Volatility and Inequality as Constraints to Shared Prosperity : Paraguay Equity Assessment

Garriga, Santiago; Lopez-Calva, Luis Felipe; Lugo, Maria Ana; Giopp, Alejandro Medina; Muller, Miriam; Sousa, Liliana D.

Volatility and Inequality as Constraints to Shared Prosperity : Paraguay Equity Assessment

2014

Isolated by nature, and recovering from a period of historically low growth during the eighties and nineties, Paraguay faced many economic and social challenges at the beginning of the twenty first century. By year 2000, Paraguay GDP per capita was only 50 percent of the Latin American average and 34 percent of its MERCOSUR partners. High poverty and inequality were an inherent characteristic of the country. Yet, between 2003 and 2013, Paraguay has performed substantially well, seeing a reduction in moderate and extreme (monetary) poverty. This is essentially the result of a period of average significant growth combined with a reduction in inequality. This report explores the factors associated to the observed improvements in welfare and inequality, and investigates the challenges facing their sustainability, given the historical structural problems of Paraguay to maintain growth and improve social indicators. The underlying question is indeed whether the growth model and reduction in inequality are consistent with a positive social dynamics, taking a comprehensive definition of equity, which includes sustainable elimination of absolute poverty, enhancing equality of opportunity and strengthening agency for all groups.

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AGROVOC Keywords

access to markets agricultural inputs agricultural insurance agricultural practices agricultural production agricultural workers animal husbandry comparative analysis consumers diversification drought economic growth elasticity extreme poverty family farms fiscal policies food prices food requirements food security gross domestic product growth rate health insurance household income housing income income distribution irrigation livestock products meat poverty reduction productivity risk management rural areas rural employment rural poor rural population rural poverty sanitation small farms social policies social security structural change targeting taxation unemployment value added wages

Bibliographic information

Publisher

World Bank, Washington, DC

Other Subjects

Food services; Unemployment rate; Consumer price index; Poor rural households; Food price; Rural sector; Tax revenues; Wage employment; Impact on poverty; Self-employment; Employment for women; Chronic poverty; Regional average; Income fluctuations; Household head; Rural area; National output; Income gains; Fiscal policy; Income poverty; Household heads; Reduction in poverty; Incidence of poverty; Agricultural self-employment; Agricultural output; Decline in poverty; Poor families; Agricultural wage; Reduction of poverty; Gini coefficient; Rural households; Access to electricity; Access to goods; Income inequality; Basic food requirements; Wage earners; Extreme poverty line; Purchasing power; Household incomes; Rural families; International poverty line; Central bank; Income volatility; Food items; Welfare measure; Income growth; Indicators of poverty; Price fluctuations; Absolute poverty; Poverty status; Employment status; Inequality; Poverty rates; Household survey; Cash transfer programs; Direct transfers; Inequality reduction; Rural labor; Property taxes; Small business; Poverty incidence; Transfer programs; Food basket; High unemployment rates; Poverty rate; Agricultural activities; Macroeconomic growth; Private transfers; Total factor productivity; Poor individuals; Social programs; Running water; Public spending; Changes in poverty; Schooling; Poor people; Budget constraints; Economic progress; Employment in agriculture; Basic food basket; Extreme poverty lines; Poor; Rural inequality; Poor living; Access to services; Poverty estimates; Family income; Adverse effects; Employment opportunities; Wage premium; Employment income; Payroll taxes; Gdp; Disposable income; Total poverty; Gdp per capita; Financial crisis; Government expenditures; Household per capita income; Chronically poor; Rural

License

http://hdl.handle.net/10986/18945http://creativecommons.org/licenses/by/3.0/igo/CC BY 3.0 IGO

In AGRIS since: 2014-09-15

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