Ranked Top 5: Economic Liberties in Paraguay

By Rodrigo Aguirre

    Paraguay is the 5th country in South America with most economic liberties. Above Paraguay, are Chile, Uruguay, Peru and Colombia.
    The best aspects of the Paraguayan economy are the fiscal, monetary, and commercial areas. According to the Heritage Foundation, the critical point is labor liberty. Despite having lost a couple of points in the ranking, Paraguay still holds in 2012 an acceptable position within the economic liberty ranking which is undertaken by the Heritage Foundation.
    The Heritage Foundation is a conservative think tank which is associated to the Wall Street Journal in the United States and has been analyzing economic liberties for over a decade. Among the 179 countries analyzed, Paraguay has been ranked in position 79 and among the group of countries which have moderate liberties.
The Heritage Foundation states in that the basis for Paraguay’s ranking is that Paraguay is still lacking an independent judicial system which undermines the enforcement of laws. Moreover, the weak judiciary system limits the Paraguayan economic development in a long term perspective. 
    Likewise, the study mentions that in Paraguay corruption is also detrimental to development making government service to citizens inefficient.  The attempts to reform have been sporadic and proposals of reforming policies have been resisted by personal political interest of several sectors within the country.
    On the other hand, economic policies in Paraguay to open markets have advanced on the sidelines. The reason for this is that restrictions on investments have been persistent which slows down productivity. The study suggests stronger political will and commitment are needed to improve the efficiency of policies in order for Paraguay to have a more vigorous private sector and diversified economy.
    The evaluation of the Heritage Foundation for Paraguay was better in fiscal liberty (96,9 points); government spending (88, 5); commercial liberty (82,7); monetary liberty (81, 4). Liberty to invest (70 points); financial liberty (60); liberties to do Business (59,8 points).
    Labor liberty was evaluated by the Heritage Foundation is the last position, with only 27,2 points; while property rights obtained 30 points and liberty of corruptions was given 22 points.
    In the evaluation Paraguay was under Chile, nevertheless it was above Brazil, Bolivia, and Ecuador.