Productivity and institutional challenges to boosting Paraguay’s growth

The consolidation of macroeconomic sustainability, the challenge of productivity, and the institutional structures and capacities of the State, were the main themes at the CAF Seminar: Challenges and opportunities for Paraguay’s development, which produced reforms that must be implemented on various fronts in order to achieve an intelligent global integration, by generating more value added to exports of goods such as food and energy, among others.

At the opening of the event, the executive president of CAF–development bank of Latin America–, Luis Carranza, stressed the importance of consolidating macroeconomic fundamentals in order to further improve the quality of life of the population and to reach political consensus to promote a productivity pact that drives sustainable growth.

“With this forum, we want to reflect on how to build a long-term joint vision on the development challenges and on the drivers of economic growth in Paraguay. This reflection is focused on the search for formulas and fiscal consolidation measures that help boost productivity, create higher quality infrastructures and achieve more efficient public institutions,” Carranza said.

Expanding the tax base to increase fiscal funds to improve the provision of public goods and close infrastructure gaps; working on the agribusiness value chain, especially in terms of food production; improving the business environment to attract more investment; strengthening institutions; transparency, and training of public officials, were some of the consensuses reached among government leaders, risk rating agencies, international bodies, the private sector, academia and civil society that participated in the Seminar.

The debate promoted by CAF, with the support of Paraguay’s Ministry of Finance and Central Bank, featured international experts such as Pablo Sanguinetti, Vice President of Knowledge at CAF, Joel Branski , CAF representative in Paraguay; Axel van Trotsenburg, World Bank vice president for Latin America and the Caribbean; Marina Neves Biancalana, associate director at S&P; Douglas Elespe, CEO for the Southern Region at Fix SCR, Fitch Ratings affiliate;Eduardo Engel, professor at the Faculty of Economics and Business at the University of Chile;Guillermo Perry, former Minister of Finance of Colombia and professor at the Faculty of Economics, Universidad de los Andes; together with authorities such asBenigno López, Minister of Finance; José Cantero, president of the Central Bank of Paraguay; Hugo Cáceres, Minister of the Management Unit of the Presidency of the Republic; María Epifanía González, executive minister-secretary of the Secretariat of Prevention of Asset and Money Laundering (SEPRELAD); and businessmen including Gustavo Grobocopatel, president of Grupo Los Grobo; and Yan Speranza, president of Club de Ejecutivos and the Moisés Bertoni Foundation.

CAF Workshop: Challenges and opportunities for Paraguay’s development was held in the main Auditorium of Paraguay’s Central Bank Institute, as part of the celebration of CAF’s 50th anniversary, which will include academic activities, conferences and events in the member countries of the Institution. Since it started operations in 1970, CAF has financed projects for more than US$175 billion to promote sustainable development and regional integration.