Paraguay

República del Paraguay Tetã Paraguái Republic of Paraguay
Coat of arms of Paraguay Flag Coat of arms
Motto: Paz y justicia  (Spanish) "Peace and justice"
Anthem: Paraguayos, República o Muerte
Capital (and largest city)	Asunción 25°16′S 57°40′W
Official languages	Spanish, Guaraní
Government	Constitutional republic
- President	Nicanor Duarte Frutos
- Vice President	Luis Castiglioni
Independence	from Spain
- Declared	May 14 1811
Area
- Total	406,752 km² (59th) 157,047 sq mi
- Water (%)	2.3
Population
- July 2005 estimate	6,158,000
- Density	15/km² 39/sq mi
GDP (PPP)	2005 estimate
- Total	$28.342 billion
- Per capita	$4,555
HDI  (2004)	0.757 (medium)
Currency	Guaraní (PYG)
Internet TLD	.py
Calling code	+595

Paraguay, officially the Republic of Paraguay, is a landlocked country in South America. It lies on both banks of the Paraguay River, bordering Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest, and is located in the very heart of South America. The name "Paraguay" is derived from the Guaraní word pararaguay meaning "from a great river." The "great river" is the Paraná River, which produces the greatest amount of hydroelectric power in the world.

Geography

File:Pa-map.png

Map of Paraguay

Paraguay is divided by the Rio Paraguay into the eastern region—officially called Eastern Paraguay (Paraguay Oriental) and known as the Paraneña region—and the western region—officially Western Paraguay (Paraguay Occidental) and also known as the Chaco.

The southeastern border is formed by the Paraná River, containing the Itaipu dam shared with Brazil. It is currently the largest hydroelectric power plant in the world, generating nearly all of Paraguay's demand for electricity. Another large hydroelectric power plant on the Paraná River is Yacyretá, shared by Paraguay and Argentina. Paraguay is currently the world's largest exporter of hydroelectric power.

The terrain is made up of grassy plains and wooded hills to the east. To the west, there are mostly low, marshy plains.

The local climate ranges from subtropical to temperate, with substantial rainfall in the eastern portions, though becoming semi-arid in the far west.

History

Europeans first arrived in the area in the early sixteenth century and the settlement of Asunción was founded on August 15, 1537, by the Spanish explorer Juan de Salazar. The city eventually became the center of a Spanish colonial province, as well as a primary site of the Jesuit missions and settlements in South America in the eighteenth century. Jesuit Reductions were founded and flourished in eastern Paraguay for about 150 years until their destruction by the Spanish crown in 1767. Paraguay declared its independence after overthrowing the local Spanish authorities on May 14, 1811.

Paraguay's history has been characterized by long periods of authoritarian governments, political instability and infighting, and devastating wars with its neighbors. Its post-colonial history can be divided into several distinct periods:

1811 - 1816:  Establishment of Paraguay

1816 - 1840:  Governments of José Gaspar Rodríguez de Francia

1840 - 1865:  Governments of Carlos Antonio Lopez and Francisco Solano Lopez

1865 - 1870:  War of the Triple Alliance

1870 - 1904:  Post-war reconstruction and Colorado Party governments

1904 - 1932:  Liberal Party governments and prelude to the Chaco War

1932 - 1935:  Chaco War

1935 - 1940:  Governments of the Revolutionary Febrerista Party and Jose Felix Estigarribia

1940 - 1948:  Higinio Morinigo government

1947 - 1954:  Paraguayan Civil War(March 1947 until August 1947) and the re-emergence of the Colorado Party

1954 - 1989:  Alfredo Stroessner dictatorship

1989 to date:  Transition to democracy

In addition to the Declaration of Independence, the War of the Triple Alliance and the Chaco War are milestones in Paraguay's history. Paraguay fought the War of the Triple Alliance against Brazil, Argentina and Uruguay, and was defeated in 1870 after five years of the bloodiest war in South America. Paraguay suffered extensive territorial losses to Brazil and Argentina. The Chaco War was fought with Bolivia in the 1930s and Bolivia was defeated. Paraguay re-established sovereignty over the region called the Chaco, and forfeited additional territorial gains as a price of peace.

