Paraguay: Economic growth, social conflict and political uncertainty

This article analyzes the Paraguayan situation focusing on three key dimensions. The first is the economic one. The article underlines the very high rates of growth achieved after the 2008 crisis, the low level of inflation, the solid management of the fiscal variables, the high level of reserves, the low debt ratio, and, in general, the very good economic prospects. The second dimension is the social one. Three sets of problems are examined. First, the article notes the very weak job creation capability of an economy excessively dependent on agribusiness, especially soybeans and meat. Second, it stresses the fact that in spite of large-scale investment in social policies poverty levels remain high and income distribution has worsened. Finally it discusses the problem of access to arable land for peasants and it notes that, unfortunately, in spite of having been the most emblematic point of its platform, after almost four years the government has little progress to show. The third dimension, the political one, analyzes the government and the opposition as they prepared for the upcoming general elections scheduled for April 21, 2013 It notes that while the Government began in apparent disarray and making serious mistakes, things appear to be taken a better turn. Conversely, the panorama in the Colorado party that began as all clear, said, and done, has begun to unravel.