IntroWith a GDP per capita of $4,100, Paraguay is the second poorest country in all of South America, just after Bolivia. In this article I will try to explain some of the reasons behind the lack of growth of the Paraguayan economy. I believe that the fact of being a landlocked nation, without direct access to a major ocean waterway, the political instability of the last 110 years and a large part of the population severely lacking adequate water and sanitation resources, are all factors that combine to play a crucial role for the poor of Paraguay. economic development. The document will be divided into three sections, each of which will explore each topic with in-depth analysis. I will first look at the problems Paraguay faces as a landlocked nation. I will focus on sanctions that may be imposed on them by outside nations in the form of taxes and access restrictions. I will also examine the desperate need for this incessant access to an open waterway for an agriculture-based economy like Paraguay's. Next I will examine the instability that has plagued Paraguay since the early 20th century. I will focus on the near-constant fluctuation among military rulers and the negative effects a lack of stability has on growth and investment. I will also examine the role corruption plays in generating instability and its effects on the overall economy. Finally, I will examine the effects that an inadequate water and sanitation system has on the ability of poor people to become more productive members of the general workforce. Geographic Restrictions A landlocked nation is a nation that does not enjoy direct access to a waterway or ocean. 48 countries around the world are identified as landlocked and their economies are directly affected by non... middle of paper ......(1999): 179-232.Haller, Laurence, Guy Hutton and Jamie Bartram . “Estimating the costs and health benefits of improving water and sanitation globally.” Journal of Water and Health 5.4 (2007): 467-480.Hausmann, Ricardo. "Prisoners of Geography". Foreign Policy (2001): 45-53.Mauro, Paolo. "Corruption and growth". The Quarterly Journal of Economics110.3 (1995): 681-712.Rose-Ackerman, Susan. Corruption and government: causes, consequences and reforms. Cambridge University Press, 1999. Sohail, Muhammed and Sue Cavill. “Water for the Poor: Corruption in Water Supply and Sanitation.” Global Corruption Report 2008: Corruption in the Water Sector (2008): 44-52. Woolsey, L.H. "The Bolivia-Paraguay Dispute." The American Journal of International Law 23.1 (1929): 110-112. Sachs, Jeffrey. The end of poverty: economic possibilities for our time. Penguin. com, 2006.