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This paper will examine the Paraguayan growth experience since the early 1960slooking at different periods to try to identify the main factors behind particular levels performance. Studying the determinants of growth is particularly important for a country like Paraguay that just recently recovered the most basic political rights and is still trying to consolidate its gain by building effective democratic institutions. Thus far the positive political trend has not been accompanied by economic growth and less poverty. This paper is part of the project "Explaining Economic Growth Performance" launched by the Global Development Network (GDN). The purpose of this project is to explain economic growth performances across seven regions of the world.