Transition to an individual account-based system in Paraguay's pension system
17 de February de 2026
Transition to an individual account-based system in Paraguay's pension system
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Análisis estratégico sobre institucionalidad, economía y desarrollo publicados en medios especializados.
Transition to an individual account-based system in Paraguay's pension system
The first three installments examined the Yacyretá Binational Entity as a strategic, binational project: its origins in 1973, its partial operation through 2011, the tariff disparities, and the technical and environmental impact of a dam that has yet to reach its full design capacity. With 3,200 MW of installed capacity and millions in cross-debts, the project remains incomplete. In this installment, we address the core of the problem: the financial maze that determines its future.
In previous installments of this series on financing international projects in Latin America, we examined how sovereign risk and exchange rate volatility influence the cost of capital for long-term investments. This article focuses on inflation, an equally critical factor that operates quietly but relentlessly.
Today, with 20 generating units, Yacyretá produces approximately 20,000 GWh annually, meeting 15–20% of Argentina’s electricity demand and a significant portion of Paraguay’s. From a hydrological standpoint, the Paraná River has an average flow of 14,000 m³/s, with peaks of 50,000 m³/s during floods.
Let’s imagine a company that is considering a $500 million lithium project in northern Chile. The geology looks promising. Global demand for batteries is on the rise. The technology exists. However, the project may never come to fruition.
Architect of Latin American economic development.
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