Paraguay

Paraguayan farmers harvesting ses-ame—highly demanded in interna-tional markets. Through USAID assistance, rural farmers are able to access new markets, allowing them to diversify their production, earn additional income, and improve their quality of life.

Overview

Paraguay has a predominantly agrarian economy with heavy dependence on commodities such as soybeans, cotton, wood, and beef. Paraguay’s significant poverty, unemployment levels, and the high rate of population growth and deforestation threaten its sustainable development. USAID/Paraguay’s program has been designed to respond to these complex challenges.

Other major challenges for the development of Paraguay include the weakness of its public institutions, a highly informal economy that includes illegal smuggling, and a culture of corruption and impunity. Although the Government of Paraguay (GOP) has improved the management of the economy, reduced the domestic debt, strengthened the customs service, and improved the tax system, much remains to be done.

USAID/Paraguay’s programs focus on providing technical assistance in the areas of democracy and good governance, economic growth, health, and the environment. USAID/Paraguay is administering funds from the Millennium Challenge Corporation with the objective of reducing government corruption. USAID/Paraguay also is providing assistance under the Northern Zone Initiative to identify productive economic alternatives in the region while strengthening the capacity of local government.

Programs

Governing Justly & Democratically

USAID/Paraguay supports democracy and the rule of law by strengthening the mechanisms that support the fight against corruption and impunity. In the justice sector, the program works closely with the Judiciary, the Public Service, and Public Ministry to improve transparency and accountability and to increase citizen access to the justice system.

Another important aspect of the program is the strengthening of government institutions, in particular, municipal governments, to promote transparency and improve public services. The program supports local civil society organizations that promote improved democratic values and citizen participation.  

Economic Growth

USAID/Paraguay supports small and medium enterprises Paraguay to increase sales and reduce poverty through job creation. Assistance also focuses on developing new products and eliminating barriers to exports, which allows companies to explore new markets and find additional business opportunities. With the increase in USAID/Paraguay's budget for 2009, the program will focus on improving competitiveness, providing technical training to farmers, and improving access to credit and production chains. 

Paraguay faces a growing number of environmental challenges, including massive deforestation and threats to freshwater resources and biodiversity. USAID/Paraguay works with government agencies, NGOs, and community groups to form alliances and mobilize additional resources to support the sustainable management of key vulnerable areas in Paraguay

Investing In People

USAID/Paraguay is working with the Ministry of Health to address immediate priorities for maternal and child health as well as other serious national health issues. More immediate assistance focuses on rural areas and centers of extreme poverty, and provides essential medical equipment and supplies. Longer term objectives include addressing specific deficiencies of the Ministry of Health administrative and financial system, with the overall goal of improving the Ministry of Health’s capacity to respond to national public health challenges.

MCC Threshold Program

This is the second stage of the Millennium Challenge Corporation Threshold Program which supports efforts of the Government of Paraguay in fighting corruption, strengthening the rule of law, customs, health, and justice sectors. The program seeks not only reduce opportunities for corruption and increase the effective prosecution of criminal activities, but also to improve public opinion on the government's efforts in these areas, and strengthen the commitment of Paraguayan citizens to fight against corruption.  Key counterparts of this program are the Public Ministry, Ministry of the Interior and National Police, Ministry of Finance, Customs Department, Ministry of Industry, Ministry of Health, and the Comptroller General’s Office.