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SPECIAL REPORT etc. This means that although the Paraguayan market is small, the potential market is much higher. Thus, the maquiladoras of car components based in Paraguay supply the assemblers of Brazil and Argentina. In effect, MERCOSUR is the leading trade partner and Brazil and Argentina are the central exporting countries of Paraguay. In terms of infrastructure, about 90 percent of the 65,000 km of interurban routes in Paraguay are dirt roads. More investment is required in airports, roads, river dredging (without having a maritime coastline, there are ports on the Paraguay and Paraná rivers, which give access to the Atlantic Ocean, through the Paraná-Paraguay Waterway), and electricity networks for greater Internal use of the energy of the Itaipú and Yaciretá dams. Itaipu, being the second largest dam in the world, only uses about 22 percent of its capacity, according to the Ministry of Public Works and Communications. On the one hand, renegotiation of the treaty with Brazil that establishes the compensation of the neighboring country for the use of energy will be fundamental for the current government. Whereas, on the other hand, the Analysis and Diff usion Center of the Paraguayan Economy / CADEP also points out that the country has low levels of domestic consumption due to various obstacles. As for legal insecurity and corruption, they are one of the country’s challenges and were identifi ed by all the candidates and political parties that took part in the presidential elections of 2018. In this context, the current president Abdo Benítez, upon taking offi ce, placed a strong emphasis on corruption and impunity. For the latter, the government has embarked on a program to reform the judicial system (Llorente & Cuenca, 2019). Conclusion During the visit of Vice President Naidu, the importance of Paraguay as a food producer was highlighted, with natural complementarities with India, convening Indian investments. Also, both countries agreed to explore new areas of collaboration, including hydraulics and solar, health, information and communication technology, agricultural machinery, space and biotechnology, railroads and infrastructure related to tourism. The specifi c areas discussed included agricultural processing, the supply of equipment such as tractors from India, the modernization of the energy sector, and the supply of medical equipment and generic drugs, which could be useful for the Paraguayan health system (MEA, 2019). Undoubtedly, the arrival of more FDI will ultimately enhance the human resources of Paraguay, constituting a key opportunity for any country in its trajectory of projection in Latin America.  Author is working group on India and South Asia. Asian Affairs Committee, Argentine Council for International Relations, Buenos Aires, Argentina. 1 Author is working group on India and South Asia. Asian Affairs Committee, Argentine Council for International Relations, Buenos Aires, Intauras. 2 References Broncano, M; Mendoza, I. y Vega, H. (2019). Análisis Macroeconómico. Paraguay. ¿Qué tanto inciden los factores externos en la actividad económica local? BBVA Research. Observatorio Paraguay. Retrieved from https:// Paraguay2019.pdf Centro de Análisis y Difusión de la Economía Paraguaya/CADEP (s.f.). Un exportador de energía con poca luz. Retrieved from http://www.cadep. CEPAL (2018). Estudio Económico de América Latina y el Caribe – 2018. Retrieved from handle/11362/43964/137/EEE2018_Paraguay_es.pdf Dirección General de Estadísticas, Encuestas y Censos/DGEEC (2015). Proyección de la Población Nacional, Áreas Urbana y Rural por Sexo y Edad, 2000-2025. Revisión 2015. Retrieved from py/Publicaciones/Biblioteca/proyeccion%20nacional/Estimacion%20y%20 proyeccion%20Nacional.pdf Hetherington, K. (2016). La Soja ante la Ley: Prácticas de conocimiento, responsabilidad y el boom de la soja en Paraguay. Revista Paraguay desde la Ciencias Sociales, revista del Grupo de Estudios Sociales sobre Paraguay, 7, 177- 203. La Nación (3 de julio de 2018). Nuevos datos del PIB muestran diversifi cación económica real. La economía paraguaya muestra ahora una mayor diversifi cación en su crecimiento. Retrieved from https://www. pib-muestran-diversifi cacion-economica-real/ Llorente & Cuenca (2019). Informe especial. Paraguay: en camino hacia el grado de inversión. Retrieved from content/uploads/sites/5/2019/01/190102_DI_informe_paraguay_ESP-1.pdf MEA (2019). Visit of Vice President to Paraguay (March 5-7, 2019). Available in f+Vice+President+to+Paraguay+March+57+2019 Ministerio de Hacienda de la República del Paraguay, Subsecretaría de Estado de Economía, Dirección de Integración, DECI (2019). Reporte de Comercio Exterior/RCE. Retrieved from application/fi les/5615/5440/2508/RCE_Febrero-2019.pdf Ministerio de Obras Públicas y Comunicaciones de la República de Paraguay (2017). Paraguay intensifi ca esfuerzos para hacer crecer la industria minera y atraer a inversionistas (25 de mayo). Recuperado de ca-esfuerzos- para-hacer-crecer-la-industria-minera-y-atraer-a-inversionistas-n4522 Ofi cina Económica y Comercial de España en Asunción/OECEA (2018). Informes de Secretaría. Guía de país. Paraguay. Retrieved from http://www. les/2018-2/paraguay_gp.pdf Red del campo, Chacra (1· de diciembre de 2015). Paraguay es el mayor productor de energía limpia. Retrieved from ar/nota/paraguay-es-el-mayor-productor-de-energia-limpia/ Sierra, J. D; Quijada, J. A. y Espínola, N. (2018). FDI fl ows to Paraguay: what do investors prioritize? Inter-American Development Bank. Retrieved from fi le:///C:/Users/user/Downloads/FDI-Flows-to-Paraguay-What-do- Investors-Prioritize%20(1).pdf PARAGUAY 2019 • 25