PEST analysis Paraguay Essay

PEST analysis Paraguay Essay PEST analysis Paraguay Essay POLITICAL ENVIRONMENT Paraguay today enjoys stability since the end of the dictatorship. Paraguay is a constitutional democracy not consolidated but is on the way to achieve this goal. There is a disenchantment of the population which translates into an increasingly discredited of the institutions and persons discharging managerial responsibilities of power but this is a tendency both in Paraguay and other Latin American countries where the democratic tradition is relatively new. The perceived degree of corruption also contributes to this feeling. For several years, the index of perception of corruption 'Transparency International' Paraguay ranks as one of the most corrupt countries in Latin America. Faced with this challenge, the government attempted repeatedly his determination to fight corruption, but their success has been limited by various political factors like Disagreements between the legislature and the executive. The main challenges currently facing Paraguay consist of reconciling economic growth and budgetary rigidity, while the rule of law is consolidated and public institutions are strengthened. In the economics and international business Paraguay has started many policies to enhance the international trade in order to: 1. Facilitating the procedures and formalities for export. 2. Establish strategic partnerships that further the conditions for exporters. 3. Establish growth strategies for each sector, supporting businessmen / women in their efforts to increase their sales abroad. 4. Promote national awareness and export competitiveness. 5. Encourage the export of non-traditional items. ECONOMIC ENVIRONMENT Paraguay is part of the Southern Common Market (MERCOSUR) and the Latin American Integration Association (ALADI) and is classified by the International Monetary Fund as a developing country. The Country in the economic sphere can be considered stable but has a limited capacity for improvement. Paraguayan GDP structure is similar to a country with a low level of industrialization 14% of GDP is concentrated on the secondary sector and the 27% of GDP comes from agriculture and exports but services are already experiencing an increasing importance (59%). The main exports in Paraguay are soybeans (35% of total) exports, meat (10%), vegetable oils (8%) and cotton (7%). Uruguay accounts for 15% of Paraguayan exports followed by Brazil (11.4%), Argentina (10.2%) and Chile (8.3%). Moreover, Brazil supply 27.5% of the Paraguayan imports, followed by China (16.9%), USA (15%) and Argentina (14.8%). The main exporters in Paraguay are: SOCIO CULTURAL ENVIRONMENT Paraguay is a young country with a quarter of the population under 10 years (26%) and it holds one of the lowest average age in Latin America (23 years). Despite a high rate of population growth (2.2% annually), is a sparsely populated country, with a density of 15.2 inhabitants per square kilometer, which is also one of the lowest in the region. The population structure testifies to a relatively rural country (43% of the population lives in the countryside), and in which most of its inhabitants are poor (66% of the poor live in rural areas). Access to education have not reached optimal indicators, particularly between 15 to 24 years. The low level of education penalizes the poor population because it is a barrier for the good salaries and it takes from them the possibility to integrate in the modern sectors of the economy.