Paraguay's corruption has been pointed out as a chronic problem that, beyond individual wrongdoing, sickens the entire social system. Two recently published reports starkly illustrate the severity of corruption in Paraguay from two perspectives: objective indicators and public perception. These reports emphasize that corruption is a key factor threatening economic development and democracy, warning of the crisis facing Paraguay.

According to one recent report, the lack of "integrity" in the Paraguayan government is a major reason for the country's limited economic freedom. The analysis suggests that rampant corrupt practices like bribery, embezzlement, spoils systems, and cronyism undermine public trust and increase the cost of economic activity. The report highlights the lack of transparency in the real estate ownership registration process as a prime example. Inefficient collaboration between the Land Registry Office and the National Cadastre results in enormous time and cost to register property rights. This process gives rise to "informal fixers" who become hotbeds of corruption. Such issues increase legal uncertainty regarding property rights, leading to a decline in investment and economic activity.

The fragility of the judicial system was also revealed as a serious problem. The report points out that the Judiciary Council (Consejo de la Magistratura) and the Magistrates' Impeachment Jury (Jurado de Enjuiciamiento de Magistrados), which should guarantee the independence of the judiciary, are vulnerable to political influence. As a result, the judicial system is at risk of operating according to the interests of those in power rather than protecting the rights of the people. This corruption of the judicial system erodes the rule of law and deepens social distrust.

Public perception also supports the reports' conclusions. According to another report, Paraguay is one of the countries in Latin America where people perceive corruption as the most serious problem after economic issues. Specifically, unlike Uruguay or El Salvador, Paraguay was one of the top three countries where the majority of citizens feel that society is "totally corrupt." Furthermore, the proportion of respondents who reported directly experiencing or witnessing corrupt acts in the past year was also very high. This shows that corruption is not just a problem among some high-ranking officials but is deeply embedded in the daily lives of citizens.

Corruption is a serious social issue that goes beyond causing economic loss; it shakes the very foundation of democracy. A lack of trust in public institutions deepens social conflict and weakens citizens' willingness to participate in politics. The Latinobarómetro 2024 report pointed out that the public's trust in major public institutions such as the military, police, judiciary, and legislature is much lower in Paraguay than the Latin American average. This pervasive corruption makes it impossible to build a society based on democratic values and achieve sustainable development. Paraguay is at a crossroads where, without eradicating corruption, it cannot achieve true development and democracy.

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