The history of Paraguay is fraught with disputes among historians, educators and politicians. The official version of historical events, wars in particular, varies depending on whether you read a history book written in Paraguay, Argentina, Brazil or Bolivia. Even European and North American authors have been unable to avoid bias. Paraguay's history also has been a matter of dispute among Paraguay's main political parties, and there is a Colorado Party and Liberal Party official version of Paraguayan history.

Politics

Paraguay's politics takes place in a framework of a presidential representative democratic republic, whereby the President of Paraguay is both head of state and head of government, and of a pluriform multi-party system. Executive power is exercised by the government. Legislative power is vested in both the government and the two chambers of the National Congress. The Judiciary is independent of the executive and the legislature.

Politics in 1980s

After World War II, politics became particularly unstable. In the late 1980s, Paraguay was an authoritarian regime under the control of Alfredo Stroessner, who remained in office for more than three decades. Stroessner assumed power following a more open but highly unstable period in Paraguay's history. The political instability of the immediate postwar period, culminating in the civil war in 1947 have taught Paraguayans to equate open politics with weakness and authoritarian politics with strength.

The splits in the Colorado Party in the 1980s and the conditions that led to this—Stroessner's age, the character of the regime, the economic downturn, and international isolation—provided an opportunity for demonstrations and statements by the opposition prior to the 1988 general elections.

The PLRA leader Laíno served as the focal point of the opposition in the second half of the 1980s. The government's effort to isolate Laíno by exiling him in 1982 had backfired. On his fifth attempt, in 1986, Laíno returned with three television crews from the U.S., a former United States ambassador to Paraguay, and a group of Uruguayan and Argentine congressmen. Despite the international contingent, the police violently barred Laíno's return. However, the Stroessner regime relented in April 1987 and permitted Laíno to arrive in Asunción. Laíno took the lead in organizing demonstrations and diminishing somewhat the normal opposition party infighting. The opposition was unable to reach agreement on a common strategy regarding the elections, with some parties advocating abstention and others calling for blank voting. Nonetheless, the parties did cooperate in holding numerous lightning demonstrations (mítines relámpagos), especially in rural areas. Such demonstrations were held and disbanded quickly before the arrival of the police.

Obviously stung by the upsurge in opposition activities, Stroessner condemned the Accord for advocating "sabotage of the general elections and disrespect of the law" and used the national police and civilian vigilantes of the Colorado Party to break up demonstrations. A number of opposition leaders were imprisoned or otherwise harassed. Hermes Rafael Saguier, another key leader of the PRLA, was imprisoned for four months in 1987 on charges of sedition. In early February 1988, police arrested 200 people attending a National Coordinating Committee meeting in Coronel Oviedo. Forty-eight hours before the elections, Laíno and several other National Accord members were placed under house arrest.

Despite limited campaign activities, the government reported that 88.7 percent of the vote went to Stroessner, 7.1 percent to PLR candidate Luis María Vega, and 3.2 percent to PL candidate Carlos Ferreira Ibarra. The remaining 1 percent of ballots were blank or annulled. The government also reported that 92.6 percent of all eligible voters cast their ballots. The National Coordinating Committee rejected the government's figures, contending that abstention was as high as 50 percent in some areas. In addition, election monitors from twelve countries, including the United States, France, Spain, Brazil, and Argentina, reported extensive irregularities.

