(Prof. K. Miracle Páez)
World Bank recently published its report "Global Economic Prospects" which predicts three consecutive years of economic growth Paraguay in the period 2010-2012 at annual rates would range 5%. Negligible performance.
As a student of economics I soon learned that high growth is not always accompanied by the greatest possible, ie effective improvements in the level of life for all people or at least the majority and the need to adopt policies that make better economic performance in terms of numbers is reflected in a qualitative improvement for the inhabitants of a country.
In these situations I ask myself what to do for this boom in the economy will lead to further development at national level?
Obviously three years of growth are not sufficient to turn Paraguay into a developed country. The issue is not that. What is sought to make is to seize opportunities that will arise in this period to move towards a better short and long term.
Fortunately for answering these questions has a solid economic theory that explains the recipes to be used to lead a nation to higher levels of development. Paul Samuelson (Nobel laureate 1970) recommended action in four areas: natural resources, human resources, capital formation and technological change and innovation.
Regarding natural resources, the aforementioned author claims that the land is presented as the most important natural resource for a developing country. Therefore calls for appropriate use of the same care all regard to the conservation, use of fertilizers and crop itself. Also concerned about the land, arguing that if the farmer owns the land has greater incentive to invest in capital and technology and increase the productivity of the same.
Noting the case of Paraguay, a country with abundant and fertile soil, suggest strong support for rural producers both large and small to provide political stability and legal security, fair taxes, affordable credit, foreign policy to seek greater opportunities business and finally, perhaps the most difficult of all tasks, a more equitable distribution of land.
At this point many may ask, if you know what to do why not do it. That's not an economic issue is a political issue and as such, in a democracy like ours should be resolved within the framework of the polls but even this simple premise has its serious complications.
In these situations I ask myself what to do for this boom in the economy will lead to further development at national level?
Obviously three years of growth are not sufficient to turn Paraguay into a developed country. The issue is not that. What is sought to make is to seize opportunities that will arise in this period to move towards a better short and long term.
Fortunately for answering these questions has a solid economic theory that explains the recipes to be used to lead a nation to higher levels of development. Paul Samuelson (Nobel laureate 1970) recommended action in four areas: natural resources, human resources, capital formation and technological change and innovation.
Regarding natural resources, the aforementioned author claims that the land is presented as the most important natural resource for a developing country. Therefore calls for appropriate use of the same care all regard to the conservation, use of fertilizers and crop itself. Also concerned about the land, arguing that if the farmer owns the land has greater incentive to invest in capital and technology and increase the productivity of the same.
Noting the case of Paraguay, a country with abundant and fertile soil, suggest strong support for rural producers both large and small to provide political stability and legal security, fair taxes, affordable credit, foreign policy to seek greater opportunities business and finally, perhaps the most difficult of all tasks, a more equitable distribution of land.
At this point many may ask, if you know what to do why not do it. That's not an economic issue is a political issue and as such, in a democracy like ours should be resolved within the framework of the polls but even this simple premise has its serious complications.
