 16th century and later becoming independent in 1811. The country has experienced political turmoil, including a brutal dictatorship from 1954 to 1989. Despite these challenges, Paraguay has made progress in recent years in regard to human rights and democracy. The country is known for its vibrant culture, celebrating traditional music, dance, and food. The Guarani people, an indigenous group, play a significant role in Paraguay's culture and language. Overall, Paraguay is a fascinating country with a unique blend of history and culture, making it an exciting destination for travelers and researchers alike.

Paraguay

International Monetary Fund. Western Hemisphere Dept.

Published: 2019-04-30

Total Pages: 72


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This 2019 Article IV Consultation on Paraguay focused on the policies needed to promote long-term growth, widen the tax base, improve public spending efficiency, and strengthen financial sector supervision. Poverty has fallen sharply, from 58 percent in 2002 to 26 percent currently, although it remains one of the highest in Latin America. Continued convergence is expected to help reduce poverty further and help generate revenues to finance large spending needs. The banking sector is well-capitalized and stable, but the casas de credito and casas comerciales need to be better understood and supervised. The pension system needs reform, both to prevent large pension deficits in the future, and to boost the development of the domestic capital market for long-term instruments. The authorities concurred with IMF staff’s assessment of the main bottlenecks to long-term economic growth. They also agreed structural reforms would help to attract more foreign investments and increase the dynamism of domestic private sector.
This book offers an in-depth analysis of the political economy of soybean production in Brazil, Argentina and Paraguay, by identifying the dominant private and public actors and control mechanisms that have given rise to a corporate-driven, vertically integrated system of regionalized agricultural production in the Southern Cone of South America. The current agricultural boom surrounding soybean production has been aided by aggressive new agro-technologies, including biotechnology, leading to massive organizational changes in the agricultural sector and a significant rise in the power of special interest groups and corporations. Despite having similar initial production conditions, the pattern of economic activity surrounding soybean production in Brazil, Argentina and Paraguay, continues to be largely determined by the needs of the multinational corporations involved, rather than national considerations of comparative advantage. The author uses these findings to argue that the new international model of agricultural production empowers chemical and trading multinational companies over national governments.
The enactment of the Fiscal Responsibility Law in 2013, which came into force in 2015, was a major achievement toward strengthening Paraguay’s fiscal framework. Its implementation has nonetheless been complex, with slippages occurring in the first year of its enactment. Concerns have also emerged about the current design of the nominal balance rule, which is perceived as excessively rigid. Given the high volatility of fiscal revenues, the rule translates into an unstable path of public expenditure and does not provide sufficient space for countercyclical policies. Paraguay’s tight fiscal deficit ceiling may also constrain capital expenditure plans, possibly to the detriment of overall economic development needs. The authorities have decided to replace the nominal balance rule with a structural balance rule, starting in 2019, to achieve a more stable path of public expenditure and better link it to the medium-term objectives of fiscal policy. The government is also considering modifications of the Fiscal Responsibility Law in order to enhance public investment without damaging the credibility of the rule-based framework.
Until the 1960s, the Ayoreo people of Paraguay's Chaco region had remained uncontacted by the world. But as development encroached on their territory, the Ayoreo began to experience rapid cultural change. Paola Canova looks at one aspect of this change in Frontier Intimacies: the sexual practices of Ayoreo women, specifically the curajodie, or single women who exchange sex for money or material goods with non-Ayoreo men, often Mennonite settlers. Weaving personal anecdotes into her extensive research, Canova shows how the advancement of economic and missionary frontiers has reconfigured gender roles, sexual ethics, and notions of desire in the region. Ayoreo women, she shows, have reappropriated their sexual practices, approaching intimate liaisons on their own terms and seeing the involvement of money not as morally problematic but as constitutive of sexual encounters. By using their sexuality to construct an intimate frontier operating according to their own logics, Canova reveals, Ayoreo women expose the fractured workings of frontier capitalism in spaces of rapid transformation. Inviting broader examination of the ways in which contemporary frontier economies are constructed and experienced, Frontier Intimacies brings a captivating new perspective to the economic development of the Chaco region.