Shortly after the elections, researchers from the Catholic University of Our Lady of Asunción and the West German Friedrich Naumann Foundation released the findings of a public opinion poll that they had conducted several weeks earlier. The poll, which measured political attitudes of urban Paraguayans - defined as those living in towns with at least 2,500 residents -suggested that the Colorado Party had considerable support, although nowhere near the level of official election statistics. Asked for whom they would vote in an election involving the free participation of all parties and political movements, 43 percent named the Colorado Party; the PLRA, which finished second in the poll, was mentioned by only 13 percent of all respondents. Stroessner's name also topped the list of those political leaders considered most capable of leading the country.

Although contending that these results reflected the Colorados' virtual monopoly of the mass media, opposition politicians also saw several encouraging developments. Some 53 percent of those polled indicated that there was an "uneasiness" in Paraguayan society. Furthermore, 74 percent believed that the political situation needed changes, including 45 percent who wanted a substantial or total change. Finally, 31 percent stated that they planned to abstain from voting in the February elections.

Relations between militants and traditionalists deteriorated seriously in the months following the elections. Although Chaves and his followers had not opposed Stroessner's re-election bid, Montanaro denounced them as "legionnaires" (a reference to those Paraguayan expatriates who fought against Francisco Solano López and who were regarded as traitors by the original Colorados). By late 1988 the only major agencies still headed by traditionalists were the IBR and the National Cement Industry (Industria Nacional de Cemento). In September 1988, traditionalists responded to these attacks by accusing the militants of pursuing "a deceitful populism in order to distract attention from their inability to resolve the serious problems that afflict the nation." Traditionalists also called for an end to personalism and corruption.

In recent years, Paraguay has made important progress toward greater fiscal transparency. The fairly comprehensive financial administration law (1999) has been complemented by recent legal reforms that eliminated most tax exemptions, revamped revenue administration procedures and introduced standardized transparency requirements for public procurement, all of which reduce the scope for corruption. In addition, efforts are ongoing to clarify the relations between the government and the nonfinancial public enterprises (NFPEs), including through tariff adjustments that have reduced quasi-fiscal activities (QFAs) and the launching of external audits of the enterprises’ financial health carried out by international firms. However, Paraguay fails to meet several requirements (at times even basic ones) of the code: (i) the transparency and credibility of the budget as an expression of the government’s fiscal objectives and a guide to fiscal policy implementation are severely limited by the lack of an underlying consistent macroeconomic framework, the limited accountability imposed on the amendments introduced either by congress or the executive at both the approval and execution stages, and the lack of a modern framework for civil service; (ii) relations across different branches of government and between the latter and the rest of the public sector are not always clear and little information is provided on QFAs; (iii) few assurances of data quality are provided, as data reconciliation and assessments by the relevant national body are weak; and (iv) disclosure of fiscal information is sparse and its coverage not comprehensive.

Paraguay consists of seventeen departments and one capital district.

Economy

Paraguay has a market economy marked by a large informal sector that features both re-export of imported consumer goods to neighboring countries, and thousands of small business enterprises. Paraguay's largest economic activity is based on agriculture, agribusiness, and cattle ranching. Paraguay is ranked as the world's third largest exporter of soybeans, and its beef exports are substantial for a country of its size. A large percentage of the population derive their living from agriculture, often on a subsistence basis. Despite difficulties arising from political instability, corruption, and slow structural reforms, Paraguay has been a member of the free trade bloc Mercosur, participating since 1991 as one of the founding members.

Paraguay's economic potential has been historically constrained by its landlocked geography, but it does enjoy access to the Atlantic Ocean via the Paraná River. Because it is landlocked, Paraguay's economy is very dependent on Brazil and Argentina, its neighbors and major trade partners. Roughly 38 percent of the GDP derives from trade and exports to Brazil and Argentina.

Through various treaties, Paraguay has been granted free ports in Argentina, Uruguay and Brazil through which it sends its exports. The most important of these free ports is on the Brazilian Atlantic coast at Paranaguá. The Friendship Bridge that now spans the Paraná River between Ciudad del Este and the Brazilian city of Foz do Iguaçu permits about forty thousand travelers to commute daily between both cities, and allows Paraguay land access to Paranaguá. A vibrant economy has developed in Ciudad del Este and Foz do Iguaçu, mostly based on international commerce and shopping trips by Brazilian buyers colloquially called sacoleiros.

