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

Paraguay is divided by the Paraguay River 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.

This region is home to less than 5 percent of the population, yet covers about 60 percent of the country. It is an arid flat plain formed from sediment washing off the eastern slopes of the Andes that stretches across northern Argentina, southeastern Bolivia, and western Paraguay. The soil has a high salt content and is unsuited to agriculture. In the rainy season, the rivers overflow and flood the land, creating swamps. The wildlife, including sixty known species of snakes, has adapted to the harsh conditions.

The eastern region has a rainfall of sixty inches per year and is more fertile, with exotic flowers, subtropical forests, rolling hills, and low mountains similar to the foothills of the Andes. The highest point is only 2,762 feet (842 m) above sea level. Most of the country is less than 1,000 feet (300 m) above sea level. With an area of 157,048 square miles (406,752 sq. km), Paraguay is about the size of the U.S. state of California.

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Map of Paraguay

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

Flora and fauna

About 500 species of hardwood trees grow in Paraguay, as well as eucalyptus, cedar, and yerba maté, the last a relative of the holly that is used to make tea.

The Chaco has an abundance of wildlife. Mammals include jaguars, ocelots, peccaries, deer, giant anteaters, armadillos, tapirs, coatimundis, and capybaras. Reptiles include the poisonous coral snake and the anaconda. Birds range in size from miniature hummingbirds to the rhea, related to ostriches, as well as a number of water birds that live in the marshlands in the southwest. At least 238 fish species live in Paraguay's rivers.

History

Paraguay had been home to native tribes, including the Guaraní, for thousands of years before Europeans first arrived in the area in the early sixteenth century. They fished, hunted, gathered wild fruit and vegetables, and grew corn, manioc, and other crops.

While Paraguay was of little attraction initially because it did not offer gold and silver, the Spanish passed through it on their way to Peru. 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 Jesuit missions and settlements in South America in the eighteenth century. Paraguay declared its independence after overthrowing the local Spanish authorities on May 14, 1811.

Three successive dictators for life ruled until 1870. The third one declared war on Brazil in 1864; when he moved troops through Argentina without permission, Argentina and then Uruguay joined forces with Brazil and the alliance of three nations defeated Paraguay after five years of heavy fighting.

The War of the Triple Alliance had a devastating, long-term effect on Paraguay. In addition to losing 55,000 square miles (142,450 sq km) of productive territory in the southeast and northeast, the government had to sell many of its assets to pay reparations. Nearly half the population was lost, leaving a population of mostly women and children.

After a period of occupation by the victors, two groups emerged that later became the Colorado and Liberal Parties, which competed for power. The Colorados ruled until 1904, the Liberals for the next thirty-two years, but all the governments were authoritarian.

In the Chaco War, fought with Bolivia from 1932 to 1935, Bolivia was defeated and Paraguay re-established sovereignty over the Chaco region. Dissatisfaction with how the government had run the war led to a military takeover in the February Revolution of 1936. More years of instability followed, until civil war broke out in 1946. Alfredo Stroessner took over in 1954, and though he set up the trappings of a democracy, he ruled as a virtual dictator until 1989. The constitution was amended in 1992 to prevent presidents from running for consecutive terms. Other political and economic reforms were instituted.

Paraguay became progressively isolated from the world community.

On February 3, 1989, Stroessner was overthrown in a military coup headed by Gen. Andres Rodriguez. Rodriguez, as the Colorado Party candidate, easily won the presidency in elections held that May, and the Colorado Party dominated the Congress. In 1991 municipal elections, however, opposition candidates won several major urban centers, including Asuncion. As president, Rodriguez instituted political, legal, and economic reforms and initiated a rapprochement with the international community.

The June 1992 constitution established a democratic system of government and dramatically improved protection of fundamental rights. In May 1993, Colorado Party candidate Juan Carlos Wasmosy was elected as Paraguay's first civilian president in almost 40 years in what international observers deemed fair and free elections. The newly elected majority-opposition Congress quickly demonstrated its independence from the executive by rescinding legislation passed by the previous Colorado-dominated Congress. With support from the United States, the Organization of American States, and other countries in the region, the Paraguayan people rejected an April 1996 attempt by then-Army Chief Gen. Lino Oviedo to oust President Wasmosy, taking an important step to strengthen democracy.

Oviedo became the Colorado candidate for president in the 1998 election, but when the Supreme Court upheld in April his conviction on charges related to the 1996 coup attempt, he was not allowed to run and remained in confinement. His running mate, Raul Cubas Grau, became the Colorado Party's candidate and was elected in May. The assassination of Vice-President Luis Maria Argana and the killing of eight student anti-government demonstrators, allegedly carried out by Oviedo supporters, led to Cubas’ resignation in March 1999. The President of the Senate, Luis Gonzalez Macchi, assumed the presidency and completed Cubas’ term. Gonzalez Macchi offered cabinet positions in his government to senior representatives of all three political parties in an attempt to create a coalition government that proved short-lived. Gonzalez Macchi’s government suffered many allegations of corruption, and Gonzalez himself was found not guilty in a Senate impeachment trial involving corruption and mismanagement charges in February 2003.

In April 2003, Colorado candidate Nicanor Duarte Frutos was elected president. He was inaugurated on August 15. Duarte’s administration has established a mixed record on attacking corruption and improving the quality of management. In his first year, Duarte worked constructively with an opposition-controlled Congress, removing six Supreme Court justices suspected of corruption from office and enacting major tax reforms. While Duarte remains the most dominant political figure, he faced stiff opposition mid-term from the opposition strongly opposed to his efforts to amend the Constitution to allow him to run for reelection. Macroeconomic performance has improved significantly under the Duarte administration, with inflation falling significantly, and the government clearing its arrears with international creditors. Unemployment remains stubbornly high and the living standard of most households has not improved. The administration has placed a strong emphasis on participating in international institutions and has used diplomacy to promote the opening of international markets to Paraguayan products. In June 2004, Oviedo returned to Paraguay from exile in Brazil and was imprisoned for his 1996 coup-plotting conviction.

GOVERNMENT AND POLITICAL CONDITIONS Paraguay's highly centralized government was fundamentally changed by the 1992 constitution, which provides for a division of powers. The president, popularly elected for a 5-year term, appoints a cabinet. The bicameral Congress consists of an 80-member Chamber of Deputies and a 45-member Senate, elected concurrently with the president through a proportional representation system. Deputies are elected by department and senators are elected nationwide. Paraguay's highest judicial body is the Supreme Court. A popularly elected governor heads each of Paraguay’s 17 departments.

Politics

Paraguay's politics takes place in a framework of a presidential representative democratic republic, whereby the president 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.

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.

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 percent of the people are mestizos of mixed Spanish and Guaraní Indian descent. The remainder are white (31%), unmixed Amerindian (1%), Asian (Chinese, Taiwanese and Japanese Okinawan) (2%). One trace of the original Guaraní culture that endures is the Guaraní language, spoken by 94 percent of the population.

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 to some extent they have retained their respective languages and culture, particularly the Brazilians.

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

The country is predominantly Roman Catholic (90 percent), 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
• Buckman, Robert T. 2006. Latin America. World Today Series. Harpers Ferry, WV: Stryker-Post Publications. ISBN 1887985751

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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