Paraguay
Paraguay exhibits mid-range performance across the Rights, Representation and Participation categories of the Global State of Democracy Framework, and low performance in Rule of Law. It performs in the bottom 25 per cent of countries regarding Political Equality, Social Group Equality and Economic Equality. Over the last five years, it has seen significant declines in the Effective Parliament factor. Paraguay has an upper-middle income economy that relies on the export of soybeans, meat products, and hydroelectric power.
After gaining independence from Spain in 1811, Paraguay experienced growth that was abruptly halted by the 1864-1870 War of the Triple Alliance—against Brazil, Argentina, and Uruguay—which resulted in the loss of two-thirds of its population and significant territorial and economic damage. The early 20th century saw political instability marked by coups and dictatorships, culminating in General Alfredo Stroessner’s brutal dictatorship (1954–1989) known for widespread human rights violations. Following the return to democracy, a new 1992 constitution established a presidential system and protections for human rights. The Colorado Party has since been in power, except between 2008 and 2013 during a left-wing government, that ended in a snap impeachment. President Lugo and his supporters denounced it as a parliamentary coup.
Entrenched corruption and abuse of power are major challenges. The judiciary lacks independence, with experts criticizing its failure to address corruption—especially in light of recent scandals involving its own members. A new law that regulates NGOs further threatens civil society and press freedom as important watchdogs. Corruption is closely tied to an alarming rise in organized crime, aggravated by the increasing presence of international criminal groups. The 2022 assassination of a top anti-drug prosecutor in Colombia underscored the influence of these groups and their ties to Paraguayan politics. Allegations linking high-level officials to illicit economies hinder prospects of significant reform.
Land inequality remains a major cleavage in Paraguay with historical roots in the War of the Triple Alliance which set the basis for today’s inequality. A century later, de facto president Stroessner deepened this inequality by illegally distributing state-owned land to political allies, creating a lasting landowning elite. Today, land conflicts—particularly affecting Indigenous communities and landless peasants—are exacerbated by agribusiness pressures, and harsher eviction laws. Agricultural interests block agrarian reforms aimed at benefiting rural populations. As a result, despite agriculture driving national growth, rural poverty remains significantly higher than in urban areas.
Paraguay is a multicultural country whose population is mostly Mestizo. Indigenous People—who make up 2 per cent of the population—suffer from high rates of poverty and landlessness.
Paraguay performs in the mid-range in Gender Equality, with constitutional guarantees and laws promoting women’s rights, including gender parity, and protections against gender-based violence. However, rising femicides, teenage pregnancies rates, a draconian abortion ban and women’s underrepresentation in politics, remain serious concerns. LGBTQIA+ people face discrimination and lack legal protection.
Going forward, key indicators to watch include Absence of Corruption and Judicial Independence, given recent scandals that could prompt demands for accountability and reform. The application of a widely criticized NGO law and its impacts on Civil Liberties and Civil Society will be important to monitor. Ongoing demands for agrarian reform and violent evictions of Indigenous and peasant communities warrant close attention; how the government responds to these will be crucial to Paraguay’s Social Group Equality performance.
Last updated: July 2025
https://www.idea.int/democracytracker/
September 2025
Crackdown on youth-led protests triggers public backlash
On 28 September, Paraguay witnessed protests led by youth activists identifying as 'Generation Z', demanding greater accountability, social justice and democratic reform. Organised via social media, citizens gathered in Asunción to denounce corruption linked to the Peña administration, including allegations of concealed cash at the presidential residence, and to highlight the government’s failure to provide adequate security, healthcare and public services. Despite the estimated turnout of 600 to 1,000 protesters, the government deployed 3,000 police officers. The response resulted in 31 arrests, with reports of excessive force and rights violations. Paraguay’s National Mechanism for the Prevention of Torture condemned the detentions, highlighting arbitrary arrests, denial of medical care, and prolonged detention without legal counsel or due process. Similarly, the Chamber of Deputies condemned the police response, highlighting concerns over the protection of democratic freedoms in the country.
Sources: Deutsche Welle, Tele Sur, La República, EU SEE, Cámara de Diputados
August 2025
Paraguay introduces reforms to the political campaign financing system
On 11 August, Paraguay’s lower chamber of Congress approved a bill aimed at modernizing the political campaign financing system. The reform seeks to enhance transparency and address operational challenges in managing electoral funds. Key measures include digitizing declarations of campaign income, expenditures and related economic interests, with mandatory publication on the Superior Court of Electoral Justice (TSJE) website. The bill also introduces stricter penalties for candidates submitting false financial statements and designates the National Tax Directorate (DNIT) as the primary authority for tax and financial oversight. The bill was signed into law by the executive on 18 August.
Sources: Honorable Cámara de Diputados, El Nacional, Gaceta Oficial de la República de Paraguay
Former president under investigation for corruption
On 5 August, Paraguay’s Attorney General’s Office announced it had requested reports from the Secretariat for the Prevention of Money or Asset Laundering (Seprelad) as part of an investigation into former President Mario Abdo Benítez (2018-2023) over alleged offshore accounts. The probe followed Attorney General Emiliano Rolón’s statement on 23 July, confirming an inquiry into claims that Abdo Benítez and his wife concealed over USD 20 million in undeclared bank accounts in the Seychelles. The allegations first surfaced on 20 July in local media, prompting Abdo Benítez to publicly deny them on 21 July. He dismissed the reports as ’false information’ and as politically motivated probe intended to damage his reputation.
Sources: El Litoral, Seychelles Independent News Agency, Merco Press
February 2025
Corruption scandal mars country’s judiciary
A corruption scandal has shaken Paraguay's judiciary after leaked WhatsApp chats from an investigation into a deceased MP revealed a scheme of corruption and obstruction of justice involving a judge, two prosecutors, and another MP. On 3 February, the Prosecutor's Office announced an investigation into influence peddling and other offenses, based on data extracted from the late legislator Eulalio Gomes' cell phone. It also ordered an "administrative inquiry" into the implicated officials. The messages were discovered during an investigation of Gomes for money laundering and links to drug trafficking organizations, which ended with his death in a police raid last August. The discovered messages allegedly show how the officials used Gomes to facilitate favours and influence legal cases. Civil society organizations have condemned the investigation findings denouncing them as serious violations of judicial independence and transparency, demanding immediate action and accountability.
Sources: Ultima Hora, Swiss Info, Coordinadora de Derechos Humanos del Paraguay
November 2024
New law that regulates NGOs’ work sparks widespread criticism
On 15 November, President Santiago Peña enacted a law to regulate the work of non-profit organizations (NGOs). The law requires NGOs to register in a national database, disclose financial details, submit biannual reports and other information upon request, and list their partners, under risk of fines or suspension. Despite amendments during the legislative process, critics argue the law imposes excessive controls on an already efficient system, potentially straining smaller organizations. Criticisms highlight that the law was passed without civil society's participation and has vague and broad provisions that could be used to arbitrarily dissolve or restrict NGOs that are critical of the government. Press freedom groups caution that the law could particularly impact independent media, many of which operate as NGOs, by requiring disclosure of sensitive information and hindering public interest investigations. The government claims it will boost transparency and address concerns about money laundering and foreign influence in NGOs.
Sources: International IDEA, Amnesty International, The Guardian, ABC Paraguay (1), New York City Bar, Committee to Protect Journalists, Swiss Info, ABC Paraguay (2)
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Global ranking per category of democratic performance in 2024
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