Considerations for a Sustainable Development in Paraguay

Background: In the last several decades, Paraguay has experienced a remarkable degree of economic and political stability that has enabled the country to achieve important levels of growth and development in several fields. This indeed is not negligible in the context of a traditionally unstable Latin American region, but also because Paraguay itself has rarely benefitted from such a long period of soundness across its more than 200 years of independent—yet convulsive—history. Objective: As expected, this situation provides a more than valuable opportunity for the country to ensure that such economic growth and concomitant development are not temporary but can be sustainable in time, hence continuously improving the welfare of the Paraguayan population without jeopardizing its environment and intrinsic (natural) resources. Method: Any opportunity then brings about several aspects and challenges that policymakers will have to consider and eventually address in order to effectively materialize such a chance for real and long-lasting development. Results: This study intends to share relevant thoughts and considerations about the current state of the Paraguayan development process, while attempting to identify some crucial policy actions that can maximize the probabilities of successful development for this country or, to put it differently, to reduce the risk of falling into a middle-income trap that perpetuates the characteristically Latin American vicious circle of poverty and inequality.