Economic Growth

USAID economic growth programs in Paraguay promote opportunities and reduce poverty. We work closely with the Government of Paraguay to strengthen the family agriculture system, increase employment and create a more accessible financial system.

1. Increase Access to Markets, Improved Productivity and Competitiveness

Micro, small, and medium-sized enterprises, including small agricultural producers, constitute 90 percent of the labor force in Paraguay. Promotion and assistance to this sector are key to poverty reduction, job creation, and sustainable economic growth.  USAID economic assistance focuses primarily on the agricultural sector by creating economic activity through increased commerce and trade.  The long term goal is to build lasting relationships between producers and buyers thereby increasing incomes, creating employment, and reducing poverty. USAID assistance programs enable agricultural producers to identify market opportunities, and provide training in a variety of skills to enhance participation in specific markets and respond to buyers' needs and product requirements.  USAID also implemented an information system to facilitate traceability information between producers, cooperatives, and their markets throughout the entire sesame supply chain.

2. Improve Access to Microfinance

USAID programs focus on agricultural value chains which help small producers access micro-finance and promote inclusive financial markets. We also assist financial institutions to capitalize on business opportunities by helping them to understand small producers’ needs and develop appropriate credit products, policies, and employee skills. USAID supports access for low-income families to financial services such as credit, savings, insurance, and remittance and payment services.

3. Development of Human Capital and Job Skills

A focus on training for entrepreneurs and workers to acquire knowledge and skills is essential to meet demand and market opportunities.  Several USAID projects  train workers and small entrepreneurs in best agricultural practices, entrepreneurial skills, finance, and economics.

4. Removing Policy Barriers for Economic Growth

Economic growth, poverty reduction, and employment generation depend heavily on improving the legal and policy climate for trade and investment. Certain economic policies and regulations can restrict investment opportunities, exports or economic activity.  USAID works with the Government of Paraguay to design, approve, and implement a small business law to facilitate new business start-up, growth, and job creation.  The Millennium Challenge Corporation Threshold program implemented by USAID worked with the Government of Paraguay to develop a one-stop shop for business registration.  USAID also works with small informal businesses to help them register and become formal businesses.