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7 Facts About Foreign Aid to Paraguay

Foreign Aid to ParaguayWith a national poverty rate of about 24% in 2018, according to World Bank data, increasing foreign aid to Paraguay is vital. Paraguay, a landlocked nation home to 7.13 million people in the heart of South America, has made significant strides to combat poverty, but not without help. Foreign aid is a staple in the country’s infrastructure development, humanitarian assistance and social welfare programs, all of which help to reduce poverty in Paraguay.

7 Facts About Foreign Aid to Paraguay

  1. Based on a poverty line of less than US$5.5 (2011 PPP) per day, foreign aid contributions helped Paraguay’s poverty rate fall to 15.8% in 2019, “less than half of what it was in 2003.” For instance, between 2003 and 2019, Paraguay received at least $13 million each year in U.S. foreign assistance, contributing to many projects designed to improve life for impoverished Paraguayans. One such project is the Paraguay Productivo, which targeted rural poverty by connecting smallholder farmers with “sustainable business opportunities” between 2009 and 2012. With projects like these, foreign aid to Paraguay contributed to a sharp decrease in poverty, improving the quality of life for millions of Paraguayans.
  2. Paraguay received more than $304 million for official development assistance (ODA) in 2020. This large sum of money contributes to hundreds of projects, including those for encouraging democracy, developing infrastructure and eradicating poverty. Projects like the Democracy and Governance Project (U.S.), Paraguay Productivo (U.S.) and the Project for Strengthening Primary Health Care System (Japan) contribute to economic growth and political stability, providing better resources and improving life for impoverished Paraguayans.
  3. The largest single donor to Paraguay is Japan, contributing more than $54 million in 2019 and 2020. The next highest donors of foreign aid to Paraguay are the European Union ($40.07 million), South Korea ($39.84 million), the Inter-American Development Bank ($38.36 million), the Green Climate Fund ($28.07 million), France ($22.44 million) and the United States ($21.52 million). Japan’s priorities in Paraguay are reducing disparities and promoting sustainable economic development, providing a framework for its aid. For instance, Japan’s Agricultural Sector Strengthening Project delivered resources to farmers, increasing their productivity and mitigating rural poverty.
  4. The sector receiving the most ODA is economic infrastructure and services, receiving 34% of foreign aid to Paraguay from 2019 to 2020. The next highest receiving sectors are social infrastructure and services (33%), health and population (17%) and education (5%). Paraguay Okakuaa, a U.S. project lasting from November 2015 to September 2021, developed economic infrastructure to prevent the exploitation of impoverished children, including the development of an electronic case management system to assist the government in executing labor laws.
  5. USAID, the U.S. agency orchestrating the country’s international development plans, leads several noteworthy projects that contribute to the fight against poverty, both directly and indirectly. The Democracy and Governance Project focuses on stemming corruption in the country, with an allotment of almost $4 million in 2018. The Higher Education Partnership received $3 million in 2019 to “strengthen the capacity of local higher education institutions (universities and training centers) to address gaps in the area of rule of law,” the USAID EducationLinks website says. USAID donated $4.9 million for COVID-19 assistance in 2022, bolstering the nation’s response to the pandemic.
  6. Some projects have a narrower focus on improving the well-being of Paraguayans, from improving health care to advancing access to food and water. For example, Japan and the Inter-American Development Bank loaned up to 9.13 million yen for water and sanitation improvements in Ciudad del Este, advancing water and sewage services in Paraguay’s “second largest metropolitan area.” Projects like this one focusing on water quality ensure the health, safety and security of the Paraguayans with the fewest resources.
  7. Foreign assistance does not always come from government sources, as many non-governmental organizations step up to combat poverty. Habitat for Humanity, for instance, served almost 3,500 Paraguayans in 2021 through “new constructions,” home repairs and “incremental building.” This organization contributes to improved living conditions, aiding vulnerable Paraguayans by building durable homes.

Eradicating global poverty is a group effort. As it stands, 8.6% of the world lives in extreme poverty and foreign aid works as a critical tool in the fight to end poverty. Through global action, poverty in Paraguay can diminish.

