Economist Verónica Serafini warned about the fragility of the contributory social security system in Paraguay, where only 25% of the population makes contributions to the Institute of Social Welfare (IPS). The statement was made during the panel “Public Welfare Policies in Paraguay,” part of the congress “35 Years of Democracy: Economy, Society and State in Paraguay,” organized by the Center for Analysis and Dissemination of the Paraguayan Economy (Cadep).
According to Serafini, the model imported from European welfare states of the industrial era does not adapt to the Paraguayan reality, marked by agro-exports, low generation of formal jobs, and high rurality. “Half of women are left out because they are not in the labor market and unpaid work in social reproduction is not recognized,” she explained. Even among those who work, many are in precarious conditions, as is a significant portion of men.
Coverage is even more critical among the elderly: only 15% of adults over 65 receive a pension. Social protection is concentrated in the two highest income quintiles, while for self-employed or informal workers, the contribution can reach 25% of the minimum wage, with no employer contribution.
Serafini criticized the priority given to macroeconomic stability at the expense of household stability. “Without income stability and access to services, one cannot speak of well-being,” she stated. She also warned that population aging in Paraguay will occur in half the time it took in Europe, requiring reforms that reconcile shared financing and fiscal sustainability.