Electoral Politics and Agribusiness in Paraguay

Paraguay is set to hold general elections on Sunday, April 22. These elections are likely to usher Mario Abdo Benitez from the incumbent National Republican Association – Colorado Party (ANR-PC) into the presidency. Therefore, the country is expected to continue down its current path of economic development and openness to foreign investment.

Electoral Politics and Agribusiness in Paraguay

Today, the Republic of Paraguay has a total territory of 406.752 square kilometers, which is somewhat smaller than California. Geographically, Paraguay is a landlocked country consisting mainly of grassy plains and rivers, which are ideal for cattle grazing. Similarly, the country has a subtropical to temperate climate with rains towards the east and semiarid toward the west. Currently, Paraguay has a total population of almost 7 million citizens with an average age of 28 years. Likewise, about 60% of the Paraguayan population lives in an urban setting, notably the capital city of Asuncion with its 2.4 million inhabitants. In economic terms, the country has a Gross Domestic Product (GDP) of US$68 billion (PPP), which is divided into 18% agriculture, 28% manufacturing, and 54% services. Moreover, it is estimated that the agricultural industry employs 26% of the national labor force, while manufacturing employs 19% and services employ another 55%. Furthermore, in Paraguay, the agriculture industry utilizes 54% of the national territory, while another 44% is forested.

In terms of trade, Paraguay is the seventieth export economy in the world and it belongs to the Mercosur Trade Bloc, alongside Argentina, Brazil, and Uruguay. During 2016, the country imported US$9.7 billion worth of goods and exported US$8.5 billion, resulting in a trade deficit of US$1.2 billion. Moreover, Paraguay’s main export, representing 25% or US$2.1 billion of the country’s total in 2016, was electrical energy. Similarly, the country’s main import that same year, representing 11% or US$1 billion of all international purchases, was refined petroleum. Meanwhile, Paraguay’s main trading partners are fellow Mercosur members, namely Brazil and Argentina, as well as Chile, Russia, the United States, and China.

Unfortunately, in Paraguay, some 800.000 people suffer from undernourishment. Furthermore, in recent years, the average per capita protein intake of animal origin amongst the country’s population has been 34 grams daily. Meanwhile, land distribution and productivity in Paraguay has evolved throughout the last half century. Back in 1961, permanent pastures and meadows in the country covered 9.6 million hectares, while arable land covered 700.000 hectares and permanent crops accounted for 111.000 hectares. More recently, in 2015, permanent pastures and meadows had increased to account for 17 million hectares, while arable land represented 4.8 million hectares and permanent crops covered approximately 85.000 hectares.

Finally, in 1961, the cereals market in Paraguay utilized 111.600 hectares of land and yielded some 139.700 metric tons annually. Meanwhile, in 2016, the country devoted little over 1.6 million hectares of land to cereals production and yielded approximately 7.3 million metric tons.

(Read more about Macroeconomics and the British Commonwealth)