Chapter 8: Paraguay: The Supremacy of Informality in Public Administration

This chapter assesses public administration in Paraguay. It argues that the country's public administration and public personnel structures have been shaped by a predominance of informal decision-making norms, patron–client relations, exceptional legislative interference in what elsewhere tend to be executive prerogatives, and weak accountability mechanisms of a state largely captured by a small oligarchy. In this context, administrative reform has been mostly instigated by external actors—donors and international financial institutions—and only achieved incremental progress in, in particular, the modernization of public finance institutions during periods of economic crises or political change when external demand coincided with domestic pressure. Except for some “pockets of efficiency,” Paraguay thus remains a benchmark case of a neopatrimonial state in a formally democratic Presidential system, in which informal patron–client relations trump formal bureaucratic structures—albeit one in which the legislature has exceptional influence over administrative matters and public sector jobs are exceptionally dominant in clientelist exchanges of state resources.