The findings of this report confirm thelong deeply felt need for modernization of the publicprocurement and contract management functions in Paraguay.The report recommends specific actions on the legalframework, procedures, organization and resources conduciveto achieve that objective. however, modernization should notbe approached in isolation from other state modernizationinitiatives. On the contrary, the success of procurementmodernization is highly contingent on the successfulimplementation of reform initiatives in other areas such asfinancial management, civil service, government structure,the Office of the Comptroller General, etc. To a certainextent Paraguay is overwhelmed by parallel technicalassistance operations competing for government attention andresources. The chalenge is to achieve an effectivecordination of the various modernization initiative makinguse of and enhancing the limited poool of nationalresources, and bringing in different external views andexpertise. The goals and pace of reform should be consistentwith the country's technical and financial absorptive capacity.