Bilateral EU-Paraguay trade in goods amounts to €437 million in 2005; the EU importing around €269 million and exporting roughly €168 million. In 2005, trade with EU represented 8.9% of total Paraguay’s trade. The EU market represents 13.7% of Paraguay exports and 6.1% of its imports.

While the country’s external debt remains satisfactory (40% of GDP), Paraguay’s economy is still driven by agricultural production (27% of GDP and 84% of exports). It is a structure which is very vulnerable to climatic factors and price volatility. In 2004 its main exports were soybeans (35%) and meat (10%). Because of the regional crisis, very limited economic growth (2.7% in 2005) and a population increase, GDP per capita has fallen considerably in the long term, standing at USD 1 155 in 2005. Combined with inequality, the aforementioned factors explain why poverty currently affects 40% of the population.

Although only ranked 112th out of 175 countries in the 2006 World Bank Doing Business ranking, Paraguay has ranked particularly well in the "Protecting Investors" sub-category within that index. The indexes vary between 0 and 10, with higher values indicating greater disclosure, greater liability of directors, greater powers of shareholders to challenge the transaction, and better investor protection, respectively.

The "Disclosure Index" for Paraguay is 6, whereas the Latin American region ranked only 4.3 (OECD countries ranked 6.3 on average). The country ranked 5 in "Director Liability Index," the same as OECD countries and better than the 5.1 attributed to its neighbours. In the "Shareholder Suits Index" category, Paraguay obtained 6 points, in contrast with 5.8 for its neighbours and 6.6 for OECD countries. The comprehensive "Investor Protection Index" attributed 5.7 to Paraguay, 5.1 to its neighbours and 6.0 to OECD countries on average.

Demographics

Asunción, the capital of Paraguay

Ethnically, culturally, and socially, Paraguay has one of the most homogeneous populations in Latin America. About 65% of the people are mestizos of mixed Spanish and Guaraní Indian descent. White 31%, unmixed Amerindian 1%, Asian (Chinese, Taiwanese and Japanese Okinawan) 2%.One trace of the original Guaraní culture that still endures nowadays is the Guaraní language, spoken by 94 percent of the population in the country. About 75 percent of all Paraguayans can speak Spanish. Guaraní and Spanish are both official languages. Small groups of ethnic Italians, Germans, Japanese, Koreans, Chinese, Arabs, Brazilians, and Argentines settled in Paraguay and they have to an extent retained their respective languages and culture, particularly the Brazilians.

Paraguay's population is distributed unevenly throughout the country. About 56% of Paraguayans live in urban areas. The vast majority of the people live in the eastern region near the capital and largest city, Asuncion, that accounts for 10% of the country's population. The Chaco, which accounts for about 60% of the territory, is home to less than 2% of the population.

The country is predominantly Roman Catholic, with some Mennonite, Mormon, and other Protestant minorities.

Culture

Paraguayans' cultural ancestry can be traced to the extensive intermarriage among the original male Spanish settlers and female Guaraní brides. Paraguayan culture therefore is a fusion of two cultures and traditions. More than 90 percent of Paraguayans are mestizos, and this makes Paraguay one of the most homogeneous countries in Latin America. A characteristic of this cultural fusion is the extensive bilingualism present to this day: more than 80 percent of Paraguayans speak both Spanish and the indigenous language, Guaraní. Jopara, a mixture of Guaraní and Spanish, is also widely spoken.

Landscape in the Gran Chaco, Paraguay

This cultural fusion is expressed in arts such as embroidery and lace making. The music, which consists of lilting polkas, bouncy galopas, and languid guaranías is played on the native harp.

