Economy of Paraguay

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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...
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