SPECIAL REPORT
etc. This means that although the Paraguayan market is small,
the potential market is much higher. Thus, the maquiladoras
of car components based in Paraguay supply the assemblers
of Brazil and Argentina. In effect, MERCOSUR is the
leading trade partner and Brazil and Argentina are the central
exporting countries of Paraguay.
In terms of infrastructure, about 90 percent of the 65,000
km of interurban routes in Paraguay are dirt roads. More
investment is required in airports, roads, river dredging
(without having a maritime coastline, there are ports on
the Paraguay and Paraná rivers, which give access to the
Atlantic Ocean, through the Paraná-Paraguay Waterway),
and electricity networks for greater Internal use of the
energy of the Itaipú and Yaciretá dams. Itaipu, being the
second largest dam in the world, only uses about 22 percent
of its capacity, according to the Ministry of Public Works
and Communications. On the one hand, renegotiation of
the treaty with Brazil that establishes the compensation
of the neighboring country for the use of energy will be
fundamental for the current government. Whereas, on
the other hand, the Analysis and Diff usion Center of the
Paraguayan Economy / CADEP also points out that the
country has low levels of domestic consumption due to
various obstacles.
As for legal insecurity and corruption, they are one of the
country’s challenges and were identifi ed by all the candidates
and political parties that took part in the presidential elections
of 2018. In this context, the current president Abdo Benítez,
upon taking offi ce, placed a strong emphasis on corruption
and impunity. For the latter, the government has embarked
on a program to reform the judicial system (Llorente &
Cuenca, 2019).
Conclusion
During the visit of Vice President Naidu, the importance
of Paraguay as a food producer was highlighted, with
natural complementarities with India, convening Indian
investments. Also, both countries agreed to explore new
areas of collaboration, including hydraulics and solar,
health, information and communication technology,
agricultural machinery, space and biotechnology, railroads
and infrastructure related to tourism. The specifi c areas
discussed included agricultural processing, the supply of
equipment such as tractors from India, the modernization
of the energy sector, and the supply of medical equipment
and generic drugs, which could be useful for the Paraguayan
health system (MEA, 2019).
Undoubtedly, the arrival of more FDI will ultimately
enhance the human resources of Paraguay, constituting a key
opportunity for any country in its trajectory of projection in
Latin America.
Author is working group on India and South Asia. Asian
Affairs Committee, Argentine Council for International
Relations, Buenos Aires, Argentina.
1
Author is working group on India and South Asia. Asian
Affairs Committee, Argentine Council for International
Relations, Buenos Aires, Intauras.
2
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