Paraguay

Biofuel as an engine of growth

Like other nations around the world, developing countries depend heavily on petroleum to drive their economies. In this project, researchers discovered that Paraguay has the technological knowledge and agricultural conditions to develop a sugarcane ethanol industry to support domestic demand.

At the same time, researchers identified the need for a deeper institutional capacity at the state level to regulate the sector, attract investment, provide basic infrastructure and reduce the possibilities of domination by a handful of companies. They also noted that, as in many countries, it would be challenging to develop a sustainable industry whose benefits are shared equitably.

The researchers made several recommendations aimed to develop a cooperative model for the industry, build state capacity and make the industry attractive to European markets by meeting sustainable development criteria. After sharing findings with Paraguayan stakeholders, Anil Hira has continued his research on the industry, particularly in the area of governance.