– Michael Cardamone
Photo: Flickr

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Poverty in Paraguay

Poverty in Paraguay
The landlocked country of Paraguay, located in south-central South America, currently faces strict rule and political turbulence. These recent troubles contribute to the long history of poverty in Paraguay. Since the 1860s, the country has participated in three different major wars in South America. It also experienced a civil war in the 1940s, which gave the Paraguayan people a strong sense of fear and unwillingness to express themselves freely. This sentiment has only recently begun to diminish in the early 21st century.

Background

The citizens and inhabitants of Paraguay are less diverse and more ethnically homogenous than in other South American countries. Most are of European and Guarani descent. Rivers are very important to the country’s economy as these water sources support the function of many hydroelectric power plants. Paraguay is one of the best producers of soybeans and many parts of the country flourish where fertile soil allows for diverse diets and high standards of living.

While the country is making great strides in the 21st century in its efforts to combat poverty, economic distress continues to stand as a major issue. Leading up to the year 2017, Paraguay actually noted an increase in poverty rates. Even though the country performed better economically overall, the total poverty rate that year rose from 26.6% to 28.8%. Even extreme poverty, which is defined as living on less than $1.90 a day, increased in this period.

These numbers are tragic because it shows a reversal in the steady decline of poverty rates in Paraguay in the years prior to 2016. To put this into perspective, in the five years prior, the poverty rate declined from 31.37% to 26.58%. This sudden worsening was unexpected as the South American region was collectively making progress in the fight against poverty. However, things have changed since then and poverty in Paraguay is showing signs of improvement.

Path to Progress

Some think that changes in poverty in Paraguay are the result of the government shifting its focus to extreme poverty. People in extreme poverty may not have the most basic necessities, such as food, shelter, sanitation and medical services. The minister of technical planning, Jose Molinas, confirms that there is a goal of reducing the extreme poverty rate to 3%. However, there is no goal to address the total poverty rate, leaving some impoverished people neglected.

Alicia Bárcena, the executive secretary of the U.N. Economic Commission for Latin America and the Caribbean (ECLAC), states that a lack of investment, extensive divisions in class structure and limited productivity gains are threatening the region’s ability to reach the poverty reduction goals agreed upon by U.N. members in 2015. Perhaps by addressing these issues, then, and by giving attention and care to the total poverty rate as opposed to only extreme poverty rates, the country can see a decline in poverty rates.

In fact, progress is already visible, with the poverty rate reducing from 24.2% to 23.5% between 2018 and 2019. This is due in part to the ongoing support from other countries and aid organizations.

In 2019, the Australian Embassy initiated the Direct Aid Program (DAP). DAP provides small grants for more than 80 countries worldwide, including Paraguay, funding non-governmental organization initiatives to aid these countries. It supports endeavors like providing education for the youth, including vocational and sex education. Other initiatives include promoting the economic development of women to achieve gender equity as well as infrastructure projects for Indigenous peoples. One such initiative, Poverty Spotlight, helped 30,000 Paraguayan families leave poverty through higher income generation. Continued support of programs and initiatives like these will help maintain the country’s progress and gradually eradicate poverty in Paraguay.

– Fahad Saad
Photo: Flickr

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Addressing the Most Common Diseases in Paraguay

Common diseases in ParaguayAt the heart of South America, Paraguay is one of the poorest countries in the region. 40 percent of its 6.7 million residents live in chronic poverty. For this landlocked nation full of millions of poor, health care is not at the forefront of government policy, as poverty continues to send the population into crisis. As a result, the country has an unfortunately low life expectancy rate and is plagued with various diseases.

Of the many common diseases in Paraguay, a particular few have been of the most concern in the last several years. Among the top causes of death in Paraguay are coronary heart disease, stroke, diabetes mellitus, influenza and pneumonia, cancer, kidney disease and hypertension.

The diseases with the greatest impact on the population are intestinal infectious diseases. These viruses, parasites and bacteria result in 107.7 annual years of healthy life lost per 100,000 people. Since 1990, the mortality rate of intestinal infectious diseases has increased by 6.1 percent per 100,000 people. Mostly infants die from these diseases, but the mortality rate peaks again for adult women and men ages 60 to 64. The diseases can be a result of unsafe water, poor sanitation and lack of hand washing. The most deadly of these diseases are caused by typhoid fever and paratyphoid fever.

