Economic growth matters, but is just one facet of development. Policy makers need to reconcile economic, social, and environmental objectives to ensure that their country’s development path is sustainable and leads to durable improvements in citizens’ well-being.

OECD Development Pathways is a series that looks at development from the perspective of the multiple objectives it involves, beyond an exclusive focus on growth. It recognises well-being as part and parcel of development and helps governments identify the main constraints to more equitable and sustainable development by undertaking a multi-dimensional country review (MDCR). To meet their development ambition, governments need to understand the constraints they face and development comprehensive and well-sequenced strategies that take into account complementarities and trade-offs across policies. The MDCR methodology combines quantitative economic analysis, qualitative approaches including foresight, and participatory workshops that involve actors from the private and public sectors, civil society and academia.

MDCRs are carried out in three distinct phases: initial assessment, in-depth analysis and recommendations, and from analysis to action. This approach allows for progressively deeper interaction between the OECD and the country and a mutual learning process about the country’s specific challenges and opportunities. The Mutual Learning Group for Multi-dimensional Country Reviews gathers policy makers in development strategy from countries undertaking MDCRs and members of the OECD Development Centre to support the exchange of experience on shared development challenges.

Paraguay has embarked in a process to strengthen its ties with the OECD. This contributes to one of the three axes of its national development plan, which aims to enhance the inclusion of Paraguay in the global economy. Paraguay became a member of the OECD Development Centre in March 2016 and the Global Forum on Transparency and Exchange of Information for Tax Purposes in June 2016. As part of this whole-of-government effort, Paraguay is also implementing two OECD reviews – a Multi-dimensional Country Review and a Public Governance Review – and examining its national legislation and practices in light of OECD standards.

This report is the first volume of the MDCR of Paraguay. It delivers an overarching assessment of development in Paraguay and identifies the main constraints to sustainable and equitable development. The report is organised around the five pillars of the Sustainable Development Goals (Prosperity, People, Planet, Peace and Institutions and Partnerships). This reflects the ongoing effort to align OECD tools to the SDGs. It is also a reflection of the relevance of the SDGs for Paraguay. Paraguay’s own National Development Plan is largely in line with the SDGs.

This report was approved for publication in November 2017 and uses the latest available data at the time of writing.