Cuisine

Paraguay's culinary heritage is also deeply influenced by this cultural fusion. Several popular dishes contain mandioca, a local staple crop similar to the yuca root found in the Southwestern United States and Mexico, and other indigenous ingredients. A popular dish is sopa paraguaya, similar to a thick corn bread. Another notable food is chipa, a bagel-like bread made from cornmeal, mandioca, and cheese. Many other dishes consists of different kinds of cheeses, onions, bell peppers, cottage cheese, yellow cornmeal, milk, seasonings, butter, eggs, and fresh corn kernels.

Main Catholic chapel in Concepción

Arts

The 1950s and 1960s saw the flowering of a new generation of Paraguayan novelists and poets such as José Ricardo Mazó, Roque Vallejos, and Nobel Prize nominee Augusto Roa Bastos. Several Paraguayan films have been made.

There is a fairly high degree of mobility between classes, and even the poorest peasant displays a strong degree of personal pride. Social life revolves largely around an extended family of parents, children and blood relations as well as godparents. The Paraguayans' chief loyalty is to their family, and it, in turn, is their haven and support. Family interests determine to a large extent which political party they will join, whom they will marry, what sort of job they will get, whether they will win a lawsuit, and—in some cases—whether they would be wise to emigrate for a time. Even so, they are very heartwarming and open to tourists and foreigners.

Inside the family, conservative values predominate. In lower classes, godparents have a special relationship to the family, since usually they are chosen because of their favorable social position, in order to provide extra security for the children. Particular respect is owed them, in return for which the family can expect protection and patronage. In higher classes, however, godparents are usually family members or family friends; being chosen is more of an honor than a serious commitment.

Social issues

Paraguay is still a poor and unequal society. Various poverty estimates suggest that between one-third and one-half of the population is poor. In rural areas, 41.2 percent of the people lack a monthly income to cover basic necessities, whereas in urban centers this figure is 27.6 percent. The top 10 percent of the population holds 43.8 percent of the national income, while the lowest 10 percent has only 0.5 percent. The economic recession has worsened income inequality, notably in the rural areas. Land concentration in the Paraguayan countryside is one of the highest in the globe: 10% of the population controls 66% of the land, while 30% of the rural people are landless. This inequality has caused many tensions between the landless and elites.

The World Bank has helped the Paraguayan government in tackling overall reduction of Paraguay's maternal and infant mortality. The Mother and Child Basic Health Insurance Project aimed at contributing to reducing mortality by increasing the use of selected life-saving services included in the country's Mother and Child Basic Health Insurance Program (MCBI) by women of child-bearing age, and children under age six in selected areas. To this end, the project also targeted at improving the quality and efficiency of the health service network within certain areas, in addition to increasing the Ministry of Public Health and Social Welfare's (MSPBS) management capacity.

Further reading

• Sandra Bao, Ben Greensfelder and Carolyn Hubbard, Lonely Planet Guide: Argentina, Uruguay and Paraguay

External links

• (Spanish) National Department of Tourism
• (Spanish) Ministry of Finance with economic and Government information, available also in english
• (Spanish) Tourism in Paraguay
• Encyclopaedia Britannica Paraguay Complete guide to Paraguay's history and culture
• CIA - The World Factbook: Paraguay
• Paraguay Convention & Visitor's Bureau

Newspapers

• (Spanish) ABC Color
• (Spanish) Última Hora
• (Spanish) La Nación
• This article is based on a translation of an article from the German Wikipedia. Rundschau

Online media

• (Spanish) Ciudad del Este Online Newspaper.
• (Spanish) Jakueke News Portal—Independent Media.
• (Spanish) Neike Online Newspaper.
• (Spanish) Portal Paraguayo de Noticias (Paraguayan News Portal).

Search engines

• Yagua - Paraguay Main Search Engine

Other

• Paraguay main cities satellite views
• Paraguay.com Paraguay Resource Site. Culture, History, Arts, Geography and more.
• (Spanish) The history of Paraguay Paraguay's history

Geographic locale

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