## Paraguay: Corruption, Reform, and the Financial System

_IMF Special Issues, September 7, 2005_

## Source details

**Canonical URL:** [Paraguay: Corruption, Reform, and the Financial System](https://www.imf.org/en/publications/imf-special-issues/issues/2016/12/31/paraguay-corruption-reform-and-the-financial-system-18195)

## Other formats

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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

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### 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).*

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## Content in this bundle

- **Paraguay:  Corruption, Reform, and the Financial System; Jeffrey Franks et. al; September 7, 2005**
  - [Paraguay:  Corruption, Reform, and the Financial System; Jeffrey Franks et. al; September 7, 2005 (Markdown version)](/-/media/websites/imf/imported-publications/external/pubs/nft/2005/paraguay/_reform.pdf.md){rel="alternate" type="text/markdown"}
  - [Paraguay:  Corruption, Reform, and the Financial System; Jeffrey Franks et. al; September 7, 2005 (PDF)](/-/media/websites/imf/imported-publications/external/pubs/nft/2005/paraguay/_reform.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/imf-special-issues/issues/2016/12/31/paraguay-corruption-reform-and-the-financial-system-18195_