Paraguay  

There is a lack of investment funds in Paraguay as indicated by the low levels of foreign direct investment at 2% of GDP, a low domestic savings rate of 15%, and below average levels of physical capital. Similarly, an interest margin of eight percentage points implies an uncompetitive banking sector and a high inflation rate of 8% suggests a relatively unstable monetary policy. However, lending is relatively risk free, with a default rate of only 1.3% and a relatively low unemployment rate of only 6%. Household expenditure is equivalent to 23% of GDP, implying that the domestic market is small, providing low demand for goods produced in Paraguay. Export revenues are low in relation to the cost of imports, ranking the country 71st, internationally, on this variable. Paraguay’s exports are heavily concentrated on raw materials, ranking the country amongst the bottom 20, worldwide, on this measure.

With 17 formal procedures required to start up a new business, Paraguay has more barriers to entry than any other country. The level of internet infrastructure, as measured by bandwidth and secure internet servers, is very low, ranking the country below the international average at 77th and 74th, respectively, with regards to these variables. With only 78 personal computers available per 1,000 people, public access to technological innovations appears limited. ICT exports account for less than 1% of total goods exports, while high-tech exports account for 8% of manufactured goods exports. Government investment in R&D stands at a comparatively low 0.3% of GDP, ranking Paraguay 69th, internationally. However, value added in the service industry is above the international median, at 61%, ranking Paraguay 43rd, respectively, for this variable. Royalty receipts are high, indicating that Paraguayans are able to capitalise on property rights, ranking the country amongst the top 25 nations. No data is available for new businesses registered.

Paraguayan citizens enjoy partial political rights and civil liberties, such as freedom of expression and association, ranking the country 57th and 51st, respectively, on these variables. Paraguay is categorised as a near complete democracy, with the political system characterised by a high level of competition, with multiple parties competing in free and fair democratic elections at both executive and legislative levels. Although there are some checks and balances in place to prevent politicians from enacting arbitrary policy or legislative changes, these are not particularly stringent and rank Paraguay 60th, internationally, in terms of potential effectiveness. The judiciary is not independent from the government, which could lead to interference in legal proceedings, and the current political system has been in place for less than 20 years, ranking Paraguay 64th on this variable of political stability.

With 94% enrolment, Paraguay ranks above the global average for primary school enrolment; however, secondary and tertiary enrolment rates are not so strong, ranking the country 78th and 64th, respectively. With female to male enrolment levels at 99 girls to every 100 boys, gender inequality is not a matter of concern. Paraguayan workers have on average 4.7 years of secondary schooling and 3.8 years of tertiary schooling, ranking the country slightly below the international average on both variables, at 79th and 63rd, respectively. Furthermore, government expenditure on education is low, ranking the country 68th, and class sizes are relatively large, with one teacher to every 28 children.

Paraguayans’ access to medical professionals and hospital beds is severely limited, ranking the country below the international average at 67th and 73rd, respectively. However, health-adjusted life expectancy is 62 years, ranking the country just above the global median. Furthermore, 15% of the population is undernourished, there are 20 infant deaths per 1,000 live births, and only 70% of the population has access to improved sanitation facilities, all three variables ranking below the global average. Despite this, Paraguay ranks above the international median with regard to subjective health measures: 83% of respondents were satisfied with their quality of health, only 22% reported debilitating health problems, and less than one-quarter of participants experienced prolonged pain the day before being interviewed.* Additionally, Paraguayans are very well rested, and 87% are satisfied with their water quality, ranking the country 18th on this latter variable.*

Paraguay faces few challenges related to refugees. However, there are significant security concerns relating to state-sponsored violence, communities with a history of discrimination, and human flight from dangerous or degrading conditions, ranking Paraguay 65th and 47th, respectively on the latter variables. Paraguay ranks in the bottom third on all variables concerning personal safety: 166 homicides were reported per one million people in 2007, 10% of respondents reported being mugged in 2008, and 18% had property stolen in the same timeframe.* Consequently, only 45% of people felt safe walking alone at night, a comparatively low figure globally, ranking Paraguay 84th for this variable.*

Paraguay received low scores on variables pertaining to the rule of law, effective governance, and regulatory quality. This can be attributed to an inefficient and ineffective implementation of policies, as well as an unequal enforcement of rules and regulations for which Paraguay ranks amongst the bottom 20 countries. Only 27% of the population approve of the judiciary while just 28% believe in honest elections, both low figures by global standards.* Furthermore, nearly nine out of 10 people consider local businesses and government to be corrupt, ranking Paraguay 70th and 78th, respectively, on these variables.* Similarly, just half of the population have confidence in the nation’s military, placing Paraguay 87th on this measure.*

Despite extremely high levels of freedom of speech, movement, and religion, only 68% of Paraguayans are satisfied with their personal daily freedoms, a number below the international average*. Tolerance towards immigrants is high, with 78% of people believing that Paraguay is a good place for immigrants to live, ranking the country 24th on this variable.* However, only 60% think that the same is true for ethnic minorities.*

A high 88% of people believe they can rely on family and friends in times of need, ranking the country 44th on this variable, indicating an above average level of familial social capital.* With over a third of the population donating to charitable organisations, and one-quarter volunteering their time, Paraguyans demonstrate moderate social engagement.* However, only 41% of the population reported helping a stranger in the preceding month, ranking Paraguay 67th with respect to this variable.* Paraguayans rank among the 20 most religious people, demonstrated in the importance of religion in the daily lives of citizens, suggesting widespread access to religious support.* No data were available for variables of social trust, importance of friends, or group membership.

* Data taken from the Gallup World Poll

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