Paraguay’s Struggle with Organized Crime, Corruption, and Related Issues

Overview of Paraguay’s Challenges

This report provides an in-depth analysis of Paraguay’s performance in addressing organized crime, corruption, and related issues. The country faces significant challenges that threaten its stability, economy, and human rights.

Crime and Violence: A Significant Problem

• Paraguay has a substantial issue with organized crime, particularly in the Tri-Border Area with Brazil and Argentina.
• Criminal groups engage in:
  • Drug trafficking
  • Cigarette smuggling
  • Arms trafficking
  • Money laundering
• The COVID-19 pandemic has increased demand for smuggled goods, exacerbating social and economic problems.

Corruption: A Widespread Menace

• Corruption is pervasive in Paraguay, especially among politicians and government officials.
• The country’s political leadership and governance are major concerns, with an “impunity pact” between parties to avoid investigating corruption allegations.
• High-ranking officials have been accused of tax evasion, and influential people have used their power to persecute individuals who seize illegal shipments.

Justice and Security: A System in Crisis

• Corruption and politicization are widespread within the judicial system, undermining public confidence and contributing to impunity for criminals.
• The state struggles to control areas with a strong criminal presence, including most of the physical borders with Brazil and areas controlled by the Paraguayan People’s Army.

Economic and Financial Environment: A High-Risk Country

• Paraguay has a long-standing history of being a high-risk country for money laundering and terrorist financing.
• Criminals are increasingly using Paraguay to launder illicit money through:
  • Real estate
  • Cattle ranches
  • Other assets

Civil Society and Social Protection: Under Threat

• Despite efforts to improve victim support and protection, several high-profile cases have demonstrated the government’s failure to protect victims and witnesses.
• Journalists and media workers continue to face threats and attacks, with some journalists killed as a result. Human rights defenders have also faced an increase in stigmatization and judicial persecution.

Conclusion

Paraguay faces significant challenges in addressing organized crime, corruption, and related issues, including corruption within the government, inadequate justice and security systems, economic instability, and threats to civil society and social protection. Addressing these concerns is crucial for the country’s stability, prosperity, and respect for human rights.