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Generally, this marked increase in economic activity has benefitted the majority of the population and is reflected in improved life expectancy and literacy.
Nevertheless, there are indications that the growth in income has not been even. While employment has risen, the index of real wages has fallen from 100 in 1969 to 91.9 in 1981. A 1980 survey conducted by the Paraguayan Ministry of Finance showed that 42 percent of all households in the Asuncion area had incomes of less than $3,540 per year or an annual per capita income of not more than $761 for an average family of 4.65 persons. Of the households surveyed, only 17 percent had annual incomes in excess of $8,880 per year.
Even though most of the population has benefitted from the rapid growth of the economy, there is growing concern about the distribution of income and wealth. While the Government continues to express support for developing a private industrial sector, the lack of one has contributed to a rapid expansion of state-owned enterprises. These are controlled by members of the Colorado Party, and employment even at the lowest levels often depends upon party membership or official connections. Also, contracts for and employment in government-related projects, loans in the agricultural sector, and the ability to participate in the flourishing unregistered trade are largely dependent upon party membership and official approval. Close economic relationships between insiders and government officials have led to widespread allegations of favoritism and corruption.
There is little religious or ethnic discrimination. A number of important religious and ethnic groups live harmoniously in all sectors of the society. The right to own property is guaranteed by the Constitution. There are very serious land titling problems, however, particularly in the rural sector, resulting from confusion over conflicting land claims as well as from efforts by unscrupulous operators to force small farmers off their land. Of the 312,000 families settled, 160,000 lack definitive title to their land.
The traditional social system limits the participation of women, especially those from lower income groups. An increasing number of women, nevertheless, are participating effectively in various professions, business, and the artistic life of the country. Women normally receive less remuneration than men for comparable work.
The Government uses a laissez-faire approach to the provision of many services including health care and education. Government expenditures per capita on health are about $8 per year, one of the lowest in the hemisphere. Nevertheless, life expectancy in 1980 was reportedly 65 years, compared to 56 years in 1960. Infant mortality also has fallen sharply from 109 per 1,000 live births in 1962 to 47 in 1980. Other statistics on health and sanitation in Paraguay are not encouraging. In 1978, 31.7 percent of all reported deaths were children of four years and under. As recently as 1975, only 13 percent of Paraguayans had access to safe water. There is a concentration of health professionals in Asuncion where 75 percent of such personnel service about one-third of Paraguay's population.
Government expenditures per capita on education averaged $25 in 1981. Total school-age enrollment, as a percentage of the school-age population, was 56 percent in 1981 compared with 49 percent in 1962. University and technical school enrollment has grown from a total of 9,000 in 1960 to 57,000 in 1981. Adult literacy is estimated at just over 80 percent. Nevertheless, there remains a fundamental problem: development of human resources has not kept up with overall economic growth. Teachers' salaries are low, particularly in rural areas, normally $80 to $100 per month. Educational achievement in rural areas is low, and the average educational level is
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