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Southern Cone

11/10/2017

Paraguay’s agricultural sector: how much is at risk?

Despite the political and economical instability facing South America, the small nation of Paraguay is experiencing growth.

Rural areas in Paraguay

Growing dismay amongst Paraguayan agricultural communities has been reported by a proposed 15 percent export tax on corn, soy and wheat exports that have acted as a catalyst for protests. The government has argued that the agricultural sector contributes too little to the country when compared to other sectors.

Approximately, 2.6 million people live in rural zones and account for 30 percent of the population. While 2.6 percent of landowners, the small elite, hold 85.5 percent of Paraguay’s lands. The government’s tax proposal would affect the incomes of farming populations, fearing they would become of the nation’s growing poverty while the proposal could pressurise the risks of pushing Paraguay’s agricultural boom into jeopardy. 

Author: Oliver Yorke
This article is incomplete. Click here to read the full text from its original source, Global Risk Insights
Photo Credit: Andrea Ferreira (CC BY-NC-ND 2.0)

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