Paraguay: Corruption, Reform, and the Financial System

Business & Finance, Economics, International Economics, Macroeconomics
Cover of the book Paraguay: Corruption, Reform, and the Financial System by Jeffrey Mr. Franks, Randa Miss Sab, Valerie Ms. Mercer-Blackman, Roberto Benelli, INTERNATIONAL MONETARY FUND
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Author: Jeffrey Mr. Franks, Randa Miss Sab, Valerie Ms. Mercer-Blackman, Roberto Benelli ISBN: 9781452756400
Publisher: INTERNATIONAL MONETARY FUND Publication: September 7, 2005
Imprint: INTERNATIONAL MONETARY FUND Language: English
Author: Jeffrey Mr. Franks, Randa Miss Sab, Valerie Ms. Mercer-Blackman, Roberto Benelli
ISBN: 9781452756400
Publisher: INTERNATIONAL MONETARY FUND
Publication: September 7, 2005
Imprint: INTERNATIONAL MONETARY FUND
Language: English
Following some historical background, this paper describes how corruption is manifested in Paraguay. The paper distinguishes between factors that explain the growth performance of Paraguay since 1960 (where corruption does not directly enter as a significant factor) and factors that explain the relative level of income of Paraguay in the past 40 or 50 years compared with other countries. It then illustrates how Paraguay's weak institutions may have led to long-term growth below its potential. Finally, the authors briefly consider how Paraguay could improve its institutions. To the extent that prudent policies and the willingness to consider the adoption of international best practices will exert pressure for change in Paraguay, a gradual improvement of institutional quality will ensue, which is necessary for sustained long-run growth.
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Following some historical background, this paper describes how corruption is manifested in Paraguay. The paper distinguishes between factors that explain the growth performance of Paraguay since 1960 (where corruption does not directly enter as a significant factor) and factors that explain the relative level of income of Paraguay in the past 40 or 50 years compared with other countries. It then illustrates how Paraguay's weak institutions may have led to long-term growth below its potential. Finally, the authors briefly consider how Paraguay could improve its institutions. To the extent that prudent policies and the willingness to consider the adoption of international best practices will exert pressure for change in Paraguay, a gradual improvement of institutional quality will ensue, which is necessary for sustained long-run growth.

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