Paraguay’s Congress has wide-reaching authority. The president has fewer constitutional powers than most other Latin American counterparts, and the fact that the governing and opposition party are both of competing factions makes law-making complicated due to cross-party alliances or voting blockades.

After several banking crises in the 1990s and early 2000s, the legal and regulatory framework of banking supervision has improved considerably and became more risk-based, increasingly meeting international standards. Further does the government pursue a consistent policy of monetary and fiscal stability.

The strength of political parties and their clientelistic networks is still limiting the space available to civil society actors, yet protests by secondary and university students managed to provoke some changes in educational policies.

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