Paraguay Economy

Economic and Political Status in Paraguay

Paraguay’s economy has constantly been improving over the years despite some set-backs they must face. Since they are a land-locked country, they do not have as many resources as most of its surrounding countries. They must rely mostly on agriculture for their main exports. As for Paraguay’s government and political conditions, they now have a president elected for a 5-year term. There are many different political parties, and the type of government Paraguay runs under is constitutional republic.
Unlike Paraguay’s surrounding countries, Argentina, Chile and Brazil, it is land-locked therefore giving them fewer resources than their neighbors. With a predominantly agricultural economy, Paraguay is most dependent on these products. Conflict
theory can be applied in a very large scale, to the country of Paraguay as a whole.
Paraguay’s resources are much scarcer then others and they must compete and work hard for what they do have. The larger countries with the ocean as a resource have more power; therefore Paraguay will do what they must to get what they need from other countries. This provides the country with a difficult struggle trying to balance out their economy. However, their economy has been improving. There is a large amount of underemployment and unemployment in the economy. Nearly 35% of Paraguay’s population is unemployed. Those who do work, work mostly in agricultural jobs since that is Paraguay’s main export. The country has vast hydroelectric resources, including the world's second-largest hydroelectric generation facility built and operated jointly with Brazil. One large resource they lack that many others do not is petroleum resources. The economy is dependent on exports of
cattle, soybeans, timber, cotton, grains, and sugar; electricity generation. Paraguay also re-exports products made elsewhere to Brazil and Argentina. Paraguay is a major illegal producer of marijuana and most or the entire product goes to Argentina, Chile and Brazil. Paraguay’s gross domestic product rose from 12.8 billion to 16.1 billion dollars, which was a 26% increase. Also, the foreign exchange reserves rose 33% to 3.2 billion. Although Paraguay struggles with their range and certain aspects of their economy, it has constantly been improving over time.
Paraguay's government is highly centralized, which was changed by the 1992 constitution, which provides for a division of powers. The president, who is popularly elected for a 5-year term, then appoints a cabinet. Paraguay has a bicameral Congress which consists of an 80-member Chamber of Deputies and a 45-member Senate, elected with the president through a comparative representation system. The Deputies are elected by department and senators are elected nationwide. Paraguay's government also follows the three branches of government. The president alone comprises the Executive branch. Legislative is made up of the Senate and Chamber of Deputies. Lastly, the Judicial branch belongs to the Supreme Court of Justice. The A governor elected by a popular vote heads each of Paraguay's 17 departments. Paraguay has some limits with its economy, however has improved drastically and will continue to do so. Looking at the large increase in the GDP, Paraguay’s overall economic status has been bringing in more money, which will only help improve the country’s economy. They have a strong market for agriculture which brings in most of their revenue. As for their government, it could be somewhat comparable to the United States. Their president has a longer, 5 year term, and there are lower braches and houses in government that help run the country.