CAF Addressed Macroeconomic Challenges at UNCA

Paraguay’s macroeconomic challenges were at the heart of CAF’s Paraguayan economy office head Guillermo Cabral at the event organized jointly with the National University of Caaguazú (UNCA) as part of the program to virtually reinforce economics schools in various public universities across Latin America, which UNCA joined last January.

Paraguay’s economy is facing the current COVID-19 pandemic with some positive data, which shows high growth over the past two decades, as the country boasts record high GDP per capita compared to Latin American averages, with decreasing poverty and inequality rates. Inflation is also under control, leading to a growth in the banking industry, with deposits and credits at their highest level in recent decades. Despite such advancements, Paraguay faces pressing challenges. However, the nation’s students rank last in PISA tests and its infrastructure gaps persist, informality exceeds 65 percent and the healthcare system requires more investment, among other problems.

“Paraguay has advanced in recent years and we believe that the country has all the tools to keep growing,” Cabral said during his presentation. “We believe that the pandemic will force the acceleration of the reforms that were already planned.”

The CAF-led program—which consists of virtually reinforcing a series of economics schools across Latin America—aims to improve knowledge and the use of conceptual aspects applied to economic theory with the purpose of strengthening the potential of the human capital of university students and teachers. The program is expected to have direct and indirect impacts on participants’ productivity, as well as on the efficiency of public and private management and the contribution of participants to the sustainable development and integration of the country.

The program complements the face-to-face training offered by UNCA economics courses with online sessions led by highly renowned economists from around the world. Going forward, the scheme will generate a network of public universities across Latin America, which will form a community of economics professionals with high international standards, who will be able to participate in internships between countries of the program, carry out applied research and access virtual libraries, among other academic benefits.  The program is currently being implemented in 13 universities across Peru, Ecuador, Paraguay and Bolivia.