On September 5th, during an event celebrating "Paraguayan Industry Day," the Paraguayan Industrial Union (UIP) strongly called on the government to enact further reforms to promote industrial development. While UIP President Enrique Duarte positively assessed some of the current administration's reform efforts, he stated that they were still insufficient to guarantee the nation's sustainable growth amid an uncertain global economic environment.
Duarte cited unstable institutions and an inefficient public sector as the main obstacles hindering industrial growth. He presented several urgent tasks, including: a fiscal reform to address the chronic deficit, the establishment of a cost-based energy pricing system, the creation of a robust social security system, and the improvement of public service quality. Regarding the judicial system in particular, he strongly criticized the actions of some politicians who undermine the rule of law, emphasizing that a reliable legal system is key to attracting investment and fostering economic growth. "Representatives of the people must not abuse their power to evade legal obligations," he said, stating that establishing the rule of law is the most crucial factor in increasing a nation's credibility.
Duarte also pointed to unnecessary public holidays as a factor that hinders national productivity. He added that "true celebration should be achieved through productive activities" and that excessive holidays have a negative impact on the national economy. This issue is related to Paraguay's low labor productivity, and the industrial sector's position is that competitiveness must be strengthened by creating an efficient work environment.
Investment in energy and infrastructure was also included in the main demands. He argued that private investment should be allowed in the energy sector, which has been stagnant for 40 years, to create a competitive market. Furthermore, he emphasized the importance of building modern infrastructure such as roads, ports, and digital and air connectivity, asserting that these are essential for Paraguay to effectively integrate into the global supply chain.
In response, Deputy Minister of Industry Marco Riquelme expressed his sympathy for the industry's importance, stating that "industry is a core sector that works 365 days a year and is responsible for the future." He mentioned three recently passed bills, indicating that the government is also working for the development of the industrial sector. However, the industrial sector's position is that these governmental efforts should not be one-off events but should lead to more fundamental and structural reforms.
These demands from the Paraguayan industrial sector can be seen not merely as a request for economic growth but as a fundamental call to improve the overall efficiency and reliability of the nation's system.
[Copyright (c) Global Economic Times. All Rights Reserved.]
