Harvard Center for International Development 212d ago

“Macroeconomic stability is a four-legged table—monetary, fiscal, financial, and exchange rate. If one leg wobbles, everything on top crashes.” — Carlos Fernández Valdovinos, Minister of Economy & Finance, Paraguay At Harvard CID’s Friday Speaker Series, Fernández Valdovinos traced Paraguay’s rise from crisis to credibility—how a nation once in default and with over 50% poverty became investment grade. After the 1990s turmoil, reforms anchored on floating the exchange rate, central bank independence (1992), stronger regulation, and fiscal discipline under a 10–10–10 tax model and Fiscal Responsibility Law. Today, Paraguay grows faster than its neighbors with lower inflation and debt. Since 2023, his ministry has enacted 20 reform laws, merged tax agencies, and lifted revenue to 11.5% of GDP—without raising rates. Behind the numbers, he emphasized policies that reach people: targeted transfers, an elderly pension, and daily school meals for over one million children. His closing message blended economics with leadership: plan beyond election cycles, set clear goals, delegate and communicate, mix experience with youth, protect credibility, and act decisively. “You won’t finish the house,” he said, “but leave the institution stronger than you found it.” Visit our website: https://www.hks.harvard.edu/centers/cid Please follow us @HarvardCID on: LinkedIn - https://www.linkedin.com/company/harvardcid Instagram - https://www.instagram.com/harvardcid/ Soundcloud - https://soundcloud.com/harvard-cid Bluesky - https://bsky.app/profile/harvardcid.bsky.social Stay up to date with CID Events and jobs/opportunities by signing up for our newsletter: https://www.hks.harvard.edu/centers/cid/subscribe #HarvardCID #FridaySpeakerSeries #Leadership #EconomicReform #Paraguay #DevelopmentEconomics #Macroeconomics #FiscalPolicy #InclusiveGrowth #PublicLeadership #HarvardKennedySchool