Paraguay

                                   Country Partnership Framework

                                           January 22, 2019

                                           Chair Summary*

        Executive Directors discussed the joint IBRD/IFC/MIGA Country Partnership Framework (CPF)
for Paraguay for the period FY2019-23. Directors supported the overall CPF framework, which has been
informed by the recent Systematic Country Diagnostic. They welcomed the shift towards governance and
human capital development.

         Despite the country’s robust economic growth and major achievements in poverty reduction and
shared prosperity in recent years, Directors noted the importance of making the development path of
Paraguay more inclusive and sustainable. They appreciated the role that the WBG plays as a knowledge
partner, which has translated into an increasing Reimbursable Advisory Service (RAS) portfolio. They
inquired about the lessons learned to improve the effectiveness of the RAS program.

        Directors welcomed Paraguay’s renewed determination to fight corruption, improve governance
and strengthen institutions. They emphasized the importance of continued efforts to support domestic
resource mobilization and fiscal reform. They also inquired how the new CPF would address the
Information and Communications Technology (ICT) agenda in the country and enhance sector strategies to
support the shift of the country’s economic development model.

         Directors recognized the risks associated with the implementation of structural reforms, notably,
political, fiduciary and governance challenges. They encouraged the Bank to strengthen capacity building
activities and underlined the importance of continued close collaboration with the IMF and other
development partners. They called for continued engagement with the private sector and encouraged greater
intervention by IFC and MIGA.




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*This Summary is not an approved record