This is a treatment of Paraguay by an economist in the service of the Agency for International Development who has had some years of experience among the least developed countries of Latin America. As the author states, Paraguay outranks only Haiti “with respect to the dollar value of its international commerce.” The size or importance of the topic in no way dissuaded him, however, from providing a full consideration of Paraguay’s agriculture, industry, finance, and monetary structure. This reviewer knows of no comparable work on the subject.
The author makes apparent his sympathy for the two million or more Paraguayans, isolated in the heart of South America, and his hope that the future promises more than the tragic past. Indeed, if the work has a message, it is a plea for understanding by Paraguayans most responsible for national policy and execution, and by foreign investors and international agencies. Given such understanding, the author is moderately sanguine about Paraguay’s future.
The reader will have to use his imagination to appreciate the drama which lies behind the lengthy description of production, trade, landholding patterns, industrial structure, public and private institutions, policies and programs. Only those who have seen the Ysaú ant at work can fully appreciate the devastation which this insect leaves in its wake, and they will understand the problem of marketing Paraguayan grapefruit after viewing acres of ground littered with rotting fruit.
The author has made good use of the statistical sources available to him. He is the first to admit, however, his dependence upon Paraguayan official publications, which are not always reliable. Fortunately, his intimate knowledge of the economy has permitted him to use such materials judicially. Certainly in text and tables the statistics are amply available for the reader’s perusal.
Without wishing to detract from the importance of the work, the reviewer must express some uneasiness over the optimism expressed in the conclusions, even though carefully qualified. The author demonstrates the inefficiencies of Paraguay’s administrative structure, but the prospect for reform and improvement is not so convincingly presented. It seems to this reviewer that the role of the small “middle class” is exaggerated, while the contribution of international agencies is never brought into clear focus. For the future, too much must be taken on faith—that this plan or that project will or even could bear fruit.
Nor is the author always consistent. As he puts it: “Paraguay is the only South American country that can boast political and monetary stability sustained over a period of years.” He further anticipates a continuation of the present pattern of stability. He stresses the degree of individual and political freedom under the “benevolent autocracy” of the Stroessner government. Yet at the same time he calls for a reduction in military outlays, less dependence of the government upon the military, and broadly-based representative government.
From the reviewer’s viewpoint, it can at least be questioned whether Paraguay’s achievements as presented here are so considerable as to establish the absolute relationship posited between economic progress and political and financial stability. Stability is desirable but relative. Individual and political freedom in the present regime has been granted only insofar as it does not threaten the highly personalized structure over which President Stroessner presides. To infringe upon the privileges and prerogatives of the Paraguayan military establishment (whose full role in the nation’s economy probably warrants further research) does not seem realistic. A stable, broadly-based civilian government in Paraguay is a fond dream.
