Paraguay has a significant progress in the
macroeconomic development, but with a high
volatility in growth. In particular the agricultural sector
has grown, but due to increased mechanisation, few
agricultural jobs have been created. Due to the
substantial hydroelectric power, Paraguay is on its way
to becoming a big producer of power.
The nation has one of the highest income inequalities
in the world, and land distribution is highly unequal
with 1.6% of farmers owning 79% of all land, which
continuous to be a source of social unrest.
The new president, Horacio Cartes, a Paraguayan
tobacco magnate and represents the Colorado party,
was installed in August 2013. Paraguay was fully reintegrated
into MERCOSUR in January 2014 after being
suspended of the union in 2012 due to diplomatic rifts.
The government launched a proposal of a policy of
Public-Private Alliance to benefit the economic
sectors. Trade unions participation was not taken into
consideration.
In recent years there has been progress on free access
to primary health care and basic education, and the
expansion of conditional cash transfer programs with
impact on the most vulnerable populations. The social
protection system’s coverage remains insufficient and
fragmented. So far, eight out of every ten citizens lack
old-age protection and seven out of every ten workers
do not have health insurance, which is some of the
lowest coverage rates in South America.
An Office of Indigenous Workers was established in
the Ministry of Justice and Labor (MJT) in 2013, which
focuses on policies of worker rights of indigenous
people and controlling established institutions that
operate with indiginous workers.