Paraguay

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Republic of Paraguay República del Paraguay Tetã Paraguái
Flag Coat of arms
Motto: Paz y justicia  (Spanish) "Peace and justice"
Anthem: Paraguayos, República o Muerte  (Spanish) "Paraguayans, Republic or Death"
Capital (and largest city)		Asunción 25°16′S 57°40′W / 25.267°S 57.667°W / -25.267; -57.667
Official languages		Spanish Guaraní [1]
Demonym		Paraguayan
Government		Constitutional presidential republic
-	President	Fernando Lugo
-	Vice President	Federico Franco
Independence		from Spain
-	Declared	May 14, 1811
Area
-	Total	406,752 km2 (59th) 157,048 sq mi
-	Water (%)	2.3
Population
-	July 2005 estimate	6,158,000 (101st)
-	Density	15/km2 (192n) 39/sq mi
GDP (PPP)		2007 estimate
-	Total	$27.207 billion[2]
-	Per capita	$4,509[2]
GDP (nominal)		2007 estimate
-	Total	$11.954 billion[2]
-	Per capita	$1,981[2]
Gini (2002)		57.8 (high)
HDI (2007)		▼ 0.755 (medium) (95th)
Currency		Guaraní (PYG)
Time zone		(UTC-4)
-	Summer (DST)	(UTC-3)
Drives on the		right
Internet TLD		.py
Calling code		595

Paraguay, officially the Republic of Paraguay (Spanish: República del Paraguay Spanish pronunciation: [reˈpuβlika ðel paɾaˈɣwai]; Guaraní: Tetã Paraguái), is one of the only two landlocked countries in South America (along with Bolivia). It lies on both banks of the Paraguay River and is bordered by Argentina to the south and southwest, Brazil to the east and northeast, and Bolivia to the northwest. Due to its central location in South America, the country is sometimes referred to as Corazón de América — Heart of America.^[3]

Contents 1 Etymology 2 History 3 Politics 3.1 Politics in 1970s 3.2 Law 4 Departments and districts 5 Geography 6 Economy 7 Demographics 7.1 Religion 7.2 Immigration 8 Social issues 9 International rankings 10 See also 11 Further reading 12 References 13 External links

[edit] Etymology

The country is named for a river that runs almost right through the middle of it, from north to south. There are at least four versions for the origin of the river's name:

The literal translation from Guaraní is Para = great river or sea; Gua = from or belonging to or place; Y = water or river or lake. This could lead to:

• "Water or river belonging to the sea" (the Atlantic Ocean).
• "Water or river that belongs to a great river" (the Paraná River).
• "Water or river that comes from a sea" or "water or river from the place where the sea is" (the Pantanal wetland).

[edit] History

Main article: History of Paraguay

Pre-Columbian society in the wooded, fertile region which is now present-day Paraguay consisted of seminomadic, Guarani-speaking tribes, who were recognized for their fierce warrior traditions. 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 y Espinoza. 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 the expulsion of the Jesuits by the Spanish crown in 1767. Paraguay declared its independence after overthrowing the local Spanish administration 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:

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, Uruguay, Brazil, Bolivia, Europe, or North America. Both the Colorado Party and Liberal Party maintain distinct official versions of Paraguayan history. During the pillaging of Asuncion Saqueo de Asunción in 1869, the Brazilian Imperial Army ransacked and relocated the Paraguayan National Archives to Rio de Janeiro where they have been kept secret, making Colonial and early National Period history difficult to study.

Leftist former bishop Fernando Lugo achieved a historic victory in Paraguay's presidential election in April 2008, defeating the ruling party candidate and ending 61 years of conservative rule. Lugo won with nearly 41 percent of the vote compared to almost 31 percent for Blanca Ovelar of the Colorado party.^[4]

[edit] Politics

Paraguay is a representative democratic republic, whereby the President of Paraguay is both head of state and head of government, and of a 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.

[edit] Politics in 1970s

After World War II, politics became particularly unstable with several political parties fighting for power in the late 1940s, which most notably led to the Paraguayan civil war of 1947.^[5] A series of unstable governments ensued until the establishment in 1954 of the stable regime of Alfredo Stroessner, who remained in office for more than three decades. Paraguay modernized to some extent under Alfredo Stroessner's regime, though his rule was marked by extensive human rights abuses. ^[6]

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 Domingo 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 sixth 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.

Paraguay was 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.

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

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.^[7]

[edit] Law

Paraguay's legal system is based on Roman law, Argentine codes, and French codes.^{[citation needed]} 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.

