Paraguay’s enabling environment for civil society is largely disabling, shaped by persistent inequality, weak rule of law and growing pressure on democratic institutions. Although the economy is projected to grow above the regional average in 2025 and 2026, these gains have not translated into better income distribution or sufficient poverty reduction. The State continues to face major social debts related to social security, informal employment, gender gaps, income levels, access to land and corruption.

Governance indicators reflect these challenges. Paraguay ranks poorly in Transparency International’s Corruption Perceptions Index and the World Justice Project index, with low scores on accountability, fair laws, open government and access to impartial justice. Democratic indicators have also deteriorated, with The Economist’s Index moving the country from “flawed democracy” in 2023 to “hybrid regime” in 2024.

The legal framework remains a key threat to civil society, particularly following the enactment of Law 7363/24 on the control of social organisations. Although not yet in force due to pending regulations, it could quickly be implemented by the Executive Branch. This has been accompanied by public narratives questioning the contribution of CSOs and by trends toward criminalisation, including the targeting of some organisations amid disputes between ruling party parliamentarians and international cooperation agencies.

Despite these restrictions, civil society organisations continue to work collaboratively to defend democracy, the rule of law and inclusive social development, seeking to reduce setbacks and sustain civic participation.