The Maquila Regime in Paraguay: A Program That Promotes Female Employment

by | Dec 14, 2024 | FDI Latin America

The Maquila Regime in Paraguay has emerged as a transformative program, fostering industrialization while significantly contributing to female employment. Currently, 44% of the jobs generated under this initiative are held by women, underscoring its critical role in promoting women’s economic empowerment. This remarkable achievement highlights the regime’s ability to drive job creation and expand opportunities for women, particularly in industries where they have traditionally been underrepresented.

A Catalyst for Industrial Growth and Inclusion

In recent years, the Maquila Regime in Paraguay has become a pivotal tool in the country’s industrialization efforts. Its success is measured not just in terms of economic output but also by its social impact. Natalia Cáceres, Executive Secretary of the National Council of the Maquila Export Industry (CNIME), has emphasized the program’s ability to diversify sectors and broaden employment opportunities for women. Initially concentrated on manufacturing, the Maquila Regime has expanded into services, creating technology, customer service, and logistics jobs.

One notable achievement of the program is the growing participation of women in traditionally male-dominated industries, such as auto parts and metalworking. Over the past four years, female labor participation in these sectors has risen significantly, with the auto parts industry experiencing a 17% increase and the metalworking industry seeing an astonishing 130% growth. This surge is attributed to the high demand for precision in manufacturing processes, where women’s fine motor skills contribute to the superior quality of products. “These sectors have experienced remarkable growth due to the high demand for precision in processes—a skill women excel in,” Cáceres stated.

Record-Breaking Export Growth

The Maquila Regime in Paraguay has also proven to be a powerful driver of the South American nation’s export economy. As of October 2024, maquiladora companies reported exports totaling USD 918 million. This marks a significant milestone, as exports under the program are expected to surpass the 2023 figures by USD 76 million, achieving historic levels. Such growth demonstrates the economic viability of the Maquila Regime and highlights its role in meaningfully integrating women into the workforce.

The export-driven nature of the program ensures that participants are exposed to global standards and practices, which can enhance their professional skill sets. Women employed under the regime often acquire expertise in international trade, logistics, and quality assurance, enabling them to pursue diverse career paths.

Investment in Skills Development

A key factor contributing to the success of the Maquila Regime in Paraguay is its emphasis on training and development. Companies under this program recognize the value of investing in their workforce, particularly in equipping women with skills to enhance their employability. This is particularly evident in the intangible services sector, where companies offer language training in English and Portuguese. Such programs enable women to acquire highly sought-after skills in the global marketplace, opening doors to better career opportunities.

Between 2020 and 2024, female employment in the services sector increased by 72%, reflecting the effectiveness of these initiatives. Language training, in particular, has been transformative, allowing women to access roles in customer service, international business, and remote work opportunities. These skills benefit the individuals involved and contribute to the overall competitiveness of Paraguay’s labor force on the global stage.

Empowering Women in Unique Ways

One of the most inspiring aspects of the Maquila Regime in Paraguay is its commitment to inclusive employment opportunities. Mega Plásticos, a standout participant in the program, has made headlines for its efforts to employ incarcerated women. This initiative allows these women to learn a trade, earn an income, and support their families while serving their sentences. Moreover, the program facilitates social reintegration by equipping them with skills that enhance their prospects for employment upon release. “The Maquila program has fostered inclusive employment opportunities, enabling many women to support their families and learn a trade, facilitating their social reintegration,” said the CNIME representative.

Bridging the Gender Gap in the Workforce

While the Maquila Regime’s impact on female employment is noteworthy, it also addresses broader issues of gender inequality in the workforce. The program challenges stereotypes and sets new norms for female participation in Paraguay’s labor market by creating opportunities in industries where women have been traditionally underrepresented. The growth in female employment in the auto parts and metalworking sectors is a testament to the changing landscape, where women are increasingly recognized for their skills and contributions.

The program’s focus on skill development further helps to bridge the gender gap. Women who participate in Maquila training programs often emerge with a competitive edge, making them valuable assets to employers. This, in turn, inspires other women to enter the workforce, creating a ripple effect that benefits the entire economy.

Economic Empowerment Through Export-Oriented Industries

The export-oriented nature of the Maquila Regime in Paraguay amplifies its impact on women’s economic empowerment. By engaging in industries that are deeply integrated with global supply chains, women gain exposure to international business practices and standards. This experience boosts their confidence and enhances their employability in high-demand fields. The ability to contribute to Paraguay’s export success further reinforces its value in the workforce and underscores the importance of creating equitable employment opportunities.

Looking Ahead

As the Maquila Regime expands, its potential to drive inclusive growth remains immense. By focusing on industries with high growth potential and emphasizing skill development, the program ensures that women are included in Paraguay’s industrialization journey. The projected export increase and the ongoing diversification of sectors are positive signs of sustained growth.

Moreover, the program’s emphasis on social inclusion sets it apart as a model for other countries to emulate. Initiatives like those by Mega Plásticos demonstrate that economic development and social progress can go hand in hand. The Maquila Regime proves that inclusive policies can lead to transformative outcomes by empowering women, particularly those from marginalized communities.

Conclusion

The Maquila Regime in Paraguay is more than just an economic program; it is a vehicle for social change. Promoting female employment, investing in skills development, and fostering inclusive practices have set a benchmark for other nations to follow. As the program continues to grow and evolve, it promises to create a more equitable and prosperous future for Paraguay, where women play a central role in shaping the nation’s industrial and economic landscape.