Nepotism scandal will pose reform risks in Paraguay

Significance

The move follows a mounting nepotism scandal known as ‘nepobabies’ -- the appointment without any open selection process of many close relatives as ‘advisers’ to politicians in Congress. The scandal has highlighted the long-standing deficiencies in governance in Paraguay, where nepotism is endemic.

Impacts

• Pena’s hopes for significant foreign investment may be damaged by the threats to reform promises.
• The enduring dominance of the Colorado Party will militate against reform.
• Nepotistic practices will continue to undermine the competence and probity of civil servants and state companies’ management.