Paraguay has made remarkable progress in cutting poverty over the past two decades. According to the World Bank Group, the country’s poverty rate fell from 51.4% in 2003 to 24.7% in 2022. Social entrepreneur Martin Burt has been among the leading figures in creating innovations to reduce poverty in Paraguay. This success comes despite continuous challenges. Paraguay, a landlocked developing country in South America, with a population of around 6 million, still struggles with inequality and human capital gaps. Many Paraguayans face poor access to quality education, health care and formal employment.

Since the fall of the dictatorship in 1989, a strong implementation of macro-economic policies, market reform and social programs have driven significant growth and lifted millions out of poverty. Nonetheless, inequality still remains stagnant amongst Paraguayans. The World Bank Group has issued four key recommendations to improve poverty: invest in human capital, create quality jobs, strengthen the fiscal system and increase climate resilience. Here are four key innovations in poverty eradication in Paraguay.

1. Investment in Human Capital

Education reform is at the center of Paraguay’s long-term anti-poverty strategy. The OECD’s Paraguay Country Program, officially launched in March 2025, lists improving teacher training as a top priority. Experts see better-trained teachers as essential to raising learning standards and preparing students for the job market. 

One example is Tikichuela: Mathematics in My School, an online program designed to support teachers in helping primary students develop math skills. A Berkeley study found that Tikichuela has successfully narrowed the learning gap between low- and high-performing students in Paraguay. According to the study, 65% of students do not have the minimum proficient standards in mathematics, science and reading, making such teacher-supported programs vital. The initiative, which currently benefits 4,000 students in Paraguay, highlights how equipping teachers with the right tools and training enables them to deliver more effective learning. Building on this success, in 2017 the Paraguayan government announced plans to expand funding for Tikichuela at a national scale.

2. ‘Poverty Spotlight’ – Fundación Paraguaya

Social innovator Martin Burt developed Poverty Spotlight, a self-assessment tool that helps families, organizations and NGOs to assess their poverty levels on a holistic level. This innovation uses a metric of 50 indicators across six dimensions including: Income & Employment, Health & Environment, Housing & Infrastructure, Education & Culture, Organization & Participation and Interiority & Motivational. This creates a personalized ‘life map’ for individuals to understand their state of poverty and how best to overcome it.

The system uses a traffic-light color code: Red (extreme poverty), Yellow (poverty) and Green (not poverty). Staff works directly with the people, designing tailored plans to overcome their challenges. Families and individuals track their progress over time, moving from red to green with the support from local mentors and community. Since 2013, 100 public and private businesses in Paraguay have adopted the tool to improve employee well-being, reaching more than 15,000 workers and their families.

In 2021, the United Nations awarded Poverty Spotlight the ODS Recognition (Sustainable Development Goals) for its work dedicated towards ending poverty.

3. Creating Job Opportunities

Fundación Paraguaya runs several programs to help individuals gain key skills and find secure work. Here are some of its innovative programs that are aiding poverty eradication in Paraguay: 

1. Football without Poverty: Football without Poverty is a program that encourages the combination of sport and activities connected to entrepreneurship to disconnect from the multidimensional poverty within families and communities.
2. Junior Achievement Paraguay: This program develops the entrepreneurial skills of young people. This has benefited 27,000+ young people in 2024.
3. Academy of Women Entrepreneurial (AWE): The Department of State of the United States Embassy in Paraguay initiated this enterprise. Its goal is to provide women with the necessary software platforms for them to carry out their business successfully.
4. Young Ambassadors: Young Ambassadors provides full scholarships to 13 young leaders aged between 15 and 17 years old for a cultural exchange in the United States while representing Paraguay. They take part in training and activities enhancing their leadership skills. 
5. Let’s Be Open: The foundation promotes this program as part of rebooting the economy in collaboration with Coca-Cola Paraguay. The program provides training to those without jobs or education, with the aim of increasing skills and employability.

Unemployment hit a record high of 8.55% in June 2021, but has since fallen to 5.7%. These innovations support Paraguay’s broader goal of eradicating poverty by fostering entrepreneurship and expanding economic participation.

4. Investing in Climate Resilience

Paraguay is one of the world’s leaders in clean energy production, generating 99.9% of its electricity from zero-carbon hydropower infrastructure. Thanks to its efficient dams, the country is able to produce more than it consumes. It exports the surplus to its neighboring countries Argentina and Brazil. These exports account for 7.1% of Paraguay’s net GDP, serving as a major source of public funding revenue that can be put towards social programs aimed at further reducing poverty.

However, a Berkeley study warns that the country’s climate shocks affect the success of its electricity export. A previous drought reduced export revenues by 12%, reducing the funds available for infrastructure, education and job creation, all of which are critical in reducing poverty in Paraguay.

Looking Ahead

Paraguay’s combination of education reform, innovative poverty measurement, job creation programs and climate conscious economic infrastructure shows how targeted strategies can reduce poverty in sustainable ways. The four key innovations in poverty eradication in Paraguay are key players in bringing the country forward.

– Ashley Pfeifer

Ashley is based in London, UK and focuses on Business and Good News for The Borgen Project.

Photo: Unsplash