Paraguay: Corruption, Reform, and the Financial System
IMF Special Issues, September 7, 2005
Source details
- Canonical URL
- Paraguay: Corruption, Reform, and the Financial System
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Bibliographic details
- Authors: Jeffrey R. Franks, Randa Sab, Valerie A Mercer-Blackman, Roberto Benelli
- Published: September 7, 2005
- Series: IMF Special Issues
- DOI: https://doi.org/10.5089/9781589064201.058
Summary and scope
- Follows historical background and describes how corruption is manifested in Paraguay.
- Distinguishes between:
- Factors that explain Paraguay's growth performance since 1960 (where corruption does not directly enter as a significant factor).
- Factors that explain the relative level of income of Paraguay in the past 40 or 50 years compared with other countries.
- Illustrates how Paraguay's weak institutions may have led to long-term growth below its potential.
- Briefly considers how Paraguay could improve its institutions.
- Argues that prudent policies and willingness to consider adoption of international best practices will exert pressure for change, leading to gradual improvement of institutional quality necessary for sustained long-run growth.
Key findings and analysis
- Corruption manifestations in Paraguay are described (details provided in the full paper).
- Corruption is separated from the determinants of growth since 1960, implying it is not a primary direct factor for growth performance in that period.
- Weak institutions are linked to long-term growth outcomes below potential.
- Institutional quality is presented as a necessary condition for sustained long-run growth.
Policy implications and recommendations
- Adoption of international best practices is recommended as a lever to exert pressure for institutional change.
- Prudent macroeconomic and structural policies, combined with openness to reforms, are posited to produce gradual improvement in institutional quality.
- Improvements in institutional quality are necessary for achieving sustained long-run growth.
Publication and metadata
- Authors: Jeffrey R. Franks, Randa Sab, Valerie A Mercer-Blackman, Roberto Benelli
- Publication date: September 7, 2005
- Pages: 129
- DOI: https://doi.org/10.5089/9781589064201.058
- Stock No: ISIEA2005003
- ISBN: 9781589064201
- Subjects: Banking, Expenditure, Foreign exchange, Labor, Pension spending, Pensions, Real effective exchange rates, Real exchange rates, Retirement, Wages
- Keywords include: exchange rate, government effectiveness, pension recipient, Pension spending, Pensions, Real effective exchange rates, real exchange rate, Real exchange rates, Retirement, retirement age, SI, South America, Sub-Saharan Africa, survivor pension, terms of trade, wage inflation, Wages
Paraguay: Corruption, Reform, and the Financial System (International Monetary Fund, 2005).
Content in this bundle
- Paraguay: Corruption, Reform, and the Financial System; Jeffrey Franks et. al; September 7, 2005