Paraguay Economy

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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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