Identifier
Created
Classification
Origin
06ASUNCION1028
2006-10-11 11:36:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Asuncion
Cable title:  

PARAGUAY: MCC COUNTRY SELECTION AND DELIVERY OF

Tags:  EAID PREL PGOV ETRD ECON KMCA MCC PA 
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VZCZCXRO5593
RR RUEHLMC
DE RUEHAC #1028 2841136
ZNR UUUUU ZZH
R 111136Z OCT 06
FM AMEMBASSY ASUNCION
TO RUEHC/SECSTATE WASHDC 4894
RUEHLMC/MCC WASHINGTON DC
INFO RUCNMER/MERCOSUR COLLECTIVE
UNCLAS ASUNCION 001028 

SIPDIS

SIPDIS
SENSITIVE

STATE FOR EB/IFD/ODF

E.O. 12958: N/A
TAGS: EAID PREL PGOV ETRD ECON KMCA MCC PA
SUBJECT: PARAGUAY: MCC COUNTRY SELECTION AND DELIVERY OF
INDICATOR SCORECARDS TO CANDIDATE COUNTRIES

REF: STATE 160008

UNCLAS ASUNCION 001028

SIPDIS

SIPDIS
SENSITIVE

STATE FOR EB/IFD/ODF

E.O. 12958: N/A
TAGS: EAID PREL PGOV ETRD ECON KMCA MCC PA
SUBJECT: PARAGUAY: MCC COUNTRY SELECTION AND DELIVERY OF
INDICATOR SCORECARDS TO CANDIDATE COUNTRIES

REF: STATE 160008


1. (SBU) The USAID director delivered the MCC Scorecard and
talking points to Minister Carlos Walde, President Duarte,s
Economic Advisor on Wednesday, October 4. Paraguay,s
"performance" against the MCA median on each of the indicator
areas related to ruling justly, economic freedom, and
investing in people, did not shift markedly from the two
previous years, with the exception of the country,s
improvement in "government effectiveness" and its drop in the
all-important "control of corruption" indicator.


2. (SBU) While Walde was pleased to see the improvement on
"government effectiveness," he was more seized with
Paraguay,s performance on "control of corruption," echoing
his reaction two weeks earlier upon review of Paraguay,s
results on the World Bank,s Governance index (which also
serves as the base data for the MCC,s corruption index).
Paraguay continues to rank near the bottom in terms of
perceived ability to control corruption - a key indicator not
only for MCA Compact eligibility, but an important ongoing
factor that foreign investors will always gauge before making
business decisions.


3. (SBU) It was largely in recognition of Paraguay,s
declared commitment to address head-on systemic corruption
problems, and generally promising performance in other MCA
areas, that the country was selected to receive MCA Threshold
Country Program assistance. USAID, in cooperation with more
than 20 Government of Paraguay (GOP) institutions, civil
society, and the private sector, rapidly began implementation
this summer of the ten component USD 34.5 million MCA program
to combat corruption, via the strengthening of public systems
and institutions to combat impunity, and by promoting
business formalization.


4. (SBU) Even though the MCA program has just begun in
Paraguay, the latest MCA indicator data, as well as the
country,s slipping standings in other respected global
competitiveness rankings, have clearly caught the attention
of Walde and other senior GOP officials. This continued
attention and their continued commitment are essential if
Paraguay is to achieve by 2008 the hard performance targets
of the MCA Threshold program.

CASON

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