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Paraguay Business
The business sector was a relatively weak interest group and
generally supported the government. The local business community
was quite small, reflecting both the country's low level of
industrialization and the presence of many foreign-owned financial
institutions and agro-processing firms. Although local businessmen
traditionally supported the Liberal Party, the political and
monetary stability of the Stronato appealed to business leaders and
made them cooperate closely with the Colorado Party and the
government. Furthermore, businesses that strongly supported the
government accrued considerable financial benefits, whereas those
who were uncooperative placed their businesses in jeopardy. In an
effort to increase its influence over the business sector, the
government encouraged the formation of associations of businessmen
and industrialists. The two leading business associations--the
Federation of Production, Industry, and Commerce (Federación de la
Producción, la Industria, y el Comercio--Feprinco) and the
Paraguayan Industrial Union (Unión Industrial Paraguaya--UIP)--each
had seats on the Council of State. The Colorado Party also
maintained relations with the business sector through its ancillary
organizations.
The business sector began to define some independence from the
government, however, following the country's economic slump in the
early and mid-1980s and a perceived lack of government response to
the problem. For example, Feprinco president Alirio Ugarte Díaz
spoke out against the government's economic policies, asking for
action in reviving the economy and eliminating corruption. Although
neither the Feprinco nor the UIP participated in the national
dialogue in 1987, both submitted requests to the government for
major policy changes to reverse the economic slump.
Data as of December 1988
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