Paraguay : decentralization, subnational government, citizen participation and the process of democratization -- a diagnostic analysis

For much of its history, centralization was further reinforced by the existence of dictatorial governments -- perhaps the most authoritarian of which functioned from the mid-1950s to the end of the 1980s. In the aftermath of the fall of the dictatorial regime in February, 1989, Paraguay experienced, in May 1989, its first democratic elections in 60 years, followed 2 years later by the country"s first direct election of Municipal Intendentes (Mayors). In turn, based on the provisions of its new constitution (1992), in May 1993 Paraguay"s citizens selected the nation"s first elected regional officials -- 17 Departmental Governors and the membership of each of the country"s 17 Juntas Departamentales (Departmental Councils). Encouraged by these developments, many Paraguayans have increasingly focused on subnational government as an important vehicle for consolidating democracy in their country. This in turn has led to growing concern about the very limited fiscal and human resources available to most Municipal and Departmental Governments. Consequently, various efforts at strengthening the country"s system of subnational governance have been initiated. Thus, while the situation remains very fragile, Paraguay has clearly embarked upon the dual processes of decentralization and democratization. A key element of this process is the strengthening and clarifying of the roles of the country"s 17 Departmental and 217 Municipal Governments as part of efforts to modernize and democratize the Paraguayan state. The study that follows details both this process of development and provides an analysis of many of the fiscal and organizational issues facing subnational government in Paraguay. It concludes by urging the following policies and activities to further support and encourage the twin processes of decentralization and democratization in Paraguay. (1) With Paraguay"s strong tradition of centralism, it is critical to restructure the country"s basic legal framework in a way that encourages the development of decentralized governance. Consequently, support and TA to the Congress of Paraguay is required both to facilitate rewriting national legislation to encourage decentralization and democracy and to make that body more responsive to popular requests for enhanced local control and citizen participation. (2) Since virtually all important public services in Paraguay are currently administered by the national government in a very highly centralized manner, it is of critical importance to work with those national ministries that are providing services that experience has shown are very effectively delivered at the local level and that have indicated some support for decentralization in order to encourage their moving in that direction. (3) Of the many factors enabling local governments to function effectively, none is more important than adequate revenue resources. As a result, policies should be pursued to enhance local government revenue generation and management capacities. (4) Because it is critical that the forces supporting decentralization work in collaboration rather than conflict, the well-being of the twin processes of decentralization and democratization in Paraguay requires clarifying the respective roles of Municipal and Departmental Governments. (5) Many local governments in Paraguay will not, in the foreseeable future, have the capacity to effectively administer many key public services. Strengthening Departmental Governments is thus a critical step in effectively carrying out decentralization policies within Paraguay. (6) Because there is strength in unity, significant efforts should be made to enhance the unity of subnational governments by strengthening associations of those organizations where they currently exist and especially by helping develop the more effective of them. (7) Since the goal of decentralized government is to enhance the participation of the average citizen in the process of democratic governance, it is crucial to support the development of effective citizen participation at all levels of Paraguayan government and society. (Author abstract, modified)