[edit] Departments and districts

Main articles: Departments of Paraguay and Districts of Paraguay

Paraguay consists of seventeen departments and one capital district (distrito capital): These are, with their capitals indicated:

Name Capital 1 Alto Paraguay Fuerte Olimpo 2 Alto Paraná Ciudad del Este 3 Amambay Pedro Juan Caballero    4 Distrito Capital    Asunción 5 Boquerón Filadelfia 6 Caaguazú Coronel Oviedo 7 Caazapá Caazapá 8 Canindeyú Salto del Guairá 9 Central Areguá

Name Capital 10 Concepción Concepción 11 Cordillera Caacupé 12 Guairá Villarrica 13 Itapúa Encarnación 14 Misiones San Juan Bautista    15 Ñeembucú Pilar 16 Paraguarí Paraguarí 17 Presidente Hayes    Villa Hayes 18 San Pedro San Pedro

The departments are further divided into districts (distritos).

Largest cities 2002 (from www.citypopulation.de)

• Asunción 512,000
• Ciudad del Este 222,000
• San Lorenzo 204,000
• Luque 171,000
• Capiatá 154,000
• Lambaré 120,000
• Fernando de la Mora 114,000
• Limpio 73,000
• Ñemby 72,000
• Encarnación 67,000

Projected, estimate 2027

• Ciudad del Este 1,100,000
• San Lorenzo 725,000
• Luque 684,000
• Capiatá 616,000
• Asunción 538,000
• Limpio 292,000
• Ñemby 288,000
• Mariano Roque Alonso 261,000
• Lambaré 193,000
• Fernando de la Mora 184,000

[edit] Geography

Main article: Geography 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 all the electricity required by Paraguay. Because Paraguay co-owns Itaipu Dam, they have the right to use 50% of electricity generated.^{[citation needed]} Because they use less than 10% of that electricity produced, they sell the rest back to Brazil. Another large hydroelectric power plant on the Paraná River is Yacyretá, shared by Paraguay and Argentina.

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.^{[citation needed]}

[edit] Economy

Main article: Economy of Paraguay

Paraguay is a developing country with a 2005 Human Development Index score of 0.755.^[8] It ranks as the second poorest country in South America with a 2007 GDP per capita of US$4,000. Approximately 2.1 million, or 35%, of its total population is poor and approximately 1 million, or 15.9%, are unemployed.^[9] However, Asuncion in Paraguay is ranked as the world's least expensive city to live in for the fifth year running.^[10]

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 23.Aug.2008 Financial Times article about Paraguay^[11] states “Take record commodities prices, add a subtropical climate that gives farmers five harvests every 24 months and vast tracts of virgin arable land and it is no surprise that tiny Paraguay has emerged as one of the big beneficiaries of the global food crisis” Such perception may put Paraguay into the focus of international agro producers. Reuters India reports that "Some of India's top vegetable oil firms plan to lease or buy land in Paraguay."^[12] Paraguay belongs to the countries that allow foreign land ownership of any size. Only nationals of Brazil, Argentina and Bolivia can not own land in specific frontier regions. Some media reports end of 2008, stating that foreign land purchases will be restricted, were wrong. They were based on a misunderstanding of that Brazilians/frontier-regions-reglementations.

A large percentage of the population derive their living from agricultural activity, 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% of the GDP derives from trade and exports to Brazil and Argentina.^[13]

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.^[14]

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.^[15]

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%). Those vulnerabilities, combined with inequality explain why poverty currently affects 40% of the population.^[16]

Paraguay’s economy (GDP) grew by 6,4%^[17] in 2007 and 5,8%^[18] in 2008, fastest growing sector being agriculture with 10,5% growth.

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 neighbors. In the "Shareholder Suits Index" category, Paraguay obtained 6 points, in contrast with 5.8 for its neighbors and 6.6 for OECD countries. The comprehensive "Investor Protection Index" attributed 5.7 to Paraguay, 5.1 to its neighbors and 6.0 to OECD countries on average.^[19]

[edit] Demographics

Main article: Demographics of Paraguay

According to the CIA World Factbook, Paraguay has a population of 6,669,086; 95% of which are mestizo (mixed Spanish and Amerindian) and 5% are "other".^[9] One trace of the original Guaraní culture that has endured is the Guaraní language, spoken by up to 90% of the population in the country.^[20] Small groups of ethnic Italians, Germans, Japanese, Koreans, Chinese, Arabs, Ukrainians, Brazilians, and Argentines settled in Paraguay and they have to an extent retained their respective languages and culture, particularly the Brazilians who represent the largest number. There are also an estimated 63,000 Afro-Paraguayans, or 1% of the population.^[21]

About 90% of all Paraguayans speak Guarani as their native language. Guaraní and Spanish are both official languages. Spanish is spoken by just about 9% percent.

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, Asunción, that accounts for 10% of the country's population. The Gran Chaco region, which includes the Alto Paraguay, Boquerón and Presidente Hayes Department, and which accounts for about 60% of the territory, is home to less than 2% of the population.

