Accounting for 30% of its GDP and 40% of its exports, agriculture is a key sector of the Paraguayan economy. Thus agriculture risks have extensive repercussions on economic growth, public finances, and the development of agriculture supply chains and rural poverty. Paraguay loses approximately $237 million on average every year, or 5.4% of agriculture GDP, due to production risks that could be managed along the main agriculture supply chains. Following a request by the Government of Paraguay, the World Bank conducted the Agricultural Sector Risk Assessment in Paraguay (Download the PDF). The study aimed at identifying, quantifying, and prioritizing agriculture risks, as well as proposing solutions for reducing the volatility of agriculture output and incomes of family farmers.
Diego Arias is Lead Agriculture Economist for the World Bank. His work has focused on innovative agriculture development and risk management projects and advisory services in Latin America and Africa. Previous to the World Bank, he worked at the Inter-American Development Bank as Natural Resources Economist and as a commodity trader for coffee, rice and petroleum products. Diego holds a PhD in Agribusiness and Environmental Economics from Polytechnic University of Valencia, an MBA from Sacred Heart University in Luxembourg and a Masters in International Development from Harvard University.