Social and solidarity economy: economic upturn following the COVID-19 pandemic

Project description

Title: Social and solidarity economy: a strategy for the economic reactivation of vulnerable population groups following the COVID-19 pandemic.
Lead executing agency: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Paraguay, Mexico
Partner: Mexican Agency for International Development Cooperation (AMEXCID), Technical Secretariat for Economic and Social Development Planning (STP) of Paraguay, Ministry of Foreign Relations (MRE) of Paraguay
Overall term: 2021 to 2023


The Paraguayan Ministry of Social Development (MDS) is currently coordinating the implementation of ‘Jajapo Paraguay’, or the National Poverty Reduction Plan. The aim is to reduce poverty among the most deprived segments of the country‘s population.

The COVID-19 pandemic has had a particularly severe economic impact on these people and has exacerbated pre-existing inequalities. New measures are therefore required to stimulate the economy and, most importantly, to give vulnerable economic sectors a more prominent role.

Paraguay is being supported in its efforts through a triangular cooperation project, drawing on experiences gained in Mexico where the social and solidarity economy has been fostered for over thirty years. The measures that have been implemented in Mexico are being adapted to suit the situation in Paraguay and are designed both to promote productive, financial and consumer-related inclusion and to improve networking between organisations in the social economic sector.


Paraguay is successful in implementing a strategy for economic reactivation that softens the negative impacts of the coronavirus pandemic on vulnerable sections of the population.


The project operates in three key areas: 
Firstly, a strategy is being developed to promote the social and solidarity economy. This involves transferring technical and methodological expertise from Mexico to Paraguay and providing support for capacity-building and sharing experiences. 

Secondly, pilot projects are being carried out to demonstrate application of the adapted tools and methods from Mexico in three municipalities in Paraguay: one in the countryside, one in the city, and one among the country’s indigenous population. These pilot projects will eventually be implemented within the framework of the National Poverty Reduction Plan.

Finally, the project is sharing the knowledge gained, positive experiences, findings and lessons learned as a means of promoting regional exchange. The aim of this is to help with the implementation of the Regional Agenda for Inclusive Social Development.

Last update: July 2021

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