[edit] Religion

Main article – Religion in Paraguay

According to the 2002 census, 89.6% of the population is Roman Catholic, 6.2% is evangelical Christian, 1.1% is other Christian, 0.6% practice indigenous religions and 0.3 profess non-Christian religions.^[22]

A US State Department report on Religious Freedom names Catholic, evangelical Christian, mainline Protestant, Jewish (Orthodox, Conservative, and Reform), Church of Jesus Christ of Latter-day Saints (Mormon), and Baha'i as prominent religious groups and also mentions a large Muslim community in Alto Paraná as a result of middle-eastern immigration, especially from Lebanon and also the Mennonite community in Boquerón.^[22]

The Church of Jesus Christ of Latter-day Saints (LDS, Mormon), claims more than 66,000 members in Paraguay and that its membership has doubled in the past five years.^[23]

[edit] Immigration

European and Middle Eastern immigrants began making their way to Paraguay in the decades following the War of the Triple Alliance. The government pursued a pro-immigration policy in an effort to increase population. Government records indicated that approximately 12,000 immigrants entered the port of Asunción between 1882 and 1907, of that total, almost 9,000 came from Italy, Germany, France, and Spain. Migrants also arrived from neighboring Latin American countries, especially Argentina.^[24]

In addition, official records gave an improvise sense of the number of Brazilians who had come to the country. According to the 1982 census, there were 99,000 Brazilians residing in Paraguay. Most analysts discounted this figure, however, and contended that between 300,000 and 350,000 Brazilians lived in the eastern border region. Analysts also rejected government figures on the number of immigrants from South Korea, Hong Kong, and Taiwan. The 1982 census reported that there were 2,700 Koreans in Paraguay, along with another 1,100 non-Japanese or non-Korean Asian immigrants. The actual number of Koreans and ethnic Chinese, however, was believed to be between 30,000 and 50,000. Virtually all Koreans and ethnic Chinese lived in Ciudad del Este or Asunción and played a major role in the importation and sale of electronic goods manufactured in Asia.^[24]

[edit] Social issues

Paraguay is a poor and unequal society. Various poverty estimates suggest that between one in every three Paraguayans (World Bank Poverty Assessment) to half of the population is poor (2003 Census Bureau Household Survey). In rural areas, 41.20% of the people lack a monthly income to cover basic necessities, whereas in urban centers this figure is 27.6%. The top 10% of the population holds 43.8% of the national income, while the lowest 10% has only 0.5%. The economic recession has worsened income inequality, notably in the rural areas, where the Gini Index has risen from 0.56 in 1995 to 0.66 in 1999. Similarly, 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.^[25] This inequality has caused a great deal of tensions between the landless and elites.^[26]

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.^[27]

[edit] International rankings

Organization	Survey	Ranking
Heritage Foundation/The Wall Street Journal	Index of Economic Freedom, 2007	99 out of 157[28]
The Economist	Worldwide Quality of Life Index, 2005	???
The Economist	Democracy Index, 2006	71 out of 167
Reporters Without Borders	Worldwide Press Freedom Index, 2006	82 out of 168
Transparency International	Corruption Perceptions Index, 2006	111 out of 163
United Nations Development Programme	Human Development Index	95 out of 177

[edit] See also

Main article: List of Paraguay-related topics

[edit] Further reading

• Abdou, Selim The Jesuit Republic of the Guaranis 1609-1768, 1997
• Aren, Richard Genocide in Paraguay, 1976
• Attenborough, David Zoo Quest in Paraguay, 1950
• Barret, William E. Woman on Horseback: the Biography of Francisco Lopez and Eliza Lynch, 1938
• Brodksy, Alvin Madame Lynch and Friend, 2075
• Carver, Robert Paradise With Serpents: Travels in the Lost World of Paraguay, 2007
• Cunnighame-Graham, Robert Bontine A Vanished Arcadia: Being Some Account of the Jesuits in Paraguay, 1607 to 1767
• Durrell, Gerald The Drunken Forest, 1956
• Gimlette, John At the Tomb of the Inflatable Pig: Travels Through Paraguay, 2003
• Kerr, John A Naturalist in the Chaco, 1950
• Lewis, Paul Paraguay Under Stoessner, 1980
• Macintyre, Ben Forgotten Fatherland: The Search for Elizabeth Nietzsche, 1993
• Meyer, Gordon The River and the People, 1965
• Rees, Sián The Shadow of Elisa Lynch, 2003
• Souter, Gavin A Peculiar People: the Australians in Paraguay, 1968
• Whitehead, Anne Paradise Mislaid: In Search of the Australian Tribe of Paraguay, 1997

[edit] References

[edit] External links

Government

• Chief of State and Cabinet Members
• (Spanish) National Department of Tourism
• (Spanish) Ministry of Finance with economic and Government information, available also in English

General information

• Paraguay from the Encyclopaedia Britannica
• Paraguay entry at The World Factbook
• Paraguay at UCB Libraries GovPubs
• Paraguay at the Open Directory Project
• Wikimedia Atlas of Paraguay

News media

• (Spanish) ABC Color
• (Spanish) Última Hora
• (Spanish) La Nación

Travel

• Paraguay Convention & Visitor's Bureau
• (Spanish) Tourism in Paraguay
• Paraguay travel guide from Wikitravel

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