Understanding the Determinants of Economic Informality in Paraguay A
For several years, the government of Paraguay has sought to address the issue of informality, both as a response to poverty reduction and a means to expand its tax base. While effort has been undertaken to describe informality, the government lacks
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Understanding the Determinants of Economic Informality in Paraguay
Michael J. Pisani • Fernando G. Ovando Rivarola
Understanding the Determinants of Economic Informality in Paraguay A Kaleidoscope of Measures
Michael J. Pisani Department of Management Central Michigan University Mount Pleasant, MI, USA
Fernando G. Ovando Rivarola Centro de Análisis y Difusión de la Economía Paraguaya Asunción, Paraguay
ISBN 978-3-030-24392-0 ISBN 978-3-030-24393-7 (eBook) https://doi.org/10.1007/978-3-030-24393-7 © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2019 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Palgrave Pivot imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
This book is dedicated to my wife Jana for her love and support through life’s journey together. It is also dedicated to the Cáceres family (Asunción, Paraguay) for their friendship and kindness to a foreigner in their country. —Michael J. Pisani A mis padres Elsa y Carlos por la paciencia y apoyo de siempre. —Fernando G. Ovando Rivarola
Preface
Paraguay is a bastion of informality. But few know this as Paraguay is often a bypassed and forgotten land-locked South American country. Paraguay, in spite of its isolation and land-locked location, has achieved remarkable economic growth in the last few years. Paraguay is poised to reap the benefits of its relatively small but very young and urbanizing population and its abundant natural resources amid a government institutional base that is quickly professionalizing. Paraguay is a country on the move that others may seek to learn from. Yet in Paraguay, not only are most workers actively engaged in the informal economy, but a majority of formal business co
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