Economic growth matters, but it is just one facet of development. Policy makers should focus their attention on ensuring that their country’s development path is sustainable and that the lives of their citizens improve. This requires reconciling economic, social and environmental objectives.

OECD Development Pathways is a series that looks at multiple development objectives 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 growth by undertaking a multi-dimensional country review (MDCR). Governments trying to achieve economic, social and environmental objectives need to understand the constraints they face and develop comprehensive and well sequenced strategies for reform that take into account the complementarities and trade-offs across policies. The MDCR methodology is based on quantitative economic analysis, as well as qualitative approaches including foresight and participatory workshops that involve actors from the private and public sectors, civil society, and academia.

The MDCRs are composed of three distinct phases: initial assessment, in-depth analysis and recommendations, and from analysis to action. This approach allows for a progressive learning process about the country’s specific challenges and opportunities. The Mutual Learning Group (MLG) for the MDCRs brings together policy makers responsible for designing development strategy to support the exchange of experiences on common challenges.

Paraguay initiated two OECD Reviews – a Multi-dimensional Country Review and a Public Governance Review – in 2017 as part of an effort to strengthen its ties with the OECD. This report is the second volume of the MDCR of Paraguay. It presents further analysis and detailed policy recommendations to address three key development challenges identified in Volume I of this MDCR: a fragmented social protection system, a health system facing a double burden of communicable and non-communicable disease, and an education system in need of reform. A preliminary version of this report was presented in Asunción in July 2018.

This MDCR is designed to help Paraguay formulate development strategies, and identify and support the policy reforms needed to achieve further sustainable and inclusive development, in the context of the implementation of its National Development Plan and Paraguay’s commitment to the Sustainable Development Goals. A forthcoming third volume, based on the recommendations presented in this second volume, will present the necessary conditions and actions for making reform happen. These analyses support Paraguay’s own development agenda towards achieving a brighter future for its citizens.

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