Paraguay’s national poverty rate fell from 51.4% in 2003 to 24.7% in 2022, one of the most significant drops in Latin America over that period. That headline, however, only tells part of the story. According to the World Bank’s most recent Poverty and Equity Brief, rural poverty in Paraguay is about 31%, more than twice that of the urban population.

While the numbers are still worrying, the situation is improving. In rural areas, the poverty rate decreased from 28.1% to 25.9% between 2023 and 2024. Behind those numbers are two government programs: Tekoporã Mbareté and Hambre Cero en las Escuelas (Zero Hunger in Schools), which are reshaping social protection in one of South America’s most unequal landscapes.

What Is Tekoporã Mbareté?

Tekoporã means “living well,” and Mbareté means “strong” in Guaraní, Paraguay’s widely spoken indigenous language. Tekoporã Mbareté is a conditional cash transfer program that has anchored Paraguay’s anti-poverty strategy since 2005. It is implemented by the Ministry of Social Development (MDS) and built around two components: sociofamilial community accompaniment and a direct cash transfer to help families exercise their rights in health, education and food security.

In August 2023, President Santiago Peña launched Tekoporã Mbareté, raising the cash transfer by 25% for all participating families. Peña called the increase “an act of justice, because in recent years those who have suffered most have been the most vulnerable families.” By March 2025, approximately 197,000 families were enrolled nationwide. 

Transfers are delivered via debit cards distributed by Paraguay’s national postal service, Correos, reaching families in remote communities where banking infrastructure is scarce. The system also serves as a pathway to financial inclusion for people previously outside the formal banking sector. 

Zero Hunger in Schools: Feeding Children, Supporting Farmers

Paraguay’s Zero Hunger in Schools program has reached full national coverage in 2025, serving more than one million students in the public school system. Its design sets it apart from a standard school meals program. Suppliers are legally required to reserve 10% of contracted spending on goods purchased directly from small family farms and 5% on products from local small and medium-sized businesses. 

Minister of Social Development Tadeo Rojas described the accountability method: “From now on, suppliers have to present monthly invoices proving their purchases from family farms and medium-sized businesses. This is required for them to receive payment.” The result is a program that channels public spending back into rural economies, giving small producers a reliable market and greater financial security while improving child nutrition and school attendance.

Results, Context and Rural Poverty in Paraguay Moving Forward

Without Tekoporã Mbareté, the Zero Hunger in Schools program and complementary initiatives for older adults, Paraguay’s national poverty rate in 2025 would have reached 19.9% instead of 16%. This means these social programs kept roughly 239,000 people above the poverty line. Additionally, its GDP grew approximately 6% in 2025, the fastest in South America and around 242,000 new jobs were created over the preceding 2.5 years. 

Economic growth and targeted social policy together produced what neither could have achieved alone. However, gaps remain. Departments such as Caaguazú, Caazapá and San Pedro continue to record poverty rates well above the national average. 

The 2021–2022 drought, which devastated soybean production and pushed rural poverty upward, is also a reminder of how exposed the country’s agricultural economy remains to climate shocks. Still, the trajectory is meaningful. A country that once left its rural poor beyond the reach of the state is now designing programs that find them, measure results honestly and deliberately expand coverage.

– Gia Sen

Gia is based in Mansfield, MA, USA and focuses on Business and Politics for The Borgen Project.

Photo: Flickr