Other infectious diseases are also common in Paraguay. Lower respiratory infections have a mortality rate of about 28 per 100,000 people. Diarrheal diseases, while common, have had a steady decreasing mortality rate since 1990 — a solid 79 percent decrease. Meningitis and tetanus are also common infectious diseases with decreasing mortality rates, while encephalitis and intestinal diseases remain at a steady infection rate.

In 2015, the Centers for Disease Control warned that Zika virus was present in Paraguay. Public health officials reported the virus was being carried and spread by infected mosquitoes, and also warned of the virus’s dangerous lack of symptoms. Pregnant women were at the highest risk, as infection during pregnancy causes harsher symptoms and serious birth defects.

In 2014, the National Eradication Service for Vector-Borne Diseases reported that the vector for the dangerous parasitic Chagas disease was found with increasing frequency in Paraguay. At first it was believed the vector was only found in rural and indigenous areas, but uncleanliness and housing insecurity of other poor areas have caused the vector to find a home between the bricks of houses, which mimic its normal dry habitat. An estimated 165,000 people in the country suffer from chronic Chagas disease. A bite from the protozoan parasite, Trypanosoma cruzi, can potentially be life-threatening.

The life-saving organization, Doctors Without Borders, has worked recently in Paraguay’s rural Chaco region, educating people in isolated communities about Chagas disease and offering screenings to locals. The World Health Organization (WHO) calls Chagas the “neglected tropical disease” because the vast majority of people affected do not have access to diagnosis or treatment. Most people affected experience symptoms without knowing why. Treatment is rapid and proves to be effective.

According to the WHO, in Paraguay, the probability of dying between the ages of 15 and 60 years is 166 for males and 126 for females per 1,000 people. Additionally, the country’s total expenditure on healthcare in 2014 was 9.8 percent of GDP. If Paraguay’s healthcare system were improved to prevent, treat and educate on disease and illness, many lives could be spared. As for now, organizations like Doctors Without Borders will continue to spread hope and educate on the common diseases in Paraguay which affect a majority of the population.

– Olivia Cyr

Photo: Flickr

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Poverty Stoplight Puts Poverty in the Spotlight

Poverty StoplightFundación Paraguaya has developed a tool to help families self-assess their poverty level and develop a personalized plan to improve their status.

Named the Poverty Stoplight, the initiative uses technology and various methodologies to create a custom poverty elimination plan, breaking down an overwhelming situation into smaller, more manageable problems and putting families in charge of their situation.

First, families take an online visual survey to determine their level of poverty. They are assessed on six different groups of poverty indicators: Income and Employment, Health and Environment, Housing and Infrastructure, Education and Culture, Organization and Participation and Interiority and Motivational.

Through a technology software developed by Hewlet Packard, each family receives 50 poverty indicators of red, yellow or green (red = extreme poverty, yellow = poverty, green = not living in poverty). For instance, fetching water from a contaminated river is an extreme poverty/red indicator, while having a water faucet in the house is a green/non-poverty indicator.

Trained members under Fundación Paraguaya work with each family based on their strengths and weaknesses in each category. The mentors make families aware of the tools they have within themselves that can be used to build a life out of poverty.

The Poverty Stoplight technology also provides information on neighbors who are not living in poverty and may be able to help them build homes and businesses.

The goal is to disrupt the typical cycles families in poverty go through, improving their status for their children and future generations.

The Paraguayan Government has been using the technology to refocus social workers on the main problems contributing to poverty.

A Google map overlay of Poverty Stoplight families highlights main poverty contributors, such as lack of proper vaccinations, clean water or proper sanitation. This overview allows social workers to provide the proper help to families in need and give them a jump start towards a better life.

Poverty Stoplight has had much success in helping impoverished families build a better life. In its first three years of operation, they have been able to help the welfare of around 18,000 families (92,000 people).

USAID has been a big contributor to the program, providing $500,000 in funding alongside other donors (who donated a total of $1 million). “This replicable project illustrates how relatively small amounts of foreign assistance can generate promising, tangible steps toward reducing poverty,” notes USAID.

Based upon a family’s motivation and the skills they have, a plan can be constructed to not only reduce their level of poverty but to eliminate the poverty cycle altogether. The customization of the project and effectiveness of the technology is what makes Poverty Stoplight as promising as it is.

– Casey Marx

Photo: Pixabay