Paraguay: An Investment Primer - 5
PARAGUAY Interview
LF: Despite the economic success,
Paraguay is still grappling with its image
as a country with chronic problems of
black-market goods and money laundering. How will you tackle those issues?
MA: We are deeply committed to fighting against these scourges that really hurt
our country's image. We are strengthening
the intelligence unit focused on money
laundering. We've seen some good results
in the first few weeks since we took office,
combating money laundering and drug
trafficking.
LF: How do you describe your key
economic goals when you talk to
investors?
MA: We want to improve our institutional
framework, invest in innovation, improve
digital connectivity and keep taxes low.
We need to improve our infrastructure. We
believe those are some of the key elements
for us to attract more investments. We are
planning other initiatives, including sending
a package of proposals to congress we
hope that will help stimulate private-sector
investment. It will include steps to reduce
the bureaucratic process and restrictions
on opening, financing and closing businesses. Another initiative will be a 'works
for taxes' mechanism to help accelerate
infrastructure investment. It will allow companies to spend a portion of their income
taxes on public works. Finally, we want to
embark on a big digital push to help improve the efficiency of our public services.
That includes digitally updating how we
manage and track state spending and how
we budget resources. It will be a big step
forward for bringing more transparency to
public spending.
LF: You mentioned developing
Paraguay's institutional framework. In
your opinion, what kind of judicial reform, if any, does Paraguay need?
MA: We are focused on addressing our
institutional weaknesses. Reforms don't
necessarily mean you need to overhaul
something but ensure that processes
work the way they are supposed to work.
We're currently going through the process
"PARAGUAY HAS
BENEFITTED FROM A
NEW COMPOSITION OF
OUR ECONOMY. WE'RE
LESS DEPENDENT ON
COMMODITIES AND THAT
MEANS THE ECONOMY IS
LESS VOLATILE"
of selecting three of the nine justices for
the Supreme Court. This is an opportunity to strengthen our judicial system by
implementing a selection process that is
transparent and ensures the best possible
candidates are appointed to the high court.
Ensuring we have honest judges who rule
objectively and fairly will help build the
judicial system's credibility with ordinary
Paraguayans and national and international
investors. We've made great strides in
developing our macroeconomic framework
and it's important to start strengthening our
judicial institutional framework.
LF: Do you think Paraguay is on track
to reach investment grade status in the
medium term?
MA: Moody's currently has Paraguay
one level below investment grade. S&P
and Fitch have Paraguay two levels below.
In the past few years, we have seen a
steady improvement in our credit ratings.
We haven't suffered a downgrade like
several countries in the region that are
grappling with economic downturns. But
we understand one of the biggest hurdles
to reach investment grade is improving and
strengthening our institutions. We also have
to do more to crack down on corruption
and bolster our tax collection efforts. We
need to keep our fiscal accounts in order,
our debt levels low and maintain sustained
economic growth.
LF: Shifting to trade issues, the Pacific
Alliance, which is made up of Chile,
Colombia, Mexico and Peru, has been
working to deepen trade ties with other
Latin American countries. Paraguay is a
member of Mercosur. Would Paraguay
consider seeking membership in the
Pacific Alliance?
MA: We clearly see the Pacific Alliance
as a viable trade alternative for the good of
Paraguay. In 2013, we requested to be an
observer country. However, any integration
would have to be through Mercosur, which
already has agreements in place with all
the countries in the Pacific Alliance through
the Latin American Integration Association,
or ALADI. Overall, we want to pursue trade
agreements with as many countries as
possible.
LF: Economist Jeffrey Sachs has been
advising the government on energy
policy, including the upcoming renegotiation of the Itaipú Dam treaty with
Brazil. What would be the best outcome
for Paraguay?
MA: Professor Sachs has been advising
the Paraguayan government on energy
policy, including the issue of Itaipú. He
is helping us to think about ways we can
use our energy resources more efficiently.
