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Paraguay Democracy and Governance Assessment 2009 PARAGUAY PARAGUAY DEMOCRACY AND GOVERNANCE ASSESSMENT OCTOBER 2009 This publication was produced for review by the United States Agency for International Development. It was prepared by ARD, Inc. Prepared for the United States Agency for International Development, USAID Contract Number DFD-I-00-04-00227-00, under the Analytical Services II IQC Prepared by: ARD, Inc. 159 Bank Street, Suite 300 P.O. Box 1397 Burlington, Vermont 05402 USA PARAGUAY DEMOCRACY AND GOVERNANCE ASSESSMENT OCTOBER 2009 DISCLAIMER The authors' views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government CONTENTS Acronyms ..................................................................................................... iii Executive Summary ..................................................................................... v Introduction ................................................................................................ xi Acknowledgments .................................................................................... xii 1.0 BACKGROUND ............................................................................... 1 1.1 THE DICTATORSHIP .................................................................................................... 1 1.2.2 The Transition to Democracy ................................................................ 2 1.2.3 The Elections of 2008 and the Current Panorama ............................. 4 2.0 THE DEMOCRACY AND GOVERNANCE PROBLEM ............... 7 2.1 CONSENSUS ................................................................................................................. 7 2.2 COMPETITION .............................................................................................................. 8 2.3 INCLUSION ................................................................................................................. 10 2.4 RULE OF LAW ............................................................................................................ 12 2.5 GOOD GOVERNANCE .............................................................................................. 14 2.6 DISTILLING THE DG CHALLENGE ............................................................................ 15 3.0 KEY POLITICAL ACTORS AND THEIR INTERESTS ............... 19 3.1 POLITICAL PARTIES ..................................................................................................... 19 3.2 THE EXECUTIVE BRANCH .......................................................................................... 20 3.3 PRINCIPAL JUDICIAL SECTOR ACTORS .................................................................... 21 3.4 CIVIL SOCIETY ............................................................................................................ 24 3.5 EXTERNAL ACTORS ................................................................................................... 26 3.6 SUB-NATIONAL GOVERNMENTS ............................................................................... 27 3.7 ILLEGAL GROUPS ....................................................................................................... 27 3.6 FILTERING IN POLITICAL ACTORS ............................................................................ 28 4.0 INSTITUTIONAL ARENAS .......................................................... 29 4.1 GOVERNANCE ARENA .............................................................................................. 29 4.2 JUDICIAL AND LEGAL ARENA ................................................................................... 32 4.3 COMPETITIVE ARENA ................................................................................................ 36 4.4 THE CIVIL SOCIETY ARENA ...................................................................................... 39 4.5 DISTILLING INSTITUTIONAL ARENAS ....................................................................... 41 4.6 FILTERING THE DONORS ........................................................................................... 42 5.0 STRATEGIC AND PROGRAMMATIC RECOMMENDATIONS ................................................................. 45 5.1 STRATEGIC APPROACH ............................................................................................. 45 5.2 PROGRAMMATIC RECOMMENDATIONS ................................................................... 48 5.2.1 Strengthen the National Anticorruption Agenda ..............................48 5.2.2 Strengthen the Judicial Sector ...............................................................49 5.2.3 Strengthen the National Police with Democratic Policing ..............50 5.2.4 Improved Quality of and Access to Information through an Inclusive Media Program.........................................................................51 PARAGUAY DG ASSESSMENT i 5.2.5 Expand Democratic Civil Society Organizations and State Presence in Poor Rural Areas ...................................................52 5.2.6 Strengthened Decentralization Policy Reform and Local Governance ....................................................................................53 5.2.7 Strengthened Electoral Processes with Stronger Citizen Participation ................................................................................55 ANNEX 1: LIST OF PERSONS INTERVIEWED ................................... 56 ANNEX II: BIBLIOGRAPHY ................................................................... 61 ii PARAGUAY DG ASSESSMENT ACRONYMS APC Patriotic Alliance for Change ARP Rural Association of Paraguay BID Banco Interamericano de Desarrollo CADEP Centro de Análisis y Difusión de Economía Paraguaya CERI Centro de Estudios Rurales Interdisciplinarios CIRD Centro de Información y Recursos para el Desarrollo CAPEL Center for Electoral Promotion and Assistance CGO Controller General Office CM Consejo de la Magistratura CODEHUPY Coordinadora de Derechos Humanos del Paraguay COPLANEA Comunidad y Planeamiento CSO Civil Society Organization DENDE Desarrollo en Democracia DG Democracy and Governance DGEEC Dirección General de Estadística, Encuestas y Censos ECAU Economic Crimes and Anticorruption Unit EU European Union FEPRINCO Federación de la Producción, la Industria, y el Comercio FNC Federación Nacional Campesina GEAM Gestión Ambiental GOP Government of Paraguay GTZ Deutsche Gesellschaft für Technische Zusammenarbeit IDB Inter-American Development Bank IFI International Finance Institutions INDERT Instituto Nacional de Desarrollo Rural y de la Tierra IPS Instituto de Previsión Social JICA Japan International Cooperation Agency MCC Millennium Challenge Corporation PARAGUAY DG ASSESSMENT iii MCNOC Mesa Coordinadora Nacional de Organizaciones Campesinas MIDAMOS Performance Municipal Measurement System MOF Ministry of Finance MP Public Ministry MPT Movimiento Popular Tekojojá NGO Non-governmental Organization OPACI Organización Paraguaya de la Cooperación Intermunicipal PDP Partido Democrático Progresista PEN Partido Encuentro Nacional PERF Police Executive Research Forum PLRA Partido Liberal Radical Auténtico P-MAS Partido Movimiento al Socialismo PPS Partido País Solidario ROL Rule of Law SFP Secretaria De la Función Publica SIMIC Standardized Model of Internal Control TSJE Superior Tribunal of Electoral Justice (Tribunal Superior de Justicia Electoral) UIP Unión Industrial de Paraguay UNACE Unión Nacional de Ciudadanos Éticos UNDP United Nations Development Programme USAID United States Agency for International Development USG United States Government WB World Bank iv PARAGUAY DG ASSESSMENT EXECUTIVE SUMMARY In April 2009, a four-person team1 conducted a democracy and governance assessment in Paraguay as a preliminary step in the development of the United States Agency for International Development (USAID)/Paraguay’s new Democracy Sector Strategic Plan. The purpose of the assessment was to identify basic issues and challenges in Paraguay’s democratic development and to make strategic recommendations for USAID’s consideration. The assessment followed the DG Assessment methodology developed by USAID’s Center for Democracy and Governance. The assessment took place in an interesting period for Paraguay’s democracy. President Fernando Lugo’s election in April 2008 represented the country’s first peaceful handover of power between political parties after 60 years of Colorado Party rule. The team conducted the assessment during the eighth month of Lugo’s presidency, which provided an excellent opportunity to analyze the preliminary impact of this important democratic event. PARAGUAY’S PRINCIPAL DEMOCRACY CHALLENGE Democracy in Paraguay has come far since Andrés Rodriguez launched his coup d’état in 1989. The Constitution of 1992 enshrines pluralism, democracy, human rights, and the rule of law, and has not been amended or challenged since then. Five presidential elections have been held, and have been free, if not totally fair. There have also been four municipal elections, which, while still dominated by the Colorado Party, have allowed opposition to make important inroads and, more importantly, have led to greater accountability in local government. Human rights are no longer abused as part of state policy, freedom of the press has flourished, new political parties have formed, and civil society has achieved some (though perhaps too often limited) latitude for operations. However, while some areas of democracy have been consolidated, others remain
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