Intro
With a GDP per capita of $4,100 Paraguay is the second poorest country in all of South America right behind Bolivia. In this paper I will look to explain some of the reasons behind the lack of growth in the Paraguayan economy. I believe that being a landlocked nation without direct access to a major ocean waterway, political instability over the last 110 years, and a large portion of the population that severely lacks proper water and sanitation resources, all combine to play a crucial role in Paraguay’s poor economic development.
The paper will be broken into three sections, with each section exploring each topic with in-depth analysis. I will first look at the issues that Paraguay faces being a landlocked nation. I will focus on the sanctions that can be imposed upon them by outside nations in the form of taxes and limitation of access. I will also inspect the dire need for this unabated access to an open waterway for an agriculture-based economy like Paraguay’s. Next, I will look at the instability that has plagued Paraguay since the beginning of the 20th century. I will focus on the near constant fluctuation between military rulers and the negative effects a lack of stability has on growth and investment. I will also examine the role that corruption plays in breeding instability and its effect on the overall economy. Finally I will look at the effects that a poor water and sanitation systems has on the ability of the poor population to be more productive members of the general work force.
Geographic Restrictions
A landlocked nation is one that does not enjoy direct access to a waterway or open ocean. 48 countries throughout the world are identified as landlocked and their economies are directly affected by not ...
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After gaining independence, Latin American countries had difficulty in how to govern the newly instated states. In the chaos, people took advantage of this and instated themselves as dictators. They had simply took the position from the Spanish that they tried to vanquish (class notes). The power structure remained and the people who fought for independence were largely ignored and continuously oppressed. These dictatorships had remained in power until very recently. Paraguay was finally freed from the dictatorship in 1989 (Chapter
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The richest 20% in the world gorge themselves on over 70% of the world’s resources while continuing to exploit the poorest, who are forced to live in desolate poverty. Guatemala is no exception to this, as over 50% of their population live under the poverty line. With a population of around fifteen million people, Guatemala is the most populous country in Central America, but is also one of the poorest. Guatemala’s extreme impoverishment is because of the struggle between the poor mixed-blood natives and the rich Spanish descendants who run the country, the interference of other countries and the extortion of the country with deceitful loans and conditions by the World Bank and other associations.
Mignolo, W. D. (2005). The Idea of Latin America (pp. 1-94). Malden, MA: Blackwell Publishing.
Mignolo, W. D. (2005). The Idea of Latin America (pp. 1-94). Malden, MA: Blackwell Publishing.
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