In this article, our economic analyst César Addario, economic advisor to Salvadoran President Nayib Bukele, proposes the creation of a universal pension of 1,500,000 guaraníes per month for all individuals over the age of 65 in Paraguay. The initiative aims to ensure a dignified retirement without the need for prior contributions or tax increases, through a financing model based on budget reallocations, revenue from binational companies, and the fight against tax evasion.

Paraguay is facing a structural crisis in its pension system, characterized by informality, inequality, and a lack of sustainability. In this analysis, we explore why pension reform in Paraguay—based on a hybrid model that combines a state-run pay-as-you-go pillar with private individual capitalization—could offer a viable solution.

With the clean energy from Itaipú as its greatest strategic asset, Paraguay is emerging as a new hub for artificial intelligence development in Latin America. Can our country become a regional technology leader before its energy surplus runs out?