Looking ahead to the renegotiation with
Brazil on the Itaipú Dam and energy pricing, we want the process to be transparent
and we want an outcome that will benefit
all Paraguayans, particularly the most
vulnerable.
LF: There has been some suggestion that Paraguay could become the
Panama of South America because of its
location and the similar growth rates in
the two countries.
MA: Panama has seen some of the fastest growth in the last few years and it's an
example for the rest of Latin America. Like
Panama, Paraguay has a strategic location
in Latin America. We also have comparative advantages, like low taxes, low energy
prices and a willing workforce. After some
of the Gulf countries, Paraguay has one of
lowest tax burdens in the world. I think all
those factors combined make Paraguay a
compelling investment opportunity. LF
A Supplement to LatinFinance - September/October 2018
5
Table of Contents for the Digital Edition of Paraguay: An Investment Primer
Contents
Paraguay: An Investment Primer - Cover1
Paraguay: An Investment Primer - Cover2
Paraguay: An Investment Primer - Contents
Paraguay: An Investment Primer - 2
Paraguay: An Investment Primer - 3
Paraguay: An Investment Primer - 4
Paraguay: An Investment Primer - 5
Paraguay: An Investment Primer - 6
Paraguay: An Investment Primer - 7
Paraguay: An Investment Primer - 8
Paraguay: An Investment Primer - 9
Paraguay: An Investment Primer - 10
Paraguay: An Investment Primer - 11
Paraguay: An Investment Primer - 12
Paraguay: An Investment Primer - 13
Paraguay: An Investment Primer - 14
Paraguay: An Investment Primer - 15
Paraguay: An Investment Primer - 16
Paraguay: An Investment Primer - Cover3
Paraguay: An Investment Primer - Cover4
https://www.nxtbook.com/nxtbooks/latinfinance/0319QMR
https://www.nxtbook.com/nxtbooks/latinfinance/1218JYM
https://www.nxtbook.com/nxtbooks/latinfinance/paraguay_2018
https://www.nxtbook.com/nxtbooks/latinfinance/8320YTM
https://www.nxtbook.com/nxtbooks/latinfinance/8465TBM
https://www.nxtbook.com/nxtbooks/latinfinance/1476YBW
https://www.nxtbook.com/nxtbooks/latinfinance/7835THM
https://www.nxtbook.com/nxtbooks/latinfinance/8655TGL
https://www.nxtbook.com/nxtbooks/latinfinance/0614IJP
https://www.nxtbook.com/nxtbooks/latinfinance/ecuador_20170910
https://www.nxtbook.com/nxtbooks/latinfinance/2713KNP
https://www.nxtbook.com/nxtbooks/latinfinance/4982CFT
https://www.nxtbook.com/nxtbooks/latinfinance/7803HWE
https://www.nxtbook.com/nxtbooks/latinfinance/3829THA
https://www.nxtbook.com/nxtbooks/latinfinance/7891MDD
https://www.nxtbook.com/nxtbooks/latinfinance/7714JCR
https://www.nxtbook.com/nxtbooks/latinfinance/5619CMK
https://www.nxtbook.com/nxtbooks/latinfinance/6939ASL
https://www.nxtbook.com/nxtbooks/latinfinance/1364ASF
https://www.nxtbook.com/nxtbooks/latinfinance/0453DAS
https://www.nxtbook.com/nxtbooks/latinfinance/0453DAS_supp
https://www.nxtbook.com/nxtbooks/latinfinance/1304APV
https://www.nxtbook.com/nxtbooks/latinfinance/7234GSD
https://www.nxtbook.com/nxtbooks/latinfinance/1643XGS
https://www.nxtbook.com/nxtbooks/latinfinance/9511JKM_supp
