The Context

Paraguay is a landlocked, upper-middle income country. Despite having a strong economy, one in four people live in poverty. 

The main causes of poverty among small-scale farmers are unstable prices, inadequate pay, low productivity, limited use of technology, lack of access to financial services and weak rural organizations. 

Women are particularly disadvantaged due to inadequate access to public goods and the deterioration of family farms as men migrate to urban areas. In many cases, their income is insufficient to cover basic needs. 

Sixty-six per cent of Indigenous People live in poverty. Many suffer from food insecurity, and a lack access to safe water, electricity and other basic services.  

Paraguay’s environmental situation is serious, with high rates of deforestation and soil degradation. Yields for the country’s major crops are expected to decline if agricultural practices are not made more sustainable. 

The Strategy

IFAD creates and strengthens rural organizations that provide members with the tools they need to manage their own development, including soil conservation practices and efficient irrigation. 

Key activities include: 

• boosting rural people’s capacity to set up sustainable, profitable rural enterprises with access to markets; 

• giving small-scale farmers access to financial services, including savings, credit and insurance; and 

• strengthening resilience to climate change. 

Results-based country strategic opportunities programme (COSOP) Arabic | English | French | Spanish

Country facts

• One in four people in Paraguay experience food insecurity. 

• Over 80 per cent of the food consumed by Paraguayans comes from family farms.