World Bank GroupLopez-Calva, Luis FelipeLugo, Maria Ana2014-07-212014-07-212015-01https://hdl.handle.net/10986/18945Isolated 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.en-USCC BY 3.0 IGOABSOLUTE POVERTYACCESS TO ELECTRICITYACCESS TO GOODSACCESS TO MARKETSACCESS TO SERVICESADVERSE EFFECTSAGRICULTURAL ACTIVITIESAGRICULTURAL INPUTSAGRICULTURAL INSURANCEAGRICULTURAL OUTPUTAGRICULTURAL PRACTICESAGRICULTURAL PRODUCTIONAGRICULTURAL SELF-EMPLOYMENTAGRICULTURAL WAGEAGRICULTURAL WORKERSANIMAL HUSBANDRYBASIC FOOD BASKETBASIC FOOD REQUIREMENTSBUDGET CONSTRAINTSCASH TRANSFER PROGRAMSCENTRAL BANKCHANGES IN POVERTYCHRONIC POVERTYCHRONICALLY POORCOMPARATIVE ANALYSISCONSUMER PRICE INDEXCONSUMERSDECLINE IN POVERTYDIRECT TRANSFERSDISPOSABLE INCOMEDIVERSIFICATIONDROUGHTECONOMIC GROWTHECONOMIC PROGRESSELASTICITYEMPLOYMENT FOR WOMENEMPLOYMENT IN AGRICULTUREEMPLOYMENT INCOMEEMPLOYMENT OPPORTUNITIESEMPLOYMENT STATUSEXTREME POVERTYEXTREME POVERTY LINEEXTREME POVERTY LINESFAMILY FARMSFAMILY INCOMEFINANCIAL CRISISFISCAL POLICIESFISCAL POLICYFOOD BASKETFOOD ITEMSFOOD PRICEFOOD PRICESFOOD REQUIREMENTSFOOD SECURITYFOOD SERVICESGDPGDP PER CAPITAGINI COEFFICIENTGOVERNMENT EXPENDITURESGROSS DOMESTIC PRODUCTGROWTH RATEHEALTH INSURANCEHIGH UNEMPLOYMENT RATESHOUSEHOLD HEADHOUSEHOLD HEADSHOUSEHOLD INCOMEHOUSEHOLD INCOMESHOUSEHOLD PER CAPITA INCOMEHOUSEHOLD SURVEYHOUSINGIMPACT ON POVERTYINCIDENCE OF POVERTYINCOMEINCOME DISTRIBUTIONINCOME FLUCTUATIONSINCOME GAINSINCOME GROWTHINCOME INEQUALITYINCOME POVERTYINCOME VOLATILITYINDICATORS OF POVERTYINEQUALITYINEQUALITY REDUCTIONINTERNATIONAL POVERTY LINEIRRIGATIONLIVESTOCK PRODUCTSMACROECONOMIC GROWTHMEATNATIONAL OUTPUTPAYROLL TAXESPOORPOOR FAMILIESPOOR INDIVIDUALSPOOR LIVINGPOOR PEOPLEPOOR RURAL HOUSEHOLDSPOVERTY ESTIMATESPOVERTY INCIDENCEPOVERTY RATEPOVERTY RATESPOVERTY REDUCTIONPOVERTY STATUSPRICE FLUCTUATIONSPRIVATE TRANSFERSPRODUCTIVITYPROPERTY TAXESPUBLIC SPENDINGPURCHASING POWERREDUCTION IN POVERTYREDUCTION OF POVERTYREGIONAL AVERAGERISK MANAGEMENTRUNNING WATERRURALRURAL AREARURAL AREASRURAL EMPLOYMENTRURAL FAMILIESRURAL HOUSEHOLDSRURAL INEQUALITYRURAL LABORRURAL POORRURAL POPULATIONRURAL POVERTYRURAL SECTORSANITATIONSCHOOLINGSELF-EMPLOYMENTSMALL BUSINESSSMALL FARMSSOCIAL POLICIESSOCIAL PROGRAMSSOCIAL SECURITYSTRUCTURAL CHANGETARGETINGTAX REVENUESTAXATIONTOTAL FACTOR PRODUCTIVITYTOTAL POVERTYTRANSFER PROGRAMSUNEMPLOYMENTUNEMPLOYMENT RATEVALUE ADDEDWAGE EARNERSWAGE EMPLOYMENTWAGE PREMIUMWAGESWELFARE MEASURE10.1596/18945