https://www.nxtbook.com/nxtbooks/latinfinance/9511JKM
https://www.nxtbook.com/nxtbooks/latinfinance/8745TNV
https://www.nxtbook.com/nxtbooks/latinfinance/3629PBC
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC_HSBC
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC_supp
https://www.nxtbook.com/nxtbooks/latinfinance/7466TBC
https://www.nxtbook.com/nxtbooks/latinfinance/9463RVB
https://www.nxtbook.com/nxtbooks/latinfinance/7345GPY
https://www.nxtbook.com/nxtbooks/latinfinance/6398TVB
https://www.nxtbook.com/nxtbooks/latinfinance/4899EXM_supp
https://www.nxtbook.com/nxtbooks/latinfinance/4899EXM
https://www.nxtbook.com/nxtbooks/latinfinance/3885CWS
https://www.nxtbook.com/nxtbooks/latinfinance/45923GBC
https://www.nxtbook.com/nxtbooks/latinfinance/67449NBD
https://www.nxtbook.com/nxtbooks/latinfinance/46733NLP
https://www.nxtbook.com/nxtbooks/latinfinance/78456HCL
https://www.nxtbook.com/nxtbooks/latinfinance/89456RBM
https://www.nxtbook.com/nxtbooks/latinfinance/22278HBL
https://www.nxtbook.com/nxtbooks/latinfinance/2895YBM
https://www.nxtbook.com/nxtbooks/latinfinance/9033TBM
https://www.nxtbook.com/nxtbooks/latinfinance/8934TNP
https://www.nxtbook.com/nxtbooks/latinfinance/costarica20130304
https://www.nxtbook.com/nxtbooks/latinfinance/4672PNB
https://www.nxtbook.com/nxtbooks/latinfinance/9377BKL
https://www.nxtbook.com/nxtbooks/latinfinance/drmtest
https://www.nxtbook.com/nxtbooks/latinfinance/drmtest2
https://www.nxtbook.com/nxtbooks/latinfinance/5532LMC
https://www.nxtbook.com/nxtbooks/latinfinance/9044TBM
https://www.nxtbook.com/nxtbooks/latinfinance/4877RBC
https://www.nxtbook.com/nxtbooks/latinfinance/3008JHV
https://www.nxtbook.com/nxtbooks/latinfinance/3728YBC
https://www.nxtbook.com/nxtbooks/latinfinance/9337KLM
https://www.nxtbook.com/nxtbooks/latinfinance/5674GNJ
https://www.nxtbook.com/nxtbooks/latinfinance/8330KMC
https://www.nxtbook.com/nxtbooks/latinfinance/7663HCM
https://www.nxtbook.com/nxtbooks/latinfinance/2319ZMB
https://www.nxtbook.com/nxtbooks/latinfinance/7110MKL
https://www.nxtbook.com/nxtbooks/latinfinance/8599FHG
https://www.nxtbook.com/nxtbooks/latinfinance/4517HJK
https://www.nxtbook.com/nxtbooks/latinfinance/7813GHB
https://www.nxtbook.com/nxtbooks/latinfinance/1564FBM
https://www.nxtbook.com/nxtbooks/latinfinance/8884HGV
https://www.nxtbook.com/nxtbooks/latinfinance/7863SVB
https://www.nxtbook.com/nxtbooks/latinfinance/5233SFB
https://www.nxtbook.com/nxtbooks/latinfinance/5899SML
https://www.nxtbook.com/nxtbooks/latinfinance/4311PMN
https://www.nxtbook.com/nxtbooks/latinfinance/1366FBB
https://www.nxtbook.com/nxtbooks/latinfinance/9355AXC
https://www.nxtbook.com/nxtbooks/latinfinance/8559EBN
https://www.nxtbook.com/nxtbooks/latinfinance/8244QXC
https://www.nxtbook.com/nxtbooks/latinfinance/1779BBN
https://www.nxtbook.com/nxtbooks/latinfinance/7144XVB
https://www.nxtbook.com/nxtbooks/latinfinance/8971QGH
https://www.nxtbook.com/nxtbooks/latinfinance/200805
https://www.nxtbook.com/nxtbooks/latinfinance/200804
https://www.nxtbook.com/nxtbooks/latinfinance/200803
https://www.nxtbookmedia.com